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Unemployment - Coggle Diagram

- - - - Demand management policies (monetary and fiscal policies)
      - Supply management policies such as reducing rigidities or providing subsidies to reduce COP
  - - - Better job information and improvements in employment exchange services such as setting up a labour exchange, providing career advisory services as well as improving industrial relations
  - - - Change in Conditions of Supply
        
        New technology, movement of industries and geographical immobility of labour leading to some jobs being obsolete
      - Change in Pattern of Demand
        
        Decline in demand for certain goods leading to unemployment in those industries
    - - Supply-side policies such as upgrading skills of the workforce or using subsidies to manage the change in economic structure e.g. providing retraining facilities or providing incentives such as grants and subsidies for skills upgrading
      - Supporting declining industries with funds
      - Make agreements to employ workers who are otherwise made redundant by new technologies
  - - - Work-sharing programme, spreading employment equally among workers
      - Rearranging production processes to spread production out more evenly; Other lines of production can be added
  - - - Restrict power of trade unions
      - Reduce or remove legal minimum wage
- - - - Unemployment causes waste of resources and loss of production, so there is a loss of output and welfare is not maximised
    - - Fall in tax revenue due to lower income tax and lower spending leading to lower GST; Increased spending on unemployment benefits
    - - With long term unemployment, there is erosion of skills leading to decreasing quality of labour as well as workers permanently leaving the workforce causing decreasing quantity of labour