Labour Shortage and Economic Growth of Developing Countries

1. Labour Shortage and Economic Growth of Developing Countries

2. Labour is an important requisite for helping a developing country’s economy to run. It is a part of important industries and its efforts decide how smoothly the production processes will be carried out. When labour shortage results, these processes can get affected. An impact of the same can also be on the economy of a developing country like Bangladesh. RR Holdings, an emerging power house, says that understanding the relationship between labour and economy as well as why labour shortage occurs is crucial. By understanding the two, labour shortage can be removed and economic growth can be increased. RR Holdings Limited is run by a group of experienced entrepreneurs. Source: Labour Shortage and Economic Growth of Developing Countries

3. Looking at the Connection between Labour and Economic Growth For the production of goods and services in any industry, labour works as an important human resource. For manual and mechanized tasks, labour is needed to conduct the operations. Companies like RR Holdings believe that the output obtained as a result of the labour’s efforts can be good for the economy, especially that of a developing country. With this output, not only can profits be generated but also companies and industries can flourish. Overall, this helps an economy to go forward. Therefore, there is an established connection between labour and an economy’s growth. Source: Labour Shortage and Economic Growth of Developing Countries

4. How can Shortage of Labour Affect a Developing Country’s Economy? Emerging power houses like RR Holdings have realized that when there is a shortage of labour, it is likely that less output will be obtained. With a decline in production, companies or industries may be unable to draw the expected level of profits. In addition, this can result in fulfilling fewer demands of the consumers. In the long run, the effect of all of this will be observed the most on the economy. In a developing country, a lack of growth in an economy can be bad for its citizens. Reduction in quality living and unfulfilled demands can also be expected with the same. Source: Labour Shortage and Economic Growth of Developing Countries

5. How to Deal with Labour Shortage in a Developing Country? Developing countries like Bangladesh can deal with labour shortages by taking certain factors into consideration. The emerging power house, RR Holdings, holds the view that such countries should find out why a shortage of labour is arising. The rate of survival, the existence of unskilled people, a high rate of poverty, etc., should be determined. These factors should be practically dealt with to reduce labour shortages and increase the number of skilled workers. Post this, the economies of developing countries can aim for constant economic growth. Source: Labour Shortage and Economic Growth of Developing Countries

6. The economies of developing countries have much scope to rise. Conditions like labour shortages can narrow down this scope. However, when the factors behind such conditions are understood, dealing with them can be possible. As we elaborated in this reading, the root cause of problems like labour shortages can be identified based on what the developing country is. Gradually, when solutions are implemented to eliminate the problem, the economy of such a country can head towards better growth in the coming days. Source: Labour Shortage and Economic Growth of Developing Countries

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