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High interest rates which the International Monetary Fund imposes for inflation control and as part of its funding conditions, limit credit access to businesses seeking to
increase their workforce through operational expansion. Government authorities have directed
their response efforts towards implementing
cash grant programs which provide essential financial assistance to low-income citizens.
The research results show that these interventions have not achieved substantial effects on long-term unemployment outcomes.
The programs provide temporary financial assistance which does not resolve fundamental issues that include skills deficits and infrastructure shortcomings and insufficient labor market demand.
Poor execution and targeting methods have led to decreased program success.
The design flaws of the program prevent recipients from using assistance to secure
better job opportunities which results in benefits failing to reach those
who require them the most. Structural unemployment
requires both cash transfers and education and training and economic development investments for its resolution. The persistent high unemployment rate which continues despite multiple
policy attempts indicates a fundamental disconnect between the chosen solutions and the actual problems.