Writer:
Jemima
Montahin. Session: 2018-19,
Department of Human Resource Management, University of Chittagong
Economic growth is crucial for economic growth. Employment creates income. Income creates savings. Savings encourage investment. More investment enhances economic growth. More people are employed; they can earn more to spend purchasing goods and services. It helps to grow the business. More business creates more jobs. in turns unemployment problem will be decreasing. Income increases the purchasing power of people. People earn more; they can demand more quality products that increase the growth of the business. Businessman earns more from their business. The more business increases, the more government earns from the business. Government can invest that income in infrastructure development such as roads, industries, schools, colleges, universities, power, energy, etc. Infrastructure development attracts investors to invest money in business. Now what are economic growth and employment? What is the relationship between economic growth and employment?
Economic
growth is the growth that is related to increasing the per capita income and
enhancing the quality and quantity of goods and services. On the other hand,
employment is the agreement between two parties that one party gives labor and
the other party gives money in exchange. For example, most people are unemployed;
they cannot earn money to fulfill their basic needs. Savings and investment
rates are not better. Government cannot invest more money to invest in
infrastructure development. Business is not a much better position. Job is not
much compared to the population. As a result, people cannot contribute to
economic development as well as economic growth.
The link between economic growth and
employment
Economic growth and employment are strongly related. Growth is increasing, businesses are enhancing, and businesses are starting up which can create more job opportunities. In turn, the unemployment rate decreased. Countries with lower unemployment rates have greater economic growth than those that have higher unemployment rates. Technology has a greater influence on economic growth as well as job creation. Technological use decreases the cost of production and efficiency. Higher economic countries use technology in industries. Technology makes the business attractive. As a result, technology creates productive jobs.
When the country is economically strong. They can organize more training and development for their employees. Training is essential for increasing skills and competencies. For this result, developing countries have qualified employees. Qualified employees are crucial for producing quality goods and services. It is a big problem for developing countries. They do not have qualified employees. Therefore, product quality is not much better. Better economic growth creates entrepreneurs. Entrepreneur brings innovation to product and service. They create more jobs for people. As a result, they contribute to economic growth. For increasing jobs, there is no better option than increasing economic growth. So government and policymakers can take better policies to encourage business such as reducing taxes, investing more in infrastructures, or increasing access to finance.
