Employment
General effects on employment
Employment is the total numbers of people who are willing and able to work. As mentioned above, the healthcare inflation rate is fallen, which has positive effect to employment rate. Baicker and Chandra (2006) has done an experiment on the effects of changes in medical malpractice cost over time to companies that provide high health insurance premiums, and they found out 10 percent fall in health insurance premiums would increase 1.2 percent employment. It reflects that a slow growth in health insurance would have a substantial positive effect to the employment rate.
In addition, in the long run period, a reduction in government deficit would leads to a fall in taxation, which allows businesses and individuals to generate more finance for further investment. It is also suggested by the Federal Reserve Chairman Ban Bernanke, as falling deficit would not only enhance economic performance in the long period, but could benefit the near-term by leading to lower interest rates and boost the confidences of
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According to the 2014 CBO report on jobs, number of full time employees would decline around 2 million workers in 2017 and 2.5 millions in 2024. It occurs because employers tends to control the cost as low as possible, it can be done by cutting the working hours and transfer the full time worker to part time worker, in order to avoid the payment of employer mandate. Besides, the government has raised taxes by almost $500 billion over ten years(Obamacare: A Budget-Busting, Job-Killing Health Care Law, John Boehner, 2011), it affects the future growth of the business, due to the increase in expenses, especially to small businesses, their capital would fall and potential expansion are more likely to be delayed. As a result, these factors would lead to restriction of the long term economy
In Euroarea, governments increased taxes to rescue the economy. As the taxes increased, governments are able to get more money. Thus, they are able to reduce their debt. By reducing debt, government can slowly get out of bankruptcy. If a country is bankrupt, it will produce a lot more problem than recession. Therefore, this policy is good to prevent country from being bankrupt. As the debt is huge, governments try to reduce their spending. Since the government spending is reduced, the national debt will not increase rapidly. Futhermore, European Central bank helped to recover from recession by reducing interest rate. It is aim to reduced the inflation. As the inflation increased, people will need more money to buy a goods. To
The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate.
In the New York Times (Feb 4 2014), the issue of loss of jobs is well addressed with the Republicans stating that the Obama Care, will lead to major employers limiting their workforce so that they can minimize their contribution to the Care as a firm or a company. This can lead to great levels of joblessness despite there being a guarantee of universal health care.
Most people rely on their employers to provide them with health insurance, but with many health care is not available through the employers. Many small businesses can simply not afford the high cost of health care, or it may be available, but the employee needs to pay the entire premiums. A lot of employers are utilizing part time employees, the part time employees are usually not qualified for benefits, like health insurance. This is very unfortunate for these part timer’s not only because they will not get benefits such as health insurance, but also they probably have a slim chance of going full time because of the health insurance dilemma. Business owner’s need to assess what is good for them financially, and having plenty of part time employees who do not require insurance is probably the most cost effective method to keep the Business up and running.
Obviously when companies start to see an increase in expenses they will try to lower that to gain more profits. To lower expenses they will try to decrease employment. This could result in less hours per worker, or more layoffs. Which will make is much harder for people to survive in this rapidly growing economy. This makes it harder for people to get jobs in the near
Income Effect: the income effect is the response of desired hours of leisure to changes in one’s income. If wages are held constant and income increases then the desired hours of work will decrease. The relevance of the income effect in regards to the study of labor economics is very important. Employers, economists and Government institutions have the ability to determine the amount of time workers’ will seek to either choose more hours of work or more hours of leisure. This can be used to estimate the average number of work and leisure hours a sample of workers will utilize in a year or during a trend.
Businesses will have more money, and any smart business will aim to increase their profits. The best way to do this, is to expand the business which gives them the need to higher more employees, ultimately creating more jobs. This lowers the unemployment rate, all those people who were not working, and not paying taxes are now working and paying taxes, which will be a
The reduction of government role in the economy will affect fiscal policy by decreasing deficit spending a...
The key reason that there was a drop in unemployment rate is that the labor force declined by 312,000. In macro economics, labor force is defined as the actual people who are available for work. This includes the employed and unemployed. Retrospectively, the drop in labor force indicates a drop in the summative value of unemployed and employed population. Izzo (2013) posits that the indication of the decline in unemployment was a long term discouragement and loss of hope of the labor force. Consequently, people are not willing to search for work at the prevailing rate and hence cannot be considered as unemployed.
However, this move is not always a wise one because when an enterprise has fewer workers it would reduce its productivity which would mean more financial problems. Besides it strains the workforce. If these corporations continue incurring losses they eventually close down and as a result, the workforce loses jobs. This is what has been going on since December 2007. Unemployment is one of the biggest problems that governments have to deal with. (compston 2002).
In a recap, the three policies introduced, the Unemployment Reformation Act of 2059, the Infinite Education Opportunities Program Act, and the Unity Tax, will be a vital part in restoring and surpassing expectations for decreasing the percentage of Americans unemployed by ten to fifteen percent within the next six to eight months. I believe that with these policies the chances of a recession will not occur for a long period of time. For that matter, a recession may not occur again depending on how successful the unemployment plans develop. Nevertheless, I predict that by the year 2109 the employment rate for Americans will reach eighty-three to eighty-five percent.
Employability has been defined as “the capability to gain initial employment, maintain employment and obtain new employment if required” (McQuaid and Lindsay, 2005; Hillage and Pollard, 1998). Although, the concept has been widely defined and generally accepted by researchers, there is still confusion as to how an individual tends to develop employment capacity in particular. Many researches have been conducted to identify the need to acquire and to find ways through which the capacity could be developed. The transition of the students from education to work has to be smooth to be more effective and benefit both the student as well as the general society.
Employment rate is the number of individuals aged 20 to 64 who are employed as a proportion of the population. However, there are couple problems with this measure.
Lower GDP for the economy also one of the consequences of unemployment in current time. High rate of this issue implies the economy is operating below full capacity and inefficient so that it will lead to lower output and incomes. Because people who are searching for their work usually will spend less in purchasing goods and
Over the last several years, Ireland has experienced a dramatic change in employment. A quick study of the latest CSO “Employment and Unemployment” survey shows where jobs have been lost and gained, by sector of employment. Some sectors have seen job losses in the hundreds of thousands while other sectors have been slowly growing. The period from April 2007 to April 2013, there has been a loss of 266,000 jobs (CSO, 2013). The study suggests that the loss of jobs was greatest in the Construction and Industry sectors. While gains occurred in the Education, Information and Communications, and Human Health and Social Work sectors. These changes show that the tasks associated with low, skill and education are on the decline. The jobs that need a higher education level are on the rise (National Skills Bulletin, 2013, 28). Due to this trend, subsidies in the Education sector should be increased to train and better equip the workforce. It would be of a great benefit to the entire economy, as an increase in education may attract more business to Ireland. It would also make the workforce more adaptable to change, giving people stability in their lives.