Enhancing social participation for combating labour market crisis

Abstract

The global crisis has deepened and most industrialized and developing countries have faced the risk of a prolonged labour market recession that can lead to a catastrophic rise in unemployment and decline in real wages. Several countries have used neoclassical tools to lessen the labour market and social consequences of the crisis; mainly through lowering interest rates to support private investment; but the plans have not succeeded so far; as investment counteracts in the reaction to declining effective demand. While, public work projects, by encouraging social participation in implementing beneficial community-based projects, can be a certain means to stimulate economic recovery and in the meantime to yield maximum employment creation