Click here to access an interesting article from the New York Times digging into perhaps the most worrying legacy of this Great Recession, the problem of hysteresis and structural unemployment. (Look up the word)
It looks at the causes and potential solutions as well as including some great images included below illustrating the concept.
This is a problem you may well have to discuss in next weeks exam. Solutions to one type of unemployment, rather than just a general discussion about unemployment will gain much more credit.The article discusses Supply side policies and protectionism as possible ways to solve the issue....simple and effective policies in which you can evaluate.
"Unemployment is staying high despite the end of the recession because we are now in a historic transition. Because of automation, globalisation, efficiency and other factors, we no longer need the share of people working that we have had in the past. With these trends moving in only one direction, it is clear that the job crisis is permanent and will not go away with better economic times."
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