3.3.1 Measure to reduce unemployment In the long term, effective policies to reduce the total level of unemployment need to encourage 1. An improvement in the employability of the labor supply - so that the unemployed are equipped with the right skills to be competitive in the labor market. The focus of the policies should be on the improvement of occupational mobility of the labor. 2. An enhancement in the motivation of people to search and then accept paid work-this maybe carried out by reforms in the tax and benefits system. 3. A sustained period of economic growth so that new jobs are being created - this requires an increase in the aggregate demand in order for business to increase their investments and as a consequence expand their human capital. 4. Improving skills and reducing occupational immobility. Policies should endow the unemployed with the skills they need to become active again in the labor market. Structural unemployment is the result of workers being occupationally immobile so upgrading in education and training will increase the human capital of these workers, and therefore give them a 22 Policies to reduce unemployment, http://www.tutor2u.net/economics/content/topics/unemp/unemp_policies.htm , accessed date 20.01.2013
