Economy after the pandemic Creating state funded jobs
The economy of the future requires the state to play an active role in creating jobs in the public and private sectors. 

They have to supplement the market and the private sector in creating the jobs. 

While the market should be the main engine of growth and job creation, it will not create sufficient jobs for the large number of people that need them.

The state has to provide the framework and funding to generate more employment growth.

Here are the ways that the state can play a meaning role.

a) Regulate the number of working hours for each day. If the supply of labor exceed demand, the number of hours have to be reduced, so that the demand is spread among all the available workers. If the economy is booming, more people can be working for longer hours. But when the economy slows down, the available work should be spread among the people, so that everyone is employed but for shorter hours. The leisure time is increased.

b) Create public sector jobs that pays an adequate wage. The wage may not be as attractive as the private sector but should be adequate to attract the available workers. These jobs are in public sector services, such as health, education, policing, security, safety, transport and others.

c) Provide state subsidy for some essential work that are better done in the private sector. This includes providing food, beverage, maintenance and repair services. It will help to reduce the cost of living and make the work more efficient. 

We have to get away from the concept that the market is more efficient than the state in the allocation of resources. In some areas, the market is indeed more efficient. In other areas, the market is less efficient (also known as market failures). 

I am not suggesting that the state is more efficient than the market. If not properly managed, it can be wasteful. We need to achieve the right balance.

The right approach is a combination of public policy and market forces.

Tan Kin Lian

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