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  • Essay / Brunei Unemployment Case Study - 1073

    Unemployment problems are not something new as many countries are struggling to solve these problems, including Brunei. Brunei's population has been increasing since 2001 (graph 1). Chart 2 shows that Brunei's labor force in 2011 was 185,900 people, which is higher than in previous years (175,700 people in 2007 and 179,600 in 2009). Regarding the increase in the working population, the employment of both men and women is increasing (diagram 2). However, the unemployment rate in Brunei has fluctuated since 2007 (3.6%) and in 2011 the unemployment rate is 1.7% (graph 3). Despite this lower rate, employment issues remain problematic in many countries. According to the Minister of Education, around 20,000 young people leaving school are trying to find a job. This number represents 5% of Brunei's population. Their goal was to reduce this figure by 80%, because high unemployment can harm people's quality of life, slow economic growth and create a gap between rich and poor. A higher number of registered job seekers does not automatically indicate the unemployment rate. People blame foreigners for taking a large number of available jobs in Brunei and reducing local employment opportunities. They also claimed that Brunei relies on foreign workers in skilled technical and managerial positions as well as lower-paid jobs in construction and retail. In December 2012, only 36%, or 2,187 positions out of 6,130, were occupied by locals and the rest went to foreigners (Fitri Shahminan, 2013). The majority of foreign hires are in the retail or construction sector. They have the necessary skills, more efficient and above all less expensive. The difficulty of finding employment in their home country and the low level of education caused...... middle of paper ......d municipal department in order to increase the employment rate. Many job fairs have been organized to help reduce unemployment, speed up the work process and encourage more workers to enter the private sector. Blaming foreigners entirely for the rising unemployment rate can be misleading. There are many other causes for high unemployment in the country. The mindset of the job seeker should be more open and accepting of all job opportunities offered to them. The salary structure in the private sector should be modified to make it more financially attractive for job seekers to enter and earn enough to meet their needs. This is one of the important steps needed as jobs in the public sector are limited and qualification requirements are higher. The country can reduce dependence on foreign workers if locals are willing to accept jobs similar to those foreigners currently do..