Supply-side policies

Supply-side policies are intended to increase the economy's potential rate of output  by increasing the supply of factor inputs, such as labour inputs and  capital inputs, and by increasing productivity.  They include:

1. Increasing information dissemination on market opportunities.
2. Reversing rural-urban migration by making rural areas more attractive and capable of providing jobs. This particularly is the case in developing countries where rural-non-farm opportunities offer the longest employment opportunities.
3. Changing attitude towards work i.e. eliminating the white-collar mentality and creating positive attitudes towards agriculture and other technical vocational jobs.
4. Provision of retraining schemes to keep workers who want to acquire new skills to improve their mobility.
5. Assistance with family relocation to reduce structural unemployment. This is done by giving recreational facilities, schools, and the quality of life in general in other parts of the country even the provision of financial help to cover moving costs and assist with home purchase.
6. Special employment assistance for teenagers many of them leave school without having studied work-related subjects and with little or no work experience.
7. Subsidies to firms which reduce working hours rather than the size of the workforce.
8. Reducing welfare payments to the unemployed. There are many economists who believe that welfare payments have artificially increased the level of unemployment.
9. Reduction of employee and trade union rights.