Page 24 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 2, 2017, pp. 4-31

Given the above reality of the labour market in Somalia, and given the fact that the emphasis
would be focused on utilizing fully the available human resources, and its skill contents, to create
and achieve, the aimed at, sustainable national development and growth, the SNDP has
attempted to forecasting the employment likely would be generated, by main sector clustering, in
the economy for the next few years (2016-2019). This sectoral-employment structuring is
derived using relevant parameters and coefficients such as; sectoral planned growth rates,
sectoral calculated labour-output ratios (LOR), the likely national and sectoral absorptive
capacity and investment, as well as the calculated labour productivity, both level and growth
rate, as obtained from solving the aggregated model and shown. The table below displays the
employment by main sectors and in the economy as a whole, during the SNDP period.

Table -5-: Projected Pecentage of Employment by main Sectors
Sectoral Clustering 2016 2017 2018 2019
Productive Sector 2033.7 2148.9 2236.0 2378.3
Infrastruture 143.7 175.2 226.2 309.1
Services 639.4 698.0 816.4 949.1

Total Economy 2816.8 3021.5 3278.6 3636.5

Source: Integrated Macro Modelling outcomes

The figure below illustrates the sectoral employment structure of the national economy at the
terminal year of the SNDP.

Sectoral Employment Structur at the end of SNDP Period

26%
Productive

9% 65% Infrastruture

Services

One socio-economic issue that concern most the nation of Somalia is the unemployment issue that
characterizing the labour market in the country. This socially and economically disturbing problem
has, in fact, a negative impact on the standard of living of the population and it is aggravating
poverty problem and conditions, as well as widening the segment of the marginalized people of

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