Discuss about growth and employment in united states?
Growth and Employment in United States
The article highlights the growing trend of hiring and employment in the predominantly American service economy. However, the American economy has faced lower growth due to flaws in trade, energy and manufacturing sector. The split in the sectors is also affecting the political stabilisation of the economy. The nature of the economy is changing and becoming labour intensive as the new would be natural from the context of learning-by-doing model that may neglect technological progress from research and development activity (Acemoglu, 2015).
Key learning points
The hiring and employment have mixed approach towards the growth of the economy (Shapira & Youtie, 2015). On one hand, it can increase the future prosperity of the economy by increasing consumer spending. On the contrary, economists argue that healthy payroll will not help in uplifting the economy's growth since employment is a lagging indicator as opined by David A. Levy, a veteran independent economist in Mont Kisco, New York.
The surprising fact remains that its a real mystery that how 300,000 jobs are created with 1% growth as asid by Torsten Slok, the chief international economist for Deutsche Bank Securities in New York. The other remarkable fact is that the employment is ranging from call operators to high schools diploma holders like engineers and accountants, as there is robust demand for new workers in the economy. However as suggested by Mr. Gapen, the American economy's growth is not bad as compared to the GDP numbers.
Acemoglu, D. (2015). Localised and Biased Technologies: Atkinson and Stiglitz's New View, Induced Innovations, and Directed Technological Change. The Economic Journal, 125(583), 443-463.
Shapira, P., & Youtie, J. (2015). The economic contributions of nanotechnology to green and sustainable growth. In Green Processes for Nanotechnology (pp. 409-434). Springer International Publishing.