GOVERNMENT POLICY AND UNEMPLOYMENT

There considerable drop off manual labour work in the recent decades Thousands of workers have been losing their job in increasing numbers over the past year due to the fact of the credit crunch on businesses. What lead to Unemployment

Government-Effects of a Bad Economy If the chancellor raises more in taxation than the government spends then money will be taken out of the economy. People will buy less and manufacturers and service providers will cut back raising unemployment.

Combating Unemployment The government has announced a series of measures including worth up to £2,500 for employers to recruit and employ the long term unemployed The government are currently trying to cut money for public services, but are trying to keep money for jobs in public sector

An increasing Demand for Jobs Due to a high number of unemployed, then the few jobs available will be fiercely contested This means that people who do not have many qualifications, or have been unemployed for a long time, will struggle to separate themselves from the crowed.

References BBC news The Times