A lot of countries around the world are still struggling to boost the number of available jobs. If those numbers do not increase, economies can not recover from the 2007 financial crisis, which is not an ideal situation. Unfortunately, there are some factors that hinder the job market growth, such as additional taxation and red tape on jobs.
Positive and Negative Signs For The Job Market So Far
At the time of publication, there were several positive signs along the way for the job market recovery process. In Great Britain, for example, employment numbers are at a record high, and the average wage is rising steadily. In addition, there is a growing demand for more employees across all kinds of sectors, clearly indicating this particular economy is on the way to recovery.
The sharing economy plays a big role in this process as well. Even though government officials may not be keen on services like Uber and Airbnb, these platforms allow people to earn additional income while wasting fewer resources at their disposal. In a way, the sharing economy is playing a double role, as it creates jobs, and helps people use the tools and services at their disposal in a more efficient manner.
While growing demand for employees should be seen as an overall positive thing, there are certain drawbacks to it as well. Employing more people means companies will grow over time, and the costs associated with this process are increasing as well. This should come as no surprise as any bureaucratic process is both time-consuming and a money sink at the same time.
Putting the full burden of additional taxes and other costs on the shoulders of businesses might not the best idea in the long run. Depending on how high these taxes and costs will get, companies may very well decide to stop hiring new employees, as it is no longer financially viable to continue doing so.
Another factor to take into consideration is how every country has its own minimum living wage rates. As purchasing power for consumers declines, governments are forced to slowly increase minimum wages. In turn, these increases affect businesses as well, as their employees will become more expensive.
On paper, this will lead to companies further increasing the prices of their products and services, which then leads to a decline in purchasing power once again. Necessary precautions have to be put in place before this vicious circle is allowed to repeat itself indefinitely, as it would only make matters worse at an exponential rate.
Hiring Remote Workers Is One Option
One possible way to avoid these extra taxes and mounting costs are by hiring remote workers. Unlike workers from abroad who are then brought over to work for the company locally, remote workers could be hired under freelancer contracts. This would mean the worker has to take care of all costs and fees applicable in the country, rather than to put that burden on the company itself.
Technology allows anyone in the world to communicate with people across the globe in real-time and even collaborate on projects regardless of their location. There is no reason this option shouldn’t be considered by businesses, as it is a cheaper way of attracting new employees from anywhere in the world.
Last but not least, companies have to come up with ways to reduce overhead costs, especially where payroll is concerned. Wire transfers are both costly and take a while to complete, particularly where international transfers are concerned. Bitcoin, a popular digital currency, could be a means to an end to resolve that issue down the line.
Source: Telegraph UK
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Also published on Medium.