As rate of employment is related to many microeconomic factors of a country’s progress, many discussions have emerged which have lead to many theories. Unemployment was an issue even before the global recession; it is just that recession emphasized and highlighted the issue.
Most of the theories are either impractical or do not suit all the countries and some would manage to increase the level of unemployment as they suggest remedies with freebies which can reduce competition. Competition can never be compromised as without it, the overall job satisfaction, incentive systems, pay scale and many other factors get affected directly or indirectly.
Some steps which can be taken by the government sectors or world bodies in reducing the level of unemployment are discussed below:-
1) Betterment of the Employment Exchange: – Employment exchange is a mere formality in many countries, so it is important that employment exchange offices synchronize correctly and quickly with private companies which provide the maximum job opportunities. Government should grant more funds and powers to its employment exchange terminal.
2) Providing Better Educational Facilities to Citizens: – Education creates employment, so a country with good educational facilities will have less unemployment
3) Elimination of Child Labor: – When underage children start making money, they will look for more options to make money. Schools are made for children and vice versa. Elimination of child labor can definitely help people to go for better options.
4) More Job Fairs: – Government should initialize and create more job fairs which form a bridge between companies which have employment opportunities and people who need employment.
5) Increase in Government Grants to Public Sector Companies: – Public sector companies are also known to create hundreds of job opportunities. So an increase in grants to these companies will imply better functioning which will eventually help people who are unemployed.
6) Improving Pay Scales to Reduce Unemployment by Choice:- Many people choose to be unemployed to do things they like or to avoid working on low pay scales. Improving pay scales in government and public sectors will give fewer options for people to stay unemployed by choice.
7) Legalizing Many Unconventional Methods of Earning: – There are many modes of making money which are considered illegal in many places but are done secretly. Good examples of it are prostitution, gambling and betting. Legalizing these activities will create more employment, taxes for the government and would reduce exploitation.
Some other steps like making an independent Ministry of Employment and better tax transitions will also help decreasing employment to some extent. All these steps would definitely help the government to reduce the level of employment.