DETERMINANTS OF LABOUR DEMAND, A CASE OF MOGADISHU CITY, SOMALIA
DOI:
https://doi.org/10.47672/aje.177Keywords:
Determinants, labour demand, SomaliaAbstract
Purpose: The purpose of this study was to investigate the determinants of labour demand, a case of Mogadishu City, Somalia.
Methodology: The paper employed desktop methodology, which involved review of existing literature relating to the study topic. The design involves a review of existing studies relating to the research topic.
Results: Based on the findings the study identified cost as a key determinant of labour demand, especially, in the formal sector. Previous studies indicate that most firms demand for cheap labour. The study also identified education as an important determinant of demand for labour in the World. Owing to the increasing global competitiveness, firms demand for highly skilled and competent workforce. Unfortunately, majority of workforce in developing countries such as Somalia do not have the right skills and competence. Further, the study concluded that a country with a stable economic growth enjoys high demand for labour. This is because the available workforce is skilled and competent enough. However, in developing countries such as Somalia, the demand for labour is very low. Somalia has experienced long period of economic slowdown, and this has affected the quality of workforce.
Unique contribution to theory, practice and policy: Based on the study findings the study recommends that the federal government of Somalia should adopt measures to regulate labour cost. The study also recommends that the government should adopt more measures to promote education. The study further recommends for international interventions to ensure that Somalia's economy gets back on its fit. Stable economic growth will lead to increased demand for labour.Downloads
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