Providing incentives for unemployed
Context: Unemployment benefits provide a needed sense of economic security, but overdependence on unemployment benefits stands to take an even greater toll on society than unemployment alone. There needs to be more focus on providing incentives for the unemployed to become reintegrated into the job market in order to reduce total reliance on government funds by the unemployed, and to curb the length of time spend on the dole.
Implementation: In Britain, the government recently allowed people who pick up part-time jobs to continue receiving benefits (no penalties to benefits) and once full-time work is obtained unemployment benefits would cease. Workers with families can also receive benefits to supplement low wages. This discourages absolute reliance on unemployment benefits during the job-seeking period and encourages employment of one form or another.
Claim: Britain has one of the lowest unemployment rates in the EU, because of incentives for the unemployed, and flexibility and deregulation of the labour market. It is better to create incentives for the unemployed to find work, rather than paying them to spend their time on the dole. Public spending should target investment in people.
Subjects: Employment conditionsUnemployment
Type Classification: D: Detailed strategies