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Difference Between Public And Private Sectors: Conflicting Perceptions

Some business activity exists to make a profit. In the end, if the business does not make a profit it will have to close – although not always for many years! However, some business activity will not necessarily make any profit but will continue to function. And that is the main difference between private sector companies as well as public sector companies which are all operating with different goals, strategies and understandings as well.
1.2 Concepts: 1.2.1 Public sector, The public sector is the part of the economy, where goods and services are provided by the government or local authorities carrying out the task instead. These goods and services are sometimes provided free and in other cases consumers have to pay a price. The aim of public sector activity is to provide services or products that benefit the public as a whole. This is because it would be difficult to charge people for the goods and services concerned or people may not be able to afford to pay for them as well as it is considered that the public sector companies are public owned organizations . The government provides these goods and services at a cheaper price than if they were provided by a profit making company. The public sector shares the private sector in most business activities.
The public sector is that portion of society controlled by national, state or provincial, and local governments. In the United States, the public sector encompasses universal, critical services such as national defense, homeland security, police protection, fire fighting, urban planning, corrections, taxation, and various other social programs.
The public sector sometimes overlaps with the private sector in producing or providing certain goods and services. The extent of this overlap varies from country to country, state to state, province to province, and city to city. This overlapping is most often seen in waste management, water management, health care, security services, and shelters for homeless and abused people. Sometimes, service providers move from the public sector to the private. Which is known as privatization, and has been taking place in recent years on a large scale throughout the world.
In other instances, a service may shift from the private sector to the public. This is less common, but health care is one area where some governments are providing or experimenting with services previously furnished by private providers.
Governments routinely hire private corporations to provide goods and services for the public sector, a practice known as outsourcing . Examples include the manufacture, construction, or maintenance of aircraft, military hardware, electronic and communications equipment, computers, roads, freeways, bridges, parks, and recreation areas.
The public sector is usually composed of companies which are owned and operated by the governments. This includes federal, provincial, state, or municipal governments as well, depending on where you live. Privacy legislation usually calls organizations in the public sector a public body or a public authority.
Some examples of public bodies in countries like Canada and the United Kingdom are educational bodies, health care bodies, police and prison services, and local and central government bodies and their departments.
1.2.2 Private sector, The private sector consists of business activity that is owned, financed and run by private individuals. These businesses can be small firms owned by just one person, or large multi-national businesses that operate around the world (globally). In the case of large businesses, there might be many thousands of owners involved. The ultimate goal of businesses in private sector is to make a profit.
The private sector organizations are one which is owned by its shareholders. The shares are publicly listed “available for sale” but privately owned. The organizations main aim is therefore usually to generate money to its shareholder owners.
A public sector organization is owned by the government (the public owns it through our right to vote and the government’s representation of us). A public sector organization can make a profit but tend not to. For example the police force is a public sector organization and generally uses tax payer money to provide a policing service. They can however charge football clubs to police events and make a small profit on this. This does not change the fact they are publicly “owned”.
The private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations (both profit and non-profit), partnerships, and charities.
An easier way to think of the private sector is by thinking of organizations that are not owned or operated by the government. For example, retail stores, credit unions, and local businesses will operate in the private sector.
1.3 The efficiency of public and private sector It has been widely assumed that the private sector is obviously more efficient and competent than the public sector. And it is supposed that private companies have demonstrated their superiority in performance. And, this reflects the theoretically expected superiority of markets over bureaucracies under political controls. On the basis of these assumptions, many current debates about policy in infrastructure and services assume that, achieving private sector operation is an important objective in itself, and is always a desirable end result.
By the way, the pragmatic evidence as well as the theoretical debates do not support such assumptions. There is a consistent stream of empirical evidence consistently and again repeatedly viewing that, there is no systematic significant difference between public and private operators in terms of efficiency or other performance measures. The theory behind the assumption of private sector supremacy is also being shown to have serious flaws.
This proof, is of great importance for policy discussion. Due to the unsupported assumption, policies have become critically imbalanced. With various forms of privatization that being introduced. While public sector options that could be much better are being ignored. This is a pricey form of policy failure which causes economic, social and political harm.
1.4 Main differences between public and private sector The differences between public and private organizations are, there are significant differences between the two sectors. Public organizations are characteristically the primary supplier of services and are not competing in order to maximize profits. This concerned lack of product competition is widely held to mean a lack of incentives to improvement.
on the other hand, the concept that the connection between a firm’s behavior and financial reward is the central dynamic of economic rationale and the development of improvement has to be seen as too simplistic.
Public sector workers may be motivated by impracticality, the joy of creating something new, an intense interest in the topic at hand, friendship and a sense of belonging, career ambitions, etc.
One obvious difference between the public and private sectors is that the public sector is not profit driven in the business sense of the term. However, the motivations for innovation found in the public sector are probably also present in private firms.
The fact that public institutions are not profit driven, should not lead us to believe that public sector employees and managers are not concerned about financial matters. As is the case within private companies, public sector units and organizations fight for funding and influence.
Another important difference is that the political aspect is much more important in the public than in the private sector. Policy decisions normally affect companies indirectly, through laws, regulations and financial support. The public sector is at least formally controlled by elected or appointed politicians. The intimate link between this governance dimension and funding of current expenses of the activities implies a very strong link between ownership and control on the one hand and the growth strategies of the subsidiary organizations.
Just as important are the differences in management incentives. Public managers are in general more likely to receive lower and less performance based material benefits, which may influence their willingness to take risk. It may be that, the public sector on an aggregate level – recruits fewer risk-taking entrepreneurs than the private sector relatively speaking, due to the expectations of rewards or penalties of entrepreneurial activity.
Moreover, it is likely that sometimes private companies are more likely to accept failure than public institutions. By failure is, here meant innovation projects that do not accomplish their expected objectives. Private companies may consider failures an integrated part of any risky enterprise, while the pressure to short term economizing of public funds and not wasting the public purse may imply a critical disincentive to innovation. Overall we would then expect to see public organizations being risk aversive relative to market oriented firms, essentially due to the characteristics of the effective incentive system facing the two kinds of organizations.
1.4.1 Employees in public and private sectors The scope to which private as well as public sector employees differ in the significance they attach to different types of inducements being part of their employment deal and their evaluations of these inducements is studied. Here, we focus on five content dimensions of the psychosomatic contract: career development opportunities, job contented, financial rewards, social atmosphere and respect for private life. Analyses from several studies of employees show that, compared to private sector employees, public sector employees are motivated by other inducements. In particular, they indeed, attach less importance to career development opportunities and financial rewards promises in their concerned psychological contracts, and perceive these promises as less achieved.
1.4.2 Wages in the public/private sectors The purpose of this paper was to uncover the determinants of public and private sector wage growth. We also find that a number of variables affecting private sector wage growth, for instance: unemployment rate (negative relationship), inflation rate, total factor productivity, and hours per worker. More important, public sector wages and employment also affect private sector wage growth. In terms of extent, the estimated values are higher than the values suggested by the model. The empirical estimates show a contemporaneous effect of very few private sector wages with respect to public sector wages. Higher public sector wages might translate into higher demand, increasing the pressure on the private sector labor market. Similarly, public sector wage growth may also carry a signal to the private sector on what the government expects for inflation. This finding has important policy implications.
It gives strength to the “wage twist policy discussed by (Pedersen, 1990). Therefore, the governments could use their role as an employer to reduce relative public sector wages. This policy, besides reducing the tax burden necessary to finance government spending, would have a downward impact on private sector wages and, most likely, on inflation and unemployment. Regarding the public sector wages, statistically significant determinants are private sector wages, inflation, and the unemployment rate (positive relationship). Moreover, public sector wages react positively to the budget balance and negatively to government indebtedness. Political variables, however, do not seem to play an important role.
1.5 Evaluation of public and private sectors There are a number of factors that are considered differently in the valuation of privately held vs. public companies even those that are in the same industry-making a direct comparison for valuation purposes difficult. In some cases, it’s like comparing apples to oranges. Following is a list of some of the issues that may result in differences between the valuations of public and private firms:
1. Market liquidity. A lack of market liquidity is usually the biggest factor contributing to a discount in the value of companies. With public companies, you can, if you choose, switch your investment to the stock of a different public company on a daily if not more frequent basis. The stock of privately held firms, however, is more difficult to sell quickly, making the value drop accordingly.
2. Profit measurement. While private companies seek mostly to minimize taxes, public companies seek to maximize earnings for shareholder reporting purposes. Therefore, the profitability of a private firm may require restatement in order for it to be directly comparable to that of a public firm. In addition, public-company multiples are generally calculated from net income after taxes, while private-company multiples are often based on pre-tax and many times, pre debt income. This discrepancy can result in an inaccurate formula for the valuation of a private company.
3. Capitalization/capital structure. Public companies within a specific industry generally maintain capital structures (debt/equity mixes) that are fairly similar. That means the relative price/earnings ratios (where earnings include the servicing of debt) are usually comparable. Private companies within the same industry, however, can vary widely in capital structure. The valuation of a privately held business is therefore frequently based on “enterprise value,” or the pre-debt value of a business rather than the value of the stock of the business, like public companies. This is another reason why private-company multiples are generally based on pre-tax profits and may not be directly comparable to the price/earnings ratio of public firms.
4. Risk profile. Public companies usually provide an assurance of continuing operations above that of smaller, privately held firms. Downturns in the economy or a change in the environment such as an increase in competition or regulatory changes often have a greater impact on private firms than public firms in terms of performance and market positioning. That higher risk may result in a discount in value for private firms.
5. Differences in operations. It is often difficult to find a public company operating in the same niches as private organizations. Public companies typically have operations spanning a broader range of products and services than do private companies. In addition, even if the products and services are the same, the revenue mix is mostly different.
6. Operational control. Although private companies are more likely to receive valuation discounts than public companies, there is at least one area where they may receive a value premium. While the sale of a private company usually results in the purchase of the controlling interest in the business, ownership of public company stock generally consists of a minority share ownership which may be construed to be less valuable than a controlling interest position.
1.6 Opinion and Conclusion The two sectors, public sector and private sector are existing to meet the demand of the public. The first at the poll booth, the second at the marketplace. Both are there because people want them to be there available, and it is clear that no one can deliver the task alone at all, which results into that, there is no obvious preference of any of them, and any attempt to extinguish either is violation of people’s will.
The private sector and public sector have together had times in which either was the more powerful and the more popular. There are some ideologies that want everything to be public, and there are others that want everything to be private. The power struggle between the public and private sectors has been a source of much warring and much misconduct on both sides. And while there are many who see either as parasitical, in fact, United States owes much to both. And it is in their constructive interplay that benefit is found.
The public sector’s science is at the starting place of every product that is sold by business. The public sector’s Interstate and Internetworking have created infrastructures that made possible vast business prosperity, and without them many economies would be far smaller than it is greatness now. The public sector’s education has made possible for people to have the skills that they need to work and contribute to private sector prosperity. The public sector’s military and policing protect life and property of people. And it is sheer ignorance, foolishness and irresponsibility for people in a country like US to be anti government, when they benefit from the public sector as much as they can.
At the same time, it is the private sector that has taken the knowledge produced by public sector science and turned it into technology and products that have created prosperity as well. And it is fact that, the private sector whose earnings fund public sector works. Both private sector and public sector are legitimate parts of reality as pertains to fulfilling demands of the people; and as in all non-valued dualities these must operate in a benefit maximizing manner.
At the foundation level, each has the right to defend itself from negative effects of the other. Public sector has the right to protect itself from those who want to defund academia, and education, deny it tax revenues, and starve it into extinction while benefiting from the science, education, infrastructure, policing and military that, it provides. Private sector also has the right to protect itself from strangulating regulation, nationalization, protectionism, and other public sector practices that diminish its ability to produce services, products and generate wealth. Each is there by public demand, and each has its legitimate prerogatives as it relates to fulfilling this public demand.
In the middle tier, the public sector and private sector should leave each other alone to do what they have been put (assigned) there to do: The private sector, to produce prosperity; the public sector, to provide the tasks that it has been voted to do.
at the top tier, the both sectors, public and private sectors are strongly recommended to work together to create what either cannot do by itself. The private sector using public sector science to implement and utilize technological prosperity, public sector using money created in public sector to provide goods or products and offer public services as well; and public sector working with private sector to put into place high-technology solutions for an environmentally and economically sustainable long-term future; are only some of the potentials for positive collaboration between the public and private sectors.
Simultaneously, there have to be means preventing ever present negative interaction potential between public and private sectors a potential that may result in fascism, in many countries more obviously than in United States. Wars waged for corporate interest, for example, Texas Oil bribing the government to deny global warming and keep the nation from developing effective clean energy solutions and the pharmaceutical industry scamming the taxpayer to give people dangerous and expensive multiple drug combinations, are all clear and present cases of private sector and public sector colluding in ways that are against public advantage. This potential must be constantly watched for in order to avoid these and other destructive outcomes, with people whom both the public and private sector exist to serve, taking the two, public and private actions against the corruption which is an ever present danger where money and politics mix.

Discussing Unemployment In A Theoretical Perspective Economics Essay

Unemployment is phenomenon which happens when we find people available without work. It is a big social and economic problem which is very common nowadays in developing and developed countries; Unemployment is usually measured using unemployment rate. Unemployment in Abu Dhabi is phenomenon which has many rates, reasons and results.
Before the independence of the U.A.E., The economy was under basic economic control. Fishing and little agriculture were in use as the main activities in UAE. With the breakthrough of oil UAE’s economy extended and the oil sector represented more than 35% of UAE’s GDP. In 2005, the U.A.E. produced about 2.4 million barrels per day, 85% of it was Abu Dhabi’s own product. The oil income permitted the government to spend charitably on infrastructure, education, and job creation. The ascending of oil prices in the 1970s provided the Gulf Cooperation Council (GCC) countries with the financial funds which made vast economic development programs that required invasion of non-national labor available. However, the slump in oil prices in the mid 1980s and the inhabitants’ expansion made unemployment an issue in GCC countries. This project assesses unemployment in the UAE and measures the unemployment rate in Abu Dhabi; the capital of the United Arab Emirates.
As for the beginning, Unemployment is the incapability for workers who want to find profitable employment. The extent of unemployment in a nation is an indicator of the economic strength of that country. Many causes can negatively affect the unemployment rate counting corporate downsizing, mergers, implementation of automation technologies, and job outsourcing to other nations.
UAE unemployment generally
Unemployment in the UAE is seen one of the lowest in the world (Kawach 2002). It was initiated to be 2.4 percent by the end of 2001, where the estimated labor force was around 2.1 million and 2.0 million were employed. Due to the increase in population and the expansion in the number of national graduates from universities and higher education schools, unemployment along with nationals turned into a sensitive problem in latest years.
Unemployment in the UAE has severe harmful effects on the society and the economy as well. The government will be under political force. It will spend more on social repayments. The economy will be wobbly and wealth misallocated. As a result, the government set a new labor policy to situate nationals in civic and private division jobs, which were up until that time overflowing by non-Emiraties. This policy alerted on a fussy sector, such as finance, in order to accomplish an aim of 30 percent nationalization. According to the Ministry of Planning, the number of working nationals did not surpass 9 percent of the total labor force in 2003. This shows the lack of the proper credentials of nationals to compete labor market requirements. In order to defeat this structural crisis in the 2 labor market, the government requested the educational foundations to put up the shutters of the breach between academic series and labor market through convenient and specialized schooling. Unemployment in UAE is determined in the middle of youth, where more than 50 percent of whole unemployment is involving those with an intermediary level of education and low level of expertise.
Unemployment
Labor Force
We should know which people wants job and which don’t in order to evaluate the scope of the unemployment problem. A lot of people don’t have a job but people such as those are not part of our problem. Students which study in full-time bases are not among the labor force which is defined as People between 16-65 who are actually working plus all those who aren’t working but actively looking for a job. For example, old people who live through their retirement are not considered as part of a labor force. Moreover, prisoners who condemned in jail are not among the labor force. Housewives are not a part of the labor force except if they seek a job. Nevertheless, children under the age of 16 who are actually concerned about their play station are also not considered as parts of the labor force. So, actually labor force is about people who look for a paid job outside their houses which also means that people working voluntarily are not considered as part in the labor force.
In the other hand, people who are neither employed nor actively looking for a job are called nonparticipants. In labor force we count both the employed and unemployed people who seek jobs.
LABOR FORCE PARTICIPATION RATE:
The amount of the total of no institutionalized and citizen population over 16 years old, we count them citizen labor force.
The labor force participation rate is basically equal to the ratio of citizen labor force to the total of no institutionalized citizen population over 16 years old. To estimate the labor force participation rate we used the data that obtained along with other labor force data from the monthly current population survey conducted by the Bureau of the Census for the Bureau of labor statistics.
Labor force
participation rate
= civilian
labor force
total no institutionalized
civilian population
Labor force growth
Figure: P1.a (NOT real just assumption to make it easier to be understood for a reader)
Since the labor force continues to grow each year and the population increases with continuing immigration as well, this will expand the production possibilities which cause us to produce more job vacancies in every year. That is such a bad news because then we will have to produce almost millions of jobs more every year to close up the gap. Once the economy finds itself unable to provide jobs to the increasing population UNEMPLOYMENT will be faced as a serious issue. UNEMPLOYMENT has several definitions; one of these definitions is the people who are searching for a job and can’t find it through a precise sum of time. Unemployment can be weighed up through dissimilar ways. One of them is taking in thought the amount of people who are employed and those who are fired.
(http://en.wikibooks.org/wiki/Macroeconomics/Definitions_of_Unemployment)
Measuring Unemployment.
Measuring Unemployment is one of steps which help us to study, analyze, evaluate and put solutions for this occur, economics are the most people who focus on the unemployment rate. A main reason for this occurs is the normal increase in the number of people employed due to population and labor force increasing. Statistics of the unemployment serve many different purposes, we need some information which essential to macroeconomic and human resources development planning and policy formulation , this information like measures of labor supply, the structure of employment and the extent to which available labor is actually utilized.
Data Sources of Measuring Unemployment : Administrative Records Statistics of unemployment can be drown from administration records , in this way we can registration data which derived from records are based on complete counts, so they will not affected by sampling errors , in addition they are cheap to obtain. But also this way is limited because it only cover small part of the population which uses employment exchanges or is qualified for unemployment insurance benefits.
2. Household Surveys In this source statistics of unemployment can also be obtained from household or labor force surveys, this survey composed sample of household and asking people of working age about their employment activities and also about availability for work by using standard questionnaire. This way also was limited because it depends only on nature replies of people in the household survey , so it will contains many different kind of errors .
Reasons of unemployment.
Discouraged workers
In economics, a discouraged worker is someone between 16 and 65 years old who is not keenly looking for employment. This usually happens because the person has given up searching or has had no accomplishment in finding a job, which is why he is called “discouraged.” His belief may be obtained from a mixture of factors counting: a lack of jobs in their area or line of work; apparent discrimination for reasons, for example, age, race, sex and religion; a lack of required skills, training, or experience; or a disability.
Discouraged workers, who are categorized as “marginally attached to the labor force”, “on the margins” of the labor force, or as part of “hidden unemployment”, are not regarded as to be element of the labor force and are consequently not counted in most official unemployment rates, which persuades the exterior and explanation of unemployment statistics.
(http://en.wikipedia.org/wiki/Discouraged_worker)
Underemployment
The expression underemployment has three different separate meanings and functions. All meanings involve a state where a person is working, unlike unemployment, where a person who is searching for work but cannot find it. All meanings involve underutilization of labor that critics say [weasel words] is neglected by a large amount of official (governmental agency) classifications and measurements of unemployment.
Underemployment can mean:
The employment of recruits with high skill levels in small wages occupations that do not require such abilities, for example a trained medical doctor who works as a taxi driver.
“Involuntary part-time” workers who would like to be working for a full time work but can only hit upon part-time occupation.
“Overstaffing” or “hidden unemployment”, the practice in which businesses provide work for people who are not fully occupied—for example, workers at present not being used to produce goods or services due to legal or social limitations or because the work is highly seasonal.
(http://en.wikipedia.org/wiki/Underemployment).
The Human Cost of Unemployment
The unemployment causes the human cost, and there are many kinds of human costs.
Because we are part of this world ,we must accept that there are casualties caused by unemployment and should be affected by losses.
All the people going through these problems , but not all of them have a way to solve it.
For the Psychological Study of psychological problems and disorders multiple passes by individuals as a result of these negative experiences and some of these psychological studies to mention talk that the psychological symptoms continue even after the economy improves which leades for men and women’s problem to start getting worse.
This stigma makes them away and cautious from the society, and perhaps makes them more faded. This increases the psychiatric unit that is the beginning of a psychological disorder at the other, and resorts of ignorance or desperation to relieve the pain do not like initially, including drugs or alcohol. After a long period of self begins Bloom, hates itself in a way that we cannot imagine. This ball will be circulated again and will be the beginning because the hate of others and resent them .., and the worst may retaliate against them (which means that the idea moved to negative behavior or criminal … etc.
Moreover, the negative aspects in the behavior for the unemployment people are sleeping for a long times and they become lack of sense in time or social and personal responsibly.
The work make the person feel of his own personality and his impotents in the society and when he lost it he feel that he lost his social life and his personality as well.
Full Employment
It is clear that full employment is one of our major Goals in a country’s economy. It is also logical that there is no such a thing as (zero unemployment). That is why the term, Full Employment, is carried by other factors. In fact, There are some reasons why full employment ≠zero unemployment.
Seasonal Unemployment
Seasonal unemployment is defined as unemployment resulting from a fall in aggregate demand in some economic sectors (and not the economy as a whole). It could see some economic sectors (ex. tourism as a sector, agriculture, or fishing), periods of recession, leading to loss of personnel in these sectors to their jobs temporarily.
Frictional Unemployment
It is a temporary cessation of work due to the transition from one job to another, or pause to search for another job or to study and so on.
Structural Unemployment
Economists often use the term “structural unemployment” for employment problems that arise because of a mismatch between the needs of employers and the skills and training of the labor force. For example, if music schools were to educate many more oboe players than could get positions playing the oboe, we might find that many of them would have to get jobs in other fields. Lacking training for other skilled fields, some oboe players might be unable to get any jobs at all. This would be an instance of structural unemployment.
Structural unemployment raises some questions. If an oboe player were offered a job as a disk jockey, at very good pay, and refused the job because it was not the field for which he was trained, what should we make of that? Is the oboe player really “willing to work at the going wage?” Or should we consider the would-be oboe player as being out of the work force –unwilling to work in the opportunities available to him?
On the other hand, people with little in the way of training suffer more than average unemployment in most of the industrialized countries. This suggests that structural unemployment is really quite an important problem in the industrialized countries at the end of the twentieth century.
Cyclical Unemployment
It is the unemployment resulting from the volatility of aggregate demand in the economy, where economy is facing periods of low aggregate demand, resulting in the loss of part of the workforce functions and consequently; a higher unemployment rate in the economy. But it starts to decline when demand starts to rise again overall.
The natural rate of unemployment
scientists have agreed that the natural rate of unemployment or as they call IT, full employment, the rate of unemployment between 4 to 6%.
UAE Unemployment
The oil price boom of the 1970s resulted in vast economic development programs in the UAE and a shortage of national labor who are mainly employed in the public sector causes to dependence on foreign labor
In 1980 there were more than 80% employment in the use and all of them were non national.
In 1986, the falling oil made in United Arab Emirates to the high unemployment rate for the non national and it rise the number of the unemployment national people they search for a job.
In doing research in the 2003 show that there are 2.4 per cent is prepared for total unemployment in the UAE national and non national, either at another level, the unemployment rate among the national people of the State is 10.4, it’s also shown The unemployment rate for women than men, where the percentage of women compared to men, 16.5 percent and accounted for 8.4
The unemployment in UAE has a lot of negative effects on the society and the economy
As a result of the ill effects of unemployment in the UAE society government decided to draw up laws that employ citizens in public areas for both.
Based on the lack of sufficient qualifications of national have asked the state government educational institutions n upgrading the level of education among students in order to reduce the high level of riparian State
Estimating Unemployment in Abu Dhabi
The United Arab Emirates has the lowest rate of unemployment of only three percent between its citizens on the Arab words.
Dr. Khalid Al Khazraji, Under-Secretary of the Ministry of Labor and Social Affairs, has said that the unemployment percent between UAE citizens go beyond three percent. On the other hand he noted that the country is almost lacks a lot of statics on the size of the unemployment between UAE citizens. This rate is basically calculated prediction on which the governments build its plans and stratagems for the employment of the UAE nationals in the public and privets sectors. However the fact remnants that the influence of the UAE citizens to the private sector still weak for many reasons, some accredited to the unwillingness of national job seekers, while others to the unwillingness of companies.
Although the unemployment rate in 2004 was about 20.60%, but this percent of the unemployment doesn’t affect the UAE’s position.
The Survey
Here is a simple survey analysis which is used to guess the unemployment rate in Abu Dhabi. And the questionnaire is promoted to cover the geographical area of Abu Dhabi.
Actually the survey obtains the needed information on age, sex, level of education, family size, employed and unemployed members of the family, and why they are not employed, duration of unemployment, and types of jobs preferred.
However the survey has been conducted by many ways such as mail distribution, phone cells, and personal interview on 500 families And the face rationality of government officials from the Ministry of Labor.
The sample we selected it was depend on Cranach’s Coefficient Alpha(0.83), the degree of confidence of the sample survey is tested using t- statics which are averaged 2 at 0.05 level of confidence. For the other statistical displays were measured such as frequency, mathematical average, and percentages.
Results and analysis
The results that are calculated from the returned survey are presented in Table 2. The unemployment rate along with nationals in Abu Dhabi was found to be 16 percent, and that is superior to the official approximations of 10.4 percent and 6.5 percent for the UAE and Abu Dhabi in that order. This is because rather to the tiny trial size, and can be also clarified by the diverse schemes used for assessment, and the reality that many families who have members that are at working age were barred from the labor force because they were not actually looking for jobs or were constant economically by social aid from the government or from unmitigated families. As anticipated, the result shows a high percentage of nationals that favor working at public sector managerial jobs, and this will enlarge the unemployment rates. The analysis proposes that unemployment rate is tend to boost for many explanations, such as the amplified number of graduates, the quality of education which market demand does not meet with, and the work surroundings at the private sector with value to working hours and close performance dimensions which does locals are not attracted to. Finally, nationals still do not accept certain jobs because of society or that the jobs are not socially tempting.
Conclusion
The examination recommends improving the educational and training system to fit labor market requirements. It is also suggested to produce more exact and modernized data on the labor market including (job seekers, employers, and job opportunities), and for more information to be provided and an educational campaign to be carried out to change the approach of the UAE young people in the direction of working at the private sector. Further research is needed to revise the impact of unemployment on UAE economy, women contribution in the labor force and recognizing jobs favored by them, and measuring nationals’ efficiency weighted against to that of the expatriates, and finally restudying the labor law and rules in light of globalization and new scientific expansions.
Resources
Kqwach Nadim (Dec. 8, 2002), “UAE Unemployment one of the lowest” UAE Economic,
Abu Dhabi.
MENA Development report (2004), “Unlocking the Employment Potential in the Middle East
and North Africa. Toward a ………… Social Contract”. The World Bank, Washington,
D.C.
UAE Ministry of Planning 2004, UAE, Abu Dhabi.
Muwia E. Ilbrahim, (Jan. 22.2004), “Unemployment Spirals among UAE” Nationals, Khaleej Times Online.
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