How Governments Try to Influence Employment
By Allen Krewzz
Three Broad Categories of Tools
Fiscal Policy: Spending and Taxation
Monetary Policy: Interest Rates and Borrowing Costs
Labor-Market Programs: Direct Support for Workers
Labor-market programs tend to target specific types of unemployment — training programs are generally aimed at structural mismatches, while insurance programs are aimed at cushioning the impact of unemployment regardless of its underlying cause.