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The state government works with local employers to develop training programs to ensure students skills will better match the
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With the increase in training programs, efficiency of workers will increase. This will INCREASE the labor productivity.

As the skills required by employers will be matched with the help of training programs, this will improve the skills of workers and the employers will agree to pay more. So, the wages paid by employers will INCREASE.

So, the correct option will be Increase; increase.

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