According to chief economist for Sterne Agee the job market it is not looking healthy. Some top economist, like John Ryding chief economist for EDQ Economics, are skeptical whether or not a monetary policy can increase hiring. These economist believe the skill gap of employees is a contributor to the disconnect between hiring rates and the large number of long-term unemployed. Majority of small businesses with job offerings are recognizing applicants applying for the job do not have the proper skill set to take the job. Other economist are recommending tax job outsourcing along with other policies. This will allow good paying manufacturing jobs to the unemployed which will get them off of food stamps.
"Monetary policy can't save long-term unemployed: Ecconomist"
If majority of small businesses have job openings but the laborers don't have adequate skills then this indicates that the skills of the laborers need to be improved by creating free facilities that will improve a workers efficiency.
ReplyDeleteInvestment needs to be increased.
In this case, it would be better if our government encouraged expansionary fiscal policy. A policy that would be effective would be legislation that provides tax incentives for people who go back to college for certain programs or studies. Therefore, our economy could start improving faster, as more people will be increasing their spending on college, and more people will be prepared for a job. While unemployment has been decreasing, some people have argued that it is because a lot of people have also dropped out of the labor force. Thus, Sterne Agee is right that our job market is not healthy right now, and it is going to require new federal policies, such as fiscal legislation.
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