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Some Good News for Job Creation in USA on January 2010

Razib Ahmed — Fri, 05 Feb 2010 20:41:23 +0000

At last, some good news for the US economy, as the rate of unemployment in that country has decreased to some extend in January 2010. Thus, stats for January 2010 are out and it is nice to see that now the unemployment figure is under 10% and actually it is 9.7% in January. Only 20,000 people lost jobs and it is s welcome news because in January 2009, more than 779,000 people lost jobs in a single month. So, it shows that there is now some kind of stability as far as job is concerned but the problem is that new jobs are not coming back.

The US economy is out of the recession to a large extend but still job creation is a major problem.

Job creation is the biggest challenge for Barack Obama

Razib Ahmed — Fri, 29 Jan 2010 15:02:15 +0000

Day before Yesterday, Barack Obama gave his state of the Union address. He tried to assure the people that his administration understood the misery of ordinary people. It is the year of mid-term election in congress and that is why, Obama mainly talked about the issues that American people want to hear most and naturally, American people want jobs now. He did not say that much about foreign policy and he mostly talked about economy.

The biggest challenge for Barack Obama at this moment is that although US economy has more or less come out of the global recession, many people are still suffering from unemployment. There is no sign of any job creation but some people are losing jobs every month. So, the first thing that he has to do is inject some jobs in the economy and it is becoming quite a challenge for him.

It is very easy to give a speech about the economy but it is another matter for a president or a government to create some jobs. I don’t think that it will be very easy for Obama and I am not hopeful for it that much. As I just said that it is not only the work of the government and in fact creating jobs does not only depend on government activities. There are many factors and one of the most important factors is that the private companies would have to sacrifice some and think of giving some benefit to the people. The main problem with US economy is that most of the private companies have to think of their share holders and if they can not deliver good profit then share holders will not be happy. As a result, when your only focus is profit rather then creating jobs, helping the national economy does not get any importance or priority.

Another factor is the people. USA is a consumer based economy and here a lot depends on what people think. On the one hand, because many people are out of jobs so consumer confidence is not that much. On the other hand, US people have to perhaps become more educated about their economy and have to spend the money in a wiser way so that more jobs can be created. In fact, the people have to remember that they have to think of some good ways that can help the US economy and can help to create jobs. I do not see any effort from Obama administration in this regard. I think that president Obama and his colleagues should try to educate the American people about economy more and advise the people for spending the money in a way that can benefit the US economy in creating new jobs.

Because of these reasons, I think that it will be very difficult for Obama to create jobs in large number in 2010. However, I do not want to blame him because he was at the wrong time and wrong place. He got a lot of popular votes but he inherited a recession that he had nothing to do with. After all, Obama administration was not the cause of global economic recession or US economic recession. Even it did not start at his time but when he started his presidency, he had to forget other things and deal with this problem alone.

Guardian

Washington Post

Is there an effective Way to Create Jobs in US economy?

Razib Ahmed — Sat, 09 Jan 2010 18:53:58 +0000

The worst of economic recession is gone from US economy but on one front things are going from bas to worse indeed. There is no sign of new job creation that would help the people. If jobs are not created then naturally people would suffer and it will bring perhaps another recession because American economy is based on consumerism. If people do not have jobs then how they can buy products and services.

Is there a good way for this? Well, I don’t think that there is. US economy is in a mess. It is not good for anybody but I don’t see any good effort from anyone in this regard. Creating employment is not done by private companies as they have to think of their shareholders. US government injected a lot of money last year and it gave some good result. I guess that in 2010, US government will need to inject again a lot of money for job creation.