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measures to reduce unemployment

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measures to reduce unemployment

    • Posted by Kuldip Ray 5 years, 2 months ago

    CBSE > Class 09 > Social Science
    • 1 answers

    Yogita Ingle 5 years, 2 months ago

    There are two main strategies for reducing unemployment –

    1. Demand side policies to reduce demand-deficient unemployment (unemployment caused by recession)
    2. Supply side policies to reduce structural unemployment / (the natural rate of unemployment)

    A quick list of policies to reduce unemployment:

    1. Monetary policy – cutting interest rates to boost AD
    2. Fiscal policy – cutting taxes to boost AD
    3. Education and training to help reduce structural unemployment
    4. Geographical subsidies to help firms invest in depressed areas
    5. Lower minimum wage to reduce real wage unemployment
    6. More flexible labour markets, to make it easier to hire and fire workers.

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