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Structural Unemployment and Government’s Policies
But quite often the problem arises to fill vacancies for highly skilled labor. In order to prevent unemployment, Ministry of Welfare came up with the idea for the transfer benefits which would support the people who want to work and help them get a job in another village, where is a demand for the skills and abilities. Meanwhile, the Ministry of Economy creating return migration support plan to entice home to work abroad emigrated and increase skilled workers in Latvian. Currently, it is established inter-ministerial working group which is working on new labor market policies. Ministry of Welfare, under the leadership of assessed state employment agency implemented training programs for the unemployed so that they can offer the necessary specialists to market.
All in all, structural unemployment often is permanent; government policies and programs can reduce but not completely eliminated this type of unemployment. It is very important try to make new workplaces in demanded industries, then there will be no such a problem as structural unemployment. But for Latvia, the main goal is to help return the Latvian emigrants nationals who can successfully complement the medium-and high-skilled workers row.
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Today, during the crisis, unemployment is a very important economic problem that affects the whole world by creating a global threat to the global economy. Latvian unemployment is currently very high, - 11.3%, which means that 11.3% of the Latvian population of labor force who are officially registered as unemployed don’t have a job. Each of the people who have lost his job has their own reason, for example, changes in the economic structure, which leads to a mismatch between workers skills, housing and existing jobs. They occur whenever the manufacturing realignment occurs according to the latest techniques and technology of workers existing skills, qualifications, and training does not meet the new work function requirements. Thus, it reduces the number of workers or existing workers require a certain amount of time to get a new technology service requirement of appropriate qualifications and skills. Or it can be said, that it is structural unemployment which force people to quit their jobs.
