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Last Update:

March 21, 2010

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The Jobs Rush... For No Jobs

Where have all the jobs gone?

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Whoever you talk to, they will know of people who have either lost their jobs or who are struggling to find work. This is often blamed on the recent financial downturn, but why?

When there is panic in the financial realm, one of the first things to go is luxuries. People put off buying that new car, new house, new TV, eating out in restaurants, etc. This, in turn requires less staff to make theses items or serve them.

Even services that are necessary start making cutbacks. These are often partly due to more competition - people suddenly care more about price and shop around more, therefore every company tries to charge the least. Keeping their prices down will often involve cutbacks - for example a company may get rid of a secretary, by spreading their work over the rest of the staff - making each individual do their own 'paperwork'.

Although this type of thinking can seem wise, it can also be a type of 'self fulfilling prophecy' as this redundancy increases unemployment, and also causes other staff to be 'wary' about spending in case they were to lose their job in the future.

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© 2010 FW | News by: Fred Wilmot