Unemployment Solutions
What is unemployment?
The word unemployment refers to the number or percentage of people who have the ability to work and need to work but have been unable to obtain a continuous job for a period exceeding 6 months. The term unemployment does not include retirees or those who have a disability that prevents them from working. Senior UN officials have confirmed that the Arab region - home to the highest youth unemployment rates in the world - needs to create more than 33.3 million jobs by 2030.
First the Arab solutions
The combined solutions of the Arab countries
1- Adopting development projects to enhance investments and absorb labor in the Arab world.
2- Urging Arab countries to give priority to national labor in employment within each country and then Arab labor.
3- Coordinating efforts in the field of labor and workers at the Arab and international levels.
4- Providing technical assistance in the fields of work to the three parties of production in the member states.
5- Seeking to develop labor legislation in the member states and working to unify it.
And working to improve the conditions and terms of work in the member states.
The Algerian solutions
The government has taken several steps, which are represented in
1 - Establishing committees in each state to enable youth to find job opportunities
2 - Establishing a professional integration agency for youth in 1990 within the framework of the Ministry of Labor and Social Protection
3 - Cooperatives were established between youth
which are intended to finance youth projects by 30% and the rest is contributed by banks to find temporary job opportunities with wages equivalent to the minimum required.
At the Gulf level
countries have sought to solve the unemployment problem by replacing their expatriate workers, whose number reaches 18 million workers. For example, expatriate workers in the UAE represent 80% of the population, which has led to businessmen in those countries demanding the employment of unemployed citizens of those countries by replacing foreign workers with national workers, which has led to the development of national plans that each country follows to replace those workers.
Second: The role of youth in solving the unemployment problem
1. Going for freelance work
One of the most important ways to help an unemployed young person is to go for freelance work, such as starting a small project with capital that matches his financial capabilities, such as owning a cart to sell sweets that can be made by hand, or decorating cars and organizing parties in a way that does not require large financing.
2. Identify new job opportunities
There are job opportunities that many people do not know about, as the labor market is increasingly developing and many jobs have become available that you have not heard of or rather have not existed since you finished your studies. When you are looking for jobs, expand your search to reach these non-traditional jobs, such as e-marketing or remote work.
3. Working on group projects
Such as working with a group of young people who have specific skills or participating with a group of young people to work on a small project with the support of some institutions, such as opening a sewing workshop by a group of young people with the help of some institutions to secure a place to work or provide amounts or services to support the project in general.
4. Exploiting strengths
Everyone has strengths in a certain field, so you should identify your strengths and exploit them to the fullest to get a job. For example, if you have a skill in repairing electrical or electronic equipment, you can offer this service to people around you and start from home.
5. Exploiting and developing special talents
Talent is one of the positive points that some people have, which helps them innovate and create to exploit this talent in a way that brings them a good return, whether to find a suitable job opportunity or work independently, such as drawing, which is considered a wonderful talent, and if it is exploited in the appropriate way, it will enable them to work with distinction.
6. Accept available job opportunities
These small temporary jobs may help you reach new relationships that help you reach broader job opportunities that are more suitable for your skills.
Raising the level of personal skills
Building and enhancing general skills helps in obtaining a suitable job, as digital transformation is the future of the business world, and regardless of the type of work, all employees today need to build and develop digital skills. Due to the continuous technological change, the required skills are evolving rapidly, so it is important to obtain accurate and updated information about the skills needed for the labor market.
Using the idea of self-education
Providing training opportunities helps in learning new skills or gaining work experience, and providing the necessary basic tools that give a person the incentive and strength to strive to build his own project and learn and develop himself, and this helps in developing creativity and enhancing confidence to participate in the labor market, More and in the absence of training opportunities, a person can seek self-learning of basic skills through e-learning and taking the necessary courses that enable him to create and manage his own project, and continue learning to keep pace with changes and developments.
Building a good CV and developing it continuously
One of the traditional methods that should be taken into consideration is creating a good CV with useful experiences, skills and basic courses in the field of technology. It is better to update the CV every period and keep up with technological developments to keep up with it, all this is done through planning, prioritizing, and consulting specialists to build a CV that matches one's ability and desire.
Volunteer work
They are projects in which individuals join organized teams and participate in their implementation and execution on the ground in several fields. They aim, in their various forms, to provide a free service to the community and individuals in need of such services and assistance. Participation in volunteer activities contributes to reducing the gap in the labor market as it is useful in refining the personal and professional skills of volunteer individuals through the following:
1. Developing individual skills
Such as communication skills and interaction with others, which are very important skills in various fields of work, and which may be a fundamental strength for those who possess them and facilitate their obtaining the job opportunity they are looking for.
2. Developing teamwork skills
Volunteer work and volunteer activities are based on the participation of a group of individuals in carrying out collective tasks towards individuals in need of these services and assistance. Volunteer activity is considered a suitable field for developing and improving this skill.
3. Expanding the circle of social relations
Many people get job opportunities because of the expansion of their social network and acquaintances, and volunteering provides a great opportunity to get to know people from different fields and backgrounds, which may create opportunities for networking, providing job opportunities, and assigning people to the individual who needs a job opportunity.
Remote work
Remote work is a revolution in the world of employment, as jobs that can be worked from home have emerged significantly with the development of communication technologies, and the remote work market has contributed significantly to solving the unemployment problem.
E-commerce For a long time
the word "commerce" meant the need for a large capital. Today, it has become possible to create an online store at the lowest costs to display services or products. E-commerce represents a refuge for many unemployed people, as it is believed that the percentage of online purchases will reach more than 85% of all purchases in the coming years.
The principle of piecework
Piecework or (Freelance work) is based on the principle of providing service to those who request it without any other obligations between the two parties, and despite the many difficulties facing freelance workers, it is considered one of the effective solutions to the unemployment problem.
Social Media Platforms
Profits Social media platforms such as YouTube, Facebook and Instagram have greatly contributed to reducing the unemployment problem and creating good and relatively stable sources of income for content creators. Social media platforms have also reduced the complexities related to traditional labor markets and opened the door for unqualified or people who do not have much experience to find a source of income.
Enhancing micro-specializations
One of the modern practical solutions to the unemployment problem is increasing micro-specialization in most fields of work, especially modern professions. For example, in the field of programming, the labor market has begun to demand programmers who specialize in a specific part of the programming process instead of looking for someone who does everything.
The role of the state
Unemployment benefits
Providing unemployment benefits or unemployment insurance, which are salaries provided by the government to qualified employees who are looking for work, or who have been unfairly dismissed from work due to lack of sufficient vacancies or otherwise, or who have been affected by pandemics and epidemics, according to conditions determined by the government to cover the largest number of eligible affected persons.
Health insurance and health care
Health and medical care contribute to helping workers be physically fit enough to earn a decent living, so that large and unexpected illness costs do not fall on individual families, through developing health care financing and insurance systems, and relying on the support of governments, non-governmental organizations and international organizations, in addition to expanding the scope of coverage of social health insurance, which covers only formal sector workers, to include low-wage workers and self-employed people.
Old-age pensions
Protecting retired workers in old age from dependence on public assistance and financial insecurity due to low income, by working to develop pension systems and increase their coverage to include a larger segment of workers, so that they are consistent with average age, changes in the labor market and gender roles, and improving social security schemes as the main source of income for retired workers in most countries.
Unemployment solutions inspired by the European Union solutions
The unemployment rate in the European Union decreased to 6% in 2022 compared to 9.5% in 2015. Among the methods and strategies followed by the European Union countries to reduce the unemployment problem:
External Free Trade Agreements
in the European Union A set of agreements between the European Union countries and other countries to reduce shipping costs and eliminate customs duties on products traded between the countries concerned. There are 31 million jobs that depend on external trade in the European Union.
Multilateral trade
It is a trade agreement that brings together the European Union countries subject to the same laws. Multilateral trade helps to increase economic growth in the European Union countries and thus increase companies and employment rates in all countries subject to the multilateral trade decision.
Supporting continuing education For older employees
a continuing education system should be added that enables employees who have remained in their jobs for long periods to develop in line with the rapidly changing market needs and new technologies that the work requires, such as conducting training courses on some computer programs, technology, devices and advanced equipment.
Emphasizing the importance of small enterprises
Small companies and projects still have the lion's share in their ability to employ a large number of workers. The European Union seeks to support the construction of these projects because they find suitable activities more skillfully, innovatively and quickly in comparison with large companies.
Fourth: Solutions to unemployment in European countries
UK Solutions
Especially after its withdrawal from the European Union Having a strong labor market The United Kingdom has a strong labor market that distinguishes it from other countries in the world, and its labor market has achieved a significant increase in employment rates, reaching 75.5% in 2022, which has led to a decline in unemployment rates. Rising wages and personal tax exemption The rapid and increasing rise in wages in Britain helps young people to work hard, and the personal tax exemption on individual income helps workers to save the money they earn from their hard work.
Launching the Job Search Service
A service launched by the Department for Work and Pensions to support thousands of job seekers, which continues to allow job seekers 24 hours a day, and provides job seekers and employers with simpler ways to communicate information to obtain a suitable job opportunity, which supported more than 30,000 job seekers until the beginning of 2021.
Following modern industrial strategies
This industrial strategy aims to help companies create new, high-paying jobs across the country by investing in skills, industries and infrastructure to boost production, which supports 250,000 jobs in the United Kingdom. The country aspires to support more than two million job opportunities by 2030.
Follow the full working life strategy
This strategy works to help people stay in their jobs for long periods, which aims to support employers and establishments using training and continuous education for their employees to retain older and more experienced workers instead of laying them off.
Government Jobs Service
It works to provide information, advice and guidance that helps in making decisions regarding learning, training or work. This service supported about 160,000 people in new jobs or training stages in 2019.
Unemployment Solutions in the United States of America
The unemployment rate in America has declined significantly from its normal rate ten years ago, as the unemployment rate in the United States of America was about 9% in 2010, but it decreased to 3.5% according to statistics provided in the eighth month of 2022. Many projects were worked on that helped reduce the unemployment problem, in addition to the monetary and financial policies that were followed to encourage independent work:
CHIPS Initiative
One of the projects signed to boost the semiconductor industry in the United States of America, this project directly aims to develop the workforce in the field of semiconductors and creates tens of thousands of well-paying jobs in addition to thousands of industrial jobs that require high skills, in addition to being a project that stimulates private investment, which is why it played an important role in reducing the unemployment rate. According to data analysis in America, the semiconductor project provided 244,800 direct job opportunities and supports more than a million other jobs in the American labor market, and compared to other electronic projects, data analysis proved that it works to add job opportunities at a rate three times faster than other projects in America.
Infrastructure Act
The infrastructure bill was signed by President Joe Biden in the United States of America, which aims to provide many and diverse job opportunities for a large number of American workers by pumping large sums into infrastructure development projects from building bridges, roads and railways and ensuring smooth internet access for citizens. It also aims to create union jobs with good salaries and develop the economy in a sustainable manner, and it is expected that job opportunities will increase to 1.5 million jobs annually over the next ten years.
Inflation Reduction Act
This law works to build an economy that works for working families, and its goals include creating jobs in clean energy such as solar and wind energy by reviving American manufacturing, which opens up huge opportunities to improve the American labor market and create millions of jobs.
Saving Small Business
Small businesses are the primary engine of job creation in America, yet they are still not receiving enough financial support. The federal government must provide small loans by offering new incentives to banks and taking on the risks of loans to emerging small businesses in order to encourage them to expand and incentivize borrowing money to buy equipment and hire more workers.
Tax exemption
Tax exemptions help push business owners to expand, which requires an increase in workers, or at least help push business owners to increase the workforce, which is what makes tax exemption part of any program to solve the unemployment problem.
The pressure on China
This option was proposed by some economists in the United States of America in 2010 as a proposal to reduce the unemployment problem, as the strength of the Chinese currency against the US currency affects the American economy in terms of its low-cost exports to the United States of America, while the cost of imports from America is high, which affects the economic strength in it and thus makes it difficult to solve the unemployment problem. Among the sanctions imposed by the United States are raising taxes on products coming from China in addition to imposing sanctions on large companies specialized in electronic devices such as the Chinese company Huawei, which contributed to the recovery of the economy in America.
Unemployment Solutions in Japan
Japan is considered one of the developed countries that has achieved great development in all areas, and its unemployment rate in 2011 reached 1%, but like other countries in the world, this rate declined due to the Corona pandemic, as it became 2.6% in 2022, which is one of the lowest rates compared to other countries, so how did Japan manage this percentage of unemployment rates:
Supporting Foreign Investments
The Japanese government has taken many initiatives to improve the conditions for foreign investment on its soil, as the legal and regulatory climate in Japan is considered very supportive of investors in many aspects. It was the third largest contributor to American foreign direct investment, and it continues to set ambitious goals to increase investment, which in turn works to provide new job opportunities for the Japanese people that require multiple skills.
Establishing job stability offices
These offices were established in Japan in 1947, and their primary mission was to facilitate the transition of young people from education to work, by creating an institutional link between schools and companies that was not previously available, as they achieved the organized mass movement of graduates from the countryside to the industrial cities and were received by the owners of small and medium-sized enterprises, these offices collect information on both the demand for and supply of workers in cooperation with the Ministry of Education and provide information on graduates to private companies. Indeed, they have achieved great success in employing 60 to 70% of middle school graduates while avoiding the job search period in other ways, which has increased the ability of small and medium-sized companies in particular to increase their employment potential. Not only that, they have obtained indirect advertising by advertising their need for workers among students and their families.
Focusing on expectations more than skills during study
This is part of the plan of the offices for job stability. In other cases, the student finishes the study stage without knowing about the job market. These offices work on focusing on building expectations among students about the job opportunities that may be offered to them by modifying their unrealistic expectations about work before entering the job market by offering job opportunities that match the available market and expected job levels, which helps in finding job opportunities and accepting them before they graduate.
Training programs by private companies
The Japanese government has supported companies to provide work-related training for all old employees, for their ability to keep up with changes and retain them instead of laying them off, in addition to creating training courses within companies for young beginners to develop their work skills.
Education with trainability
It is teaching the child the basics of work and its requirements, such as technology, engineering and mathematics, during the school stages from an early age. Not only that, but they seek to instill the importance of hard work in itself as teaching the values and ethics of work in Japanese society, such as harmony and teamwork, from the elementary education stages.
Unemployment Solutions in China
Despite the large number of people in China, it has succeeded in reducing the unemployment problem, especially after the Corona pandemic, as the unemployment rate reached 5.3% at the end of 2022:
Encouraging investment in China
China has been able to attract foreign investment in an amazing way, so that in 2021 it became the second destination for direct investment (FDI) after the United States of America. These investments have played a major role in China's economic development, as foreign companies account for more than 50% of China's exports and imports. Foreign investment in manufacturing in China has also increased to 81%, which has provided job opportunities for the Chinese, which has helped solve the unemployment problem, as the number of workers employed by these companies continues to increase.
Non-standard employment
China has become the third most powerful country in the economy, as it has sought to achieve economic development through many strategies that it has followed to improve economic development, including the spread of non-standard employment, which includes temporary contracts of work, online work, seasonal work, part-time work, and others. These non-standard jobs help secure job opportunities for many workers in China away from the burden of the state, thus reducing the unemployment problem.
Facilitating rural migration
The Chinese government found that it is necessary to coordinate rural migration to cities in China by unemployed people, to help people who do not have skills to work in the agricultural sector, which provides them with suitable job opportunities in cities. In 2021, the number of rural migrants in China was estimated at 292 million migrants, and they were an amazing engine of economic growth in China.
Supporting SMEs with High Employment Capacity
The Chinese government has provided small loans to support the development of self-employment and the establishment of small and medium enterprises in order to expand the scope of employment, as a group of small projects help provide job opportunities with intensive production commensurate with market requirements. The number of small and medium enterprises in China has begun to increase by about 5 million companies per year, and in the statistics of 2019, the number of small and medium enterprises was estimated at 38 million companies in the capital, Beijing, alone.
Unemployment Solutions in Russia
Despite the war on Ukraine and the sanctions imposed by the European Union, Russia still maintains a low unemployment rate of 3.9%. This is due to many measures that Russia followed after and before the Ukrainian war:
Reducing working hours instead of layoffs
Companies have adopted a policy of reducing working hours for employees, thus reducing wages and providing opportunities to hire new individuals while maintaining employees, which has effectively contributed to avoiding high unemployment rates.
Investment of companies that have withdrawn from Russia in the Ukrainian
war These policies have been followed by President Putin’s regime over the years, which are based on making deals that include foreign companies selling their businesses to Russian businessmen and continuing to run their businesses under different brands, which prevents the layoff of Russian employees working in this company in addition to requesting new workers, an example of this is McDonald’s.
Encouraging small businesses
The Russian government is taking financial and monetary measures to help small businesses by deferring taxes and reducing interest on loans to small businesses, as small businesses are an opportunity to reduce the unemployment problem due to their significant contribution to providing opportunities for thousands of unemployed people.