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Posts Tagged ‘unemployment’

Companies worldwide are looking to hire new staff, one of the first signs that global economic recovery is on a sustainable path. This is the main conclusion of the third edition of the global survey commissioned by Regis Business Tracker Regis Group – a leading provider of innovative solutions for the workplace, which included more than 10,000 companies worldwide. The fact that companies are looking to hire additional staff is considered an indicator of which organizations have shifted their investment for strong growth through human capital. More than a third of companies (36%) respondents intend to increase its staff. Mexican business outperformed the global average, and that 41% of businesses have decided to hire new staff in 2011.

These results are particularly significant, since according to recent observations of the International Monetary Fund (IMF) and International Labor Organization (ILO), global unemployment has reached unprecedented proportions in the last three years (up to 210 million since 2007). These organizations have warned of potential problems for national economies if this trend continues, because unemployment reduces the national tax revenue and increased spending. The results of the Regis Business Tracker provide important evidence that global unemployment situation may improve in 2011.

The survey sought the views of over 10,000 business leaders in 78 countries, asking about the behavior of their current income, profitability, and its projections of future earnings and expectations of the broader national economic growth. These indicators form the basis for the index of optimism in business, he uncharacteristically reflect current performance and prospects in the short term. Globally, in this latest edition Regis Business Tracker, the index showed a much more positive with a higher proportion of more optimistic countries, compared to six months ago. Particularly Mexico, within the overall index (98 units) showed a slightly more pessimistic rating standing at 96 units, a point lower than six months ago.

“The intention to increase the payroll is a clear indicator that companies want to be prepared to seize the opportunities that the recovery may throw in their way. Mexico in particular – where unemployment has risen 50% since late 2007, reaching the 5.44% in August, which means that 2.5 million people are unemployed [1] – should consider this indicator as a sign of positivist for sustainable employment recovery, “Cacti says Monica Credo – Director General of Regis Mexico.

“Despite this optimism, our research also highlights that 41% of companies are still trying to reduce their costs through other means such as reducing staff; it reveals an overall attitude of cautious optimism. The companies currently seeking to improve their economies with their own operations, is likely to see more organizations offering flexible working practices to their current and future employees in an attempt to achieve a better balance between personal and professional life of the employee, so you have an organization much more efficient and productive. “

The Royal Academy of Sciences of Sweden awarded the Nobel Prize in Economics to Americans Peter Diamond, Dale T. Mortensen and Christopher Passerines Cypriot-British, three students of labor markets and phenomena such as unemployment. The three researchers were awarded the Nobel “for his analysis of markets with search frictions,” according to the decision of the Academy.

Diamond highlights its “decisive contribution” to the theory of search and matching markets, while Mortensen and Passerines developed this theory and applied mainly to labor market analysis. “Models of laureates help us understand how unemployment, vacancies and wages are affected by regulation and economic policies,” said the Academy.

Their achievements allow us to understand what factors particularly unemployment and develop, but can also be applied to issues related to the housing market, monetary theory and state economic policies, financial, regional and even family. In contrast to classical models that establish in these markets, buyers and sellers do not always contact each other instantly and the demands and objectives of each are not always satisfied, as with companies seeking employees and those seeking work.

Since the search takes time and resources, generate friction in the market, so there may be unemployed, although there are vacant jobs. That is why an unregulated market is not necessarily a unique and efficient outcome, as stated in the classical model, but there are several possible, as governments seek ways to bring the economy to the best possible outcome.

The use of mathematical models to analyze the search market dates back to the 1960′s, but it was in 1971 when he received a significant boost to a study by Diamond on price formation in markets and how the friction generated in the process cause different results. The three winners developed this theoretical construct in later years, and one of its main achievements was the model called Diamond-Mortensen-Passerines, “the tool most used to analyze unemployment, how companies recruit workers and training wages, according to the Academy.