Employment and Job Creation as an Economic Measure

Employment and Job Creation as an Economic Measure

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The world today faces uncertain economic future due to the unpredictability of key factors that control, money and trade. One of the most urgent issue surrounding the financial health of many countries is the spending and employment. Today, economists understand that the future of the economy lies in the policy making and the utilization of the key assets that build an economy. For this reason, the diversity and growth of theonomy has always been hinged on how the policies and made and implemented. One of the key aspects of a healthy economy is high employment rates and wages. Since the great depression of 2008, the U.S. has been able to bounce back crating millions of jobs and increasing the wages of the employees. However, there are still areas that need to be a dressed if the country is to secure its economic future. Global economist state that countries need to build a strong economic policy that will shield them from a scenario like the 2008 recession. The U.S. has been leading as the economic super power in shaping ideas, policies, and strategies that are aimed at revolutionizing trade and financial spending to build a strong economy.

The articles address a key aspect of the economy that deals with employment. One of the most striking ideas raised in the articles is that employment among the young people is the most practical aspect of defining a strong or weak economy. For this reason, the author finds that the U.S. has managed to create millions of jobs that has enabled it rank the top in terms of global economic revolution and growth. The IMF projects that in the coming ten years, countries that will be able to develop a strong job creating policies will stand a better chance of growing past their rivals. These projections are well defined in the article where the author identifies that over the past five years, the U.S. has been able to regain its growth pattern due to the creation of jobs ad increase in wages. These projections have not only added to the value and demand of the dollar at the global market but also made the U.S. attain a stronger negotiating force at the global forums. More importantly, the article underlines that employment and job creation defines the effectiveness of the financial policies applied in the country.

The U.S. as a global power has been able to lay strong policies that have enabled it create millions of jobs and increase the wages of its workers. These positive elements have not only increased the capacity of the country to grow but also helped derive the right avenues to future expansions. Since the 2008 recession, the article underlining that more than 50 million jobs have bee crated in the public sector. The private sector has also seen an expansion rate of 12% annually that is mainly associated with the innovation and automobile industry. The rate of increase in these sectors have been the pillar in jib creation thus helping many Americans find a source of formal income. Still, the country has undergone tremendous changes in reference to the inclusive growth that has accommodated many young people in the job sector. In terms of addressing racial inequality in the job sector, the U.S. has made tremendous steps that are changing its image globally. The past ten years has seen more Black people get jobs than before. In fact, the article reports that over the past five years, the number of Black people working in formal jobs has grown by 26%. This rate depicts a positive trajectory to creating an all balanced and fair economy that is fit for all people. The inclusivity has also seen the rate of production in Black dominated regions mainly in the South rise by 20% over the past ten years. These figures may seem small but nationally they amount to billions of dollars added to the country’s national basket. The Federal Reserve of the U.S. has also grown tremendously that has helped cushion the country from a possible future recession.

However, the key definers of economic growth still point to a very worrying trend that has been triggered by the Covi-19 pandemic that had wiped out some jobs for the economy. Today, the U.S. faces some its worse financial times that has been attributed to the issue of the pandemic, millions of Americans have already filed for unemployment benefits that has put the government and the Federal agencies at the edge. The lost jobs that are due to the pandemic mainly touches on the service sector. The U.S. economy is still down 10 million jobs from where it was in February, before the pandemic hit. Using average monthly job growth over the year ending February 2020 as the counterfactual, the jobs deficit is over 11.6 million.

In other words, that’s 10.0 million fewer jobs we have than in February, plus nearly 1.6 million jobs we would have added if the recession hadn’t occurred. These trends that began early in the year associated with Covid-19 have contributed to the strain on the economy with the government unable to regain its foot fully and grip on the financial flow. The cost of loans in the U.S. has never bee higher with some institutions holding back from lending in fear that some business may never recover from the pandemic. The result of this is some businesses closing down that has translated to millions of jobs getting wiped from the economy. Still, the articles on economic analysis point that the U.S. is projected to remain in the same situation of the first quarter of 2021 as the pandemic continues to deepen its claws in an already hurting economy. One of the issues that needs to be addressed is the control of the spread and impacts of the pandemic to allow the economy to recover. With the power transition still in disarray, the focus on service delivery and countering the pandemic still remains unclear and this is increasing the pressure on the economy.

The data from the U.S. federal reserve indicate that the country will need to restructure some of the sectors in the coming year to help save the most vital areas like the banking sector. These changes will not only affect the dollar circulation but also limit the capacity of the banks to lend money. Many businesses that have already closed may never re-open and those that find some room in the future will have to limit their operations. This means that the full economic recovery will remain slow and therefore many unemployed young people who have good skills may end up straining to find jobs in the future. The key to maintaining the right economic growth as identified in many articles is to lay strong policies ad plan ahead by looking at possible risks and loopholes in the economy.

Bibliography

Ben Casselman & Gillian Friedman. (2020). Job Gains Are Waning, a Blow to Economic Recovery. Updated Nov. 6, 2020 HYPERLINK “https://www.nytimes.com/2020/10/02/business/economy/september-jobs-report.html?name=styln-jobs-crisis&regiontorhow” https://www.nytimes.com/2020/10/02/business/economy/september-jobs-report.html?name=styln-jobs-crisis&regiontorhow

Ben Casselman. (2020). Job Growth Gives the Economy an Upbeat Start to the Year. Updated May 6, 2020. HYPERLINK “https://www.nytimes.com/2020/02/07/business/january-jobs-report.html” https://www.nytimes.com/2020/02/07/business/january-jobs-report.html