The key Economic Concepts

Question: The main aim of the essay is to critically analyze the article What skills future is about by Ong Ye Kung. Answer: Introduction The main aim of the essay is to critically analyze the article What skills future is about by Ong Ye Kung. The article was presented in the Strait times and was published in April 21, 2016. The author identifies and discusses the economic concepts and ideas that are suitable with the model. The key economic concepts that the author discusses is that it specifies the importance of human capital for economic growth and what are the types of unemployment. The main aim of the article is to discuss the skills that are required to get a job and the government measures taken to eradicate unemployment in last five years. The article specifies it is not only the paper qualifications that are necessary in getting the right job but it depends on skill future (SkillsFuture, 2016). Key economic concept The key economic concepts that will be required to analyze the news article are analyzing the types of unemployment specially the structural unemployment that arises due to gap in the skills. The author also discusses the importance of human capital for economic growth. The third concept that the author discusses is skills future that states that student dont have the necessary degree required for job due to which the problem of unemployment arises. At last the author discusses the government measures taken in last five years to increase job opportunities and helping the youth find the right job (Pang Lim, 2015). This also includes providing proper training to students so that they match the requirements of employers and have proper skills to get employed. Human capital is the collection of resources, skills, knowledge, training, and ability that humans posses that is represented in the form of the wealth. The human capital is important for economic growth and development. Various e conomic theories have been developed to support the importance of human capital in expanding the productivity and the economic growth. The skills that labor workforce is required to get a job and contribute to the countrys gross domestic products is known as human capital. In order to contribute to the economic growth positively employee has to be creative and efficient. Unemployment caused due to gap in skills is known as structural unemployment. This gap arises due to mismatch between demand and supply when the employees are not able to match the skill that is required by the employers to achieve their goals. Skill development is one of the key strategies that are required for economic competitiveness and growth. Developing skills is essential for economic growth and development. It is especially important in developing country (Machlup, 2014). Analysis of the article The main aim of the article is to specify the importance of skills future that according to the article is the national movement. It is a method by which an individual develop skills to make its future better than today so that it is able to grow in its career. It is a three big ideas that includes Mastery, Meritocracy and an individual or people to whom it concerns. It is not only the paper qualification that is necessary to achieve the right job and grow but it is skills and creativity that gets recognized in todays competitive world (Tan, 2016). It is essential for the worker to be diverse in nature in order to impact the economy in a positive way. It is recommended in the article that the paper qualification should be changed and includes the skills development as well. Meritocracy is the change in the meaning of success in future due to achievement of mastery. It is not only essential to recognize the individuals with high educational qualifications such as doctor and teacher bu t individual with good creativity and skill like craftsmen and artisans. It is not only the macro decisions that play an important role but micro decisions also plays important role (Iswaran, 2015). Unemployment can be defined as people without job who does not have any source of earning to maintain the living. There are various types of unemployment. These include frictional unemployment, cyclical unemployment and structural unemployment. The type of unemployment that can be used for the news article is structural unemployment. Structural unemployment can be defined as joblessness that arises due to mismatch in the demands and supply of skills and creativity. It basically arises due to technological change. The main type of unemployment in Australia is youth unemployment that basically arises due to lack of skills and job opportunities. It can be shown in the diagram that the supply of the labor is high but the demand is less because the employees are not able to meet the criteria that the employers want (Diamond, 2013). Figure: market for low skilled youths (Structural unemployment) In todays competitive world the employment criteria is changing. Employers are looking for more skilful people that have good personality and confidence. Skills future is the national movement in Singapore that is set so that people are able to achieve full potential. Government can take various measures to correct the problem (Whitfield, 2014). Government can open new job opportunities for the youth so that there is no structural unemployment in the economy. New training and development centers can be opened in order to enhance the skills of the employees so that they can find an appropriate job. According to the article every individual is important to the society and it is essential to include all in the growth process. Discrimination does not foster growth and development in the economy. Skills play an essential role in development and growth. With the council and development of committee helps in development of education and training that enhances the skill (Harris, 2016). Educa tion and training helps in enhancement of skills required for future. New programs have been announced by the government of Singapore to help the employer and employees better use the technique of skills future to enhance its skills and get a better job. This covers mainly two areas. The first is to introduce the academic institutions to introduce the courses for both the employers and employees to expand theory knowledge. The focus is especially on the medium sized enterprises as well as professionals and managers. The second measure is boosting the employers with the human resource capabilities such as introduction of National Trades Union Congress (NTUC). The government has also expanded its budget to help the companies retain its efficient workers. For this the government has levied many restructuring skills and schemes. Skills future movement also involved government feedback unit where the employers and employees have the opportunity of giving feedback. Government has taken ma ny measures to enhance the skills of the employers and employees so that they can have a better future (CHUAN, 2016). Conclusion Skills future is a national movement that aims at helping the employees realizes their full potential and helps them achieve it. Government is actively involved in the movement by formulating many skills for the development. Various economic terms can be linked with the article. Structural unemployment is the unemployment that arises due to mismatch in the demand and supply of employees due to the skills. It is essential to avoid this kind of unemployment as it may continue for long run that can be harmful for the economy. References CHUAN, T. (2016). New measures riding on SkillsFuture credits to be introduced. Diamond, P. A. (2013). Structural unemployment.FRB of Boston Public Policy Brief, (13-6). Harris, C. W. (2016). Lifelong learning and earning: The changing landscape of higher education in Singapore. Iswaran, S., 2015. Singapore Economy: Strategies for the Next 50 Years.Singapore 2065: Leading Insights on Economy and Environment from 50 Singapore Icons and Beyond, p.2065102. Machlup, F. (2014).Knowledge: Its Creation, Distribution and Economic Significance, Volume III: The Economics of Information and Human Capital(Vol. 3). Princeton university press. Pang, E. F., Lim, L. Y. (2015). Labor, Productivity And Singapore'S Development Model.The Singapore Economic Review,60(03), 1550033.