How Governments Can Handle Increasing Unemployment : Economist View
When people are without work, and they continuously seek work, is what we call Unemployment. Businesses like Freelancing and Entrepreneurship helped many to tackle this problem, but the one without any certain skillset has no answer to it. With changing work ethics and scenario makes a cliché of jobs, most of which requires technological knowledge.
John Meynard Keynes has rightly said about “Technological Unemployment.” It occurs due to the discovery of methods of economising the use of labour. In simple words, we can say that machines are taking jobs from the workers. It is time to wake up for the Governments. This economic collapse has fastened the governments; they have begun to increase the cut and spending taxes. On the contrary, Keynes view is that when many people want to save and they do this on little interest, then the resources including workers fell idle.
Another economist of Paris School of Economics, Thomas Piketty has argued that if top 1% of the capital owners snatch a share of the national income and thus add to the increasing national wealth, then an unstable economy will be created because rise of the middle class is crucial for the overall economic growth of a nation. So the governments can handle these type of situations. The debt of governments is affected when lenders demand high interest on their shares. It seems that it will not effect economy, but theoretically if the government owns 90% of GDP, then the rate of economic growth starts slowing down the scale.
According to the figures provided by the International Labour Organisation, 6% of 15-24 aged people are unemployed. Also, most of the employed youth have temporary jobs that are on temporary contracts, so they do not gain skills with these types of jobs. This damage in the economy is seen less in dynamic economies but it is high in the stable economics. Another aspect of unemployment is that the employers say that they do not require the skills that youth offers to them. So this mismatch is a concern for the governments. Though there are policies that believe to provide skills to the employees according to the company demands, but they needed to implement in a generic way.
These days many nations have started working to nullify the gap between work and skills by opening vocational schools and linking them to the local companies. They are providing apprenticeships to the workers in local companies. These are the efforts of government, but we all should be united to tackle this problem.
Other measures that government can take are: Government can provide tax credits for the compensation, small business should be saved, there must be minimum wages for a particular job.