jobless recovery
Published on Dec 24, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
jobless recovery (started in 90s)
inflation is low, unemployment still high... weird right?
consequence of this?
downsize
- encourage early retirement (package)
- Laid off the rest (package)
retired employees were not replaced
people who were still there just had more work to do
Photo by BiblioArchives / LibraryArchives
rightsizing
reviewing your operation to correct overuse of labour
had to be done to keep firms viable
some unions even agreed to take a wage cut so the operation made sense
Rightsizing was nice in the short-run. Increased profits and stock prices.... but product quality and customer service suffers in the long run.
labour was getting too expensive
so firms started investing heavily in tech - won't have to hire as many people!
encouraged people to work harder too
they saw their friends being laid off
less people, better-trained, better-equiped
generally showing more profit
canada hasn't kept up with murrica though
has to do with cost of the dollar generally
Photo by Thomas Hawk
but if ad doesn't increase (like a recession)
but you're still productive - you don't need as many workers
transferable skills
make sure you get a job that will be needed for a while
globalization
firms focusing on profit maximization - adverse affect on unemployment rates
mexico
pay them less, environmental laws more lax, working conditions
high tax can also affect employment levels
unless government spending goes up, aggregate demand will decrease- less jobs
Photo by Tax Credits
common good
well-being of canadian society at large
balanced decisions
try to help people as much as possible while ensuring economic growth
Photo by SeeMidTN.com (aka Brent)
