Govt plans massive private, public investment to create jobs
Govt plans massive private, public investment to create jobs
Laos expects to create at least 55,000 jobs for its citizens this year after the government confirmed that it aims to secure US$ 3.7 billion in public and private investment in the 2013-14 fiscal year.
The US$3.7 billion-worth of investment is part of the government's efforts to secure 8 percent GDP growth, according to a prime ministerial decree on the implementation of the 2013/2014 socio -economic development plan.
This extensive investment will help the country create jobs for Lao people, giving more of them a chance to rise above the poverty line.
Government projections estimate at least 55,000 jobs will be created for Lao people.
The Ministry of Labour and Social Welfare plans to train 44,316 new labourers this year to meet the growing labour demand in the country. The move will help Laos reduce its importation of foreign workers.
Economists said strong economic growth in Laos over the past five years had created job opportunities for Lao people but skills shortages were forcing the country to turn to foreign labour.
There could be as many as 100,000 legal and illegal foreign workers in Laos at the moment, according to a recent enterprise survey funded by the World Bank.
Most of the foreign workers are in the country to fill the labour shortage in construction and in other businesses that require high-level skills.
The Lao government is aware of the situation and has decided to increase the education budget to help Lao people obtain labour skills.
The government is also encouraging private investment projects to hire Lao people so they can learn skills through working with them.
Some economists have observed that Laos not only faces a labour shortage but most of the investment projects in the country are not labour intensive.
While the country has seen a rapid increase in foreign investment in the country over the past five years, Lao people are still finding it difficult to get jobs.
More than 70 percent of the Lao population is still working in agriculture. The service sector employs more workers than the industry sector – a sign that the rapid increase in foreign investment has not generated many jobs for Lao people.
International financial institutes, including the Asian Development Bank, have repeated calls for the government to improve the agriculture sector so the majority of Lao people that work in it can earn better incomes and escape poverty.
Development of agriculture would also increase the supply of raw materials to the processing industry.
vientiane times
