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I am beginning to think that almost all (big) companies over hired and will start shedding employees because they don't need them. I'm wondering when We will cr
by rickydroll 3y ago
I am beginning to think that almost all (big) companies over hired and will start shedding employees because they don't need them. I'm wondering when We will cross the threshold of the number jobs permanently less than the number of people.
This is situation called structural unemployment but structural unemployment is defined as a mismatch between the skills of the workers and the jobs. I'm interested in the case where even if everybody had the right skills, there are fewer jobs than people.
- woleium 3y agoIsn’t there buffer though? As folks work less they do hobbies and leasure more, creating greater demand for related goods and services?
- shalmanese 3y agoI think this totally makes sense and is reflected in the US's historically high unemployment rate of check's notes, 3.8%.
- karmakurtisaani 3y agoIt's also related to interest rates. There's always ideas for businesses and start-ups, but if money is too tight they won't be created and people won't be hired. In the case of wide-spread unemployment there would hopefully be stimulus packages or lowered interest rates before mass protests.