There are many causes that relate to unemployment in a modern market economy which may be the changes in technology, inflation and recessions, undulant business cycles and changes in socio-economic conditions. All of these causes may be broadly classified as cyclical and structural unemployment and hard core unemployment. Cyclical unemployment is related to the GDP of the economy and structural unemployment is linked with the introduction of new services and products in the market. Hard core unemployment rises due to the inability of the job seekers to fend for jobs. So how the government can intervene to resolve the situation to the maximum possible extent is discussed hence.
RECOMMENDATIONS FOR REDUCING UNEMPLOYMENT
It is suggested that the government of South Australia frames new economic policies and improve the mobility of labour in order to rescue the businesses of the country. The government should help in enhancing the work habits of the youth in the nation in order to tackle unemployment. Further, the government may extend financial protection to the unemployed or may also offer benefits like insurance to the unemployed which may make them more comfortable to look for jobs since insecurity is the largest possible cause discerning the economy.
The fight for jobs in South Australia continues to be on the rise even though the number of opportunities seems to increase. Even with a fairly improving economy the situation on unemployment does not seem to improve. The government needs to seriously interfere and mediate the situation and do something substantial before the worst happens and it becomes tough to reverse the situation. Unemployment also adversely affects the business scenario in the country which in turn affects the economy. The needs to add more jobs in line with the number of people unemployed and thereby balancing the demand and supply is the call of the hour.