Job Creation

Job creation programs are programs or projects undertaken by a government of a nation in order to assist unemployed members of the population in seeking employment. They are especially common during time of high unemployment. They may either concentrate on macroeconomic policy in order to increase the supply of jobs, or create more efficient means to pair employment seekers to their prospective employers.

Job creation programs are a cornerstone of Keynesian economics.

Specific counrties

China

As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China is job-creation, and the effect of FDI on job creation is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on job creation in domestic firms. The positive effect of job creation in foreign firms is associated with their firm characteristics and, in particular, their access to export markets. There also seems to be a positive indirect effect on job creation in domestically owned firms, presumably caused by spillovers.

Canada

Canada has many job creation programs at both the federal and provincial levels. At the federal level they are part of Human Resources Development Canada (HRDC). There are job creation programs for many groups such as students, fishers, and visible minorities. The government's HRDC agency subsidizes organizations that offer eligible participants opportunities to maintain or enhance job skills. Through these work terms, which can last up to a year, participants gain recent work experience and network with other people. This increases the participants' chances of finding long-term employment

Germany

The construction of the Autobahn system in Nazi Germany, among other goals, provided employment for the masses affected by the crisis of the Weimar Republic.

New Zealand

New Zealand's history of job creation began at least as early as the Great Depression in the early 1930s. Much of it was reportedly rather soul-destroying, such as digging holes and filling them up again.

During later periods of economic stagnation, more constructive solutions appeared. Examples were the TEP (Temporary Employment Programme) and PEP (Project Employment Programme) of the 1970s. Money was made available to local authorities to cover costs of materials and some administration, for projects such as kerb and footpath construction.

United States

The first large scale job creation programs in the United States were introduced as part of the New Deal during the Great Depression. Departments like the Civil Works Administration, Public Works Administration, Civilian Conservation Corps and most prominently the Works Progress Administration created thousands of jobs for the unemployed.

See also

• Employer of last resort
• Workfare

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