Unemployment rate likely to remain high
Posted by Stephen Cline on February 22nd, 2010The unemployment rate is not likely to improve anytime soon. There have been a lot of people who have been laid off and have suffered job losses due to the recession. While the unemployment rate hovers in the range of 10% or so, it is not likely to go down soon, for another significant reason. The reason is that the economy is seeing the increase in labor productivity as well as industrial efficiency to a large extent. Companies are being forced to increase their productivity levels, without any increase in the level of employment. This means that automation increases as well as per person productivity has been ramped up significantly. Employees are doing mo
There have been a number of changes companies have effected in supply chain management, inventories as well as staffing and automation procedures. These are enabling higher per person and per machine output, increasing profitability and reducing the demand for more hands. All of this is fine, but it may not bode well for the unemployment rate. Higher automation may be fine for low population countries, but when so many people are jobless, any move that could negatively impact unemployment rate will not be welcomed by the populace.
Tags: unemployment rate, US economy