Peru, being a not entirely free market economy, unlike their neighbors, managed to ride through the 2019 Recession rather smoothly. Unemployment rose, though, and income dropped, despite a significant rise in GDP during this time. In order to combat this rise in unemployment the Peruvian government has issued a new project. The State Employment Initiative, where unemployed workers will be offered jobs by the state to cater to their skills and needs, allowing them to contribute to the economy and still not have their talents wasted. This is an extension of the Volunteering Program out into place two years ago, and should greatly improve employment, and keep resumes fresh for when these employees return to the private sector. Additionally, the minimum wage has been cut, which may seem counterintuitive, but it has only been a minor decrease and the workers will be reimbursed by the government, allowing for employers to hire more people. Construction has been hit hard in the 2019 Recession, as demand for new homes and buildings is at an all-time low, and all these construction workers are out of work! These people could be instrumental to the renovation of the nation's railways, highways, and other infrastructure is drafted by the state to be employed. Someone who builds homes can't build a nuclear reactor, but they can definitely page roads and use concrete.
Overall, the hope is that the unemployment rate down to roughly 3% in the next two years, as then the private sector will pick up the pieces and the state will not be holding the hands of the populace.
TL;DR
- State employing people based on talent and skill
- Lower minimum wage to have employers hire more people but reimbursing workers for lost income
- Great new infrastructure projects based on state employment of the construction workers who lost their jobs
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