Sunday, January 16, 2011

Unemployment Improvement?

http://www.marketwatch.com/story/job-growth-prospects-better-summers-2011-01-16

The past couple of years, the unemployment rate in America has skyrocketed. Due to the economic recession, many employees and employers all over the country lost their jobs and struggled to find any kind of work. There was a scarcity of jobs and that affected companies from every where, large and small. An article published in the Wall Street Journal on January 16 stated that there is expected to be an increase in employment rate and a decrease in unemployment rate. What does this mean for the country? Well, it could mean many things. One significant answer could be that it is a great sign of economic improvement and could lead to the end of the recession.

Where could these jobs be coming from? And why did it have to happen a few years after we have been fighting this economic recession? One reason could be the demand increase. A lot of companies are starting to demand more out of their employees. More demand equals output. This in turn creates more jobs and they start to become less scarce than they previously were. This is all happening so late because of the advances in technology made over the last two years alone. It is thought out to be an improvement to any economy, and technology could make the turn around we have been searching for. I know it is a few years late, and maybe a few too many, but the advances could beat the recession and the unemployment rate.

4 comments:

Smith said...

What technological advances specifically contribute/will contribute to the decrease in the unemployment rate?

Elizabeth said...

I remember the excitement over the decrease in the unemployment rate somewhat recently, however the problem has not been solved. The decrease occurred around the time of the annual census as there was an increase in government employees. The decrease was not seen as an amazing accomplishment because these jobs were temporary. The people going door to door collecting the census information would only be needed while the census was occurring and after that, many of them would become unemployed again. So I'm curious to know if the jobs discussed in the article are also temporary, or if this really is great step for the country in that more permanent positions are becoming available.

Cara said...

Smith, it explained in the article how the new Apple product, the iPad, was the big thing right now. The majority of us have seen or used one and can admit that they are very advanced. This alone can produce more output as I stated in my blog.

Elizabeth, with the theory that was stated in the article I read, I took it as yes the jobs are permanent. I think that there was more of a demand in what the employees for major companies were having to do and that created more job oppurtunities to others because the companies were tired of paying there current employees overtime. Who knows where this will lead to, but all we can say is that things have improved slightly.

Alissa said...

Cara, I agree with your last statement about how technology could potentially bring an end to the loss in jobs. I mainly agree with you because with the advancement in technology comes opportunity for more people to obtain those jobs that are needed to upkeep technology. The only way to fully re-establish the job rate is to end the recession. When that happens, more people will be able to find work and make money in order to buy the new hip technological products.