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Unemployment And Job Retraining Programs Essay

1836 words - 8 pages

In the current economy, where the unemployment rate is significantly higher than normal in comparison to previous years, the people are clamoring for solutions from their leaders in government. There have been plans in the works in the Obama administration to create more jobs, yet nothing has come to fruition. Currently, as Congress is teetering towards gridlock once again, the Republican House Speaker and House Majority Leader have proposed to President Obama that he include a plan called “Georgia Works” into his latest proposal to Congress. The program would find temporary jobs for people without any cost to the employers. These people would also receive job training while ...view middle of the document...

The Georgia Works program gives those who are enrolled six weeks of on-the-job training as well as money for expenses that will help them on that job, such as clothes, etc. The amount of money allowed for expenses is $600. The program happens at businesses with immediate job openings in hopes that they will be hired once the six weeks are up. At first only for those who were receiving unemployment, the program has opened up to any person without a job (Coppins). The Opportunity North Carolina is very similar with six weeks of job training that are of no expense to the employer along with money given to the “employee” for expenses. At the end of the training, the employer can decide whether they wish to hire the person or not.
The American Jobs Act was unable to pass through the Senate on October 4 as it did not receive the 60 votes needed to go to the House of Representatives. Since then, the President has begun to separate the “jobs plan” into different bills and resubmitting them (Silverlieb). One segment of the American Jobs Act has already been passed through the Senate, a tax credit for companies hiring disabled veterans (Associated Press). Though only a tiny portion of the “jobs plan” and unrelated to the idea of job retraining programs, it does spark hope that with some repackaging that it will be more readily accepted.
These programs are not unlike the Active Labor-Market Policies or ALMPs of Europe. There are four types of ALMPs: incentive reinforcement, employment assistance, occupation and upskilling (Bonoli 440). Incentive reinforcements are efforts to encourage those who are receiving benefits to find a job or continue working. The Georgia Works and Opportunity North Carolina programs would fall under employment assistance. People are being given the opportunity to be in contact with an employer in hopes they will become part of the workforce again. Occupation deals with advocating seeking for employment along with keep those who are without work busy. Finally, upskilling is an important facet of the two programs mentioned above, which is essentially job training (Bonoli 441). ALMPs have seemed to have found success in Europe over the past twenty years they have been used. During the Swedish recession in the late 1970s, the generous use of ALMPs along with enlarging the workforce, employment was kept at the same level it had been on before the recession (446). It is through occupation that countries with ALMPs have been combating rises in unemployment, which has been fruitful for the most part. Job creation programs were able to lower unemployment in Germany, but it could not stop the unemployment rate from going up during the recession in the 1990s (447). If these policies have worked well for some European countries, why aren't more people willing to take the chance on a system that seems to be win-win? A majority of it has to do with the way American's think about social welfare.
Why is it that the policy regarding...

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