Objectives

 Explain the importance of human resources to the

economy
 Define terms and concepts
 Human resource
 Under-employment
 Unemployment
 Self-employment
 Brain drain
 Identify factors that influence the quality of a
country’s human resources (education / health)
 Discuss impact of the brain drain on economic
development
RESOURCES
What is a resource?
RESOURCE
 Anything natural or physical which can
be used to create wealth or improve the
standard of living of people
 Land, forests, water, animals, minerals,
human beings
What are the main resources
in the Caribbean?
The main resources in the
Caribbean are:
 Rich, fertile soil
 Warm tropical waters (fish, tourism)
 Mineral resources (petroleum, natural
gas, asphalt, bauxite, gold, diamond,
sand, gravel, gypsum, nickel, copper)
 A skilled population (engineers,
scientists, doctors, lawyers, farmers,
musicians, artists, teachers)
What are the 2 main
categories of resources?
 Resources may be classified into
two large groups:
 Human

 Physical
Objectives
 To look at ways of developing the
human resource of a country
 To assess the role of the human
resource in the development of a
country
 To look at the importance of developing
the human resources of the country
Human Resources
 Resource: anything natural or physical
which can be used to create wealth or
improve the standard of living of people

 Human Resource: people and their

various skills, talents and abilities
HUMAN RESOURCES
 People and their various skills,
talents and abilities
 People use their skills to produce goods
and services which help to maintain and
improve the standard of living.
 What are some of the goods and
services people produce which help to
maintain and improve the std of living?
 Your family needs a variety of goods
and services. Who provides these
goods and services?
 Your family needs a variety of goods
and services. Who provides these
goods and services?
 People such as farmers, teachers,
doctors, garbage collectors, engineers,
scientists, authors, musicians,
fishermen, carpenters, sports
personalities…
Importance of the Human
Resource
 Seen in the utilization of a variety of
skills to solve problems
Ways people use their skills to
solve problems:
 GREEN REVOLUTION: Scientists in
1950s developed hybrid varieties of
seeds and plants to increase food
production and solve food shortages
 Doctors and scientists produced
vaccinations several decades ago to
eliminate diseases such as smallpox,
poliomyelitis, typhoid, cholera, measles
and yellow fever.
Ways people use their skills to
solve problems:
 Engineers developed high-rise buildings
to accommodate housing needs of
growing populations thereby conserving
land for agriculture
 Musicians, artists and authors use their
skills, talents and abilities to entertain
the world’s population thereby reducing
stress and improving the quality of
human life.
 COMPUTER: developed to improve
productivity
Developing the Human
Resource
 EDUCATION: human beings are born
with innate skills, talents and abilities.
Education aims at developing these to
their fullest potential.
 Education assists individuals to become
productive members of society.
Levels of education
 Kindergarten (3-5):
 3 R’s, interpersonal skills

 Primary (5-11):
 Exposure to a broad-based curricula in preparation

for entry to secondary school

 All-round development

 Secondary (11-19):
 Further exposure to a broad-based curricula;

followed by specialization for entry to the world of

work or to pursue tertiary education
 Tertiary (19+): further specialization
List some items / programmes
on which government spends
money in an effort to develop
the human resource of T&T
Governments provide:
 Free primary education for all
 Universal secondary education
 Book grants and free meals
 Free bus transport
 Curricula suited to needs of society
 Adult education programmes
 Scholarships
 Subsidized tertiary education (GATE, MUST,
YTEPP, HELP etc)
 Educational facilities/institutions
The government spends billions
of dollars annually on education.
Why?
 IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in
a population

Savings in
foreign exchange

Government has more

money to provide
social services

Fewer man-
hours lost
through illness

Low levels of crime

 IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in
a population

Large variety of goods

& services produced in Fewer goods and Savings in
the country services imported foreign exchange

Government has more

money to provide
social services

Fewer man-
hours lost
through illness

Low levels of crime

 IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in
a population

Large variety of goods

& services produced in Fewer goods and Savings in
the country services imported foreign exchange

Government receives Government has more

Large numbers of
more revenue from money to provide
people in the labour
taxation social services
force being employed

Fewer man-
hours lost
through illness

Low levels of crime

 IMPORTANCE OF HUMAN RESOURCES
Large variety of skills in
a population

Large variety of goods

& services produced in Fewer goods and Savings in
the country services imported foreign exchange

Government receives Government has more

Large numbers of
more revenue from money to provide
people in the labour
taxation social services
force being employed

People can afford Fewer man-

High std of living
nutritious meals and hours lost
in the country
proper housing through illness

Low levels of crime

 IMPORTANCE OF HUMAN RESOURCES
Unskilled population

---- amount of goods &

services produced in ---- level of ---- demand for
the country imports foreign exchange

Government receives Government has ----

------ levels of
---- revenue from money to provide
employment
taxation social services

People ---- afford --- man-hours

--- std of living in
nutritious meals and lost through
the country
proper housing illness

---- levels of crime

 Unskilled population

Small amount of goods

& services produced in High level of High demand for
the country imports foreign exchange

Government receives Government has very

Low levels of
very little revenue little money to
employment
from taxation provide social services

People cannot afford Many man-hours

Low std of living in
nutritious meals and lost through
the country
proper housing illness

High levels of crime

DEVELOPING THE HUMAN
RESOURCE
 Discuss: “The future of the nation lies
in the schoolbags of the children.”
Dr. Eric Williams

 Discuss: An educated, literate and

skilled population is necessary for the
progress of a country.
 Education
by The Mighty Sparrow

Education, education, Children go to school and

this is the foundation, learn well,
Our rising population Other wise later on in life you
needs sound education. going catch real hell.
To be recognized For there is simply no room in
everywhere you go, this whole wide world,
You got to have your For an uneducated little boy
certificate to show. or girl.
To enjoy any kind of Don’t allow idle companions
happiness, to lead you astray,
Knowledge is the key to To earn tomorrow you got to
success. learn today.
What do students learn at
school?
 At school students learn:
 To cooperate with others  To lead healthy
 To respect rules and lifestyles
laws  Morals and values
 To become critical  The benefits of hard
thinkers work
 To be creative  Communication skills
 To solve problems  Music
 To become skilled in  Drama
sports  To obtain knowledge,
 To set goals skills and academic
 To become decision- qualifications to enter
makers the world of work
HEALTH
Health
In order to perform one’s duties, whether at home,
at school, at work or play, a person must be healthy
 Physical
 (strong bones and muscles, proper functioning of blood,
heart, lungs, kidneys, liver etc)
 Mental
 (ability to act and behave intelligently, think rationally,
wisely, sensibly)
 Emotional
 (ability to control anger, hatred, jealousy etc; proper
management of stress; ability to express feelings of love,
happiness etc)
There is a direct relationship
between a healthy nation
and its productive capacities
Benefits of a healthy
population
 Students will perform well in school
 Workers will be productive
 Man-hours will not be lost due to illness
 Government’s expenditure on health minimized
 People will be creative, innovative and inventive
 All sectors of the population will work co-operatively
for national progress
 Government’s expenditure on welfare will be small
 Average life expectancy will increase
 Provision of health care at hospitals/ health-centres
will be adequate
 Government provides adequate health care for its
citizens because of the many benefits derived from a
healthy population
 Maintains hospitals,  Garbage collection and
health centres and mental disposal
institutions  Administering medication
 Provides radiotherapy  Conducts research on cures
services for diseases
 Immunizations/  Provides ambulance
vaccinations services
 Physiotherapy  Establishes a Food and
 Educating the population Drug Division
on ways to stay healthy  Establishment of a Public
 Provides facilities for Health Dept.
sports and recreation  Provides safe drinking
water
What are the 2 main types of
health care?
Types of Health Care
Two types of health care:
 Preventative (primary):
systems that prevent
ailments/diseases
 Curative (secondary):
aims to cure ailments/diseases
Classify the health measures on the following
page into preventative and curative

TYPES OF HEALTH CARE

Preventative (Primary) Curative (Secondary)

1) Maintenance of hospitals, health centres and
mental institutions
2) Provision of radiotherapy services
3) Provision of vaccinations/immunizations
4) Administering of physiotherapy
5) Educating the population on ways to stay healthy
6) Collection and disposal of garbage
7) Administering medication
8) Conducting research on cures for diseases
9) Provision of ambulance services
10) Establishment of a Food and Drugs Division
11) Establishment of a Public Health Department
12) Provision of safe drinking water
13) Provision of facilities for sports and recreation
Primary/Preventative
 Education on importance of breast feeding
 Education on constituents of a balanced
diet
 Provision of immunization/vaccination
 Collection and proper disposal of garbage
 Provision of facilities for sports/recreation
 Provision of potable drinking water
Secondary / Curative
 Maintenance of health centres and
mental institutions that deal with curing
ailments and diseases
 Diagnosis of diseases and ailments
 Administering medication
 Corrective surgery
 Radiotherapy
 Physiotherapy
 Therapeutic and psychiatric services
Recreation
 Recreation is an important contributor
to the well-being of an individual
 Physically demanding job: mentally
stimulating hobby (music, art, reading)
 Sedentary job: physical activity such as
sports
Religion
 Religion develops an individual’s
character and character is necessary for
society to progress
Protection
 A safe and crime-free society and an
atmosphere of peace and security must
exist if individuals are to achieve their
highest potential.
 Health, education, recreation and
religion are not enough….
1. Which of the following do you consider to be
most important in developing the human
resource – education or religion? Justify
your answer.
2. Write an essay entitled “Strengths and
Weaknesses of the Education System of my
Country”. Include ways of improving the
education system.
3. Write an essay entitled “Health is Wealth”.
Identify the provisions made for health in
your country and indicate what can be done
to improve the health system.
Summary
 The human resource refers to people and
their various skills, talents and abilities which
they bring to the workplace
 Education and health are very important
factors in the development of human
resources
 The human resource of a country is important
 The human resource has a critical role to play
in the development of a country
THE WORLD OF WORK
 The human resource is the most
important resource of a nation
 Investments in the human resource can
ensure a nation’s self-sufficiency and
sustainable development
Work benefits both the worker
and the wider community:
1. Work is self-fulfilling and gratifying
2. Earn income to provide basic necessities of life
3. Goods and services produced can improve the
standard of living of the people
4. Self-sufficiency ( dependence on foreign
g+s)
5. Surplus g+s produced generate foreign
exchange
6. Dependency ratio lowered so gov’t
expenditure on social welfare is reduced
 Types of Workers
 Primary: Concerned with the
production/extraction of raw materials (agriculture,
mining, fishing, hunting, logging)
 Secondary: Concerned with the production of
man-made goods or the processing of raw
materials (manufacturing, food processing,
handicraft)
 Tertiary: Concerned with the provision of goods
and services required by the primary and secondary
sectors (banking, insurance, transport, education,
medicine, communication, postal services)
Career Guidance
 The process of helping people to
choose a career that is related to their
potentials, interests, needs and
ambitions
Choosing a career:
 Welder?  Beautician?
 Farmer?  Fisherman?
 Lawyer?  Garbage collector?
 Doctor?  Photographer?
 Teacher?  Computer?
 Artist?  Technician?
 Seamstress?  Mechanic?
 Factors to consider in
choosing a career
1. Choose a job related to your interests, hobbies
and capabilities
2. Collect information on different careers:
 Levels of wages and salaries
 Hours of work
 Health and safety hazards of the job
 Distance from place of residence
 Recognition and status of the job
 Opportunities offered to use creativity, talents and
independence
 Opportunities for promotion
 Availability of apprenticeship programs and on-the-job
training to discover the demands of the job
Importance of choosing a
career
 Encourages people to realize their goals
through careful consideration
 Individuals will be able to perform at
their best through their own choices
 One finds self-fulfillment by engaging in
activities which one likes
 Stress levels will be minimized
 Productivity will be high
Where can we get information
on career trends?
Where can we get
information?
 Newspapers
 Internet
 Career guidance seminars organized by
different industries
 Career guidance is the process of helping
people to choose a career that is related to their
potential, interests, needs and ambitions
 Guidance officers in schools
 Books and magazines on career guidance
 Schools and other educational institutions
 Discussions with employees in various fields
 Questions to discuss:
1. Why is the human resource considered the most
important resource?
2. Identify the various ways used in your country to
develop the human resources.
3. What do you consider to be the most important
factor in developing the human resource?
4. Show how education helps to develop the human
resource.
5. What can be done to make the education system
more relevant to our everyday needs?
Test
1. What is career guidance? Where can
you get information on career
guidance?
2. What factors should be taken into
consideration when choosing a career?
3. What avenues can be used to gain
work experience?
4. What are the benefits of pursuing a
career of one’s choice?
Application for Employment
 Job prospects depend upon:
 Academic qualifications
 Values and attitudes
 Work experience
 Recommendations
 Impressions created from the application
form and interview
THE EMPLOYEE SELECTION
PROCESS
 The Employee Selection Process

 Job advertisement
 Job application
 Resumé / Curriculum Vitae
 Interview
 Sample Job Advertisement
VACANCY: JUNIOR ACCOUNTANT

Applications are invited to fill the position of Junior Accountant with

the firm Roger’s Industrial Incorporated Limited.

Qualifications: Five CXC Subjects at General proficiency Level

including English language, Mathematics and Principles of accounts.
Computer literacy is not necessary but will be an asset.

Applications with relevant accompanying documents must be

submitted to:
The Human Resource Officer
Rogers Industrial Corporation Limited
P.O. Box 92
Castries, St. Lucia

Unsuitable applications will not be acknowledged.

Sample Application Letter
24 Queen Street,
Toco
January 6, 2004

The Human Resource Manager,

Rogers Industrial Incorporated Ltd.,
174 Eleanor Street,
Sangre Grande.

Dear Sir/Madam,
In response to your advertisement in the newspaper, I hereby apply
for the position of Junior Accountant.
I am a graduate of North Eastern College, where I successfully
completed my secondary education. After graduating from school, I occupied
myself in my family’s business where I gained hands-on experience in
accounting procedures.
I consider it a privilege to offer my services to your reputable
company.
If my application is successful, I will dedicate my energies, skills,
and talents to the mutual benefit of your firm and myself.
Please find enclosed, my resume.
Thanking you for your consideration.

____________________
Jenny Thomas
 Resumé

Name: Jenny Thomas

Address: 24 Queen Street, Toco
Telephone No.: 644-9345
DOB: 9 September, 1984
Marital Status: single
Mission Statement: To enhance my knowledge and understanding of accounting
and to gain experience in the world of work so that I may be
able to apply my knowledge meaningfully , contributing not
only to my general progress but also to the improvement of
the organization with which I work.

Qualifications: 1996-2001 (North eastern College)

CXC General Proficiency:

Work experience: July 2003 to date

Junior Accountant, JT Agricultural Supplies, Sangre Grande

Interests: Hiking, badminton, reading, swimming

References: Mrs. Shirley Bernard (Teacher)

North Eastern College, Sangre Grande

Sgt. Clyde Ford

Toco Police Station, Toco
The Interview
 Communication skills
 Interpersonal skills
 Ability to handle stressful situations and
maintain a peaceful temperament
 Personal characteristics (friendliness,
punctuality, respect, manner of dress etc)
 Ambitions
 Knowledge of the firm / institution
 Strengths and weaknesses of the applicant
 Hobbies / leisure activities
 Interests and experiences
Sample Interview Questions
 What do you know about the firm?
 What contribution can you make to the firm?
 What qualities should an ideal worker
possess?
 What are your major weaknesses?
 Describe one of your most rewarding
experiences
 Name three important things which you will
expect from your job
Training Facilities
in Trinidad and Tobago
 Various public and private institutions (check the
yellow pages under “Schools”)
 The University of the West Indies
 www.uwi.tt.com
 The National Energy Skills Centre (NESC) and the
Trinidad and Tobago Institute of Technology (TTIT)
 www.nesctt.org
 The College of Science, Technology and Applied Arts
of Trinidad and Tobago (COSTATT)
 [email protected]
 Fax: 652-7465
THE LABOUR FORCE
Dependency Ratio
 Number employed: total population minus
number employed

 This means for every 1 person employed in

country X there are Y people who are
dependent upon the goods and services
provided by the employed for their survival.
 The Dependency Ratio is an indicator of the
level of development and welfare in a
country.
 When the dependency ratio is high, the
standard of living is low and vice versa.

 E.g population: 1,100,000

 # employed = 100000
 Dependency Ratio:
100,000/(1,100,000-100,000)
 = 100,000/1,000,000
 = 1:10
 Unemployment refers to a situation
where a person is available to work and
seeking work but is currently unable to
find work.
 Under-employment: A situation in
which a worker is employed, but not in
the desired capacity, whether in terms
of compensation, hours, or level of skill
and experience.
 Unemployable:
 under 16 or over 60/65 i.e. retired and not
seeking employment
 Pursuing full-time education
 Incarcerated persons
 Medically unfit
 Lacking in knowledge, skills and experience
(lack basic skills necessary to secure a job)
 Self-employment: a situation where a
person works for himself rather than for
someone else or for a company that he
does not own. To be self-employed, an
individual is normally highly skilled in a
trade or provides a niche product or
service.
Why people work
 To earn an income to provide basic
needs for themselves and their families
 To provide for the future (retirement)
 To maintain or improve one’s standard
of living
 To maintain a level of economic
independence and not rely on others
 To preserve their status and self
respect
BRAIN DRAIN / BRAIN GAIN
 Brain drain or human capital flight is a
large emigration of individuals with technical
skills or knowledge, normally due to conflict,
lack of opportunity, political instability, or
health risks.

 Brain drain is usually regarded as an

economic cost, since emigrants usually take
with them the fraction of value of their
training sponsored by the government
 The converse phenomenon is brain
gain, which occurs when there is a
large-scale immigration of technically
qualified persons.
 Brain drain can be stopped by providing
individuals who have expertise with
career opportunities and giving them
opportunities to prove their capabilities.
 Brain drains are common amongst
developing nations, such as the former
colonies of Africa and the island nations
of the Caribbean, where marketable
skills may not be financially rewarded.
THE TRADE CYCLE
Stages of the trade cycle
 RECOVERY
 BOOM
 RECESSION
 SLUMP
 EXPANSION (UPSWING)
 CONTRACTION (DOWNSWING)
 A trade cycle is a change in the
level of business activity over a
period of years. The cycle moves
upward in times of prosperity and
downward when there is a
recession or period of low productivity.
Characteristics of a Slump:
 Low productivity
 Persistently high unemployment
 Low level of demand for consumer and
capital goods
 Decline in investment and economic
activity
Characteristics of a Recovery
 Greater efficiency
 Greater productivity
 Employment increases
 Demand develops
 Sales expand
 Profits rise
 Greater investment, more employment,
higher profits
Characteristics of a Boom
 Economic activity is at its highest
 Rapid increase in productivity
 Increased investment
 High wages
 High demand
 Inflation: increased demand for loans
etc
Characteristics of a
recession/downswing/contraction

If a boom is not efficiently managed it

creates a possible downswing trend:-
 Low productivity

 Less business activity

 Decline in investment

 Fall in profits

 Increase in unemployment
TYPES OF UNEMPLOYMENT
Types of Unemployment
 Seasonal
 Structural
 Technical
 Frictional / Normal
 Voluntary
 Cyclical
 Casual
Types of Unemployment
 Seasonal Unemployment
 The very nature of some firms and

businesses necessitates that they operate

seasonally. Agriculture, tourism
 Technical Unemployment
 Automation / technical changes (machines

replace people)
 Structural Unemployment
 Changes which affect the structure of the

economy and its capacity to employ

people
 Changing consumer tastes

 Obsolescence
 Difficulty acquiring new skills needed to
produce the new products
Types of Unemployment
 Frictional Unemployment/Normal
Unemployment
 Due to people being unable to fill vacancies

which exist
 Made redundant

 Fired for inefficiency

 Looking for better job (Changing jobs)

 ignorant of existence of the job

 reside far from the jobs

 Voluntary Unemployment
 Register as unemployed to claim benefits

without any intention to seek a permanent

job
 Cyclical Unemployment

 Changes in trading patterns resulting in drop in

world prices for certain products cause local
industries to cut back production in order to
save costs  layoffs
 Casual Unemployment
 Low-skilled and semi-skilled workers often
experience long periods of inactivity between
jobs
CAUSES OF UNEMPLOYMENT
IN THE CARIBBEAN
Causes of Unemployment in
the Caribbean
1. More people entering the labour force
than jobs being created
2. Capital intensive industries replacing
labour intensive ones eg energy sector
3. Scarcity of qualified people to fill
vacancies (failure of the education
system to prepare people with the
skills and knowledge necessary for the
increasing number of technical jobs)
4. Industrial sector pays more than
agricultural sector so people prefer to
remain unemployed until they secure a
job in the industrial sector
5. Limited natural resources and small
size of Caribbean countries stifles
ability to create jobs in the
manufacturing sector
6. Consumption pattern (preference for
foreign imports) puts a strain on
foreign exchange reserves and limits
islands’ capacities to create jobs
(Imports exceed Exports)
7. Job creation in Tourism sector not
maximized (hotel furniture and
equipment, and meals are all high in
foreign content)
8. Trade Union activity can cause
stagnation in job creation (high wage
demands reduce profit margins,
restrict expansion and job creation)
9. Lack of capital constrains governments
ability to create jobs (loans from World
bank and IADB – vicious cycle of
poverty)
Dealing with Unemployment
1. Create incentives for local and foreign
investors so they can generate jobs and
money i.e. Provide tax shelters and tax relief
measures
2. Inject capital into labour intensive
projects
3. Provide early retirement plans
4. Encourage small business ventures
Ways of reducing unemployment
and underemployment
5. Expanded public works and greater
industrialization
6. Place greater emphasis on agriculture
and agriculture based industries
 Improved infrastructural facilities in
agricultural areas (Roads, electricity,
water etc, Schools, police posts,
marketing, subsidies, tax relief on
tools/equipment)
7. Refining our local raw materials to create
new products rather than exporting them in
their raw state. Downstream processing
creates jobs.
8. Provide appropriate and relevant
training and development of skills
 School curricula with an emphasis on
technical/vocational areas (welding, auto-
mechanics, electrical installation, beauty culture,
agricultural science, masonry, plumbing) leading
to self-employment
5. More aggressive tourism marketing
(more jobs for hotel employees, taxi drivers,
tour guides, travel agencies, farmers,
artisans)
6. Greater regional cooperation enabling
combination of resources from different
countries to produce a variety of goods and
services
 Oil from Trinidad can be used to convert bauxite
from Guyana, Jamaica and Suriname into
aluminium. Forwards linkages can be created
(manufacturing of pots, pans, spoons, door
frames, windows, motor vehicle parts and
accessories)
7. Employee Stock Ownership Plans:
7. If workers become shareholders in the firms in
which they are employed this can lead to
increased productivity and profitability 
expansion and job creation
8. Family Planning Education:
 Governments should control the high birth rate
through family planning education  reduced
population growth, reduced unemployment
Effects of unemployment