Four years after the outbreak of the global financial crisis, the world economic growth has decelerated and unemployment is increasing again. According to a United Nations report, the world unemployment could hit record levels this year and continue rising until 2017. The International Labour Organization (ILO) forecasts that jobless numbers around the world will rise by 5.1 million in 2013 to 202 million people, topping 2009’s record of 198 million. "Unemployment remains as dire as it was during the crisis in 2009," (Ernst, 2013).
Unemployment has always been the top worrying issue of the government. Unemployment rate is the litmus paper of a country’s economy, security and its overall production force. When unemployment rate increases, consumption rate decreases. Since unemployed rate is high, the people spending power struggles, causing the economic wheel to stop rotating. At the same time, high unemployment rates indirectly induce a widespread of insecurity within the general population which very likely cause social unrest and increasing crime rate. An unsettled society is never attractive to investors, and this will cause the country to lose investment which is a major solution to unemployment. Therefore, to avoid this vicious cycle to keep repeat, government needs to step in and play an active role to resolve the unemployment problems.
Here are several policies that government can implement to improve the unemployment situation:
Education and Training
Education and training are necessary to obtain the long-term growth and to provide job opportunities for the entire workforce. It is essential to encourage individuals to pursue further education and training as it will enhance their human capital and place them in a better position as wage earners. The government should aim is to educate the youth and unemployed to equip them with the adequate skills for them to compete with those experienced and enable them to find jobs in developing...
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