During the past quarter of a century around one-third of the countries of the world, has made considerable progress . The best example of countries lies in south-east Asia,middle east, Latin America, Africa and even in Europe.There is considerable change in the occupational structure (i.e-more people left agri culture to industry and trade sectors. So, income difference widened. Because before, 70% of people depend on primary agriculture industries where income too low and so also income difference less. But now the importance of primary agriculture industries declined and more development occured in industries and business sectors. More employment opportunities came up in industrial and service sectors. The educational system changed to produce professionals and labours best suited to the needs of the employment industry. Before the education generally has meant to produce some graduates and post- graduates in science, commerce and arts. But the needs of the job market was discarded.
Now a days education, people view as a means to acquire jobs and serve purpose of development. So they give advantage to the employment industry. Anyhow this has helped a lot to improve development in these economies. Still there are some irregularities which can be overruled. The benefits of education is not deep rooted until now. There is a phenomenon of unemployment underemp- loyment and inequality of income. Even if unemployment is reduced in this so- called economies, still there is partial, seasonal unemployment. Even though education system has produced more technical and engineering graduates, which is best suited to the needs of job market, there is one or other factors like brain drain, lack of skills and lack of skills and talent cause unemployment and difference income earning among the people. Of course, opportunities are not even in the job market. For example an engineering graduate or a graduate in medical science, can be absorbed in a well paid job while a business economic graduate may fail to absor- bed in a high paid job. Even a graduate in arts or social science may fail to get a job and has to satisfy with a back file job.
There are some reasons which may account for this inequality in income distribution. (i) state involvement in economic activities of production,income generation and distribution is nominal. (ii)Public ownership versus private ownership- When publicly owned industries have certain norms to be followed which are socially motivated such as equal distribution of income, public welfare etc. privately owned industries follow profit motive, maximum wealth generation , equal distribution of income is discarded. (iii) Another reason for unequal income distribution of income is that of difference in natural abilities and talents- People taking on high degrees deserving better payments and rewards depend on their nature, skills and mental calibre. These qualities differ from person to person. (iv) Attitude of people towards work- Attitudes differ from person to person among people. Those who have positive desire for work and development will be prompted to do anything business or work to earn income.
The Average salary increase is expected 4.7% this year- On averag the salary is increasing 4.7% this year while a 6.2% rise in salary registered in 2008.Employees in south America,India and south east Asia can look forward to salary increase."The economic upheaval since last year prompted many firms to revise salaries significantly from previous predictions".said Lee quine Eca's Asia director
Companies in VeneZuela are set to hand out the biggest pay rise this year, aver- aging 24% and up from 22% last year followed by Argentina where pay rise set 12% . Pay rise is Brazil and chile will be higher than last year. Pay in india is expected to rise by 10.8% this year. pay rise in latin America, Vietnam and indonesia are spared by rising inflation.(10.6% and 9% respectively0 Pay in US is likely to be 2.8%
Apart from last september projection of 4% rise while 40% companies will freeze salaries.Salaries in china Japan, singpore and China's special autonomous region of Hongkong will be marginal. Salaries in HK and singapore will increase by 2%. West europe same as 2%. While East europe increase is likely to be under 5%.
Europe economy expected to shrink by 4.1% this year-" The world economic crisis will be deeper and longer if the Govt. stimulus package are modest and state fail to take to fix their banks" world bank president Robert Zoellick said.
He further said 'state stimulus would give only a short live boost in economic which will soon evaporate unless credit flowed again.
The London consultancy defines a depression 'as growth in the developed world averaging less than 1% a year between 2009 and 2013. There is 60% that fiscal and monetary policies now implemented will stablise the global economy by next year. Deflation would be characterised as mass bankrupcies. Gross domestic product in the euro region declined 1.6% from previous 3months the most in at least at least 13years. The EU's statistics said in march 1.5 % contraction. Investment plunged 4% and household spending fell 0.3%. The crisis forcing companies from from carmaker Volkswagen AG to s/w maker SAG AG to reduce output and cut jobs. The economy which grew 0.8% in 2008 may shrink 4.1% ,the organisation for economic cooperation and devlopment has forecast. The Europe central bank is examining whatever other step after cutting interest rates to a record low. The Europe central bank last month cut interest rate by 25basis points to 1.25% taking its reduction since early octo to 300basis points. The Bank of England ,The Bank of Japan, and the US federal reserve is pumping money into their economies by buying government securities. the Europe Central bank is lagging in its activities like this. Euro area exports fell by 6.7% in the 4th quarter from previous 3months and imports dropped 4.7% as the report said. Further contraction in manufacturing and service industries leading to job cuts and fall in consumer demand continues.
The euro area jobless rate jumped to 8.5% in February.The OEDC experts expects the rank of jobseekers in the group of seven nations to soar to 36 millions by the end of the next year.
