October 25, 2010

The Job Market and Demand

As President Bush’s term in 2007 neared its end there was little warning to what the year 2008 would bring about with President Obama’s inauguration. Then in 2008 things started falling apart at the seams. The supply of jobs plummeted and unemployment skyrocketed from its normal average of 5% to 10% and supposedly reaching its peak at 10.6% (lowest since the depression). Small, often first time business owners were hit hard and like 1 in 4 newer small businesses they were out of business. Around this time at the start of the fall of the economy it was 2 or 3 out of 4 new small businesses. In small towns where small make for most of the jobs with some larger businesses in the mix, small towns feel the crunch of unemployment; like in this town of Elkhart, Indiana. These townspeople have understood hardships, especially when the unemployment reached 22.2% in this small town. According to Moore, a Democrat in a primarily Republican state claims that 40 million dollars from the Presidents stimulus has gone to the town to help fix roads and rebuild some of the town’s buildings and therefore providing some jobs to the town’s people. But Moore also admits that his party could do more to help the people with unemployment. The demand for jobs is there but the supply is certainly still short. The money that went towards building roads may have provided some jobs for the short run but because it is a temporary process building roads it is not a long term solution. As you can see the fixed amount about 40 million dollars of capital for the short run was not a good solution for the people of these small towns like Elkhart. The current unemployment in the town is 15.6% which although better does not mean that the rate could still go down. The people of the town agree that times are harder now than even before. So how to fix the supply of jobs for these people who so relentlessly demand them, is another stimulus package an option? Or is that all we can do until a new President with a new and better solution is elected?

1 comment:

Larry Eubanks said...

You should turn your terms around. Workers don't demand jobs. Workers are suppliers; businesses or employers demand employees to hire for productive activity.