Growing unemployment rate in Papua New Guinea
News that matter in Papua New Guinea
Growing unemployment rate in Papua New Guinea
(Employment stagnant since 2014)
PORT MORESBY: Employment in Papua New Guinea (PNG) has remained
stagnant since 2014 with millions of unemployed looking for jobs.
The formal job market currently can only accommodate
between 400,000 and 500,000, Institute of National Affairs executive director
Paul Barker says.
“As more young people enter the job market this year
after graduating from tertiary institutions and schools, the chances of securing
formal employment is slim.
“Employment had remained stagnant despite the increase
in potential workers coming out of educations institutions,” he added.
Read on for more details as published by The National:
Hard to get
jobs
January 27, 2022The
NationalMain Stories
By DALE LUMA
MILLIONS of eligible workers around the country are looking for jobs in
the formal sector, which currently can only accommodate between 400,000 and
500,000, an economist says.
As more young people enter the job market this year after graduating from
tertiary institutions and schools, the chances of securing formal employment is
slim.
Institute of National Affairs executive director Paul Barker told The
National that formal employment in the country had been stagnant since
2014, despite the increase in potential workers coming out of education
institutions.
He said the country had an eligible workforce of between three million and four
million adults (over the age of 18) not in fulltime employment, with between
400,000 and 500,000 jobs in “a small formal sector”.
He said the majority of this segment of society sustained their livelihoods
through the rural semi-subsistence sector or urban informal economy.
Some well-educated individuals end up making a living in the informal sector,
selling betel-nut and second-hand clothes on the streets.
“Since about 2014, the formal sector employment has been largely relatively
stagnant, despite the considerable annual increase in the potential workforce
coming out of the schools and colleges, at different grades,” Barker said.
“Some industries have shown greater growth than others during this period,
including mining in 2018-2019, before the Coronavirus (Covid-19) pandemic
dragged down oil, gas and copper prices.
“The Porgera mine (employing around 3,600 fulltime workers and more in supply
contracts and the informal economy) was closed in April 2020.”
Barker said that between 2018 and 2019, the country saw an economic recovery
following the Southern Highlands and Hela earthquake, with stronger commodity
prices.
But the Covid-19 struck, closing much of the tourism, hospitality and airline
and travel industries and restricted other industries with reduced demand and
constrained shipping.
“Recovery occurred in some markets in 2021, with improved demand and commodity
prices (partly driven by temporary constraints in global supply chains), and by
the opening up of economies with the partial lifting of travel restrictions,”
he said.
“This generated a boost in employment again around the world, which is being
felt modestly in PNG as well, even though with its low vaccination rate, PNG
remains largely off the beaten track for tourism.”
Barker said if stronger commodity prices were sustained, including in
agricultural crops such as coffee and vegetable oils, it would translate into
some boost in production and marketing over time with seasonal agronomic and
related factors also being crucial.
“Policy and political uncertainty and relatively high production and other
costs of business in PNG continue to undermine competitiveness and therefore
restrain domestic and foreign direct investment and employment generation which
one would expect to occur in PNG, considering the seemingly suitable conditions
here for agriculture, tourism and a range of other economic activities,” he
said.
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