We recently learned and talked about unemployment in class. One thing we never talked about is that there is a business behind employment and unemployment. There are firms whose purpose is to find jobs for their clients. The problem with these firms right now is that the job market is very complicated due to the recession so these job finder firms and their clients are going through a hard time.
Through our understanding of unemployment we can look at this situation as outsiders and see an investment opportunity. We know that sooner or later the unemployment rate will start moving towards its natural rate. This means that these job finder firms will have an increase in business activities in the near future. A well-timed investment in the job finder firms could be significantly profitable in the near future.
Temporary work is a very popular sector of employment right now. It allows the unemployed to be placed in work when employers need someone for a temporary amount of time, giving the worker a chance to work and allowing the employer a safe person to hire. Employers are hiring more temporary workers for the moment so that they don't have to deal with hiring and firing when they don't even know if their firm is capable of holding new full time employees.
ReplyDeleteThis is very interesting. It makes since how one would think that the recession wouldn't hurt these job finder companies. Especially when these companies probably have their most customers. But I guess the recession is affecting all types of businesses.
ReplyDeleteI think the impact of the recession is even more evident based on this article because even the firms that are paid to find jobs are facing a difficult task in doing so. I think that the current labor market is so troubled that work opportunities are few and far in-between to find and even the few employment opportunities that these firms do find, the competition is so large that it is difficult to really garner business the way one would expect.
ReplyDelete