Question

In the city of Miami, there are many unemployed construction workers. However, most new job creation is coming in the health care industry. Which government policy would best be prescribed to alleviate this unemployment? (Select all that apply)
Select all that apply:
tax cuts
job retraining
educational subsidies
increased government spending

Answer 1

Job retraining and increased government spending

The unemployment is in the sector of construction workers and the employment opportunities are in the health care industry. Both the industries are totally different. Construction workers cannot be directly absorbed into healthcare. They need to be trained again for the health care jobs. Therefore, a job retraining has to be done as a government policy so that the unemployment can be reduced. Also there will be increased government spending as it is a expenditure to the government as there will be training expenses involved in order to train the construction workers for health care employment.