Consequences Of Long Term Unemployment

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The book entitled, Consequences of Long-Term Unemployment by AustinNichols, Josh Mitchelland Stephan Lindner(2013) tackled the effects or consequences of being unemployed in a long-term. It can affect individuals, families, and communities in direct ways. Being unemployed for a long time may erode the skills through lack of use. They stated that a depreciation or erosion of human capital increases as time passes, meaning in finding a new job that is the potential wages of an unemployed individual can earn and even the chances of seeking a new job decrease the longer they are out of work. Moreover, being out of work stresses and influences an individual’s physical and mental health, family dynamics, and the well-being of his or her children. …show more content…
Pasadilla (2011) entitled, Social Security and Labor Migration in ASEAN. Migrants’ workers who satisfied the requirements in host country don’t enjoy their social security benefits because some of the benefits are not exportable. Pasadilla cited that the Philippines’ Social Security System is useful in cases that the host countries do not allow temporary workers’ participation in security scheme. Social Security System (SSS) provides voluntary membership by overseas Filipino workers (SSS). Portability features can prevent the social security losses through building into the design of social security or the coordination of pension policies in social security agreements (p.9). There are two kinds of portability; Pre-funded Contributory Systems and Unfunded or Partially-Funded. The more portable one, since funds are readily available is Pre-funded Contributory System. Improving the Social Security agreements can improve the portability of mobile labor’s pensions. The Agreements cover all or some of the following: Equally of treatment, Export of benefits, Dealing with double coverage or dual tax, Administrative assistance, and Totalization (pp. 11-12). Export of social security benefits are allowed in ASEAN countries. Thailand, Viet Nam, Malaysia including the Philippines have the defined benefit schemes in which the minimum periods of contribution is ranging from five to fifteen years. There …show more content…
Mouhammed (2011) which tackled the analysis of most important theories of unemployment that are used to develop some essential public policies that can be employed to reduce the unemployment rate. In order for workers to have the opportunity of finding employment the governments at all levels should provide accurate information about the job market. Also, to develop very productive workers and innovative entrepreneurs the government should spend for education. Training and retraining in the training centers are extremely useful for the unemployed workers thus; these practices assist workers to develop new skills. Federal government can provide financial assistance to state governments and governments can directly employ workers. In order to create more jobs for the American workers the state government should be able to attract foreign direct investments. Furthermore, to provide a better profitability to the firms the governments have to cut taxes on domestically investing firms. Next, the payroll taxes (taxes for social security) must be cut for a certain period of time in which the Federal government must implement a tax holiday, an action that reduces the cost of hiring new workers and provides extra income for the workers, which can be spent on consumption and investment such as purchase of a

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