In many situations job creation or the number of people employed in a certain job, field, or sector is a measure of success. The more jobs that people hold the more positive benefits can be seen in that sector of the economy and the economy at large. In More Than a Link in the Food Chain, authors mentioned the multiplier effect. This theory states that with an increase in demand for a certain product the creation of additional economic activity will occur from the indirect business it creates for local supplier industries. In addition, the induced impact of spending income from direct and indirect employees is also considered. Simply put, if a company employs 15 people, it can be assumed that because of their business with buying goods and services necessary to run their business, they support another X amount of jobs. Furthermore, both the direct and indirect employees spent their income on various items in many different venues, thus employing X more people. It is interesting to consider this trend and how it relates to current unemployment rates, improving the economy in a city or town, and strengthening the economy as a whole. In an article published in the Commercial Appeal earlier this month, stated that the Labor Department said its survey of employers identifies a net gain of 151,000 jobs in the month of October, the most jobs added in (one month) in the last 5 months. However, the jobs gained were concentrated in only a few sectors, including retailers, temporary agencies, and restaurants. Meanwhile, the manufacturing sectors continue to lose jobs. Consider the fluctuation in jobs lost and gained through the lens of Sectoral strategy. What actions or strategies could these gains and losses reflect?
http://www.commercialappeal.com/news/2010/nov/05/us-added-151000-jobs-october-more-expected/
I think the decrease in the manufacturing jobs is a normal trend to see as we are moving away from being a manufacturing country with all of our technological advances. People are beginning to be less likely to inquire about manufacturing jobs, so they are making those less available and creating jobs in other areas that are in high demand of work. Large companies are going bankrupt and leaving many people without jobs and people are realizing this and realizing that the manufacturing market is not as stable as it once was....
ReplyDeleteWith the addition of jobs in retail and in Restaraunts, probably means the strategies being used to create these jobs have connections with tourism. Tourists are still coming to Memphis to witness Beale Street and to eat the famous barbecue. Obviously Memphis labels this as an important aspect of the economy, therefore the city creates 150,000 new jobs in these industries that have a direct affect on tourism.
ReplyDeleteI mean, I have to agree with Hunter's assessment of the situation. Memphis has been continually trying to promote, boost, and profit from tourism since I came to Rhodes almost four years ago. As a result, the city will continue to see a growth in the industries which cater to this economic strategy. Also, manufacturing jobs are simply becoming a thing of the past in the US. On top of our transition to a more technologically driven economy, outsourcing and the ability to secure labor that is cheap and comparable overseas has forced many companies to move their locations. In many cases, these companies have then killed American run businesses because those still located in the States simply cannot compete with the output of the outsourced jobs. Its just a sad developing truth for this once great industrial nation.
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