Out of the box How to solve the unemployment problem
Many countries have high unemployment. This problem is worse for youths. Many countries face the challenge of a high level of youth unemployment. 

A higher level of education does not solve the problem. Indeed, many graduates are not able to get jobs.

What is the solution to provide adequate jobs for all citizens, including the first time job seekers who have completed their education?

Be prepared for a surprise. The solution is - central planning.

Central planning implies the following actions by the government:

a) It plans ahead to identify the number of jobs that are required for the economy.
b) It trains adequate numbers of people to fill up these jobs.
c) It ensure that all the jobs pay an adequate salary that is sufficient to meet the cost of living.
d) If adjust the length of the work week to match supply and demand.

Under central planning, there is still the freedom for the citizens to choose the type of occupation that they wish to pursue, but this freedom of choice is constrained by the places that are available. 

We already exercise this restriction in limiting the number of places for each type of training in the university. This concept can be applied for other occupations that do not need an university education.

When the government takes on the responsibility for the central planning, it will also set the adequate wages and the terms of employment. If certain occupations are in low demand, the wages and terms should be improved. Those in high demand should be moderated. 

Finally, the available places can be assigned to the interested parties  in a fair way, including the system of drawing lots.

We need the central planning system to be more flexible to meet the market conditions.

There is still the scope for some people to carry out occupations outside of the central planning system. These people are likely to come from wealthy families where they can set up their own businesses. However, for the majority of the citizens, the central planning system will ensure that they have a suitable and useful job that pays an adequate wage.

Central planning failed in the past due to inefficiency and corruption. These weaknesses can be addressed with the transparent information flow and social media. There is a better chance for central planning to succeed in the modern era.

I hope to get people to realize that there is a role for central planning in ensuring that citizens will have jobs that pay adequate wages. It can achieve the outcome with minimal wasted resources.

Tan Kin Lian

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