You may be aware that redundancy figures have boomed over a minimal period of time and there is evidence to support the view that this trend is likely to continue. Today I wish to tell you why this has happened and why experts predict that it could continue for some time.
You may be aware that redundancy figures have boomed over a minimal period of time and there is evidence to support the view that this trend is likely to continue. Today I wish to tell you why this has happened and why experts predict that it could continue for some time.
The leading factors forcing up unemployment can be put into two classifications: They are ‘supply-side’ factors and ‘demand-side’ factors.
Supply-side factors are relevant when a company is unable to fulfil product orders for the same price as their competitors. There is still a demand for the company’s service and products, but it is available cheaper elsewhere. Minimum wage requirements stop the company from reducing employee salaries and so the company can be forced to lose staff.
Demand-side factors relate to reductions in demand for a product or service provided by an organisation. This affects the company’s turnover and hence, they must reduce outgoings. This is often achieved by cutting jobs.
An example of ‘supply-side’ is the outsourcing of call centres. Many companies now choose to outsource call centre operations to countries like India, due to the vast difference in cost for the same service. Some individuals are critical of this, but if you owned a call centre and could cut costs by as much as 50% would you not be tempted? Improvements in the Internet and telecommunications has made this achievable, but it does have a negative impact on our own economy.
An example of ‘demand-side’ is the new car market. Because of the belief that our economy is in crisis, some individuals are now reluctant to buy newly produced cars, opting for cheaper used cars, or putting off upgrading their motor vehicle altogether. If you have looked into purchasing a new car recently you will notice that there are fantastic deals available, as the manufacturers and distributors are struggling to generate business.
Although this is the situation there is very little we can do about it. However, by becoming aware of it, we can look at alternative ways of generating additional income, taking advantage of economic changes.
If you have ever considered starting your own business then you would benefit greatly from knowing the impact that technology and the Internet is having on industry and business. What you may observe is that many successful businesses today rely on the Internet to market and promote products. This proviedes them access to a global market and with the advancing information age it is necessary to harness the Internet whenever possible!
I hope this article provides you useful insight, if you consider starting a part-time business in the future.
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