Job creation program

Job creation program

Job Creation Programs are programs or projects undertaken by a government of a nation to assist unemployed members of the population in securing employment. A cornerstone of Keynesian economics, they are especially common during time of high unemployment. They may either concentrate on macroeconomic policy in order to increase the supply of jobs, or create more efficient means to pair employment seekers with their prospective employers.


Specific countries


Canada has many job creation programs at both the federal and provincial levels. At the federal level they are part of Human Resources Development Canada (HRDC). There are job creation programs for many groups such as students, fishers, and visible minorities. The government's HRDC agency subsidizes organizations that offer eligible participants opportunities to maintain or enhance job skills. Through these work terms, which can last up to a year, participants gain recent work experience and network with other people. This increases the participants' chances of finding long-term employment.


As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China is job-creation, and the effect of FDI on job creation is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on job creation in domestic firms. The positive effect of job creation in foreign firms is associated with their firm characteristics and, in particular, their access to export markets. There also seems to be a positive indirect effect on job creation in domestically owned firms, presumably caused by spillovers.


Although Adolf Hitler in the early 1930s saw the construction of autobahns primarily as a military advantage, construction of the Autobahn system provided employment for the masses affected by the crisis of the Weimar Republic.[1] The construction of the Autobahn had a side benefit of creating a new tourist industry.

United States

The first large scale job creation programs in the United States were introduced as part of the New Deal during the Great Depression. Departments like the Civil Works Administration, Public Works Administration, Civilian Conservation Corps and most prominently the Works Progress Administration created thousands of jobs for the unemployed. In 2011 President Barack Obama, in an opening bid for re-election discussed using innovation economics as the basis for his jobs creation program.

See also


Further reading

  • Schumpeter, J.A., Capitalism, Socialism and Democracy (New York: Harper, 1942)

External links

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