The simplest explanation is tat supply is increasing: as supply increases output increases real prices fall and output increases.
The Financial Times shows the data and puts forward several explanations: (1) welfare reforms are pushing people off the dole and into the labor force; (2) older workers are choosing to retire at a later age. Both explanations would imply an increase in supply.
It's always a positive to see employment increasing. Yes, people are living longer; therefore, working longer and retiring much later. Due to the large number available for labor, businesses are able to keep wages lower. Companies are able to offer more at lower wages. An increase in the number of workers leads to offering of lower wages.ReplyDelete
I think it's great employment is increasing due to welfare reforms and workers working past retirement age. I am all for welfare and unemployment reforms that force people to truly seek and accept work rather than collecting welfare/unemployment and go through the motions. I know NY state has been getting more strict as I have heard some people complaining they must apply for at least three jobs per week and accept interview requests. This could end up wasting employers' time by interviewing someone who isn't truly interested in finding a job, but it is a step in the right direction as they are being held accountable to at least appear to make an effort, and hopefully along the way, find a new job and get off welfare/unemployment.ReplyDelete
The article is based on the economic situation usually the results of actions from previous time, and we need to look at the situation in the United States (US) as well.ReplyDelete
The companies being less keen to hire workers and invest aggressively. The jobs recovery in Britain looks to have paused somewhat in the past months The reason for tightening of labor market is depends upon the wage growth is solid but not spectacular and can only be seen as such in light of the poor inflation .
So the question is what Great Britain situation has to do with US economic situation. Rising unemployment and the pay wages decrease mainly weighed on the pound as concerns about the labor market.
In 2008 US began experiencing massive layoffs, companies going out of business, there was a large reduction of the workforce and the price of the labor . It is also important to note that the recession was not limited to only the US, but because of globalization, the ripple and aftershock effects were felt worldwide.
The recession temporarily forced a lot of highly skilled workers (welfare applicants) into the welfare system as well, and kept many from delaying or was forced out of retirement. Those who got hired but they were paid less.