Question

Critically analyze 2 policy options that economists have to lower structural unemployment and whether they should devote resources towards reaching an unemployment rate of 0%. In your answer, be sure to discuss the opportunity costs as well as the unintended consequences of these policies.

Answer 1

The two policies which I am discussing about reducing structural unemployment and the resources that we should allocate to reach the unemployment rate to zero is

1) Education and training: In todays world people should be educated and give training thus making them to attain jobs use their skills. Some people may be and some people may not be willing to learn but the main motive of this policy is to make them skilled workers which will attain job anywhere in the world. Thus using this policy we can gradually reduce the level of unemployment. The main resources allocation is funds which should be provided by government and business man. Some unintended consequences of these policies some people will not intend to go to this program or policy, Sometimes even the authorities misuse this funds thus government should keep check on these type of frauds for a better society.

2) improving market flexibilty for workers: Usage of this policy is that the firms and other companies should make easier for hiring the workers and keep flexible wages and working hours making the people more employed. The Government should also encourage foreign industries to set up companies thus making more employments in that firms.

Thus this is how we can deal with structural unemployment.