by Charles Simmins

Created on: January 30, 2009   Last Updated: September 16, 2009

Unemployment and under-employment are serious issues in an economy. There are some ideas to reduce unemployment that may be worth considering.

Unemployed people turn to the government for help. There are weekly benefits. There are job boards, resume critiquing, and all sorts of counseling available to everyone who finds themselves without work. The government unemployment assistance programs employ a lot of people to serve the unemployed.

There is more that the government could do. In a recession, companies layoff workers to save money and reduce expenses. The government is responsible for a healthy chunk of expenses for each and every company. Why not do something with taxes and fees in return for reducing or eliminating layoffs?

The Social Security and Medicare employer share, based on payroll, amounts to 7.65% owed on each payroll dollar. Eliminating the employer's share of Social Security and Medicare for every position preserved for a quarter allows that 7.65% to flow to bottom line. It might turn a loss into a profit, or make a loss far more manageable. That would reduce unemployment.

Part-time employees do not get benefits at many companies. Is there perhaps a way that government can provide an incentive to turn laid off employees into part-time workers? The government could continue Medicare coverage for part-time workers coming back from a layoff. That allows the worker some health insurance without the employer being forced to offer benefits or the employee being forced to choose between employment and health care.

Many of the unemployed have skills, education and training that have a value to the economy. Yet, restrictive teacher education regulations in most states prevent these folks from teaching in public schools. Why should a welder have to have a teacher certification, or a stockbroker, to teach their skills and pass on their knowledge in a school? Schools are crying for teachers, and the barrier to filling nearly all of those positions is required certification. That is another area that government actions could reduce unemployment.

Unemployment assistance requires that you be ready to work. That means that an unemployed person cannot volunteer during normal working hours at a library, or as a volunteer firefighter. Volunteers are needed in almost every not for profit. A simple action by government could make volunteering at a registered not for profit or government agency program considered as still being ready to work. The unemployed person receives their benefits while volunteering. The government allows a great need in the community to be filled. And, perhaps while volunteering that person makes a connection or learns new skills and becomes more employable.

There are four ideas for reducing unemployment that government could take action on. If government can begin to think outside the box, even more ideas will be discovered.

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