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Reducing unemployment

Government policies to reduce unemployment 

Reducing occupational immobility of labour 
This is often the cause of structural unemployment so the government can aim to reduce this by providing the unemployed with skills through apprentice schemes and other workplace training. 

Benefit and tax reforms 
Incentivising people to work by reducing benefits, reducing taxes or linking benefits schemes to programmes that promote work, such as work experience programmes.
 
Boosting aggregate demand 
Often used during a depression, this Keynesian solution involves creating new jobs, even if not necessarily needed, so that consumers have more disposable income to inject into the circular flow. 

Employment subsidies 
A demand-side policy. Governments provide subsidies for firms that take on long-term unemployed people, which prevents these people from becoming discouraged workers. 
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