US job creation accelerated in January, as labour markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported today.

The world&#39;s largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported.

The result beat forecasts, which predicted an increase of 180,000, and helped offset December&#39;s disappointing result.

Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row.

Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12 -month increase in more than nine years.

That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do.

Hourly wages rose 0.3 per cent from the prior month to USD 26.74, putting worker pay up 2.9 per cent compared to January of last year, the largest 12-month gain since June 2009.

Over the same period the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices.

The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil.

Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs.

The ranks of health care workers swelled for the month as well, adding 21,000 new positions.

Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000.

With the 4.1 per cent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million.

However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 per cent in January last year.

Trump took office a year ago, pledging to create 25 million new jobs over a decade, or just over 200,000 per month.

However, Labour Department figures released today show the economy added 2.17 million jobs in 2017, fewer than 2016, when there were 2.34 million new jobs.

Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row

US job creation accelerated in January, as labour markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported today. The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported. The result beat forecasts, which predicted an increase of 180,000, and helped offset December's disappointing result. Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row. Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12 -month increase in more than nine years. That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do. Hourly wages rose 0.3 per cent from the prior month to USD 26.74, putting worker pay up 2.9 per cent compared to January of last year, the largest 12-month gain since June 2009. Over the same period the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices. The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil. Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs. The ranks of health care workers swelled for the month as well, adding 21,000 new positions. Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000. With the 4.1 per cent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million. However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 per cent in January last year. Trump took office a year ago, pledging to create 25 million new jobs over a decade, or just over 200,000 per month. However, Labour Department figures released today show the economy added 2.17 million jobs in 2017, fewer than 2016, when there were 2.34 million new jobs.

US adds 200,000 new jobs in January

Finance Minister Arun Jaitley will today present the current NDA government&#39;s fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence.

The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

With the recent elections in Gujarat indicating erosion of BJP&#39;s rural vote base, Jaitley may also unveil incentives for the farm sector. 
Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit.

Also on Jaitley&#39;s menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

But he has to do all this while sticking to the road map of narrowing one of Asia&#39;s largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop.

This will be India&#39;s first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia&#39;s third largest economy. 
There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years.

He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them.

Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can&#39;t be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target.

In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget.

The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

While P Chidambaram had presented the previous UPA government&#39;s vote-on-account in February 2014, Jaitley had presented a full budget in July that year. 
The Budget for 2018-19 will be the first budget post implementation of the GST regime.

Even though independent India&#39;s biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers.

With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change.

While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.&nbsp;

Finance Minister Arun Jaitley will present this government's fifth and arguably toughest Budget today

Finance Minister Arun Jaitley will today present the current NDA government's fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence. The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance. With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector. Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation. There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit. Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low. But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade. The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow. Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop. This will be India's first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia's third largest economy. There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years. He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them. Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit. Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship. There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target. In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL. Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year. The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year. Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget. The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government. While P Chidambaram had presented the previous UPA government's vote-on-account in February 2014, Jaitley had presented a full budget in July that year. The Budget for 2018-19 will be the first budget post implementation of the GST regime. Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers. With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change. While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

Jaitley has tough task of choosing between populism, prudence in today's Budget

U.S. job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing.

According to a Reuters survey of economists, the Labor Department&#39;s closely watched employment report on Friday will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October.&nbsp;Employment gains in October were boosted by the return to work of thousands of employees who had been temporarily dislocated by Hurricanes - Harvey and Irma. November&#39;s report will be the first clean reading since the storms, which also impacted September&#39;s employment data.&nbsp;

The unemployment rate is forecast to be unchanged at a 17-year low of 4.1 percent. Average hourly earnings are expected to have risen 0.3 percent in November after being flat the prior month. That would lift the annual increase in wages to 2.7 percent from 2.4 percent in October.&nbsp;Readings in line with expectations would underscore the economy&#39;s strength and fuel criticism of efforts by Trump and his fellow Republicans in the U.S. Congress to cut the corporate income tax rate to 20 percent from 35 percent.

&quot;The labor market is in great shape. Tax cuts should be used when the economy needs tax cuts and it doesn&#39;t need tax cuts right now&quot;, said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. He added, &quot;When politics and economics are mixed in the stew, the policies that are created often have an awful smell&quot;.

Republicans argue that the proposed tax cut package will boost the economy and allow companies to hire more workers. But with the labor market near full employment and companies reporting difficulties finding qualified workers, economists disagree. Job openings are near a record high.&nbsp;

&quot;Companies want workers and do not need tax cuts to give them the financial wherewithal to hire more workers&quot;, said Chris Rupkey, chief economist at MUFG in New York. He said, &quot;It&#39;s labor, that the economy is running out of&quot;.

The economy grew at a 3.3 percent annualized rate in the third quarter, the fastest in three years.

Full Employment

While November`s employment report will probably have little impact on expectations that the Federal Reserve will raise interest rates at its Dec. 12-13 policy meeting, it could help shape the debate on monetary policy next year.&nbsp;The U.S. central bank has increased borrowing costs twice this year. It has forecast three rate hikes in 2018.&nbsp;

Job growth has averaged 168,000 jobs per month this year, down from the average monthly gain of 187,000 in 2016. A slowdown in job growth is normal when the labor market nears full employment.&nbsp;The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population.

The unemployment rate has declined by seven-tenths of a percentage point this year. Economists believe that the tightening labor market will unleash a faster pace of wage growth next year.&nbsp;That, combined with the tax cuts, would help boost inflation. 
&quot;I think that in the next three to six months we will see a broader uptick in wage pressures. Given where we are in the economic cycle, if you throw some gasoline in the fire with fiscal stimulus, that will ultimately spark some higher inflation&quot;, said David Donabedian, chief investment officer of CIBC Atlantic Trust in Baltimore.&nbsp; 
 
Employment gains were likely broad in November. Construction payrolls are expected to show strong growth, thanks in part to rebuilding efforts in the areas devastated by the hurricanes.&nbsp;Another month of steady increases is expected in manufacturing employment while hiring for the holiday season likely boosted retail payrolls.

Retailers, including Macy&#39;s Inc, reported strong Black Friday sales.&nbsp;Macy&#39;s said that this month it would hire an additional 7,000 temporary workers for its stores to deal with heavy customer traffic in the run-up to Christmas.

A growth in United States' job sector is anticipated with hourly earnings going up. The unemployment rate is forecast to remain unchanged

U.S. job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing. According to a Reuters survey of economists, the Labor Department's closely watched employment report on Friday will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October. Employment gains in October were boosted by the return to work of thousands of employees who had been temporarily dislocated by Hurricanes - Harvey and Irma. November's report will be the first clean reading since the storms, which also impacted September's employment data. The unemployment rate is forecast to be unchanged at a 17-year low of 4.1 percent. Average hourly earnings are expected to have risen 0.3 percent in November after being flat the prior month. That would lift the annual increase in wages to 2.7 percent from 2.4 percent in October. Readings in line with expectations would underscore the economy's strength and fuel criticism of efforts by Trump and his fellow Republicans in the U.S. Congress to cut the corporate income tax rate to 20 percent from 35 percent. "The labor market is in great shape. Tax cuts should be used when the economy needs tax cuts and it doesn't need tax cuts right now", said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. He added, "When politics and economics are mixed in the stew, the policies that are created often have an awful smell". Republicans argue that the proposed tax cut package will boost the economy and allow companies to hire more workers. But with the labor market near full employment and companies reporting difficulties finding qualified workers, economists disagree. Job openings are near a record high. "Companies want workers and do not need tax cuts to give them the financial wherewithal to hire more workers", said Chris Rupkey, chief economist at MUFG in New York. He said, "It's labor, that the economy is running out of". The economy grew at a 3.3 percent annualized rate in the third quarter, the fastest in three years. Full Employment While November`s employment report will probably have little impact on expectations that the Federal Reserve will raise interest rates at its Dec. 12-13 policy meeting, it could help shape the debate on monetary policy next year. The U.S. central bank has increased borrowing costs twice this year. It has forecast three rate hikes in 2018. Job growth has averaged 168,000 jobs per month this year, down from the average monthly gain of 187,000 in 2016. A slowdown in job growth is normal when the labor market nears full employment. The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population. The unemployment rate has declined by seven-tenths of a percentage point this year. Economists believe that the tightening labor market will unleash a faster pace of wage growth next year. That, combined with the tax cuts, would help boost inflation. "I think that in the next three to six months we will see a broader uptick in wage pressures. Given where we are in the economic cycle, if you throw some gasoline in the fire with fiscal stimulus, that will ultimately spark some higher inflation", said David Donabedian, chief investment officer of CIBC Atlantic Trust in Baltimore. Employment gains were likely broad in November. Construction payrolls are expected to show strong growth, thanks in part to rebuilding efforts in the areas devastated by the hurricanes. Another month of steady increases is expected in manufacturing employment while hiring for the holiday season likely boosted retail payrolls. Retailers, including Macy's Inc, reported strong Black Friday sales. Macy's said that this month it would hire an additional 7,000 temporary workers for its stores to deal with heavy customer traffic in the run-up to Christmas.

Strong November US job gains anticipated; wages seen rising

In a startling revelation, a report by a global research institute&nbsp;said <a href="http://www.wionews.com/india-news/rahul-gandhi-gives-second-address-in-us-talks-jobs-20418">between 400&nbsp;million and 800&nbsp;million individuals </a>could be displaced by&nbsp;automation and they would need to find new jobs by 2030 around the world.

Research <a href="http://www.wionews.com/south-asia/why-is-indias-growth-not-creating-more-jobs-16771">firm McKinsey in its report highlights </a>that the global economy needs to&nbsp;boost productivity and growth at a time &quot;when ageing populations are acting as a drag on GDP growth.&quot;

&quot;Of the total displaced, <a href="http://www.wionews.com/edge/are-we-going-to-lose-our-jobs-to-robots-11850">75&nbsp;million to 375&nbsp;million may need to switch</a> occupational categories and learn new skills, under our mid-point and earliest automation adoption scenarios,&quot; the report says.

On India, the report says it&nbsp;is a fast-growing developing country which&nbsp; has &quot;relatively modest potential for automation over the next 15&nbsp;years.&quot;

&quot;Most occupational categories are projected to grow in India, reflecting its potential for strong economic expansion,&quot; it says, however, the report cautiously adds that employing new entrants in the formal sector jobs will require &quot;job creation on a much larger scale than in the past.&quot;

Automation will make this challenge more difficult in India with some fearing &ldquo;jobless growth.&rdquo;

However, it says India can create enough new jobs to offset automation and employ new entrants, if it undertakes the investments in &quot;step-up scenario.&quot;

The report says China faces the largest number of workers needing to switch occupations&mdash;up to 100&nbsp;million if automation is adopted rapidly, or 12&nbsp;per cent of the 2030 workforce, adding, the figure is relatively small compared with the huge shift in China out of agriculture in the&nbsp;past 25&nbsp;years.

China and Mexico have higher wages than India, and so are likely to see more automation, McKensey says.

China is still projected to have robust economic growth but will have a shrinking workforce like Germany, China&rsquo;s problem could be a shortage of workers. &nbsp;

As far as the advanced economies are concerned, up to one-third of the 2030 workforce in the United States and Germany, and nearly half in Japan would have to learn new skills and find work in new occupation is much eager.

&nbsp;&quot;Over time, labour markets will adjust to changes in demand for workers from technological disruptions, although at times with depressed real wages,&quot; the report observes.

The report says that with &quot;sufficient economic growth, innovation and investment, there can be enough new job creation to offset the impact of automation.&quot;&nbsp;

&quot;But a larger challenge will be ensuring that workers have the skills and support needed to transition to new jobs,&quot; it says, adding that countries that fail to manage this transition could see rising unemployment and depressed wages.

Research firm McKinsey says 400?million to 800?million individuals could be displaced by?automation

In a startling revelation, a report by a global research institute said between 400 million and 800 million individuals could be displaced by automation and they would need to find new jobs by 2030 around the world. Research firm McKinsey in its report highlights that the global economy needs to boost productivity and growth at a time "when ageing populations are acting as a drag on GDP growth." "Of the total displaced, 75 million to 375 million may need to switch occupational categories and learn new skills, under our mid-point and earliest automation adoption scenarios," the report says. On India, the report says it is a fast-growing developing country which has "relatively modest potential for automation over the next 15 years." "Most occupational categories are projected to grow in India, reflecting its potential for strong economic expansion," it says, however, the report cautiously adds that employing new entrants in the formal sector jobs will require "job creation on a much larger scale than in the past." Automation will make this challenge more difficult in India with some fearing “jobless growth.” However, it says India can create enough new jobs to offset automation and employ new entrants, if it undertakes the investments in "step-up scenario." The report says China faces the largest number of workers needing to switch occupations—up to 100 million if automation is adopted rapidly, or 12 per cent of the 2030 workforce, adding, the figure is relatively small compared with the huge shift in China out of agriculture in the past 25 years. China and Mexico have higher wages than India, and so are likely to see more automation, McKensey says. China is still projected to have robust economic growth but will have a shrinking workforce like Germany, China’s problem could be a shortage of workers. As far as the advanced economies are concerned, up to one-third of the 2030 workforce in the United States and Germany, and nearly half in Japan would have to learn new skills and find work in new occupation is much eager. "Over time, labour markets will adjust to changes in demand for workers from technological disruptions, although at times with depressed real wages," the report observes. The report says that with "sufficient economic growth, innovation and investment, there can be enough new job creation to offset the impact of automation." "But a larger challenge will be ensuring that workers have the skills and support needed to transition to new jobs," it says, adding that countries that fail to manage this transition could see rising unemployment and depressed wages.

Job loss? India has modest potential but China likely to see more automation, says McKinsey report

The term &ldquo;jobless growth&rdquo;, much in the news these days, is used to describe the phenomenon of GDP growth without a commensurate increase in (formal) employment. How can GDP grow without job creation? The increasing use of machines in production is one crucial reason.&nbsp;

Annual Survey of Industries data, which reports on organised or formal sector firms, shows that the capital to labour ratio has steadily risen in most industries over the past few decades. In a country like India, where labour is abundant and cheap, why are firms choosing to substitute capital (machines) for labour? Several explanations have been offered, none of them exclusive of the others.

One story, popular among some economists as well as policy-makers is that India&rsquo;s labour laws are too restrictive. Faced with an excessive regulation of hiring and firing, firms prefer to substitute machines for workers. A vigorous debate has raged over this issue. Although a consensus of sorts seems to be forming in the policy circles that labour laws are a big constraint on job creation, and several steps have already been taken at the centre and state level to dilute these laws, two things are worth noting. First, firm owners often do not list labour laws among the top two or three constraints that they face in expanding their business. Rather inadequate infrastructure, government procedures, and weak demand top the list.&nbsp;

To put it another way, if strong demand were assured and infrastructure streamlined, then labour laws would be unlikely to get in the way of firm expansion. Second, if firms really wanted to expand while avoiding being subject to labour laws, we should observe a large number of firms employing workers up to just below the threshold where labour laws kick in. But we observe no such &ldquo;clumping.&rdquo;

Of course, it is possible that firms do not face this constraint simply because they hire informal (off the books) workers via contractors. This way expansion is assured without being subject to labour laws. Indeed, the data clearly show an increasing presence of informal workers within formal sector firms. But the solution to this proliferation of precarious jobs is actually to make sure these jobs get formalised and come under the ambit of regulation. And not to remove regulation on existing formal jobs. What is needed is an intelligent approach that strengthens those regulations that will improve job security, working conditions, and rights to bargain collectively, while allowing firms the flexibility to shed labour after meeting due obligations and safeguards.

The second explanation for increasing mechanisation draws on the fact that in recent decades, the Indian economy has become increasingly more integrated into the global economy. Trade liberalisation makes the import of capital and intermediate goods easier. Imported capital goods are relatively cheaper and this reduces the relative price of capital vis-a-vis labour, inducing firms to substitute capital for labour. Trade liberalisation also forced domestic firms to compete with foreign firms in the domestic market. Since foreign firms bring in products produced with much more capital-intensive technology and lower unit costs (because they often operate in capital-rich, labour-scarce economies), domestic firms also have to adopt that technology to stay competitive. And finally, trade liberalisation allows Indian firms to access foreign markets, where again they have to compete with firms producing with capital-intensive technology.

A third explanation is that growth in the post-reform period has benefited a narrow class of Indians, thereby, increasing inequality. Hence expenditure by the elite has become an important source of demand for domestic manufacturers. This elite demand is skewed towards products, such as automobiles, electronics, white goods, higher-end services etc. which are produced by capital-intensive and not labour-intensive technology as it is done in sectors producing food and clothing etc. So a growth in elite demand, raises GDP but does not create jobs.

All this has serious implications for the &ldquo;normal&rdquo; way in which other countries historically managed to create employment, through increasing manufacturing activities. It is not available anymore because countries that are expanding their industrial and manufacturing base today have to compete with much more advanced countries in the same market. As a result, in many developing countries, manufacturing share of employment is declining instead of growing. Workers are moving directly from agriculture into services. This has been called &ldquo;premature deindustrialization.&rdquo;

Finally, at the ideological level, governments in countries like India have willingly constrained themselves. They have not adopted strategic trade and industrial policies for fear of being labeled &ldquo;protectionist,&rdquo; &ldquo;anti-market&rdquo;, &ldquo;anti-investor&rdquo;, anti-globalisation&rdquo; etc. In fact, a large economy like India should have significant leeway in policy-making to suit its own priorities. After all the true test of a well-functioning economy is whether it makes life better for all its citizens, not whether it is open and global.

Increasing uses of informal workers, rising demands of elites and a globalised economy are keeping Indians jobless.

The term “jobless growth”, much in the news these days, is used to describe the phenomenon of GDP growth without a commensurate increase in (formal) employment. How can GDP grow without job creation? The increasing use of machines in production is one crucial reason. Annual Survey of Industries data, which reports on organised or formal sector firms, shows that the capital to labour ratio has steadily risen in most industries over the past few decades. In a country like India, where labour is abundant and cheap, why are firms choosing to substitute capital (machines) for labour? Several explanations have been offered, none of them exclusive of the others. One story, popular among some economists as well as policy-makers is that India’s labour laws are too restrictive. Faced with an excessive regulation of hiring and firing, firms prefer to substitute machines for workers. A vigorous debate has raged over this issue. Although a consensus of sorts seems to be forming in the policy circles that labour laws are a big constraint on job creation, and several steps have already been taken at the centre and state level to dilute these laws, two things are worth noting. First, firm owners often do not list labour laws among the top two or three constraints that they face in expanding their business. Rather inadequate infrastructure, government procedures, and weak demand top the list. To put it another way, if strong demand were assured and infrastructure streamlined, then labour laws would be unlikely to get in the way of firm expansion. Second, if firms really wanted to expand while avoiding being subject to labour laws, we should observe a large number of firms employing workers up to just below the threshold where labour laws kick in. But we observe no such “clumping.” Of course, it is possible that firms do not face this constraint simply because they hire informal (off the books) workers via contractors. This way expansion is assured without being subject to labour laws. Indeed, the data clearly show an increasing presence of informal workers within formal sector firms. But the solution to this proliferation of precarious jobs is actually to make sure these jobs get formalised and come under the ambit of regulation. And not to remove regulation on existing formal jobs. What is needed is an intelligent approach that strengthens those regulations that will improve job security, working conditions, and rights to bargain collectively, while allowing firms the flexibility to shed labour after meeting due obligations and safeguards. The second explanation for increasing mechanisation draws on the fact that in recent decades, the Indian economy has become increasingly more integrated into the global economy. Trade liberalisation makes the import of capital and intermediate goods easier. Imported capital goods are relatively cheaper and this reduces the relative price of capital vis-a-vis labour, inducing firms to substitute capital for labour. Trade liberalisation also forced domestic firms to compete with foreign firms in the domestic market. Since foreign firms bring in products produced with much more capital-intensive technology and lower unit costs (because they often operate in capital-rich, labour-scarce economies), domestic firms also have to adopt that technology to stay competitive. And finally, trade liberalisation allows Indian firms to access foreign markets, where again they have to compete with firms producing with capital-intensive technology. A third explanation is that growth in the post-reform period has benefited a narrow class of Indians, thereby, increasing inequality. Hence expenditure by the elite has become an important source of demand for domestic manufacturers. This elite demand is skewed towards products, such as automobiles, electronics, white goods, higher-end services etc. which are produced by capital-intensive and not labour-intensive technology as it is done in sectors producing food and clothing etc. So a growth in elite demand, raises GDP but does not create jobs. All this has serious implications for the “normal” way in which other countries historically managed to create employment, through increasing manufacturing activities. It is not available anymore because countries that are expanding their industrial and manufacturing base today have to compete with much more advanced countries in the same market. As a result, in many developing countries, manufacturing share of employment is declining instead of growing. Workers are moving directly from agriculture into services. This has been called “premature deindustrialization.” Finally, at the ideological level, governments in countries like India have willingly constrained themselves. They have not adopted strategic trade and industrial policies for fear of being labeled “protectionist,” “anti-market”, “anti-investor”, anti-globalisation” etc. In fact, a large economy like India should have significant leeway in policy-making to suit its own priorities. After all the true test of a well-functioning economy is whether it makes life better for all its citizens, not whether it is open and global.

Why is India's growth not creating more jobs?

It&#39;s been two years since India emerged as the world&#39;s fastest-growing major economy, but the rapid expansion has done little to improve the lot of Ashok Kumar. 
 
Parked up and sitting on the kerb, the 25-year-old truck driver is going nowhere fast. He is the sole breadwinner for the 13 people in his extended family and his monthly salary is stuck at $150. 
 
With new, better-paid jobs hard to come by, Kumar lacks options. He fears becoming unemployed like his elder brother, who recently returned to their village in Uttar Pradesh after months of searching in vain for work. 
 
Data out on Wednesday showed India&#39;s economic growth slowed to 7.1 per cent in the quarter to June, a 15-month low. That is faster than other major economies, but not fast enough to create enough new jobs to absorb all the one million people who join the workforce every month. 
 
A government survey found that job creation fell by more than two-thirds in 2015. Analysts at HDFC Bank estimate that for every percentage point the economy grows, employment now adds just 0.15 of a percentage point - down from 0.39 in 2000. 
 
It&#39;s a major challenge for Prime Minister Narendra Modi, who has promised to create 250 million jobs over the next decade. 
 
&quot;For one job, there are at least 20 candidates,&quot; said Kumar. &quot;If you want the job, you can&#39;t afford to bargain.&quot; 
 
Nearly two-thirds of India&#39;s 1.3 billion people are under 35 years old. This rising demographic &quot;bulge&quot; will create the largest working-age population in the world. At the same time China, which has long curbed family size, will age as a society. 
 
Whether this so-called demographic dividend will translate into the kind of economic gains seen in Japan and Korea, or lead to upheavals, depends on India&#39;s ability to generate jobs. 
 
Yet, despite average annual growth of 6.5 per cent between 1991 and 2013, India added less than half the jobs needed to absorb new job seekers.
<h2>MORE WORKERS, FEWER JOBS</h2>
Under Modi, India has opened up further to foreign investment, hoping to generate more manufacturing jobs. A loan scheme for small businesses has been set up and there are plans for a $1.5 billion fund for startups. 
 
Modi has also launched a programme to train over four million people in different skills in six years. 
 
Pronab Sen, country director for the International Growth Centre, a British-backed think tank, said such measures were &quot;laudable&quot;, but they aimed at boosting supply when more demand was needed. 
 
&quot;India has become a demand-starved economy,&quot; Sen said. &quot;If there is no demand, there will be no incentive to produce more which, in turn, will mean no new jobs.&quot; 
 
The level of desperation for work is staggering. In August, nearly half a million people, including post-graduates, applied for 1,778 jobs as sweepers in the city of Kanpur. 
 
This was not a one-off. Last year, in Uttar Pradesh, 2.3 million people sought 368 low-level government jobs that required a primary education and ability to ride a bicycle. 
 
Competition for such jobs has become fiercer as the public sector&#39;s share in formal employment is declining. 
 
Two years of drought has caused distress in farming, while the construction business has suffered a prolonged downturn &ndash; making work scarcer in the two sectors that employ the bulk of India&#39;s unskilled workforce. 
 
Satellite cities around the capital, like Greater Noida were, until recently, bustling with construction activity. 
 
Now, Greater Noida&#39;s skyline is dotted with half-built, abandoned, high-rises. Cranes and diggers stand idle. 
 
In Delhi and the surrounding National Capital Region, housing starts fell 41 per cent year-on-year in the first half of the year, according to consultancy Knight Frank. Across India, starts were down 9 percent from a year earlier. 
 
Bhuwan Mahato, a contractor who supplies workers to construction projects around Noida, says demand for labour is down by at least 25 percent. 
 
&quot;I wish I hadn&#39;t joined this business,&quot; said Mahato, a 30-year-old migrant from the state of Bihar. &quot;But, truthfully, there are no other opportunities, either.&quot; 
 
(Reuters)

Despite average annual growth of 6.5 per cent between 1991 and 2013, India added less than half the jobs needed to absorb new job seekers

It's been two years since India emerged as the world's fastest-growing major economy, but the rapid expansion has done little to improve the lot of Ashok Kumar. Parked up and sitting on the kerb, the 25-year-old truck driver is going nowhere fast. He is the sole breadwinner for the 13 people in his extended family and his monthly salary is stuck at $150. With new, better-paid jobs hard to come by, Kumar lacks options. He fears becoming unemployed like his elder brother, who recently returned to their village in Uttar Pradesh after months of searching in vain for work. Data out on Wednesday showed India's economic growth slowed to 7.1 per cent in the quarter to June, a 15-month low. That is faster than other major economies, but not fast enough to create enough new jobs to absorb all the one million people who join the workforce every month. A government survey found that job creation fell by more than two-thirds in 2015. Analysts at HDFC Bank estimate that for every percentage point the economy grows, employment now adds just 0.15 of a percentage point - down from 0.39 in 2000. It's a major challenge for Prime Minister Narendra Modi, who has promised to create 250 million jobs over the next decade. "For one job, there are at least 20 candidates," said Kumar. "If you want the job, you can't afford to bargain." Nearly two-thirds of India's 1.3 billion people are under 35 years old. This rising demographic "bulge" will create the largest working-age population in the world. At the same time China, which has long curbed family size, will age as a society. Whether this so-called demographic dividend will translate into the kind of economic gains seen in Japan and Korea, or lead to upheavals, depends on India's ability to generate jobs. Yet, despite average annual growth of 6.5 per cent between 1991 and 2013, India added less than half the jobs needed to absorb new job seekers. MORE WORKERS, FEWER JOBS Under Modi, India has opened up further to foreign investment, hoping to generate more manufacturing jobs. A loan scheme for small businesses has been set up and there are plans for a $1.5 billion fund for startups. Modi has also launched a programme to train over four million people in different skills in six years. Pronab Sen, country director for the International Growth Centre, a British-backed think tank, said such measures were "laudable", but they aimed at boosting supply when more demand was needed. "India has become a demand-starved economy," Sen said. "If there is no demand, there will be no incentive to produce more which, in turn, will mean no new jobs." The level of desperation for work is staggering. In August, nearly half a million people, including post-graduates, applied for 1,778 jobs as sweepers in the city of Kanpur. This was not a one-off. Last year, in Uttar Pradesh, 2.3 million people sought 368 low-level government jobs that required a primary education and ability to ride a bicycle. Competition for such jobs has become fiercer as the public sector's share in formal employment is declining. Two years of drought has caused distress in farming, while the construction business has suffered a prolonged downturn – making work scarcer in the two sectors that employ the bulk of India's unskilled workforce. Satellite cities around the capital, like Greater Noida were, until recently, bustling with construction activity. Now, Greater Noida's skyline is dotted with half-built, abandoned, high-rises. Cranes and diggers stand idle. In Delhi and the surrounding National Capital Region, housing starts fell 41 per cent year-on-year in the first half of the year, according to consultancy Knight Frank. Across India, starts were down 9 percent from a year earlier. Bhuwan Mahato, a contractor who supplies workers to construction projects around Noida, says demand for labour is down by at least 25 percent. "I wish I hadn't joined this business," said Mahato, a 30-year-old migrant from the state of Bihar. "But, truthfully, there are no other opportunities, either." (Reuters)

Jobs elusive as India clings to fastest-growing economy tag

After Prime Minister Narendra Modi's visit to Pune was cancelled on Thursday due to heavy rain, Baramati MP and leader of the Nationalist Congress Party-Sharadchandra Pawar (NCP-SP) Supriya Sule criticised him, saying that he had already inaugurated the metro in the city five times.&nbsp;

Sule hit out at the PM, saying it would have been the sixth time for him to have inaugurated the project in Pune.&nbsp;

"The inauguration of the metro for which PM Modi was scheduled to visit Pune, has already been done five times. It would have been the sixth time if PM Modi came for the same," she said.

<a href="https://www.wionews.com/india-news/mumbai-rains-red-alert-issued-flights-disrupted-trains-halted-schools-and-colleges-closed-762015">Also read:&nbsp;Mumbai rains: Red alert issued, flights disrupted, trains halted, schools and colleges closed</a>

Further attacking the BJP-Shiv Sena-led Maharashtra government, Sule said the latter should not have disturbed a busy person like PM Modi.&nbsp;

"This is very shocking that the Maharashtra government was seeking time from a busy person like the PM for the same task..." she added.&nbsp;

PM Modi was scheduled to flag off the metro train line from the District Court to Swargate in Pune and launch development projects.&nbsp;

<h2>Request to inaugurate metro 'online'&nbsp;</h2>

Sule then requested PM Modi to inaugurate the Metro online.&nbsp;

"So I request the PM to inaugurate Pune Metro online...it is the same project he had inaugurated five times in the past...it will help the people of Pune city and the inauguration must not wait for the next visit of the PM," she added.

Watch |&nbsp;Mumbai Struggles Under Torrential Rains, IMD Issues Red Alert

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After heavy rains in the city on Wednesday, the SP College ground, which was the venue of PM Modi's programme, was waterlogged.&nbsp;

"The PM's visit to Pune has been cancelled and the programme&nbsp;officially postponed," Pune divisional commissioner Chandrakant Pulkundwar said.&nbsp;

Maharashtra Metro spokesperson Hemant Sonawane said, "The programme has been cancelled due to the orange alert (for heavy rains) issued for Thursday by the IMD. If there are rains, people coming for the programme may face hassles, so for the safety of the people, the programme&nbsp;has been cancelled."

(With inputs from agencies)

He also vowed to find jobs for African Americans, but a tweet about the death of Dwyane Wade's cousin was perceived by people as insensitive

After Prime Minister Narendra Modi's visit to Pune was cancelled on Thursday due to heavy rain, Baramati MP and leader of the Nationalist Congress Party-Sharadchandra Pawar (NCP-SP) Supriya Sule criticised him, saying that he had already inaugurated the metro in the city five times. Sule hit out at the PM, saying it would have been the sixth time for him to have inaugurated the project in Pune. "The inauguration of the metro for which PM Modi was scheduled to visit Pune, has already been done five times. It would have been the sixth time if PM Modi came for the same," she said. Also read: Mumbai rains: Red alert issued, flights disrupted, trains halted, schools and colleges closed Further attacking the BJP-Shiv Sena-led Maharashtra government, Sule said the latter should not have disturbed a busy person like PM Modi. "This is very shocking that the Maharashtra government was seeking time from a busy person like the PM for the same task..." she added. PM Modi was scheduled to flag off the metro train line from the District Court to Swargate in Pune and launch development projects. Request to inaugurate metro 'online' Sule then requested PM Modi to inaugurate the Metro online. "So I request the PM to inaugurate Pune Metro online...it is the same project he had inaugurated five times in the past...it will help the people of Pune city and the inauguration must not wait for the next visit of the PM," she added. Watch | Mumbai Struggles Under Torrential Rains, IMD Issues Red Alert × After heavy rains in the city on Wednesday, the SP College ground, which was the venue of PM Modi's programme, was waterlogged. "The PM's visit to Pune has been cancelled and the programme officially postponed," Pune divisional commissioner Chandrakant Pulkundwar said. Maharashtra Metro spokesperson Hemant Sonawane said, "The programme has been cancelled due to the orange alert (for heavy rains) issued for Thursday by the IMD. If there are rains, people coming for the programme may face hassles, so for the safety of the people, the programme has been cancelled." (With inputs from agencies)

Will start removing illegal immigrants from Day One: Trump

Cisco Systems Inc is laying off about 14,000 employees, representing nearly 20 per cent of the network equipment maker`s global workforce, technology news site CRN reported, citing sources close to the company. 
 
California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organization.&nbsp; 
 
Apart from Cisco, the other tech giants, which have announced job cuts in the face of PC industry decline in recent years, are Microsoft Corp, HP Inc and Intel Corp. 
 
Microsoft Corp kicked off one of the largest layoffs in Tech history in July 2014 after it said it would slash 18,000 jobs. 
 
HP Inc said in September 2015 that it expected to cut about 33,300 jobs over three years. 
 
Intel said in April that it would slash up to 12,000 jobs globally, or 11 per cent of its workforce. 
 
Cisco, which had more than 70,000 employees as of April 30, declined to comment. 
 
Cisco increasingly requires &quot;different skill sets&quot; for the &quot;software-defined future&quot; than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation. 
 
Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers. 
 
The company has already offered many early retirement package plans to Cisco`s employees, according to CRN.&nbsp; 
 
Up until Tuesday`s close of $31.12 on the Nasdaq, the company`s stock had risen about 15 per cent this year, compared with a 10.5 per cent increase in the Dow Jones US Technology Hardware &amp; Equipment index.&nbsp; 
 
(Reuters)

The company remained tight-lipped about the matter but sources privy to the information claim the downsizing would begin in next few weeks

Cisco Systems Inc is laying off about 14,000 employees, representing nearly 20 per cent of the network equipment maker`s global workforce, technology news site CRN reported, citing sources close to the company. California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organization. Apart from Cisco, the other tech giants, which have announced job cuts in the face of PC industry decline in recent years, are Microsoft Corp, HP Inc and Intel Corp. Microsoft Corp kicked off one of the largest layoffs in Tech history in July 2014 after it said it would slash 18,000 jobs. HP Inc said in September 2015 that it expected to cut about 33,300 jobs over three years. Intel said in April that it would slash up to 12,000 jobs globally, or 11 per cent of its workforce. Cisco, which had more than 70,000 employees as of April 30, declined to comment. Cisco increasingly requires "different skill sets" for the "software-defined future" than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation. Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers. The company has already offered many early retirement package plans to Cisco`s employees, according to CRN. Up until Tuesday`s close of $31.12 on the Nasdaq, the company`s stock had risen about 15 per cent this year, compared with a 10.5 per cent increase in the Dow Jones US Technology Hardware & Equipment index. (Reuters)

Cisco to lay off 14,000 jobs: Report

Microsoft Corp said it would cut about 2,850 more jobs over the next 12 months, taking its total planned job cuts to up to 4,700, or about 4 per cent of its workforce. 
 
The company said in May it would cut 1,850 jobs in its smartphone business, most of them in Finland. 
 
Microsoft bought Finland-based handset maker Nokia in 2014 in an ill-fated attempt to take on market leaders Apple Inc and Samsung Electronics Co Ltd. 
 
Chief executive Satya Nadella, who took the helm just two months before the deal closed, has since focussed on restructuring the struggling phone business. 
 
Microsoft had about 114,000 full-time employees as of June 30. 
 
(Reuters)

The total planned job cuts amount to 4% of Microsoft's workforce. The company said in May it would cut 1,850 jobs in its smartphone business

Microsoft Corp said it would cut about 2,850 more jobs over the next 12 months, taking its total planned job cuts to up to 4,700, or about 4 per cent of its workforce. The company said in May it would cut 1,850 jobs in its smartphone business, most of them in Finland. Microsoft bought Finland-based handset maker Nokia in 2014 in an ill-fated attempt to take on market leaders Apple Inc and Samsung Electronics Co Ltd. Chief executive Satya Nadella, who took the helm just two months before the deal closed, has since focussed on restructuring the struggling phone business. Microsoft had about 114,000 full-time employees as of June 30. (Reuters)

Microsoft to cut 2,850 more jobs over next year

JPMorgan&nbsp;Chase &amp; Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month&#39;s Brexit vote, bank CEO Jamie Dimon told an Italian newspaper.

Currently, banks based in the UK can sell services freely across the EU under a &quot;passporting&quot; system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc.

&quot;The key issue is the &#39;passport rule&#39; that we have in London and allows us to provide services to clients in the European Union,&quot; Il Sole 24 Ore quoted Dimon as saying on Thursday.

&quot;However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone,&quot; Dimon said.

JPMorgan&nbsp;has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland.

Those locations helped&nbsp;JPMorgan&nbsp;produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa.

(Reuters) 
 
&nbsp;

The company has said that if the EU imposes new rules on Britain it would move thousands of employees to branches in other Euro zone

JPMorgan Chase & Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month's Brexit vote, bank CEO Jamie Dimon told an Italian newspaper. Currently, banks based in the UK can sell services freely across the EU under a "passporting" system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc. "The key issue is the 'passport rule' that we have in London and allows us to provide services to clients in the European Union," Il Sole 24 Ore quoted Dimon as saying on Thursday. "However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone," Dimon said. JPMorgan has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland. Those locations helped JPMorgan produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa. (Reuters)

JPMorgan could move thousands of staffers out of UK: Report

Upwardly-mobile, tech-savvy young professionals from across the globe are swapping their briefcases and brogues for backpacks and sneakers, setting themselves up as digital nomads who can operate from wherever their laptops can go. 
 
Jobbatical and Teleport, two recent tech start-ups, promise to take the guesswork out of digital job hunting on a global scale. 
 
Both hail from tiny tech titan Estonia and are part of a crop of cutting-edge online sites catering to digital nomads, typically young males who work remotely and move around regions like Southeast Asia every few months. 
 
Their creators insist the start-ups have the potential to shake things up on the global job market, similar to how Estonians previously transformed global communications with Skype and digital international money transfers via Transferwise. 
 
Tallinn-based entrepreneur Karoli Hindriks said she launched Jobbatical two years ago to fill the growing gaps she noticed in global recruiting. 
 
With employment offers from Greece, to Thailand and Costa Rica among others, it takes just a few clicks of the mouse for product or account managers, programmers and other tech professionals to land a dream job, whether programming in Malaysia&#39;s tropical paradise of Penang or managing an adventure travel operation in Bali. 
 
Jobbatical targets &quot;adventurous tech, business, and creative professionals with over five years of working experience,&quot; Hindriks said at the Latitude59 technology conference in Estonia&#39;s capital Tallinn. 
 
She points to &quot;a generational mindset shift&quot; as key to her client base of 70,000 unique users each month across 150 countries. 
 
&quot;The millennial&#39;s view of success isn&#39;t necessarily a house, a well-paying job and a picket fence,&quot; she said. 
 
&quot;There&#39;s a huge shift towards defining success as working in terms of things that one truly believes in, and appreciating experiences over material possessions.&quot; 
 
New technologies, less expensive international travel and easier communications mean that moving around to work is &quot;becoming smoother and cheaper than ever&quot;, she added. 
 
Most Jobbatical offers involve positions that, like sabbaticals, last around 12 months, creating a revolving client base. 
 
The company takes a &quot;success&quot; fee of five per cent of the annual salary upon hiring. 
 
Surf more than just the internet 
 
Vicente Gracia, a much-travelled 28-year-old business strategist from Chile, has been surfing more than just the internet since he began using Jobbatical. 
 
Dissatisfied with the terms he was being offered by South American companies, Gracia used it to find a job based in Bali. 
 
&quot;New generations are looking for more than just a paycheck,&quot; Gracia said via Skype. 
 
A keen surfer, he now enjoys riding the waves on a Bali beach every morning during a break in his commute to work. 
 
&quot;For me, being able to prioritise my career and a healthy lifestyle is crucial.&quot; 
 
Insisting that Jobbatical is unique, Hindriks shuns comparisons to online job sites like Monster, insisting that &quot;it&#39;s like comparing Craigslist to Airbnb&quot;. 
 
Describing Jobbatical as a &quot;matchmaker for companies&quot;, Hindriks insists that short-term &quot;jobbaticals&quot; encourage professionals to choose countries off the beaten path - like her own Estonia - that they may not have considered were the positions permanent. 
 
&quot;If you look at the reality, there are no permanent jobs any more, so in that sense we&#39;re bringing honesty to the conversation,&quot; she said. 
 
Peace of mind 
 
Teleport meanwhile takes stock of the personal preferences and expectations of digital job-seekers and then suggests ideal places for them to live and work. 
 
Teleport &quot;scouts&quot;, or local experts, are just a click away to iron out any wrinkles. For a modest fee, they can help with everything from visas to finding the right apartment or the nearest vegan restaurant. 
 
A veteran tech entrepreneur who headed up Skype&#39;s Estonia operations from 2005-12, Teleport CEO Sten Tamkivi insisted his startup goes further than competitors like NomadList, which essentially works like a traditional travel guide. 
 
Tamkivi said that aside from calculating ideal locations based on personal preferences and its &quot;scouts&quot;, its &quot;flock&quot; service also locates the nearest co-working spaces. 
 
Anthony Lapenna, a Frenchman working in New Zealand, is one happy Teleport user. 
 
The service meant he could keep his job, but change hemispheres, shifting from Paris to Auckland, New Zealand, where he continues his role as a software engineer. 
 
&quot;I wanted to go to an English-speaking country in order to improve my English, plus I was kind of sick of the big city of Paris,&quot; he said via email. 
 
&quot;New Zealand is located at the world&#39;s end, which is pretty exciting. I also had a curiosity about the landscape, because I&#39;m fond of hiking.&quot; 
 
&quot;I&#39;ll probably move again, but not before I&#39;ve explored as much of New Zealand as I can.&quot; 
 
And Lapenna is not alone. As Google predicts the world&#39;s online population will double to five billion by 2020, digital nomads are likely to be a growing tribe. 
 
(AFP)

Tech start-ups from Estonia are catering to a growing number of young, laptop-carrying professionals who travel and work remotely

Upwardly-mobile, tech-savvy young professionals from across the globe are swapping their briefcases and brogues for backpacks and sneakers, setting themselves up as digital nomads who can operate from wherever their laptops can go. Jobbatical and Teleport, two recent tech start-ups, promise to take the guesswork out of digital job hunting on a global scale. Both hail from tiny tech titan Estonia and are part of a crop of cutting-edge online sites catering to digital nomads, typically young males who work remotely and move around regions like Southeast Asia every few months. Their creators insist the start-ups have the potential to shake things up on the global job market, similar to how Estonians previously transformed global communications with Skype and digital international money transfers via Transferwise. Tallinn-based entrepreneur Karoli Hindriks said she launched Jobbatical two years ago to fill the growing gaps she noticed in global recruiting. With employment offers from Greece, to Thailand and Costa Rica among others, it takes just a few clicks of the mouse for product or account managers, programmers and other tech professionals to land a dream job, whether programming in Malaysia's tropical paradise of Penang or managing an adventure travel operation in Bali. Jobbatical targets "adventurous tech, business, and creative professionals with over five years of working experience," Hindriks said at the Latitude59 technology conference in Estonia's capital Tallinn. She points to "a generational mindset shift" as key to her client base of 70,000 unique users each month across 150 countries. "The millennial's view of success isn't necessarily a house, a well-paying job and a picket fence," she said. "There's a huge shift towards defining success as working in terms of things that one truly believes in, and appreciating experiences over material possessions." New technologies, less expensive international travel and easier communications mean that moving around to work is "becoming smoother and cheaper than ever", she added. Most Jobbatical offers involve positions that, like sabbaticals, last around 12 months, creating a revolving client base. The company takes a "success" fee of five per cent of the annual salary upon hiring. Surf more than just the internet Vicente Gracia, a much-travelled 28-year-old business strategist from Chile, has been surfing more than just the internet since he began using Jobbatical. Dissatisfied with the terms he was being offered by South American companies, Gracia used it to find a job based in Bali. "New generations are looking for more than just a paycheck," Gracia said via Skype. A keen surfer, he now enjoys riding the waves on a Bali beach every morning during a break in his commute to work. "For me, being able to prioritise my career and a healthy lifestyle is crucial." Insisting that Jobbatical is unique, Hindriks shuns comparisons to online job sites like Monster, insisting that "it's like comparing Craigslist to Airbnb". Describing Jobbatical as a "matchmaker for companies", Hindriks insists that short-term "jobbaticals" encourage professionals to choose countries off the beaten path - like her own Estonia - that they may not have considered were the positions permanent. "If you look at the reality, there are no permanent jobs any more, so in that sense we're bringing honesty to the conversation," she said. Peace of mind Teleport meanwhile takes stock of the personal preferences and expectations of digital job-seekers and then suggests ideal places for them to live and work. Teleport "scouts", or local experts, are just a click away to iron out any wrinkles. For a modest fee, they can help with everything from visas to finding the right apartment or the nearest vegan restaurant. A veteran tech entrepreneur who headed up Skype's Estonia operations from 2005-12, Teleport CEO Sten Tamkivi insisted his startup goes further than competitors like NomadList, which essentially works like a traditional travel guide. Tamkivi said that aside from calculating ideal locations based on personal preferences and its "scouts", its "flock" service also locates the nearest co-working spaces. Anthony Lapenna, a Frenchman working in New Zealand, is one happy Teleport user. The service meant he could keep his job, but change hemispheres, shifting from Paris to Auckland, New Zealand, where he continues his role as a software engineer. "I wanted to go to an English-speaking country in order to improve my English, plus I was kind of sick of the big city of Paris," he said via email. "New Zealand is located at the world's end, which is pretty exciting. I also had a curiosity about the landscape, because I'm fond of hiking." "I'll probably move again, but not before I've explored as much of New Zealand as I can." And Lapenna is not alone. As Google predicts the world's online population will double to five billion by 2020, digital nomads are likely to be a growing tribe. (AFP)

Backpacking digital nomads land dream jobs on the go

Almost 22 months ago, Maldivian journalist, Ahmed Rilwan, 28, disappeared in Mal?. He was last seen&nbsp;on a closed-circuit television camera while trying to buy a ferryboat ticket on his way home. His family still believes he will return one day, but his colleagues have a far more grim take on this. They believe Ahmed has been murdered.&nbsp; 
 
A police chief inspector recently confirmed that he was in fact abducted on the same night from his apartment. &nbsp; 
 
&quot;The situation is very bad. The media is under attack from all fronts,&quot; said Zaheena Rasheed, editor of the online newspaper, The Maldives Independent, where Rilwan worked as a reporter. 
 
For most travellers, Mal?, the capital city of the Maldives, is just a quick stopover on their way to dreamlike beaches and crystal blue waters. However, the dreamy landscape has a much more sinister side to it and Zaheena has good reason to be worried. &nbsp; 
 
&quot;I am very afraid. I myself have received death threats. I could disappear or I could be killed. My office has already been attacked. Other media offices have been burned to the ground,&quot; he fears are not unfounded. 
 
The streets of Mal? are home to criminal gangs involved in drug dealing, robberies and violence on commission. A survey by the Asia Foundation, based on interactions with 130 gang affiliates, reports that there are &quot;between 20 and 30 different gangs operating in Mal?, with 50 to 400 members in each group.&quot; This means that more than a thousand individuals are involved in such criminal activities in a city of 150,000. &nbsp; &nbsp; 
 
These gangs often carry out violence on behalf of political groups. The report reads: &quot;Politicians and businessmen often offer drugs and alcohol when they (the gang members) complete an illegal task (commissioned by them). Hence, there is a reciprocal relationship between gang members and politicians and businessmen.&quot; They often act in an atmosphere of impunity.&nbsp; 
 
Gang members are most likely to get away with it given the protection offered by the rich and influential. Even if some are caught they are able to get out of police stations without their crimes being brought to book. Escaping a gang is nearly impossible for a designated victim. Mal? is a small town on an island. Hiding is not really a viable option.&nbsp; 
 
It is not only about the fear of gangs. The Maldivian media is facing an increasingly difficult situation. In April, a group of journalists was arrested for a day. They were part of a protest against a draft law aiming to reintroduce defamation as a crime that was abolished seven years ago. Just a month before, the Civil Court had halted the printing of Haveeru, the oldest and most widely-circulated Maldivian newspaper. An order issued against a three-decade old ownership dispute. &nbsp;&nbsp; 
 
The turbulent situation took off in 2008, a turning point in the history of the archipelago. The human rights activist and environmentalist Mohamed Nasheed became the first democratically elected president of the country. His victory ended three decades of autocratic rule by Maumoon Abdul Gayoom who was the longest-serving politician in South Asia. Gayoom granted economic growth to the archipelago, but democracy paid a high price. One-party elections, politicians appointed only by the president, heavy restrictions on freedom of press, religion and dissent were the norm. 
 
Nasheed&#39;s liberal agenda came as a break with the past. After decriminalising defamation, his government passed a bill to establish a Media Council &quot;to preserve the freedom of media&quot;. He allowed foreign journalists to travel freely to the country and granted greater access to the local press. Minivan News, then the only local English online newspaper, could start working in the Maldives rather than in exile in Sri Lanka. &nbsp; 
 
Young democracies, however, are often fragile, and so was Nasheed`s presidency. After less than three years, a police mutiny and weeks of protest staged by his opponents, he decided to resign &ndash; or was forced to do so &quot;at &nbsp;gunpoint&quot;. &nbsp; &nbsp; 
 
In a contested run-off, Abdulla Yameen Abdul Gayoom, half-brother of the man who ruled for 30 years, became the new Maldivian President. &nbsp; &nbsp; 
 
In 2015, events abruptly turned and Nasheed&#39;s situation plummeted. Following a trial that Amnesty International called &quot;deeply flawed and politically motivated&quot;, the former president was sentenced to 13 years for terrorism. He was accused of arbitrarily removing the criminal court chief judge during his presidency. &nbsp;&nbsp; 
 
Some Maldivians did not accept the verdict in silence and took to the streets in Mal?. The police arrested many protesters, including three reporters, who were covering the protest. &nbsp;&nbsp; 
 
&quot;There is a big crackdown on media freedom. It is very difficult for a person who is critical of the government to find any kind of work in the country,&quot; said Azra Naseem, a Maldivian research fellow at the Institute for International Conflict Resolution and Reconstruction in Dublin City University. &quot;If you are not with the government there is no space for you in the Maldives.&quot; 
 
Former president Nasheed is currently in London. 
 
He was authorised to leave his prison cell for a delicate surgery on the condition that he would return to jail once the treatment was done. However, that may not happen now. The British government has granted former president Nasheed political refugee status. A news welcomed by the media community and sections of Maldivian citizens who are not keen to toe the totalitarian line. 
 
&quot;Maldivians want to see better days. I am not alone and this is my home. I grew up in a dictatorship and I don&#39;t want to see my country regress into fear. I want to see a freer and more equal Maldives,&quot; Zaheena Rasheed said.

Journalists arrested, a former president on the run, criminal gangs, political unrest, radical Islamists and more...

Almost 22 months ago, Maldivian journalist, Ahmed Rilwan, 28, disappeared in Mal?. He was last seen on a closed-circuit television camera while trying to buy a ferryboat ticket on his way home. His family still believes he will return one day, but his colleagues have a far more grim take on this. They believe Ahmed has been murdered. A police chief inspector recently confirmed that he was in fact abducted on the same night from his apartment. "The situation is very bad. The media is under attack from all fronts," said Zaheena Rasheed, editor of the online newspaper, The Maldives Independent, where Rilwan worked as a reporter. For most travellers, Mal?, the capital city of the Maldives, is just a quick stopover on their way to dreamlike beaches and crystal blue waters. However, the dreamy landscape has a much more sinister side to it and Zaheena has good reason to be worried. "I am very afraid. I myself have received death threats. I could disappear or I could be killed. My office has already been attacked. Other media offices have been burned to the ground," he fears are not unfounded. The streets of Mal? are home to criminal gangs involved in drug dealing, robberies and violence on commission. A survey by the Asia Foundation, based on interactions with 130 gang affiliates, reports that there are "between 20 and 30 different gangs operating in Mal?, with 50 to 400 members in each group." This means that more than a thousand individuals are involved in such criminal activities in a city of 150,000. These gangs often carry out violence on behalf of political groups. The report reads: "Politicians and businessmen often offer drugs and alcohol when they (the gang members) complete an illegal task (commissioned by them). Hence, there is a reciprocal relationship between gang members and politicians and businessmen." They often act in an atmosphere of impunity. Gang members are most likely to get away with it given the protection offered by the rich and influential. Even if some are caught they are able to get out of police stations without their crimes being brought to book. Escaping a gang is nearly impossible for a designated victim. Mal? is a small town on an island. Hiding is not really a viable option. It is not only about the fear of gangs. The Maldivian media is facing an increasingly difficult situation. In April, a group of journalists was arrested for a day. They were part of a protest against a draft law aiming to reintroduce defamation as a crime that was abolished seven years ago. Just a month before, the Civil Court had halted the printing of Haveeru, the oldest and most widely-circulated Maldivian newspaper. An order issued against a three-decade old ownership dispute. The turbulent situation took off in 2008, a turning point in the history of the archipelago. The human rights activist and environmentalist Mohamed Nasheed became the first democratically elected president of the country. His victory ended three decades of autocratic rule by Maumoon Abdul Gayoom who was the longest-serving politician in South Asia. Gayoom granted economic growth to the archipelago, but democracy paid a high price. One-party elections, politicians appointed only by the president, heavy restrictions on freedom of press, religion and dissent were the norm. Nasheed's liberal agenda came as a break with the past. After decriminalising defamation, his government passed a bill to establish a Media Council "to preserve the freedom of media". He allowed foreign journalists to travel freely to the country and granted greater access to the local press. Minivan News, then the only local English online newspaper, could start working in the Maldives rather than in exile in Sri Lanka. Young democracies, however, are often fragile, and so was Nasheed`s presidency. After less than three years, a police mutiny and weeks of protest staged by his opponents, he decided to resign – or was forced to do so "at gunpoint". In a contested run-off, Abdulla Yameen Abdul Gayoom, half-brother of the man who ruled for 30 years, became the new Maldivian President. In 2015, events abruptly turned and Nasheed's situation plummeted. Following a trial that Amnesty International called "deeply flawed and politically motivated", the former president was sentenced to 13 years for terrorism. He was accused of arbitrarily removing the criminal court chief judge during his presidency. Some Maldivians did not accept the verdict in silence and took to the streets in Mal?. The police arrested many protesters, including three reporters, who were covering the protest. "There is a big crackdown on media freedom. It is very difficult for a person who is critical of the government to find any kind of work in the country," said Azra Naseem, a Maldivian research fellow at the Institute for International Conflict Resolution and Reconstruction in Dublin City University. "If you are not with the government there is no space for you in the Maldives." Former president Nasheed is currently in London. He was authorised to leave his prison cell for a delicate surgery on the condition that he would return to jail once the treatment was done. However, that may not happen now. The British government has granted former president Nasheed political refugee status. A news welcomed by the media community and sections of Maldivian citizens who are not keen to toe the totalitarian line. "Maldivians want to see better days. I am not alone and this is my home. I grew up in a dictatorship and I don't want to see my country regress into fear. I want to see a freer and more equal Maldives," Zaheena Rasheed said.

Mal?: Political hit jobs, drugs, robberies - the grime under the sun and sand

<div>Ralph Lauren is cutting about 1,000 jobs and closing 50 stores as part of a sweeping plan to lower costs and revive sales growth at the luxury&nbsp;fashion&nbsp;brand.</div>

<div>Shares of Ralph Lauren, which also forecast declines in full-year and first-quarter revenue, fell as much as 10.4 per cent to $86.32 in early trading on Tuesday. 
 
&quot;It&#39;s been a long time coming. Ralph Lauren is a behemoth, it&#39;s a very successful brand. It&#39;s an iconic brand. However, it need changes to adjust to the times,&quot; said&nbsp;Mary Epner, a retail analyst.</div>

<div>The jobs being eliminated represent about 8 per cent of the company&#39;s full-time jobs, spokesman Ryan Lally told Reuters. 
 
Ralph Lauren, like some other luxury brands, has been struggling amid sluggish spending on luxury apparel and accessories. The company&#39;s margins have taken a knock as department stores discount heavily to get rid of excess inventory. Moreover, the company&#39;s lower-end Polo and Lauren brands are facing competition from retailers such as H&amp;M and Inditex&#39;s Zara, which are known for their shorter production times.</div>

<div>Ralph Lauren said on Tuesday it would try to reduce the time taken to get new products to shelves to nine months from fifteen. The company brought in Stefan Larsson as chief executive late last year in the hope that he would replicate his success of reviving sales at Gap Old Navy, where he cut down production times and focused on offering trendy clothes at low prices.</div>

<div>&quot;I believe that he (Larsson)&nbsp;can be a positive influence. I&#39;ve hear great things about him. He is making fast changes, which is really impressive in a company like Ralph Lauren. And, listen, he knows how to do this. They need changes in their infrastructure. They need changes in their supply chain, and lead times, and delivery times. And he knows how to do this very quickly,&quot; Epner said.</div>

<div>Larsson has also worked with H&amp;M for about 15 years, where he helped grow the company&#39;s sales to $17 billion from $3 billion and introduced partnerships with luxury brands such as Versace and Karl Lagerfeld.</div>

<div>The company will focus on its luxury Ralph Lauren line and the lower-end Polo and Lauren brands, Larsson said in the company&#39;s first investor day call on Tuesday. The company&#39;s sales have fallen in every quarter in fiscal 2016, leading to a full-year sales decline of nearly three per cent. Ralph Lauren said it expects net revenue for the current fiscal year to fall in the low-double digit percentage range, hurt partly by store closures, pullback in inventory receipts and weak traffic.</div>

<div>The company said it expects to record restructuring charges of up to $400 million and an inventory reduction-related charge of up to $150 million, mostly in the current fiscal year. The restructuring measures are expected to result in annualized savings of about $180 to&nbsp;$220 million.</div>

<div>The company had about 493 directly operated retail stores and employed about 26,000 people, roughly 15,000 of who work full time as of April 2. Shares of the retailer had recouped losses and were trading down 4.8 pct at $91.96. Up to Monday&#39;s close of $96.33, the stock had fallen nearly 14 per cent this year.</div>

In an attempt to lower costs, about 8 per cent of the company's full-time jobs are being eliminated

Ralph Lauren is cutting about 1,000 jobs and closing 50 stores as part of a sweeping plan to lower costs and revive sales growth at the luxury fashion brand. Shares of Ralph Lauren, which also forecast declines in full-year and first-quarter revenue, fell as much as 10.4 per cent to $86.32 in early trading on Tuesday. "It's been a long time coming. Ralph Lauren is a behemoth, it's a very successful brand. It's an iconic brand. However, it need changes to adjust to the times," said Mary Epner, a retail analyst. The jobs being eliminated represent about 8 per cent of the company's full-time jobs, spokesman Ryan Lally told Reuters. Ralph Lauren, like some other luxury brands, has been struggling amid sluggish spending on luxury apparel and accessories. The company's margins have taken a knock as department stores discount heavily to get rid of excess inventory. Moreover, the company's lower-end Polo and Lauren brands are facing competition from retailers such as H&M and Inditex's Zara, which are known for their shorter production times. Ralph Lauren said on Tuesday it would try to reduce the time taken to get new products to shelves to nine months from fifteen. The company brought in Stefan Larsson as chief executive late last year in the hope that he would replicate his success of reviving sales at Gap Old Navy, where he cut down production times and focused on offering trendy clothes at low prices. "I believe that he (Larsson) can be a positive influence. I've hear great things about him. He is making fast changes, which is really impressive in a company like Ralph Lauren. And, listen, he knows how to do this. They need changes in their infrastructure. They need changes in their supply chain, and lead times, and delivery times. And he knows how to do this very quickly," Epner said. Larsson has also worked with H&M for about 15 years, where he helped grow the company's sales to $17 billion from $3 billion and introduced partnerships with luxury brands such as Versace and Karl Lagerfeld. The company will focus on its luxury Ralph Lauren line and the lower-end Polo and Lauren brands, Larsson said in the company's first investor day call on Tuesday. The company's sales have fallen in every quarter in fiscal 2016, leading to a full-year sales decline of nearly three per cent. Ralph Lauren said it expects net revenue for the current fiscal year to fall in the low-double digit percentage range, hurt partly by store closures, pullback in inventory receipts and weak traffic. The company said it expects to record restructuring charges of up to $400 million and an inventory reduction-related charge of up to $150 million, mostly in the current fiscal year. The restructuring measures are expected to result in annualized savings of about $180 to $220 million. The company had about 493 directly operated retail stores and employed about 26,000 people, roughly 15,000 of who work full time as of April 2. Shares of the retailer had recouped losses and were trading down 4.8 pct at $91.96. Up to Monday's close of $96.33, the stock had fallen nearly 14 per cent this year.

Ralph Lauren to cut about 1,000 jobs and shut shops

After a break of 20 years,&nbsp;Afghanistan&#39;s first&nbsp;cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln.

In an area desperately short of industry and jobs, workers hope the relaunch of the plant, built by Czech engineers in 1957 and shut by the Taliban in 1995, heralds the revival of an industry shattered by decades of war and destruction.

&quot;By selling our products and improving the factory&#39;s production, we can avoid having our young generation go abroad,&quot; said Amir Mohammad. &quot;If there are job possibilities, they can stay with their families and look after their children.&quot;

But the outdated state-owned plant 75 km (47 miles) outside Kabul also shows how far there is to go before that promise can be achieved and there are serious questions whether the plant has a viable future unless it is thoroughly modernised.

Jabal Saraj, which now employs 150 workers, is a small factory with daily capacity of 100 tonnes and equipment that is at least 40 years out of date, the U.S. Geological Survey said in a 2011 report.

&quot;We&#39;ve tried our best and got the factory running using its old machinery,&quot; said Abdul Wakil, one of a group of former workers who have returned to help get the plant working again. &quot;As long as we have electricity, it will work.&quot;

Talks with a private operator to develop a separate, larger plant at Jabal Saraj have run for months, but for now, the government has decided the old plant still serves a purpose, a spokesman for the country&#39;s mines and petroleum ministry said.

&quot;This old factory is useful and has a profitable production capacity,&quot; Mohyaddin Noori added. &quot;It provides job opportunities.&quot;

Afghanistan&#39;s only other major&nbsp;cement&nbsp;manufacturer, the Ghori&nbsp;cement&nbsp;plant, has daily capacity of more than 1,000 tonnes, but domestic industry is dwarfed by the millions of tonnes of imports from neighbours, including Pakistan and Iran.

That fierce competition makes it tough to find domestically produced&nbsp;cement&nbsp;in Kabul&#39;s main wholesale markets, even despite the fact that domestic&nbsp;cement&#39;s bulk and relatively low cost should penalize foreign&nbsp;cement, trucked in hundreds of miles.

&quot;We have only Pakistani&nbsp;cement,&quot; said trader Ershad Shinwari. &quot;Afghan-made&nbsp;cement&nbsp;is not coming to us.&quot;

Demand for building materials has fallen sharply since international forces left in 2014 but the market has not collapsed and director Mohammadi hopes for domestic growth.

&quot;There is huge demand for&nbsp;cement&nbsp;in&nbsp;Afghanistan,&quot; he said. &quot;We&#39;ve got the factory working, so it will give investors a chance.&quot;

For the moment, however, Jabal Saraj relies on government subsidy to survive. The economics may be tough, but it is people nearby who are mainly looking for work.

&quot;We ask the other countries to help this factory and provide new machinery to replace the old machines,&quot; said plant worker Wazir Mohammad.

&quot;It will be very useful for our people as long as there is poverty in&nbsp;Afghanistan&nbsp;and everyone suffers insecurity.&quot;

After a break of 20 years,?Afghanistan's first?cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln. In an area desperately short of industry and jobs, workers hope the relaunch of the plant built by Czech engineers in 1957 and shut by the Taliban in 1995.

After a break of 20 years, Afghanistan's first cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln. In an area desperately short of industry and jobs, workers hope the relaunch of the plant, built by Czech engineers in 1957 and shut by the Taliban in 1995, heralds the revival of an industry shattered by decades of war and destruction. "By selling our products and improving the factory's production, we can avoid having our young generation go abroad," said Amir Mohammad. "If there are job possibilities, they can stay with their families and look after their children." But the outdated state-owned plant 75 km (47 miles) outside Kabul also shows how far there is to go before that promise can be achieved and there are serious questions whether the plant has a viable future unless it is thoroughly modernised. Jabal Saraj, which now employs 150 workers, is a small factory with daily capacity of 100 tonnes and equipment that is at least 40 years out of date, the U.S. Geological Survey said in a 2011 report. "We've tried our best and got the factory running using its old machinery," said Abdul Wakil, one of a group of former workers who have returned to help get the plant working again. "As long as we have electricity, it will work." Talks with a private operator to develop a separate, larger plant at Jabal Saraj have run for months, but for now, the government has decided the old plant still serves a purpose, a spokesman for the country's mines and petroleum ministry said. "This old factory is useful and has a profitable production capacity," Mohyaddin Noori added. "It provides job opportunities." Afghanistan's only other major cement manufacturer, the Ghori cement plant, has daily capacity of more than 1,000 tonnes, but domestic industry is dwarfed by the millions of tonnes of imports from neighbours, including Pakistan and Iran. That fierce competition makes it tough to find domestically produced cement in Kabul's main wholesale markets, even despite the fact that domestic cement's bulk and relatively low cost should penalize foreign cement, trucked in hundreds of miles. "We have only Pakistani cement," said trader Ershad Shinwari. "Afghan-made cement is not coming to us." Demand for building materials has fallen sharply since international forces left in 2014 but the market has not collapsed and director Mohammadi hopes for domestic growth. "There is huge demand for cement in Afghanistan," he said. "We've got the factory working, so it will give investors a chance." For the moment, however, Jabal Saraj relies on government subsidy to survive. The economics may be tough, but it is people nearby who are mainly looking for work. "We ask the other countries to help this factory and provide new machinery to replace the old machines," said plant worker Wazir Mohammad. "It will be very useful for our people as long as there is poverty in Afghanistan and everyone suffers insecurity."

Hopes and fears for jobs as Afghan cement factory reopens

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