gcse economics - the big picture: unemployment - remedies
Reducing unemployment is a key target for all Governments. High unemployment has enormous costs for individuals, businesses, the Government and the economy.
The way of solving unemployment will depend upon its cause
METHODS
• Government support to struggling industries in order to try to save jobs e.g. airline industry
• Provide more training and education to the unemployed. This could help improve computer skills and communication. These people will become more confident and employable.
• Make more information available in job centres.
• Reduce unemployment benefits or cut benefits all together (see below)
• Try to bring the country out of a recession. The Government needs to try to create demand in the economy. It could;
- Give grants to businesses to produce
goods
- Have projects such as roadbuilding
- Cut interest rates to encourage spending
- Cut income tax to encourage spending
NEW DEAL
At present an individual is only allowed to claim unemployment benefit for 6 months.
After 6 months they must take any job, which is offered to them or accept a loss of benefit.
Alternatively they can choose to do extra education or training.
ACTION
a. Why do you think the new deal was introduced? Do you agree with this
policy?
b. How could a roadbuilding project help create jobs?
c. What information could be made available in job centres?
SMART
THINKING
d. Why would cuts in interest rates or income tax ‘kickstart’ the economy?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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