Economic Objectives (II) – Tribune Online

It will be seen, therefore, that the failure to maintain a permanent state of full employment in the countries of the western bloc is due to the capitalist system under which these countries operate rather than to the unattainability of the policy itself. In communist countries, by contrast, the attainment of full employment is a permanent feature of the people’s economic life.

Some economists of the western world hold the view that a minimum reserve of labour, indicated by an unemployment rate of between 2 and 3 per cent in Britain for instance, or between 5 and 8 per cent in America for instance, is desirable. In one of the footnotes to p. 127 of his Full Employment In a Free Society, Beveridge quotes the view of’ a group of some of America’s best known economists and leaders in industry, agriculture, finance, and politics…..that a condition of full employment must be considered to have arrived when 3 million persons were still unemployed’ in the United States of America! This view was expressed in 1939. It can be taken as still representing American stand-point on full employment because, today, the irreducible minimum of reserved labour in the United States is about 9 million unemployed persons.

There is no doubt that the policy of reserved labour eminently suits the capitalist system and the capitalists, notwithstanding their protestation to the contrary, and their brilliant rationalization of the policy. It makes possible the excess of supply of labour over the demand for it, with inevitable depression in wages.

Because of this, and from what I have already said, it is clear that I strongly dissent from the policy of reserved labour. In the people’s republic of Nigeria, what is permissible, for the reasons already given, is temporary and transient unemployment only. That is to say that such unemployment as eventuates must never be allowed to be permanent or irreducible; it should be such as is necessitated by factors which are inevitable but temporary in nature, such for example as seasonal, frictional, and structural factors. What this means, in practice, is that the unemployed persons, at any given time, must be on their way to other jobs which are visibly in sight. In such circumstance as this, the hope of the event will be regarded by the unemployed persons and others as being as good as the event itself; and the morale and self-respect of the temporarily unemployed persons will thereby be sustained.

The phenomenon of underemployment is not as serious and dangerous, economically, psychologically, and politically, as that of unemployment. This is so because the generality of people believe, quite rightly, that half a loaf is better than no bread at all. Nonetheless, under-employment deserves our attention for one important reason.

Its existence is evidence of the underutilization of the country’s natural and manpower resources which it is our aim and our duty to eliminate. Besides, if involuntary underemployment becomes chronic and secular, it is bound to lead to communal disharmony; and to inter-ethnic hostility, if it prevails more in one ethnic group than in another.

There is an important question on full employment which also deserves consideration. At what age does employment begin, and at what agedoes it end? It is my view that full-time employment should begin at the age of 15 and end between the ages of 65 and 75. In this connection, it should be a cardinal policy of the people’s republic of Nigeria that all persons between the ages of 15 and 25 should either be pursuing full-time courses in secondary schools and higher institutions of learning, or earning a living.

Before we embark on a policy of full employment, and in order to maintain it after its introduction, five courses of action must be pursued.

Firstly, there must be a comprehensive survey of unemployed and underemployed persons throughout the country. Their number and their distribution as to age, sex, vocation, and region (that is, State by State) must be ascertained with the utmost degree of accuracy. There is, at present, too much guesswork on this very important matter. The most authoritative figures on the subject are those of the

Food and Agriculture Organisation, (FAa). In its Agricultural Development in Nigeria 1965-1980, the FAa gives the figure of our potential labour force as 30.6 millions. Out of these, 25.1 millions are said to be economically active, whilst only 14.45 millions are economically effective. This is as much as saying that 5.5 millions of our potential labour force are economically inactive and not in gainful employment, because they are students, housewives, suffering from infirmities, indolent, and willing to work but unable to secure employment. On the other hand, we have it on the authority of Dr. T. M. Yesufu in his Labour in the Nigerian Economy that the number of our unemployed is 600,000. The figures given by the Federal Department of Statistics are far from being comprehensive and, therefore, unreliable.

Again, from the FAO figures, it would appear that a little over ten million of our people are underemployed, that is, economically ineffective. On this point, the Federal Department of Statistics and other interested authorities are completely silent.

The minimum age of entering into the labour market having been given as 15, it should be easy to calculate our potential labour force from our census figures. But since the last population count was, widely believed to have been inflated for political reasons, it becomes necessary, for our present purposes, for well-known and well-tested demographic formulae to be employed, for ascertaining the total of our potential labour force.

From all these accounts, it is quite clear that a survey is indispensable in order to ascertain, with dependable degree of accuracy, the magnitude of the problem we are undertaking to solve. For the purpose of the survey, it is suggested that a special team of experts should be commissioned. Thereafter, it should be the responsibility of the Federal Department of Statistics to keep up-to-date the data obtained as a result of the survey.

Secondly, we must conduct an inquiry with a view to determining and declaring a minimum standard of living which must be guaranteed to every Nigerian citizen in a state of full employment.

CONTINUES NEXT WEEK

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE