According to ValueMags, a boutique agency that specializes in the distribution of low cost to free subscriptions and the marketing of magazines, unemployment is on the rise. The magazine and media industry is cut-throat and ValueMags executives are seeing how individuals are being affected and how gradually, companies are cutting back are individuals are losing their jobs.
The natural rate of unemployment is mostly due to cyclical and structural unemployment which encourages workers to leave the labour force because they are discouraged. In addition, workers are unemployed (students coming out of university with little to no available jobs in their domain). So not only is there not enough jobs for workers explains ValueMags, when there are jobs, they are lower paying jobs that don’t require much training or skills which most individuals have from spending year in University.
Next, consequences of unemployment include lost output (lost income, goods and services) and actual output decreasing, personal costs (lives are adversely affected), social instability (high crime rates), contraction of the tax base (less people paying taxes) therefore financial pressure on government finances (how resources are allocated).
How does ValueMags executives think the government should address unemployment issues? The American government should consider fiscal policy options (deal with it using unemployment rate adjustments). For cyclical unemployment, the government should adopt expansionary policies (increase inflation rates). For frictional unemployment,the government should tighten EI (employment insurance) regulations to make sure individuals are actively looking. For structural unemployment, the government needs to give individuals incentive to go back to school to update their skills, receive training. For seasonal unemployment, the government should create jobs in off-seasons to improve infrastructure.
ValueMags has witnessed how lives are adversity affected when family members lose their jobs. Individuals need to re-evaluate their finances and cost-of-living. They need to adjust and reduce their expenses. ValueMags wants to contribute to the lack of knowledge about personal finance and long-term investments so they are seeking more magazines with insightful finance and business articles for their readers. Stay tuned to see what is to come.