Historically, for the now economically developed countries, a strong positive correlation has normally existed between rising real output and employment levels. Among today's lessdeveloped countries (LDC's) even high growth rates can, and frequently do, fail to generate a concomitant rapid rate of employment expansion. Indeed, so acute is the failure of labor absorption to grow in step with rising incomes that a recent International Labour Organization (I.L.O.) report on Colombia (1970: 47) maintains “development strategy will become very largely employment strategy.”The unemployment problem is in part due to the rapid population growth rates and even more rapid urban growth rates experienced by most LDC's in the postwar period, and in part it stems from the nature of their development processes (International Bank for Reconstruction and Development, 1972: 35).
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