Generating New Employment Opportunities in Yemen Part 2


The Ramifications of the Ongoing Conflict on the Job and Means to Create New Work Opportunities in Yemen The Impact of the Ongoing Conflict on Livelihoods in Yemen The private sector’s operational costs have risen as a result negative effects of the crisis of public finances, the liquidity crisis, and limitations placed on internal and external transactions. Adding to this are the considerable financial damages and economic losses sustained by enterprises. In addition to that, the ongoing war has caused serious damage to basic infrastructure in large parts of the country, including roads, bridges, and land as well as sea and airports. The war has also placed severe limitations on the movement of travelers and internal and external trade. At the macroeconomic level, economic activity has deteriorated, and the gross domestic product has decreased by around 37.5% between March 2015 and October 2017. This happened for a number of reasons, the most important of which are the halting of oil and gas exports, the decrease in agricultural and commercial activities due to shortages in fuel, electricity, access to foreign currency, and liquidity of the local currency, as well as the lack of security. Therefore, the ongoing conflict has made it more difficult for Yemenis to support themselves and their families, and all of these negative effects of the ongoing war on the private and public sectors have led to full halt or decrease in the payment of salaries while other employees have been laid off or have had their working hours reduced. This has limited their ability to buy food and other bare necessities and has sped up the decrease in demand for the goods provided by the private sector, which has, in turn, increased and expanded unemployment and poverty in the country. Recommendations to Create New Work Opportunities in Yemen Taking advantage of the new conditions created by the war. For example, there is reverse migration from urban to rural areas, which has increased the size of the labor force in rural areas. Another positive example is the increased demand for local food products because of the rising cost of imported food products. The government must deal with the crisis of the inflated civil service and hidden unemployment, which will help save on public spending, allowing the state to use the funds that are saved to deal with the real unemployment crisis. Diversifying the sources of public revenues of the state and unleashing the potential of marginalized sectors in order to diversify the economy of the country and create investment opportunities, leading to the creation of new work opportunities, especially in agriculture, fishing, mining, and construction. Establishing a duty-free commercial zone on the border in order to attract direct foreign investment, create a market for exports, and employ Yemeni labor. This will also have a role in decreasing the pressure on the balance of payments in Yemen.

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