Job Market Tendencies and New Job Creation

Section 1: Article Analysis

Having endured a major recession in 2008-2009, resulting in the extreme rise of the unemployment rate, the US government continues its struggle to regain the economic health of the country. As the economic balance is still frail, the analysts monitor closely even minor changes on the job market.

The article “Hanging in”, published in The Economist presents the analysis of the employment market situation based on the data of both payroll and household surveys. The comparison of these two shows that although there are some slight positive tendencies, they cannot be regarded as an indication of acceleration.

The payroll survey shows that despite the new tax hikes and resulting minor slow down in job creation, the overall situation remains stable. The author analyzes not only job creation increase, which is, according to G.I. (2013), “important evidence that the end of a temporary payroll tax cut and higher taxes on the wealthy at the start of January haven’t materially deterred hiring”, but also reviews the tendencies of previous months. The analysis of the fourth quarter shows a more optimistic increase both in payroll and private employment than was expected. G.I. (2013) states, that “the coincident 0.1% contraction in gross domestic product was not an indication of the economy’s underlying health.”

The revision of the estimated number of population by the U.S. Bureau of Labor Statistics resulted in the increase of unemployment rate. Thus, due to the difference in the survey methods, there is a slight contradiction in the data obtained, which remain within the appropriate limits. This fact, minor fluctuations in some major indicators such as hourly wages, temporary employment, and further spending cuts planned by the government prove that it is too early to talk about complete economic recovery.

Section 2: Possible Solutions

So, in the light of continuous economic unease, new ways of job creation need to be found to boost the economic growth. This can go in several directions.

First of all, the government itself can directly create working places by starting new projects. These can be very different, but infrastructural development may be advisable, as this type of projects involves a lot of people, not all of whom need special qualifications for doing the job. Environmental projects are also a good option. They will allow employing people with different qualifications and raising public awareness of the environmental problem. The bottom line is that projects can vary depending on the needs of a particular state or area.

Secondly, loosening credit conditions for small business will enable people with new ideas to set up new enterprises or owners to expand the already existing ones, both of which will, consequently, spur the creation of new jobs. For the same purpose allocating special grants or low-interest long-term loans to talented college graduates, who are able to come up with unordinary business projects is a possible option.

Thirdly, development and implementation of various free educational programs designed to train the unemployed for the job available. This, again, may be done with regard to the needs of a particular area.

And finally, higher mobility of labor force can be helpful in solving the problem of unemployment. To ensure this, an easy-to-use database need to be created which will include all currently available openings throughout the country. Creating a favorable environment is essential for this, for instance, providing low-rent apartments for people moving to a different state for job reasons.

Thus, in the light of the current economic situation and continuing problems on the job market, decisive steps should be taken to ensure a steady recovery and return to the before crisis level of development. Whichever path to job creation is chosen, it is clear, that it is the government, who should play the key role in this important process.