Payday Cash Remains Sparse for the Unemployed
A shift in worker demand
The number of jobless Americans needing payday cash is growing. Since the recession began, over 8.4 million jobs have been eliminated. A new Wall Street Journal study is showing that about 2.1 million of those jobs won’t be returning. That means that the job creation plan President Obama is so adamantly pushing for is going to have to expand to create new jobs in growing industries.
It’s not uncommon for some jobs to fall away in the workforce, but the recession is pushing that process to its limits. Many of the issues the workforce has are due to the shifting of demand. A good portion of jobs are now outsourced and another huge sector is automated. Growth of the economy will inevitably occur again now that the market is leveling itself off, but most likely there will be new jobs needed to be filled.
100,000 jobs a month is not enough
Economists are predicting that as the economy returns to normal, job creation will be a continued thorn in its side. Numbers show that the job market will most likely add around 133,000 jobs a month over the rest of 2010. Though that sounds like a lot, with the millions of out of work Americans fighting for those jobs, it may not do enough to bring the unemployment rate down. Estimates show that the economy needs to create 100,000 jobs a month just to account for new entrants into the workforce. That doesn’t include tapping into the unemployed pool of Americans who have been looking for jobs for the past year to year-and-a-half.
The issue of job creation
The issue of job creation is a huge one, and without some notable strides, it may keep the economy from full recovery anytime soon. Economists are working with numbers now and estimating that the unemployment rate will only fall to 9.4% by the end of the year. That’s just 0.3% since January of 2010. The economy needs to create jobs and provide payday cash to 200,000 people a month to make any notable stride. Even the White House is aware of the issue and just released its own predictions on the weak economic growth.
Outsourcing and technology
The main problem is that companies aren’t creating jobs at the rates needed. The reason, though, is a solid one. Companies know the hiring costs and they aren’t in the position to take on the added payroll for jobs that could be outsourced overseas or completed with a one-time upgrade in technology. Wages and benefits add up to unmanageable amounts for companies that are struggling in difficult financial times.
Experts are also saying that three-quarters of the job losses in the recession were cyclical. That means that they will return to the market once demand comes back into play. One example is the manufacturing industry. Since 2007 it has eliminated 2.2 million jobs. Factories will return and demand will come back into play. When that happens, the amount of jobs should increase, and that’s welcomed news to economists. It will be the first time in almost three years that the industry is making positive strides in job creation.
The future of jobs
Consumers in search of payday cash through employment may have to wait a while longer. The economy is still mustering up its demand and the job markets are shifting. It may take some time for the true evolution of the job market to be made known and what types of jobs are going to be needed.