In many countries today there are many highly qualified graduates without employment. What factors may have caused this situation and what, in your opinion, can/should be done about it?

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There is a high unemployment
rate
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among qualified graduates in many
countries
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, especially the developing ones. In
this
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essay, I will discuss the reasons behind that, as well as some recommendations to increase the employment
rate
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. Many factors contribute to the lack of employment opportunities for qualified and educated individuals in many
countries
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. The most important factor in my opinion is the lack of
investments
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.
For example
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, in Egypt,
investments
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, both domestic and foreign, represent a smaller portion of the gross domestic product compared to the developed
countries
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. The smaller the
investments
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in manufacturing and other sectors, the lower the job opportunities, and the higher the unemployment
rate
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. Another reason is the difficulty to start a company.
For instance
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, the interest rates in Egypt are very high, which makes it difficult for a project to be economically viable, and
therefore
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, people are discouraged to invest and start their own business. In my opinion, several things can be done to overcome
this
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issue.
First
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, the government in Egypt should take serious steps to encourage both local and foreign
investments
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to create jobs.
For example
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, new companies should enjoy lower taxes in the
first
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ten years of operation.
Moreover
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, the central bank should remove restrictions on the money flow inside and outside the country to lure foreign investors to come.
Second
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, small investors should be incentivised by the government by giving them low-interest loans and tax breaks.
Third
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, there should be an increase in public spending on infrastructure, education, and health to increase the number of jobs. To conclude, I think that the population growth in developing
countries
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outpaces economic growth.
However
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, if the recommendations mentioned above are taken into consideration, the unemployment
rate
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will decrease.
Submitted by mariam.elmenabawy on

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