Remedies for unemployment in Bangladesh

 Bangladesh is most densely populated country with a partial resource. There are about 150 millions of people and 49 percent of them live under poverty line. Unquestionably, unemployment is a Big Macroeconomic Issue of Bangladesh.

 According to a study of the International Labor Organization (ILO), the rate of growth of unemployment in Bangladesh was 1.9 per cent in the decade of the nineties. But the growth in unemployment currently is 3.7 per cent. The ILO figures also show Bangladesh in the twelfth position among the top twenty countries in the world where unemployment is rising.

 The number of the unemployed in Bangladesh now is estimated at 30 million. The way the rate of unemployment is increasing, it is feared that at this rate unemployment would soar to some 60 million by 2015. According to another estimate, every year some 2.7 million young persons are becoming eligible for jobs whereas only about 0.7 million of them are getting employment.

 Some recommendations to reduce Unemployment:

 1. Create a National Office of Employment to develop long term strategies and oversight of the Bangladesh labor market in order to track trends, analyze data, research emerging problems, and prepare early interventions.

 2. Identify growing and potential industries and the skills they will need in future staff.

  3. Design a plan which allows for the rapid retargeting of training courses as Community

Colleges and vocational schools are traditionally 5 to 15 years behind current needs.

 4. Renovate the processes of State Unemployment Offices by implementing coordinated support programs in which workers participate as part of receiving unemployment benefits and employers participate as a means of meeting their future needs for staff.

 5. Provide incentives for employers to hire more part-time workers

How can the double counting problem be avoided?

 The simplest way to think about national income is to consider what happens when one product is manufactured and sold. Typically, goods are produced in a number of 'stages', where raw materials are converted by firms at one stage, then sold to firms at the next stage. Value is added at each, intermediate, stage, and, at the final stage, the product is given a retail selling price. The retail price reflects the value added in terms of all the resources used in all the previous stages of production.

In accounting terms, only the value of final output is recorded. To avoid the problem

of double counting, only the value of the final stage, the retail price, is included, and not the value added in all the intermediate stages - the costs of production, plus profits.  In short, national income is the value of all the final output of goods and services produced in one year.

what is meant by the problem of double counting in the measurement of national income?

 A term used to describe the problematic situation that occurs when the  costs of  intermediate goods used by a  business to  produce a finished good are included in the computation of

a  nation's gross domestic product. Since the final  price of a good already includes the  value of all the intermediate goods used to produce it, including the price of intermediate goods when calculating gross domestic product would involve double counting.

Double counting is an error caused as a result of illogical calculation. This term is used in economics to refer to the faulty practice of counting the value of a nation's goods more than once. Since goods

are produced in stages, through specialized channels of production, many intermediate goods are used to produce a final good. If the values of each of these intermediate goods is added together, without subtracting expenditures incurred during the production process, the error of double counting will be

committed.

Distinguishes between gross national product and net national product?

 

Gross National Product	Net National Product
An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents.	The monetary value of finished goods and services produced by a country's citizens, whether overseas or resident, in the time period being measured , minus the amount of GNP required to purchase new goods to maintain existing stock
Gross National Product (GNP) measures the total income earned by residents of a nation	Net National Product (NNP) is GNP net of the capital stock used up
GNP = GDP + Net Factor Income From Abroad	NNP = GNP − Depreciation
Gross National Product (GNP) represents the market value of all goods and services produced by nationals	Net national product, or NNP, represents a mathematical result of a country's production after accounting for depreciation of inventory.