Quote:
Originally posted by mb99usa
I guess what scares me the most is that I do not see the current administration doing anything about the jobless situation.
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The "jobless situation" is hardly an issue. Yeah, it sucks if you don't have a job but the economic reality is that at least 4% and more than likely somewhere between 5 and 6 % unemployment is "normal". A great majority of them are people in transition from one job to another, one region to another, one career to another, or are in the midst of a life change (perhaps going from a working father/mother to a stay at home father/mother). There are also a number of people displaced due to changing market factors.
The IT industry is one example. There are far greater numbers of people that are capable of doing the work and want to do it than there are companies that want/need to hire them. Until this situation equalizes (people decide to give up on that career and move to another or there is an increase in companies wanting this work to be done locally) there is little the government can do. Even if the government does something to stimulate work for those in this situation what would motivate the IT employers to hire more expensive labor than they need to? Even if they pass a law saying companies can't outsource IT to other countries, it is a temporary solution that will eventually fail.
It's far more likely that the government can NOT stimulate that specific area of the economy to hire more people than if it were to try to stimulate the overall economy to grow jobs. Now, if this happens, the jobs will still require certain skills which the IT worker probably doesn't have. So, they need to be trained. This takes time and then there are those IT workers who will refuse to do that type of work and will remain unemployed by choice.
As with the rest of the economy, employment is complicated. There are no easy answers. The government can impact things only marginally. The market is far more powerful than the government.