• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Compare and Contrast labour market deregulation and labour market programs as 2 approaches to reducing the level of unemployment.

Extracts from this document...

Introduction

Compare and Contrast labour market deregulation and labour market programs as 2 approaches to reducing the level of unemployment. To prevent an increase in the natural rate of employment and subsequently to reduce the level of unemployment, combinations of supply side and/or demand side policies are used. One approach, which is often associated with the incentive approach (where unemployed are forced to actively seek work or leave the labour force), is labour market deregulation. It favours decentralized wage bargaining, the removal of minimum wages and conditions, and reductions in the regulations over employment. However, supporters of the deregulations approach point to the continued existence of awards and use of safety net wage increase for lower paid workers and reduce access to long term unemployed vacancies. ...read more.

Middle

Such policies would include: * Training and education programs * Work experience programs * Direct job creation programs The labour government introduced its 'Working Nation' program in 1994 as an attempt to reduce long term unemployment and target the disadvantaged work groups within. Special Labour Market programs included: * Australian Traineeships * Jobstart * Skillshare * Landcare However these special programs were not successful during times of recession when there are few job vacancies. The crux of the problem is insufficient job generation. What is required is some expansion in demand within the economy. All sides of the debate agree on this. ...read more.

Conclusion

which take time to impact. This suggestion can be portrayed in the long run Phillips curve as it identifies the natural rate of unemployment as that rate of unemployment at which price expectations are stable and realized. Under this view there is a direct link between the natural rate of unemployment, the actual rate of unemployment and the average level of price expectations. At the long run Phillips curve: * The expected inflation rate is equal to the actual inflation rate * There is no reason to revise price * The labour market is in equilibrium to the extent there is no cyclical unemployment Therefore in the long run, there is no trade off between inflation and unemployment, and the economy would inevitably settle at the LR Phillips curve and at the natural rate of unemployment. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. YR10 ANALYSIS OF THE UK LABOUR MARKET

    Both of the sets of workers have increased, since 1984 to 2004, by about 2500 people. Unemployment differs between the different regions of the UK in quite similar ways. The pattern of unemployment over the year's looks very similar but with different quantities for the different regions.

  2. Governments set economic objectives - Discuss the relative importance of each of these objectives ...

    There are so many forms of market failure that the government must intervene in the market place, hence the use of interventionist policies. To increase economic growth, the government can increase public expenditure on education and training, through subsides for training and increasing the legal requirement of firms to undertake training with all 16 to 18 year old.

  1. Compare and contrast the various methods of dealing with the problem of monopoly.

    - Ofcom (merged, previously Oftel) are a working example of this. They are the regulating body for the communications industry, covering telecommunications. Previously, before deregulation occurred, there were two main dominant firms: Telewest/NTL (Now Virgin Media), and British Telecommunications. If there was no regulatory body in place, it would have

  2. Inflation, Unemployment & The Phillips Curve

    That fact gave central bankers a sure-fire method for combating high inflation: just use strict financial guidelines until inflation was choked and disappeared. The Oil Crisis of 1973 shattered that myth and resulted in a new word in financial circles: stagflation.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work