Why Nationalization of Jobs is a failing Fad

Governments drive for nationalization of jobs is achieved through the imposition of nationals to fill job vacancies through the manipulation of labor demand. The labor market, just like any other market, is made up by supply and demand for labor according to prevailing economic and business environments at any given point in time. The demand side of labor, the main driver of jobs creation, being under constant government manipulation due to nationalization efforts will definitely add to the distortion of natural outcomes and productivity levels. Governments are therefore asking for trouble and encouraging distortions within their respective labor markets while on the other side expecting the private sector to come up with new job opportunities. Aside from addressing nationalization of jobs as an economic burden to employers, it is equally burdening the national workforce to accept otherwise unacceptable jobs by them through a “Take it Or Leave it” program, an economic stance that will inevitably decrease labor productivity and eventually business profitability in due course. A naturally functioning labor market tends to offer freedom of labor choice to employers, allowing for a liberal demand perspective.

Because manipulation of the demand side of labor markets has proven unhealthy if not outright disastrous, governments are much better off tackling the supply side of labor markets by enabling nationals become more competitive as a labor choice through productivity enhancement along with a mix of macro strategies including but not limited to stimulation of financial markets, improved investment & business environments and conducive fiscal and monetary leadership. Driving the nationalization of jobs efforts through the supply side is eventually more promising for both creation of better jobs as well as the sustainability of which for years to come.

Though tackling the labor supply side to address nationalization of jobs takes a longer-term turnaround cycle of benefits than the shorter-term demand side lever which is designed by force, it replaces an endless demand-side failing fad being attempted for at least the past 2 decades with very little success and total lack of sustainability of job creation and growth. Therefore, the complete switch around of government positions from demand-side enforcing for nationalization of jobs to the supply side allows for much fairer labor markets. Moreover, this switch will also attempt to show the natural and objective obstacles confronting the national workforce from obtaining relevant job vacancies. This is a structural issue. Addressing it otherwise shall only prolong the issue and further deteriorate the natural functioning of labor markets. The labor market’s demand metrics come in tandem with underlying business demands and according to macroeconomic structure of relevant markets.

While containment and lowering of unemployment is one of the most important mandates of any government, it is essential to diagnose the underlying causes and contributors to unemployment first, followed by attempts to remedy them through relevant macro strategies, albeit from the right side of the economic spectrum. I

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