Consider this, if half of the small businesses in the USA (a little more than 13 million) employed one unemployed person, the unemployment problem would be solved.
Government, teachers and business analysts suggest that the way to successfully tackle unemployment is to encourage students to stay in school and garner professional skills with the promise of having a better chance of getting a job. I disagree with this mentality as the only foreseeable result could be higher unemployment rates for skilled laborers and increased education debt for students.
I wonder how academics and others, who say that obtaining a skill is vital to the future of the economy, would fair in the business world, especially in a start-up business that had no money. It would be interesting to see if they could put their theories into practice under such adverse conditions.
My view on unemployment is to put all considerations and emphasis not on education and skills, but on fully supporting and encouraging small businesses. Small businesses are most likely to employ more people, this is the crux of the matter and where government financial support should be given.
In the USA, small businesses, defined as those with fewer than 500 employees, total 27.5 million and employ half of the employees in the private sector. In addition, they pay 44% of the total US payroll. Therefore, doesn’t it seem sensible to put more effort and financial incentives into these businesses, as without them anyone who has ‘skills’ would not have a job opportunity?
My suggestion is that Government actively supports a program of employment. They should pay every unemployed person, who takes up a job, the minimum wage. This amount should be subsidized by the employer paying an equal amount. This subsidy should last for 12 months in the hope that the job will be permanent. To me, this is a proactive way to reduce unemployment and increase the country’s economy.
Small businesses have considerable growth potential because of the innovative ideas of private entrepreneurs and their desire and motivation to succeed. Privately owned businesses have to be successful because, without success, they cannot feed their families. What better motivation is there than this?
What point is there in advanced, debt incurring, education to obtain degrees and skills if there are no jobs available? I think it is time to stop putting the cart before the horse.