Recovery process of the economy
With an intention of getting better wages, many people are seeking academic qualifications to climb up their career ladder. There is an increasing enrolment rate in the academic institutions by employees. As the economy continues to perform poorly, more people seek education qualification. More people believe that the more a person is qualified academically, the more the probability of getting better payment in the companies they work for.
Saad-lessler (2010, para 1) says that “I have been attending college at night and taking science classes that are required for a bachelor’s degree in nursing and will apply for several, one-year accelerated programs that start in early 2011. ” Many graduates leaving schools are expecting low starting salaries than it used to happen in the yester years. There is a negative effect in the labor market for new university and college graduates. Murray (2010, para 1) notes that “those who are graduating in the spring and land a job will see average starting salary offers fall 1.
7% from last year to $47,673, according to the National Association of Colleges and Employers’ spring salary survey. ” The average salary for fresh graduates fluctuates depending on the career path of an individual. Layoffs I believe that the increasing effects of the recent global crisis have caused many organizations to adopt retrenchment strategy. Layoffs have negative effects not only to the organization but also to the individual employees. Most families depend on the incomes earned from employment and once a person has been retrenched, the income reduces.
The families of the retrenched employees are the worst affected especially. The global crisis experienced by the world economies in the year 2007-2008 has affected many economies and businesses have performed poorly. The children are affected when their parents are not working. To sustain the daily needs of a family requires a good flow of income. When a person is employed, the family has the ability to fund most of the daily needs but when they are retrenched, it becomes difficult to finance the family budget (Pilon, para. 1-7).
According to my own opinion, employees with a low education level have a high probability of becoming jobless. People with formal education have a high probability of acquiring better jobs. There are many skilled professionals who are jobless. Kallenbach (2010, para 1) notes that “there are so many of us who are deserving of a good-paying job and have worked hard to gain real qualifications, but there aren’t any jobs. ” As the economies continue to perform poorly, both the upper and middle-class professionals are becoming unemployed.
It is the obligation of the parents to bring up their children in a better environment but when there are inadequate funds to provide the basic needs, the children and other family members suffer. When I compare the statistics provided by the Bureau of statistics “highly trained and educated workers are faring better than those without degrees in this labor market. The unemployment rate for college graduates is 5%, compared with 9. 7% overall,” (Pilon, 2010, para. 8). According to my opinion, the current unemployment rate in the US is alarming.
For a long period of time, the country has experienced a stable economy but the recent economic crisis has caused a very high unemployment rate in the country. The most affected people by the increasing unemployment are parents since they are contributing less income to their families. The situation has been worsened by the low incomes earned by their children. Since the kids earn low incomes, they contribute less towards the family budget. The recession may have a lasting effect on the parents and their children since the recovery process of the economy is very slow (Pilon, 2010, para. 6-11).