Balance. Does it actually exist? In the long-run they say it does or is it just having stability in the places we want there to be stability. The US economy is largely a service economy. "According to BEA, in 2009 services accounted for 79.6 percent of U.S. private-sector gross domestic product (GDP), or $9.81 trillion." The evolution has been rapid, but what about the sectors of US jobs that aren't service? In a recent article released by CNBC it seems the US manufacturing economy is not only declining but failing on both ends for employers and workers. What's going on? At Bremen Castings, a family-owned employer of 350 workers who make parts for trucks and other equipment, describe the problems of the manufacturing industry as multi-fold. The crisis has taken root in the Midwest crippling the economy. "Drug tests are disqualifying more applicants. Low wages discourage others from taking jobs that are available, and employers say tougher immigration enforcement makes it difficult to fill many low-wage jobs." Motivation to work is no longer there. "Since the recession ended in 2009, more U.S. workers are choosing unemployment over the jobs available to them." Simply put, people want jobs that pay adequately of their worth. When people don't feel valued they revert to practices that compromise themselves. "In some regions, the surge of opiate addiction has tainted the labor pool." It's interesting how the effects of pay can effect the motivation of someone's psyche. Economics is not an exact science, but one that has a social input. Numbers are numbers but we give them context and importance.
Reference: US Manufacturing Econmy Fails Employers and Workers
This is interesting to see especially with the election happening today, because I have read that Hilary Clinton wants to increase investment in manufacturing, so employment levels will rise in this industry.
ReplyDeleteThe article says that the president of Bremen Castings tried to hire a dozen workers and half of them failed the drug test. I guess I didn't realize that that would be a common thing and be contributing to a labor shortage. It is understandable why employers are frustrated with work ethic of workers, but I can also understand why workers are frustrated. Workers respond to incentives and low wages are not a big enough incentive to fill the jobs that are available.
ReplyDelete