8. (b) Is it possible to remove unemployment problem with the help of Employment Growth Policies?
Employment growth policies support different policies for income employment generation such as fiscal policies, monetary policies, soft budget and others. All the policies are efficient for the development of employment and reduce poverty. But these policies are not sufficient enough for removing unemployment issues. As:
Implementation of these policies is not appropriate.
Delineation of these does not address removal of the issues.
Wage selection policy does not taken in an appropriate way.
Soft budget constraints allowed public enterprises to hire more workers than necessary, resulting in losses and the perpetuation of low productivity. For the private sector, lax credit discipline was the analogue of the soft budget constraint, with similar results in terms of productivity. As the reforms progress, particularly as fiscal and credit disciplines are strengthened, it is no longer possible to sustain the surrogate social security system.
These are the general problems of employment growth policies in addressing unemployment issues. But if the policies were implemented in a judicious way, removal of unemployment issues through this would became possible.
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