poverty

definition
The state or condition of having little or no money, goods, or means of support; condition of being poor.

measurement
Using a poverty line income to demarcate poor and non-poor households Absolute poverty line is calculated in terms of the income required to purchase a minimum food basket and other basic necessities like clothing. The relative concept of poverty stresses income inequality as its fundamental manifestation and is reflected in the definitions of poverty in the lower quintiles of the population, the welfare ratio and the index of poverty

Cause of poverty in urban areas

Urban poverty is not caused by the lack of incomes alone but a multitude of factors deeply rooted in social, economic and political structures of the urban and these are often linked to social, political and economic changes at a regional, national and international level.

Table 1: Malaysia: Incidence of Poverty and Number of Poor Households, 1970-2007

Year 1970 1976 1984 1989 1993 1995 1997 1999 2000 2002 2004 2007

Number of Poor Households (000) 1000.0 879.3 649.4 574.5 517.2 365.6 294.4 360.1 276.0 269.7 311.3 209.0

Incidence of Poverty (%) 52.4 42.4 20.7 16.5 13.5 8.7 6.1 7.5 5.5 5.1 5.7 3.6

Sources: Malaysia Plan (various issues), Ministry of Finance, Economic Reports (various years) and Economic Planning Unit, Prime Ministers Department.

Cause of poverty in rural areas

Communities live at very low levels of subsistence and do not produce surpluses for the market that cause of low productivity, technology, skilled and knowledge. Geography and location, access to land, credit and markets are critical dimensions of rural poverty.

strategies
Targeting the hardcore poor Known as the Development Programme (1988)-involved the creation of a register and profile of hardcore poor households and the delivery of appropriate projects to meet their specific needs such as additional opportunities to increase their employability and income, better housing, food supplements for children and educational assistance. Collaborated with the private sector and non-governmental organizations (NGOs) Amanah Ikhtiar Malaysia (AIM) provided small business loans to the poor, industrial training and job opportunities, educational support for children of the poor and better housing. Maintaining stable prices implement fix a ceiling retail price for a certain item, after due analysis of its market, including discussions with market players and provided with a subsidy to producers and suppliers of the item to cover part of their costs.

UNEMPLOYMENT
-Unemployment is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment. -Unemployment is the state of an individual looking for a paying job but not having one.

Types of unemployment
Cyclical unemployment - Cyclical unemployment occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high. Frictional unemployment - Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations. Structural unemployment - Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations. Technological unemployment- this relate to production method involving a good deal with mechanization. This naturally result in displacement of labor and finally unemployment. Residual unemployment caused by personal factors such as old age, physical or mental disability, poor work attitudes and inadequate training.

Employment rate
The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Unemployment rate in Malaysia

Causes of unemployment
Economy - For many years, the manufacturing has been the strongest sector in the country until it is now being progressively replaced by the services sector. The services sector requires people who do not only possess the right technical knowledge, but also those who possess the right soft skills like interpersonal, communication, wisdom, maturity and are business oriented. Quality of education find a greater certificate holder. Choosy job seekers - candidates are expecting job offer to come with a package. Lack of guidance maybe there is need a closer feel to the employment world. Choosy employers demand what kind of employers that they want.

Effects of high rate unemployment

Decreased economy growth. Increase crime rate social problem. Increase government spending.

Effort of government
Develop training program. - KERJAYA : programmed was to create a group of skilled and trained workers, thus reducing the unemployment rate among fresh graduates. - participants will be given on-the-job training and receive a monthly salary of between RM1,200 and RM1,500. - help partner companies find part-time, contract and permanent staff from this program.

 Provide job opportunity. - The Government is concerned of the difficulties faced by retrenched workers and unemployed graduates and the anxiety felt by their families. To assist them, the Government will create a total of 163,000 training and job placement opportunities in the public and private sectors.

- PROSPER : It is the Graduate Programmed was implemented in June 2005 to assist Bumiputera graduates in retail or distributive business with training, financing and business advisory services. Participants are offered syariah-based financing of between RM5,000 to RM50,000 with a repayment period of 3 to 7 years. To date, a total of 334 businesses have been successfully established. To develop more young entrepreneurs, PUNB (Perbadanan Usahawan Nasional Berhad) will expand the scope of the Graduate PROSPER Programmed to include those with skills and technical certificates. An additional 400 graduates will benefit from the programmed.

 Reduce foreign worker. - The Government will continue to take steps to reduce the dependence on foreign workers and give priority to hiring local workers. - Levy on foreign workers will be doubled for all sectors except construction, plantation and for domestic maids. The levy will be paid by the employers and not by the workers. - Freeze the issuance of licenses to foreign labor recruitment agencies and tighten the conditions for recruitment of foreign workers by existing agencies.

 Encourage re-training. - Give a special training and campaign that improve the skill of workers.

Conclusion
Workers must be actively involved in upgrading their knowledge and skills. Unemployment is a problem that we have to control through effective labor management and human resource policies. The negative impact of globalization and external shocks of the international economic system must be mitigated by prudent government interventions.