Explain the factors which influence the level of employment in your country.
Explanation
The factors which influence the level of employment in my country, Nigeria are:
(i) The weather affects seasonal employment of labour in agriculture, tourism and construction.
(ii) Increasing public and private expenditure can lead to the creation of more jobs.
(iii) Lending policies of financial and other institutions give manufacturers access to credit to enable them expand their businesses and therefore, create more jobs.
(iv) Improved foreign exchange earning capacity of the economy leads to the availability of foreign exchange thereby improving economic activity and employment level. (v) Trade union activities: High wage rates demanded by labour unions create unemploy-ment as manufacturers have to lay off workers in order to reduce the over head costs.
(vi) Entrepreneurial factors: The number of entrepreneurs to create jobs also determines the employment level.
(vii) Appropriate pricing policy as pursued by the government helps to keep farmers in employment.
(viii) Investment climate: The creation of enabling environment by the government will encourage foreign and local investors to create jobs and, therefore, reduce the level of unemployment in the country.
(ix) Government wage policy can affect employment as in the case of the recently promulgated minimum wage policy which has led to job rationalization, in both the public and private sectors.
(x) Official retirement age affects employment level.The higher the official retirement age, the lower the unemployment level and vice-versa.