Policies to Reduce Unemployment Essay Example | Topics and Well Written Essays - 2500 words

Policies to Reduce Unemployment - Essay Example It's with this in mind that the government of the UK has to change tactic in order to enable companies to remain in business and create job opportunities despite the economic recession The number of people in full time employment fell drastically between 2007 and 2009 (Arnold 2001). The rate of loosing jobs is alarming. About the same number of jobs lost the previous year were lost in just four months last year from October 2008 to the beginning of the year 2009. it better to make the assumption that those who lost their jobs were those who were being paid well from their professional expertise and could still be living on their bonuses. The number of people unemployed but actively seeking employment has increased by about one million, other people appears to have opted for part time jobs and as a result the number of part-time employees has increased by almost 1.3 million. Some people have already given up (Gilbody 1998). By the beginning of the new millennium, (the year 2000) the world was very different from the way it was in the 1900s. The United Kingdom underwent a massive change. The labour party of United Kingdom had won its second term to serve again in office. In the beginning of the year 2001, the government wanted to have enough money to be spent on public services especially the national health services which was being under funded by then (Arnold 2001). The economic growth rates have been quite stable operating at about 2-3% since the beginning of the millennium. Inflation has not been a problem to the economy of the British government. The bank of England has been able to regulate the interest rates therefore managing to stabilize the economy of Britain. The pound has maintained a stable increase in value reaching a minimum rate of 1.37 dollars against the US dollar in 2001 and rising again to about a rate of one pound going for two dollars (Arnold 2001). With the emergence of the current economic recession, the number of people loosing jobs has caused a serious setback or rather it's an impediment to the banks lending, prevention of debt deflation strategies to be implemented and to renew output growth (Gilbody 1998). There has also been a wave of rising defaults all concentrating in the riskier parts of the banks loaning documents; buy to let loans, subprine mortgages and lending money to private equity enterprise as well as the management of financial asset acquisition among other activities, Europa Publications Staff (2003). Intervention to Support Economy It's very correct to stick to the conventional parts of lending schemes as advised by senior bankers since they have been performing well till now. The problems have only emerged on the financing side of bank's balance sheets and other particular aspects of the lending side. In other parts, the process of risk management on the ability to lend has performed convincingly fine. The amount of loss encountered rose in regions where systems for management of risks and credit control schemes are purposively overridden by senior managers anxious to take over the market share or produce mortgages for the packaging as a section of the model known as