Supply-side policies

Supply-side policies 

-Interventionist policies: They are used to improve the occupational mobility of people and let them have more chances of getting jobs. Such policies include providing education, increasing spending on adult retraining programmes, giving subsidies either to firms to train worker or to people and encourage their moving to the area where jobs are available and supporting apprenticeship. 

 * If the government encourages apprenticeship programmes, the people who lack skills to get jobs may be trained by the government and become skillful laborers. Thus, the unemployment rate will decrease, resulting in favorable economic condition. However, such action will bring two disadvantages. First, it is only useful in long term because it takes time to train the workers. Second, there is a high opportunity cost for the government since if it were not for the training programme, it can use the money spent on the training for other purposes, for instance, to build more public facilities.

- Market-oriented/ Free market policies: Government reduces unemployment benefits or legislation that businesses must follow in their hiring, firing and employment practices. 

 *Reducing the unemployment benefits can stimulate and encourage the people without jobs to be more active in getting the jobs because now they are not getting any help or the payment from the government. On the other hand, this policy can worsen the living condition of unemployed people. 

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