How has the level of employment/unemployment and national minimum wage legislation impacted on the economy as a whole and how will this effect the economy in the years to come?
What is the current state of our economy? Well many economists think that this year the economy will slowdown. In the last ten years or so our ecomony has been driven by factors such as high consumer spending and the soaring property market, our economy has have already witnessed the housing market slowing down this in turn will have an effect on household spending.
As for our manufacturing industry this has reported its worst fall in output in more than 10 years, increasing fears over the health of the UK economy. Also Factory production it is reported fell by 4% in the year 2002, This is the largest annual slump since 1991, this is according to figures from the Office for National Statistics.
Britain's manufacturing industry is going through its worst recession since the early 1990s, however high consumer spending has so far protected the wider economy.
2004 has seen a rise in economic growth both in the UK and worldwide.
Britain has had what economists call full employment for quite some time the problem for the future is that this could soon change and we could end up like germany with 10.5 % of the population out of work. The reason that this could happen is that many jobs that exist today were created by the boom in the housing market in the 90?s however in the last four years or so house prices have doubled which has resulted in lower consumer spending growth this in turn has an knock on effect on the on the level of employment required in the retail industry and this is a problem.
How can employment be classified?
There are four types of job. These are primary, secondary, tertiary and quaternary jobs. Primary jobs involve getting raw materials from the natural environment e.g. Mining, farming and fishing. Secondary jobs involve making things (manufacturing) e.g. making cars and steel. Tertiary jobs involve providing a service e.g. teaching and nursing. Quaternary jobs involve research and development e.g. IT.
Employment Structures
Employment structure means how the workforce is divided up between the three main employment sectors - primary, secondary and tertiary. Employment structures change over time. Developing Countries usually have a high percentage of the population in primary employment.
The application of Prussian derived normal schools set in motion a series of obviously undemocratic trends that resulted in some extent to under educated teachers. Within the new system of common schooling, what was compulsory to the unique education of an educator was the minimum academic knowledge within elementary curriculum to be taught and extensive training related to instructional mechanics and pedagogy. These were criticized as “…training technicians but not educating scholars…” ( Tozer, S., & Senese, G. (2009)
manufacturing have been vanishing at a fast rate and unemployment percent is on the rise, but
As the nation was introduced into the current recession, the auto industry and its labor was likely hurt more than any other industry. Few years ago it was the homebuilding industry that was troubled the most and held the first place, but it gave that position over to the auto industry the following year. Why was this industry affected more than any other is very interesting and complex situation. There are several factors why there was such a huge negative impact on this industry, its performance, and the labor involved. Some of the major reasons are very high foreign competition, higher oil prices, and certainly the recession.
The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate.
In my short life, I’ve worked two minimum wage paying jobs. My first job was as a fry cook at Chick Fil-a when I was 16, and my second and current job is at Sports Authority. Minimum Wage is defined as “the lowest amount employers can their employees for each hour of work.” As minimum wage paying jobs, they were looked at, in my case anyways, as a way to have some extra pocket change and gas money. And that is the way most Americans view jobs such as fast food: as a place for teenagers to make money throughout high school and college and maybe even learn the value of a dollar.
Meer, Jonathan, and Jeremy West. “Effects Of The Minimum Wage On Employment Dynamics.” (2013): EconLit. Web 24 Oct. 2013.
Educated Americans and researchers biggest concern is that their minimum wage proposal is going to negatively affect our economy. For example, they predict that their wage is part of the labor cycle and if it increases it will raise prices for customers. In Brian Jencunas article, he expresses that, “Virtually anyone can do these jobs with very little training. This means the supply of potential labor exceeds the demand, making sala...
The Porter’s model of competitive advantage of nations is based on four key elements including factor endowments, demand conditions, related and supporting industries and firm strategy, structure and rivalry. This makes it suitable in understanding the competition existing in the soft drinks industry in the Asian markets. The factor conditions identify the natural resources, climate, location, and demographics. Coca cola and Pepsi enjoy the growing population in the Asian markets (Yoffie, 2002). A higher population guarantees the two companies adequate revenues. Other factors include communication infrastructure and availability of skilled workers. Most of the Asian countries are embracing new technologies that grow much knowledge of the diverse beverage drinks. Secondly, the demand conditions play a significant role in enhancing competitiveness for the firms. Both Coca cola and Pepsi are an
The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.
Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased.
Many countries in the world have been suffering a recession in their economies and UK has not been an exception. A recession is a macroeconomic term describing one of the two business cycles that economies go through. The business cycles is characterized by either a boom where there are more business activities carried with a rapid economic growth and points of recession where there is retardation min economic growth. Various aspects and factors contribute to economic growth, which is measured through GDP. This factor may include savings, investments government spending plus other factors within either an increase or a decrease. Reduction in spending may lead to a recession while a n increase in spending may lead to expansion that is a boom in the economy.
Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.
The recurring unemployment of, at times, more than a million British citizens had several huge impacts on British life. But before I get to those, let us look at some background history of the Great Depression. In Britain, the first effects of the Great Depression were significant drops in British exports, because the demand for British goods had diminished (Aldcroft). This decline in exports led to many layoffs among manufacturing workers. Eventually, some factories, shipyards, and other businesses closed because they had become unprofitable.
...ried to be as successful as his older brother but always fell short. I was completely wrong. Pepsi is not just a soft drink company as I initially thought. Even though Coca-Cola soft drink has a market share of 17% while Pepsi soft drink has a market share of 9%, Pepsi’s stock trades in the mid 80s while Coke’s stock trades in the low 40s. Additionally, Pepsi does well in balancing its mix of net revenue. 49% of its net revenue is generated by its beverage industry and 51% is generated by its food industry. Globally, 49% of its net revenue mix is generated outside the United States. The remaining 51% is generated in the States. Pepsi is the largest food and beverage business in Russia, India, the Middle East, and the United States. They are the second largest in Mexico and gaining ground in Brazil. They have 22 billion dollar brands in estimated annual retail sales.
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.