Assessing the Potentials of Industrial Sector In Creating Employment

This paper investigates the potential of industrial sector in generating indirect employment in its sub sectors. To determine the ability of Job creation, the demand for labor function in each sub sector is estimated, augmented by the demand for Labor growth matrix using the ISIC code. Then, the long term relation between employment and capital stock is tested Using ARDL and Johansen Method. Finally, for ranking indirect employment generating potential, Input-Output accounting and semi social accounting frame work are used. Results show that clothing and leather, and textile sub sectors, with 13 and 12 employee respectively, have the largest employment coefficient, and therefore, the greatest employment generating potential. The direct employment coefficients for these sub sectors are the largest, showing the larger potentials to create employment.