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Unemployment benefit quota given to SME's to hire young people

Instead of giving quota to unemployed, why not giving the money to SME's that give a job to unemployed to be used to pay the salary?

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9 2

Written by DeletedUser

SME's don't use to have economic facilities to hire people, even when in need of more people. 

Unemployed get a quota addressed to live while they are looking for a job. If they don't get a job, they loose motivation and time of improving skills and knowledge.  

If we'd transform the unemployment benefit quota into a salary, unemployed would get experience while production of SME's would increase. 


How will your concept support young people as they transition into the world of work?

Firstly, young people would start acquiring experience while looking for a job, which is usually the first wall a young faces when looking for its first job. You don't get the job because you need experience; you don't get experience because you don't get any job. Secondly, the situation of being introduced to a SME in need of people but with financial difficulties and fear of hiring the wrong person, would increase the possibilities of young people to get employed by this SME after the unemployment period ends. If this person doesn't get the job in the SME after the period ends, at least he/she would have gained experience in order to stronger look for another job.

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DeletedUser

There is a similar practice happening on the other side of the continent.:) It's not the unemployment quota precisely, but equivalent benefits are given to SMEs and large firms in Korea since November last year, in the form of 'tax refund' for employing high school graduates. It's used to be 15 million won, but increased to 20 million from this year.
Unemployment of young people has become a social problem in korea, also concerning ACADEMIC DEGREE INFLATION, students stepping upwards higher degrees because they can't find satisfying jobs, also the rising cost of education. The government got proactive to solve the problem and decided to vigorously support firms that employ high school graduates. It's nearly becoming a social movement to increase employing them.
Still there are pros and cons. There are a large number of high school graduates who got employed that aren't satisfied with the jobs since they are paid less than college graduates. Korean government are now considering to begin supporting the employed rather than the employer.
Overall, it is helping.

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DeletedUser

@Minji Kim, I didn't know this was happening in Korea, thanks for sharing! Sound quite good, although as already Paul mentioned, the difficult part here is how to avoid abuse, and not paying what the work is worth is for sure one usual and extended abuse...though if there's abuse there's probably still other people who are getting the benefits. So, We'll think about that, how to avoid abuse seems is definitely the problem to solve....

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The tax incentive is an interesting proposition since it would usually come after the employment has taken place.
Here (when the socially responsible government is in power) we have a system called employment awards that publicly set out the conditions and wages that apply to particular types of work. Because it is public knowledge employees can complain to the government if employers abuse either the conditions or wages. If the incentive was paid as a tax benefit after successfully fulfilling requirements that could help to avoid abuse since any failure on the part of the employer would cancel the benefit.
Again here the challenge is that when the other party is in power they replace the public award system with employer controlled (and confidential) contracts. Under these conditions employers are free to pay employees different amounts for doing the same job.
We see-saw between these two philosophies every 5 to 10 years - it can be quite unsettling.

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DeletedUser

@Paul Reader Seems like it is the free will of the employer to pay the hired people how much they ever want to, unless there is a regulation to pay equally. It's a cheesy matter I guess

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I should add when awards are in force there is an option for employers to pay above award wages - but there is no secrecy about it - no special treatment of one person over another doing the same work.

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