HELP - policies and unemployment (1 Viewer)

[kula]

Hey,

I was just wondering if anyone could tell me government policies aimed at reducing unemployment, or, where I could find this information (eg. textbook)
Thanks..

All help greatly appreciated

 

[George W. Bush]

macroeconomic policy
e.g. inflation target of 2-3%
microeconomic reform

 

[i-color]

micro reform is the most significant in reducing unemployment. Eg, labour market reform, structural change etc help to reduce structural unemployment in the economy which is what our major type of une is. Industry reforms have had negative impacts on une in short run, but in the long term, greater efficiency and competitiveness will mean higher employment and lower une.

fiscal policy- controls the fluctutations in the economy, which the unemployment rate is very much dependant upon. Also, use of the budget to achieve greater dynamic efficiency and also encourage employment through tax cuts (for eg) etc.

moentary policy- affects economics activity and hence unemployment levels.

 

[santaslayer]

Maybe this is related?

The phillips curve illustrates the trade off between Inflation and Unemployment. Usually, when the economy increases it's inflation, unemployment decreases, and vice versa. That is why the government's main concern is inflation targeting.

BTW, if both inflation and unemployment rise relatively, than that is termed as 'stagflation' and 'deflation' is usually the oppisite.