The Problem of Unemployment and a Proposal for a Solution

Abstract

Unemployment is one of the most important social problems faced by all developed and developing countries. While countries are developing technologically, production systems are changing and it is becoming hard for workforce to keep pace with these developments. From Macedonia's independence (1991) to 2010, the most important problem in the economy was unemployment. The fact that production ceased in the first years of independence caused both industrial production and total production to decline. Considering the fact that the factories does not work, new people joined to the unemployed group. The Macedonian economy has struggled with high unemployment for 25 years. According to data from the Macedonian statistics agency, the unemployment rate in 2010 was about 39 percent, but in 2015 it has decreased to 25 percent.In OECD countries are implemented active policies in 6 important categories to increase employment. Macedonia has been implementing these policies since 2007. These policies have begun to give positive results. In addition, the decrease in unemployment is linked to foreign investments, but also the policies to struggle unemployment by the government has affected.