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What Is a Job Creation Program?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 01 November 2016
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Job creation programs are initiatives that are employed by governments to create work opportunities for citizens who are currently unemployed. While typically associated with actions taken by national governments, state and provincial governments or even a local municipality may take steps to develop and operate this type of program to serve people living within the jurisdiction. A job creation program may come about as a response to economic conditions that lead to high levels of unemployment, or as a way for a local jurisdiction to deal with the closing of major industries within its boundaries.

The core purpose of a job creation program is to generate gainful employment opportunities for people who are out of work and having difficulties securing another position. At times, the program may take the form of the establishment of a specific department by the local, state, or national government to hire displaced employees for a specific project. A job creation program may also involve working with companies to provide incentives to create new jobs, then train qualified individuals to fill those positions. The program itself may even take the form of a retraining program to provide citizens with new job skills, allowing them to compete for jobs already available in the local market.

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Several benefits can come from a carefully crafted job creation program. By aiding citizens who are currently unemployed to secure steady work, the program helps to stimulate local economies. Since those individuals are working once again, they are able to continue paying household expenses and purchase goods and services from local vendors. Lower unemployment means less demand on resources earmarked for aid to the unemployed, allowing those resources to be readily available in the future. On a personal level, a job creation program can go a long way toward reducing the loss of confidence and sense of helplessness that is often experienced when trying to find work and being unable to do so. From that perspective, the program can do a lot to increase the sense of worth of those who are able to finally find work through the efforts of the government sponsored work plan and help them feel more self-sufficient.

Since there are a number of ways to structure a job creation program, it is important to carefully assess the reasons for the increase in unemployment. This will often lead to ideas on how to set up the program so that the best possible result comes to pass. For example, if the idea is to aid displaced workers who lose their jobs due to cutbacks in a particular industry, the program will likely have a job retraining component that equips those workers for jobs that are available in their area. From there, seeking to match those retrained workers with the right employer will often expedite the hiring process, providing employers with qualified employees and the formerly unemployed workers with a new job and a renewed chance to pursue their financial goals.

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