Unemployment and Goverment’s Subsidizing

Abstract

Unemployment has become more and more pressing matter nowadays. Governments all across the world are implementing policies to increase the employment rates back to the levels before the economic downturn. One of the most important policies implemented by countries governments were employment subsidies, which means that companies got government funding when employing and also that private citizens had the possibility for entrepreneurship stimulus packages. The scope of our study was to determine how the gross domestic product and the government's subsidizing on a country's level affect the number of unemployed on a country level. We have conducted the empirical part of our study on the case of Slovenia and found out that gross domestic product has a bigger effect on the number of unemployed than government's subsidies.