Objectives
Explain the importance of human resources to the economy
Define terms and concepts Human resource Under-employment Unemployment Self-employment Brain drain
Identify factors that influence the quality of a country’s human resources (education / health)
Discuss impact of the brain drain on economic development
RESOURCES
What is a resource?
RESOURCE
Anything natural or physical which can be used to create wealth or improve the standard of living of people
Land, forests, water, animals, minerals, human beings
What are the main resources in the Caribbean?
The main resources in the Caribbean are:
Rich, fertile soil
Warm tropical waters (fish, tourism)
Mineral resources (petroleum, natural gas, asphalt, bauxite, gold, diamond, sand, gravel, gypsum, nickel, copper)
A skilled population (engineers, scientists, doctors, lawyers, farmers, musicians, artists, teachers)
What are the 2 main categories of resources?
Resources may be classified into two large groups:
Human
Physical
Objectives
To look at ways of developing the human resource of a country
To assess the role of the human resource in the development of a country
To look at the importance of developing the human resources of the country
Human Resources
Resource: anything natural or physical which can be used to create wealth or improve the standard of living of people
Human Resource: people and their various skills, talents and abilities
HUMAN RESOURCES
People and their various skills, talents and abilities
People use their skills to produce goods and services which help to maintain and improve the standard of living.
What are some of the goods and services people produce which help to maintain and improve the std of living?
Your family needs a variety of goods and services. Who provides these goods and services?
Your family needs a variety of goods and services. Who provides these goods and services?
People such as farmers, teachers, doctors, garbage collectors, engineers, scientists, authors, musicians, fishermen, carpenters, sports personalities…
Importance of the Human Resource
Seen in the utilization of a variety of skills to solve problems
Ways people use their skills to solve problems:
GREEN REVOLUTION: Scientists in 1950s developed hybrid varieties of seeds and plants to increase food production and solve food shortages
Doctors and scientists produced vaccinations several decades ago to eliminate diseases such as smallpox, poliomyelitis, typhoid, cholera, measles and yellow fever.
Ways people use their skills to solve problems:
Engineers developed high-rise buildings to accommodate housing needs of growing populations thereby conserving land for agriculture
Musicians, artists and authors use their skills, talents and abilities to entertain the world’s population thereby reducing stress and improving the quality of human life.
COMPUTER: developed to improve productivity
Developing the Human Resource
EDUCATION: human beings are born with innate skills, talents and abilities. Education aims at developing these to their fullest potential.
Education assists individuals to become productive members of society.
Levels of education
Kindergarten (3-5):
3 R’s, interpersonal skills
Primary (5-11):
Exposure to a broad-based curricula in preparation for entry to secondary school
All-round development
Secondary (11-19):
Further exposure to a broad-based curricula; followed by specialization for entry to the world of work or to pursue tertiary education
Tertiary (19+): further specialization
List some items / programmes on which government spends money in an effort to develop the human resource of T&T
Governments provide: Free primary education for all
Universal secondary education
Book grants and free meals
Free bus transport
Curricula suited to needs of society
Adult education programmes
Scholarships
Subsidized tertiary education (GATE, MUST, YTEPP, HELP etc)
Educational facilities/institutions
The government spends billions of dollars annually on education. Why?
IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in a population
Low levels of crime
Savings in foreign exchange
Government has more money to provide
social services
Fewer man-hours lost
through illness
IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in a population
Large variety of goods & services produced in
the country
Low levels of crime
Fewer goods and services imported
Savings in foreign exchange
Government has more money to provide
social services
Fewer man-hours lost
through illness
IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in a population
Large variety of goods & services produced in
the country
Large numbers of people in the labour
force being employed
Low levels of crime
Fewer goods and services imported
Savings in foreign exchange
Government receives more revenue from
taxation
Government has more money to provide
social services
Fewer man-hours lost
through illness
IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in a population
Large variety of goods & services produced in
the country
Large numbers of people in the labour
force being employed
High std of living in the country
Low levels of crime
Fewer goods and services imported
Savings in foreign exchange
Government receives more revenue from
taxation
Government has more money to provide
social services
People can afford nutritious meals and
proper housing
Fewer man-hours lost
through illness
IMPORTANCE OF HUMAN RESOURCES
Unskilled population
---- amount of goods & services produced in
the country
------ levels of employment
--- std of living in the country
---- levels of crime
---- level of imports
---- demand for foreign exchange
Government receives ---- revenue from
taxation
Government has ----money to provide
social services
People ---- afford nutritious meals and
proper housing
--- man-hours lost through
illness
Unskilled population
Small amount of goods & services produced in
the country
Low levels of employment
Low std of living in the country
High levels of crime
High level of imports
High demand for foreign exchange
Government receives very little revenue
from taxation
Government has very little money to
provide social services
People cannot afford nutritious meals and
proper housing
Many man-hours lost through
illness
DEVELOPING THE HUMAN RESOURCE
Discuss: “The future of the nation lies in the schoolbags of the children.” Dr. Eric Williams
Discuss: An educated, literate and skilled population is necessary for the progress of a country.
Educationby The Mighty Sparrow
Education, education, this is the foundation,
Our rising population needs sound education.
To be recognized everywhere you go,
You got to have your certificate to show.
To enjoy any kind of happiness,
Knowledge is the key to success.
Children go to school and learn well,
Other wise later on in life you going catch real hell.
For there is simply no room in this whole wide world,
For an uneducated little boy or girl.
Don’t allow idle companions to lead you astray,
To earn tomorrow you got to learn today.
What do students learn at school?
At school students learn:
To cooperate with others
To respect rules and laws
To become critical thinkers
To be creative
To solve problems
To become skilled in sports
To set goals
To become decision-makers
To lead healthy lifestyles
Morals and values
The benefits of hard work
Communication skills
Music
Drama
To obtain knowledge, skills and academic qualifications to enter the world of work
HEALTH
Health
In order to perform one’s duties, whether at home, at school, at work or play, a person must be healthy
Physical (strong bones and muscles, proper functioning of blood,
heart, lungs, kidneys, liver etc)
Mental (ability to act and behave intelligently, think rationally,
wisely, sensibly)
Emotional (ability to control anger, hatred, jealousy etc; proper
management of stress; ability to express feelings of love, happiness etc)
There is a direct relationship between a healthy nation and its productive capacities
Benefits of a healthy population
Students will perform well in school
Workers will be productive
Man-hours will not be lost due to illness
Government’s expenditure on health minimized
People will be creative, innovative and inventive
All sectors of the population will work co-operatively for national progress
Government’s expenditure on welfare will be small
Average life expectancy will increase
Provision of health care at hospitals/ health-centreswill be adequate
Government provides adequate health care for its citizens because of the many benefits derived from a healthy population
Maintains hospitals, health centres and mental institutions
Provides radiotherapy services
Immunizations/ vaccinations
Physiotherapy
Educating the population on ways to stay healthy
Provides facilities for sports and recreation
Garbage collection and disposal
Administering medication
Conducts research on cures for diseases
Provides ambulance services
Establishes a Food and Drug Division
Establishment of a Public Health Dept.
Provides safe drinking water
What are the 2 main types of health care?
Types of Health Care
Two types of health care:
Preventative (primary): systems that preventailments/diseases
Curative (secondary): aims to cure ailments/diseases
Classify the health measures on the following page into preventative and curative
TYPES OF HEALTH CARE
Preventative (Primary) Curative (Secondary)
1) Maintenance of hospitals, health centres and mental institutions
2) Provision of radiotherapy services
3) Provision of vaccinations/immunizations
4) Administering of physiotherapy
5) Educating the population on ways to stay healthy
6) Collection and disposal of garbage
7) Administering medication
8) Conducting research on cures for diseases
9) Provision of ambulance services
10) Establishment of a Food and Drugs Division
11) Establishment of a Public Health Department
12) Provision of safe drinking water
13) Provision of facilities for sports and recreation
Primary/Preventative
Education on importance of breast feeding
Education on constituents of a balanced diet
Provision of immunization/vaccination
Collection and proper disposal of garbage
Provision of facilities for sports/recreation
Provision of potable drinking water
Secondary / Curative
Maintenance of health centres and mental institutions that deal with curing ailments and diseases
Diagnosis of diseases and ailments
Administering medication
Corrective surgery
Radiotherapy
Physiotherapy
Therapeutic and psychiatric services
Recreation
Recreation is an important contributor to the well-being of an individual
Physically demanding job: mentally stimulating hobby (music, art, reading)
Sedentary job: physical activity such as sports
Religion
Religion develops an individual’s character and character is necessary for society to progress
Protection
A safe and crime-free society and an atmosphere of peace and security must exist if individuals are to achieve their highest potential.
Health, education, recreation and religion are not enough….
1. Which of the following do you consider to be most important in developing the human resource – education or religion? Justify your answer.
2. Write an essay entitled “Strengths and Weaknesses of the Education System of my Country”. Include ways of improving the education system.
3. Write an essay entitled “Health is Wealth”. Identify the provisions made for health in your country and indicate what can be done to improve the health system.
Summary
The human resource refers to people and their various skills, talents and abilities which they bring to the workplace
Education and health are very important factors in the development of human resources
The human resource of a country is important
The human resource has a critical role to play in the development of a country
THE WORLD OF WORK
The human resource is the most important resource of a nation
Investments in the human resource can ensure a nation’s self-sufficiency and sustainable development
Work benefits both the worker and the wider community:1. Work is self-fulfilling and gratifying
2. Earn income to provide basic necessities of life
3. Goods and services produced can improve the standard of living of the people
4. Self-sufficiency ( dependence on foreign g+s)
5. Surplus g+s produced generate foreign exchange
6. Dependency ratio lowered so gov’texpenditure on social welfare is reduced
Types of Workers Primary: Concerned with the
production/extraction of raw materials (agriculture, mining, fishing, hunting, logging)
Secondary: Concerned with the production of man-made goods or the processing of raw materials (manufacturing, food processing, handicraft)
Tertiary: Concerned with the provision of goods and services required by the primary and secondary sectors (banking, insurance, transport, education, medicine, communication, postal services)
Career Guidance
The process of helping people to choose a career that is related to their potentials, interests, needs and ambitions
Choosing a career:
Welder?
Farmer?
Lawyer?
Doctor?
Teacher?
Artist?
Seamstress?
Beautician?
Fisherman?
Garbage collector?
Photographer?
Computer?
Technician?
Mechanic?
Factors to consider in choosing a career
1. Choose a job related to your interests, hobbies and capabilities
2. Collect information on different careers: Levels of wages and salaries Hours of work Health and safety hazards of the job Distance from place of residence Recognition and status of the job Opportunities offered to use creativity, talents and
independence Opportunities for promotion Availability of apprenticeship programs and on-the-job
training to discover the demands of the job
Importance of choosing a career
Encourages people to realize their goals through careful consideration
Individuals will be able to perform at their best through their own choices
One finds self-fulfillment by engaging in activities which one likes
Stress levels will be minimized
Productivity will be high
Where can we get information on career trends?
Where can we get information?
Newspapers Internet Career guidance seminars organized by
different industries Career guidance is the process of helping
people to choose a career that is related to their potential, interests, needs and ambitions
Guidance officers in schools Books and magazines on career guidance Schools and other educational institutions Discussions with employees in various fields
Questions to discuss:
1. Why is the human resource considered the most important resource?
2. Identify the various ways used in your country to develop the human resources.
3. What do you consider to be the most important factor in developing the human resource?
4. Show how education helps to develop the human resource.
5. What can be done to make the education system more relevant to our everyday needs?
Test
1. What is career guidance? Where can you get information on career guidance?
2. What factors should be taken into consideration when choosing a career?
3. What avenues can be used to gain work experience?
4. What are the benefits of pursuing a career of one’s choice?
Application for Employment
Job prospects depend upon:
Academic qualifications
Values and attitudes
Work experience
Recommendations
Impressions created from the application form and interview
THE EMPLOYEE SELECTION PROCESS
The Employee Selection Process
Job advertisement
Job application
Resumé / Curriculum Vitae
Interview
Sample Job AdvertisementVACANCY: JUNIOR ACCOUNTANT
Applications are invited to fill the position of Junior Accountant with the firm Roger’s Industrial Incorporated Limited.
Qualifications: Five CXC Subjects at General proficiency Level including English language, Mathematics and Principles of accounts.Computer literacy is not necessary but will be an asset.
Applications with relevant accompanying documents must be submitted to:
The Human Resource OfficerRogers Industrial Corporation LimitedP.O. Box 92Castries, St. Lucia
Unsuitable applications will not be acknowledged.
Sample Application Letter24 Queen Street,TocoJanuary 6, 2004
The Human Resource Manager,Rogers Industrial Incorporated Ltd.,174 Eleanor Street,Sangre Grande.
Dear Sir/Madam,In response to your advertisement in the newspaper, I hereby apply
for the position of Junior Accountant.I am a graduate of North Eastern College, where I successfully
completed my secondary education. After graduating from school, I occupied myself in my family’s business where I gained hands-on experience in accounting procedures.
I consider it a privilege to offer my services to your reputable company.
If my application is successful, I will dedicate my energies, skills, and talents to the mutual benefit of your firm and myself.
Please find enclosed, my resume.Thanking you for your consideration.
____________________Jenny Thomas
Resumé
Name: Jenny ThomasAddress: 24 Queen Street, TocoTelephone No.: 644-9345DOB: 9 September, 1984Marital Status: singleMission Statement: To enhance my knowledge and understanding of accounting
and to gain experience in the world of work so that I may be able to apply my knowledge meaningfully , contributing not only to my general progress but also to the improvement of the organization with which I work.
Qualifications: 1996-2001 (North eastern College)CXC General Proficiency:
Work experience: July 2003 to dateJunior Accountant, JT Agricultural Supplies, Sangre Grande
Interests: Hiking, badminton, reading, swimming
References: Mrs. Shirley Bernard (Teacher)North Eastern College, Sangre Grande
Sgt. Clyde FordToco Police Station, Toco
The Interview Communication skills
Interpersonal skills
Ability to handle stressful situations and maintain a peaceful temperament
Personal characteristics (friendliness, punctuality, respect, manner of dress etc)
Ambitions
Knowledge of the firm / institution
Strengths and weaknesses of the applicant
Hobbies / leisure activities
Interests and experiences
Sample Interview Questions
What do you know about the firm?
What contribution can you make to the firm?
What qualities should an ideal worker possess?
What are your major weaknesses?
Describe one of your most rewarding experiences
Name three important things which you will expect from your job
Training Facilities in Trinidad and Tobago
Various public and private institutions (check the yellow pages under “Schools”)
The University of the West Indies
www.uwi.tt.com
The National Energy Skills Centre (NESC) and the Trinidad and Tobago Institute of Technology (TTIT)
www.nesctt.org
The College of Science, Technology and Applied Arts of Trinidad and Tobago (COSTATT)
Fax: 652-7465
THE LABOUR FORCE
Dependency Ratio
Number employed: total population minus number employed
This means for every 1 person employed in country X there are Y people who are dependent upon the goods and services provided by the employed for their survival.
The Dependency Ratio is an indicator of the level of development and welfare in a country.
When the dependency ratio is high, the standard of living is low and vice versa.
E.g population: 1,100,000
# employed = 100000
Dependency Ratio: 100,000/(1,100,000-100,000)
= 100,000/1,000,000
= 1:10
Unemployment refers to a situation where a person is available to work and seeking work but is currently unable to find work.
Under-employment: A situation in which a worker is employed, but not in the desired capacity, whether in terms of compensation, hours, or level of skill and experience.
Unemployable:
under 16 or over 60/65 i.e. retired and not seeking employment
Pursuing full-time education
Incarcerated persons
Medically unfit
Lacking in knowledge, skills and experience (lack basic skills necessary to secure a job)
Self-employment: a situation where a person works for himself rather than for someone else or for a company that he does not own. To be self-employed, an individual is normally highly skilled in a trade or provides a niche product or service.
Why people work
To earn an income to provide basic needs for themselves and their families
To provide for the future (retirement)
To maintain or improve one’s standard of living
To maintain a level of economic independence and not rely on others
To preserve their status and self respect
BRAIN DRAIN / BRAIN GAIN
Brain drain or human capital flight is a large emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks.
Brain drain is usually regarded as an economic cost, since emigrants usually take with them the fraction of value of their training sponsored by the government
The converse phenomenon is brain gain, which occurs when there is a large-scale immigration of technically qualified persons.
Brain drain can be stopped by providing individuals who have expertise with career opportunities and giving them opportunities to prove their capabilities.
Brain drains are common amongst developing nations, such as the former colonies of Africa and the island nations of the Caribbean, where marketable skills may not be financially rewarded.
THE TRADE CYCLE
Stages of the trade cycle
RECOVERY
BOOM
RECESSION
SLUMP
EXPANSION (UPSWING)
CONTRACTION (DOWNSWING)
A trade cycle is a change in the level of business activity over a period of years. The cycle moves upward in times of prosperity and downward when there is a recession or period of low productivity.
Characteristics of a Slump:
Low productivity
Persistently high unemployment
Low level of demand for consumer and capital goods
Decline in investment and economic activity
Characteristics of a Recovery
Greater efficiency
Greater productivity
Employment increases
Demand develops
Sales expand
Profits rise
Greater investment, more employment, higher profits
Characteristics of a Boom
Economic activity is at its highest
Rapid increase in productivity
Increased investment
High wages
High demand
Inflation: increased demand for loans etc
Characteristics of a recession/downswing/contraction
If a boom is not efficiently managed it creates a possible downswing trend:-
Low productivity
Less business activity
Decline in investment
Fall in profits
Increase in unemployment
TYPES OF UNEMPLOYMENT
Types of Unemployment
Seasonal
Structural
Technical
Frictional / Normal
Voluntary
Cyclical
Casual
Types of Unemployment
Seasonal Unemployment
The very nature of some firms and businesses necessitates that they operate seasonally. Agriculture, tourism
Technical Unemployment
Automation / technical changes (machines replace people)
Structural Unemployment
Changes which affect the structure of the economy and its capacity to employ people
Changing consumer tastes
Obsolescence
Difficulty acquiring new skills needed to produce the new products
Types of Unemployment
Frictional Unemployment/Normal Unemployment
Due to people being unable to fill vacancies which exist
Made redundant
Fired for inefficiency
Looking for better job (Changing jobs)
ignorant of existence of the job
reside far from the jobs
Voluntary Unemployment
Register as unemployed to claim benefits without any intention to seek a permanent job
Cyclical Unemployment
Changes in trading patterns resulting in drop in world prices for certain products cause local industries to cut back production in order to save costs layoffs
Casual Unemployment
Low-skilled and semi-skilled workers often experience long periods of inactivity between jobs
CAUSES OF UNEMPLOYMENT IN THE CARIBBEAN
Causes of Unemployment in the Caribbean
1. More people entering the labour force than jobs being created
2. Capital intensive industries replacing labour intensive ones eg energy sector
3. Scarcity of qualified people to fill vacancies (failure of the education system to prepare people with the skills and knowledge necessary for the increasing number of technical jobs)
4. Industrial sector pays more than agricultural sector so people prefer to remain unemployed until they secure a job in the industrial sector
5. Limited natural resources and small size of Caribbean countries stifles ability to create jobs in the manufacturing sector
6. Consumption pattern (preference for foreign imports) puts a strain on foreign exchange reserves and limits islands’ capacities to create jobs (Imports exceed Exports)
7. Job creation in Tourism sector not maximized (hotel furniture and equipment, and meals are all high in foreign content)
8. Trade Union activity can cause stagnation in job creation (high wage demands reduce profit margins, restrict expansion and job creation)
9. Lack of capital constrains governments ability to create jobs (loans from World bank and IADB – vicious cycle of poverty)
Dealing with Unemployment
1. Create incentives for local and foreign investors so they can generate jobs and money i.e. Provide tax shelters and tax relief measures
2. Inject capital into labour intensive projects
3. Provide early retirement plans
4. Encourage small business ventures
Ways of reducing unemployment and underemployment
5. Expanded public works and greater industrialization
6. Place greater emphasis on agriculture and agriculture based industries
Improved infrastructural facilities in agricultural areas (Roads, electricity, water etc, Schools, police posts, marketing, subsidies, tax relief on tools/equipment)
7. Refining our local raw materials to create new products rather than exporting them in their raw state. Downstream processing creates jobs.
8. Provide appropriate and relevant training and development of skills
School curricula with an emphasis on technical/vocational areas (welding, auto-mechanics, electrical installation, beauty culture, agricultural science, masonry, plumbing) leading to self-employment
5. More aggressive tourism marketing (more jobs for hotel employees, taxi drivers, tour guides, travel agencies, farmers, artisans)
6. Greater regional cooperation enabling combination of resources from different countries to produce a variety of goods and services
Oil from Trinidad can be used to convert bauxite from Guyana, Jamaica and Suriname into aluminium. Forwards linkages can be created (manufacturing of pots, pans, spoons, door frames, windows, motor vehicle parts and accessories)
7. Employee Stock Ownership Plans:
7. If workers become shareholders in the firms in which they are employed this can lead to increased productivity and profitability expansion and job creation
8. Family Planning Education:
Governments should control the high birth rate through family planning education reduced population growth, reduced unemployment
Effects of unemployment
