POPULATION AND EMPLOYMENT

Definition

Population refers to the number of people living in a

particular region at a particular time.

Basic concepts in population

1.) Population growth rate

Rate at which the size of a population changes over

a given period of time usually one year.

Factors associated with growth rate

 Mortality rate-the rate of death in every

1000 people.

 Birth rate-the number of live births in a year

per 1000 people.

 Migration –population movement from one

region to another.it can either be:

• Immigration-migration into an area.

• Emigration-migration out of an area.

 Cultural practices like believing that many

children act as a source of security.

 Early marriages prolonging the woman

reproductive life.

 Children being seen as a source of cheap labour.

 Many births as a family searches for a male

child.

 Religious beliefs which encourage large

families.

 Ignorance leading to opposition of family

planning.

Factors that leads to decline in birth rates

 Delayed marriages due to such things as

staying in school for too long.

 Craving for a higher standard of living leading

to people having few children.

 Desire to give children better lives than the

parents.

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  Where a small family is considered fashionable.

 Due to reduced infant mortality rates, most

people have confident that all the children will

survive hence no need of having many children.

 Availability of viable retirement benefits

schemes which made people to stop viewing

children as a source of security in old age.

2.) Optimum population

The population level which is equal to the availability

resources.

What optimum population depicts

 It is the population that can generate the

highest living standards at the available

resources and the state of technology.

 It is the population size that can lead to the

most efficient use of resources while

maximizing output per capita.

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  Population below optimum level implies that

resources are under-utilized and standards of

living are low.

 An increase in population beyond optimum

population level leads to overutilization of

resources and hence standard of living.

3.) Under population

This is a situation where available resources in a

country are greater than the size of population in

the country.

Factors leading to under population

a.) An increase in Death Rate

Natural Catastrophes such as earthquakes, flood

etc. will lead to an increase in death rate therefore

the country witnesses a reduction of population

b.) A fall in Birth Rate:

When a country decides to reduce the number of

children for fear of eventual overpopulation or any

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socio-political factor which does not favor children,

the country becomes under populated

c.) High Level of Emigration

A persistent increase in emigration over immigration

will leads to a reduction in a country

d.) Low birth rates

If the birth rate is low, the total population may

remain small to the extent that it does not get to

the optimum.

Positive effects of under population

a.) No Congestion:

A country with less population experiences little or

no congestion

b.) Employment Opportunities:

As a result of small size of the population, there will

be enough job opportunity for the people

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 c.) Increased in Social and Infrastructural Facilities:

An under Populated Country experiences a higher

per capita in terms of social and infrastructural

facilities available to the people in the country.

d.) Availability of Idle Resources:

The fact that a country is less populated means that

the resource available in that country is higher than

the number of people; hence, many idle resources

would abound everywhere.

Negative Effects of under population

a.) Lower Standard of Living:

Under Population engender lower standard of living

as a result of inadequate labor force that would have

conveniently boost output and production of goods

and services.

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 b.) Lack of Adequate Manpower:

Under population results to shortage of labor with

that attendant effect of low investments and income

c.) Underutilization of Resources:

Resources are highly underutilized in a country with

low population

d.) Lack of People to Defend the Country:

At times of war and emergency, a country might find

it difficult to mobilize enough people to defend it.

e.) Equilibrium at Less than Full Employment:

Under population leads to reaching of equilibrium at

less than full employment as a result of idle

resources.

4.) Over population

Occurs when a country‟ s population is large

compared to its resources such that the resources

are overstretched.

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Advantages of over population

a.) Widening Market

Large population provides a wide market for goods

and services.

b.) Better utilization of resources

Large population creates increased demand for

goods and services and in an attempt to meet the

increased demand, there is better utilization of the

available resources.

c.) Creates a pool of labour

A pool of labour force is created where producers

can satisfy their labour force needs.

d.) Stimulates investments

Due to large population, entrepreneurs may expand

their business to meet the growing demand for

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goods and services due to over population while at

the same time new investments are made.

e.) Promotes labour mobility

Overpopulation increases labour mobility as jobless

people tend to move from one area to another in

search of employment.

Disadvantages of overpopulation

a.) Strain on the available social amenities

Excess demand of the available social amenities such

school and health facilities may put pressure on the

them resulting to poor services delivery.

b.) Low standard of living

As the population increases while income remain

constant, the income per head reduces. Reduced

income reduces individual‟ s ability to acquire basic

needs such as food and health care.

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 c.) Encourages rural to urban migration

Many people move from rural to urban areas where

they think they can get employment. As a result the

urban areas get more people than the available jobs.

d.) High dependency level

In overpopulation areas, there are many people who

are not employed. Such people tend to depend on the

employed ones for their upkeep and this may strain

those who are employed

e.) Imbalance in demand and supply

Overpopulation creates excess demand in population

to the supply of goods and services, where the supply

of goods and services is not able to keep pace with

the increase in demand for them, prices may keep on

increasing.

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 f.) Food shortage

Overpopulation may result in shortage of foods due

to increased population in which the amount of food

is not enough to feed the whole population.

g.) Increased crime rates

When many people are unemployed because of

overpopulation it may make it hard to acquire even

the basic necessities and they may engaged in crimes

such as stealing to survive.

h.) Environmental degradation

Overpopulation may cause over exploitation of

natural resources leading to environmental

degradation.

5.) Young population

This a population where there are more young people

than old people.

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Causes of young population

 High birth rate and low infant mortality rate.

 Low life expectancy.

 High mortality rate be among aging adult.

Problems associated with young population

a.) High dependency ratio

There is high dependency ratio on working population

as it may be forced to cater for a large number of

young population who are unemployment.

b.) High rate of unemployment

The demand for jobs by many young people entering

the labour market is higher than the available jobs

creating unemployment.

c.) Increased social evils/crimes

Young population may have a large number of youth

idle. They may engage in cries in order to survive.

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 d.) Low labour supply

Young population may experience low labour supply as

many of the youths may have not attained the

working age

e.) Pressure on goods and services

Increased demand for goods and services required

by the youths may put pressure on them as the

demand overtake supply.

f.) Reduced savings and investments

Due to high rate of consumptions by the young people

savings is reduced and in turn results in low

investments.

g.) Diversion of government expenditure

The government may be forced to divert its

expenditure from other needy sectors as it caters

for the welfare of the youth.

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 6.) Ageing population

This is a population with higher proportion of older

people. These people are above 65 years old.

Problems associated with ageing population

 Old people tend to provide a less mobile labour

force.

 Low labour supply is likely as old people tend to

be less productive.

 High dependence of old people on working

populations.

 Society becomes less progressive as it lacks the

input of the energetic youth.

 May led to unemployment due to fall in demand

for goods and services required by the youth.

7.) Declining population

This is a population that has been reducing over time.

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Effects of declining population

a.) Reduces government expenditure

The government may spend less in provision of

resources such as infrastructure and social services

making them to improve on the quality of their

services to the citizens.

b.) Attainment of optimum population

Declining population may enable a country that has

been overpopulated to attain optimum population.

c.) Proper utilization of land and other resources

For a country that is overpopulated, declining

population may reduce pressure created on land and

other resources and this may lead to improved

productivity while declining population may lead to

underutilization land and other resources.

d.) Discouraging investments

As the population declines, the market for goods and

services also declines. This may force the existing

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business to close down while new investors may be

scared away.

e.) Reducing dependency of the unemployed on the

employed

For over populated country, decline in population may

reduce the dependency of the unemployed because

they will now get employment due to reduced

population.

8.) Population structure

This is the composition of population according to

age, sex, income distribution and levels of literacy.

Below is a hypothetical population structure of a

country that assumes equal number of male and

female.

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Implication of Population size and structure on

Development

The population structure may have both negative and

positive implications.

Positive implications

a.) Increase in market demand

When population increases a wide market for goods

and services is created depending on the structure

of the population.

b.) Enough labour supply

Rapid population growth leads to increased labour

supply which would in turn lead to payment of low

wages.

c.) Technological advancement

Competition and pressure of resources may lead to

increased labour supply which would lead to higher

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efficiency and also insipire people to look for new

methods of improving productivity.

d.) Diverse talents

In a rapid growing population the number of talents

are likely to be many.

Negative implications of a rapid population growth.

a.) Decrease in per capita income

When the growing population depends on a fixed

factor of production, output may increase up to a

certain point and beyond this point, output per head

which also determines per capita income declines.

b.) Increased dependency ratio

In a rapid growing population most the people depend

on the available work force for survival.

c.) Reduction in savings and investments

In a large population most of the earnings is spend

leaving nothing or very little to save.

This will in turn lead to low investment.

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 d.) Unemployment

The number of people in the labour force exceeds

the number of jobs available leading to

unemployment.

e.) Strain on social amenities

Due to overpopulation, the government may find it

difficult to provide adequate essential social

services such as health, education and housing.

f.) Uneven distribution of income

In over populated countries there are very few rich

people and very many poor people leading to unequal

distribution of income.

g.) Environmental degradation

Over population usually leads to over exploitation of

the natural resources leading to environmental

degradation

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Employment and unemployment.

Employment

The term refers to engagement in any type of income

generating activity.

Unemployment

The term refers to inability of people who are

capable and willing to work to get meaningful

employment opportunities

Types of unemployment

Cyclical unemployment – occurs due to relatively low

general demand for goods and services.

Structural unemployment – caused by changes in

production methods, change in technology and

changes in demand for goods and services.

Frictional unemployment – occurs when people are

unable to secure jobs due to barriers which hinder

them from getting jobs such as ignorance. Or when

people lose jobs and go looking for new ones

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Seasonal unemployment – occurs due to relatively low

demand for labour at certain times of the year.

Involuntary unemployment/open unemployment -

results from lack of jobs. For example people willing

to work at the prevailing wages but work is not

available

Real wage/Voluntary unemployment – occurs when

job seekers are not willing take up jobs at the

prevailing wage rates

Disguised/Hidden unemployment – Occurs when the

number of people employed exceeds the number

which is required for the job.

Residual unemployment – Affects people who are

physically & mentally challenged.

Erratic /Casual unemployment - Affects certain

sectors of the economy like construction where

demands for labour is erratic and not regular.

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Causes of unemployment

a.) Poor education system

The education structure used in developing countries

is not beneficial to the students as it does not

directly correspond to the prevailing economic

activities outside the school system. Rather than

providing useful skills to students and molding

professionals, theory is what is being taught instead

of practical. This mismatch between the school

levers and jobs requirements creates

unemployment‟

b.) Bad leadership

Lack of employment in developing countries is also

linked to the bad leadership and corrupt attitude of

individuals in power. Moreover, there is a lot of

money embezzlement and power retention exhibited

by policy makers in the education sector in Africa.

This means funds required for improvement of

education are diverted for selfish personal use.

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Hence, the education sector remains largely

undeveloped.

c.) Rural to urban migration

When people move from rural areas to urban areas

in search of employment, they put tremendous

pressure on the available resource and expanding

work force that cannot be absorbed.

d.) Rapid population growth

If the population is growing at a faster rate than the

economy is expanding, it leads to more workforce

entering a labour market which causes

unemployment.

e.) Lack of product market

If the demand for goods and services is less due to

low income producers will be discouraged to produce

more leading to unemployment.

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 f.) Seasonality in production

Seasonal variations cause unemployment such that

during the peak season, employment is high and

during off peak seasons employment is low.

g.) Use of inappropriate technology

If a country uses labour intensive methods of

production it will limit the growth of employment

opportunities.

Methods to solve unemployment

a.) Population control

Advocating for reduction in the population growth

rates in the country through various ways such as

family planning.

b.) Adaption of appropriate education systems

Introducing the appropriate forms of education and

training people for the jobs that are available.

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 c.) Use of labour intensive methods

Use of labour intensive techniques in

government institutions and projects.

d.) Proper planning

By proper planning and management of natural

resources and fighting corruption so that resources

can be used well to create jobs.

e.) Entrepreneur culture

Through encouraging the entrepreneurship culture

in the country by providing a conducive environment

for investment.

f.) Delocalization of firms/Rural development

Delocalization of firms by the government to create

jobs in rural areas hence reducing rural to urban

migration of people in search of employment.

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 g.) Encouraging direct foreign investments.

Encouraging foreign investment enough various

policies such as tax holidays and enabling

repatriation of profits from the businesses of

foreigners.

h.) Increase government spending or expenditure.

Expenditure on infrastructure such as roads

railways and electricity supply creates jobs and

releases money in circulation creating demand for

goods and services.

i.) Encouraging the use of local resources

Government can increase its expenditure on projects

that will create more jobs opportunities.

j.) Encouraging the use of local resources

Government can encourage investment on economic

activities that use locally available raw materials or

inputs which will intern create more jobs

opportunities.

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 k.) Encouraging the use of local resources

Government can encourage investment on economic

activities that use locally available raw materials or

inputs which will in turn create employment for those

involved in provision.

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