How to solve the unemployment problem – comparing the Job Guarantee model to other unemployment policies

Abstract

Unemployment has been a persistent problem in our society, especially lately as the unemployment rate in Finland has been growing rapidly. The existing unemployment policies do not seem to be effective enough to reduce the problem, and thus there is space for new models. Combining the ideas of unemployment insurance and active labor market policies, the new model, Job Guarantee, presents a more holistic and possibly more effective tool against unemployment. This review compares three unemployment policies, including Job Guarantee, trying to give an insight on which is the most optimal policy.