Bryan Caplan makes the case for a fresh approach from free-market economists:
At the level of high theory, free-market economists love market-clearing models. If there’s surplus wheat, the price of wheat will fall to clear the market. If there’s surplus labor, similarly, the wage will fall to eliminate unemployment. What about nominal wage rigidity? Most free-market economists concede that nominal wage rigidity exists to some degree, but think the problem is mild and short-lived……..The high theory’s wrong: Nominal wage rigidity is both strong and durable.
Rather than treat unemployment as a necessary but temporary affliction, Caplan suggests that free-market economists should be attacking the “vast array of employment-destroying regulations” imposed by government — and tight monetary policy by central banks, where they should be advocating nominal GDP targeting as an alternative.
Read more at The Grave Evil of Unemployment, Bryan Caplan | EconLog | Library of Economics and Liberty.
From my limited knowledge of economics and business there is strong evidence to proved that employment destruction only occurs in developed nations in order to transfer wealth to other developed nations like China and India.
Jobs are destroyed when capital inflows are used to manipulate exchange rates — making manufacturers in developed economies uncompetitive — but also when there is a deflationary contraction after a credit bubble.