![]() Ripping children from their parents at the border. ![]() Those who have already been laid off have been snapping up new jobs faster than ever, which could help keep the unemployment rate low and inflation high.The International Rescue Committee (IRC) should rescind the honor and give it to someone who does not profit from war and global suffering.īombings. But a higher unemployment rate is all contingent on these workers being unable to find another job. It’s a likely scenario, considering that most of the workforce would think about searching for a new job if they were forced to be in-office full time. For Fink’s prediction to come true, those who are forced to return would need to rebel against their bosses’ mandates and quit, effectively increasing the unemployment rate. But employees are working from home more often than they were at the start of the year. As some companies laid off workers this summer in anticipation of a recession, the unemployment rate already went up slightly to 3.7%, the highest in the past six months, according to August’s job report from the Bureau of Labor Statistics.Įxperts have been speculating that a recession will give employers the upper hand in forcing workers back to the office, wagering an economic slowdown would make them desperate to keep their jobs. ![]() Former Secretary of the Treasury Lawrence Summers recently tweeted that we’d need to see a 5% unemployment rate to tame inflation. This would induce layoffs, driving up what has been a near historically low unemployment rate that would prompt inflation to abate. Now, Fink has a leg to stand on if the recession that many employers have been fearing hits. Heidi Shierholz, president of the Economic Policy Institute, told Fortune back in May that a close look at GDP numbers actually shows “healthy growth.” She said the dip in worker productivity is more due to a decline in inventory and increase in imports. There’s more than meets the eye, though, when it comes to productivity rates, reached by dividing the GDP by the number of hours worked. It remained at bleak levels during the second quarter. ![]() To be sure, productivity dipped this year, reaching its largest three-month decline since 1947 in the first quarter. Hybrid and remote workers (64%) feel more productive than their in-office peers, according to a survey from workspace software company Citrix. Research has shown that it’s remote workers who are more productive employees with flexible schedules are more likely to get their work done when not corralled back into the office. But our understanding of productivity has changed over the last couple of years. Sure, higher worker productivity helps decrease inflation. Time may tell whether Fink’s wishful thinking is like that of the goldbugs who wish President Richard Nixon hadn’t gone off the gold standard in 1971, but once a regime changes, there’s no going back. Multiple studies show that remote work-even if it’s on a part-time schedule-is here to stay. What Fink really wants, then, is a return to pre-COVID work culture, a time (and a fiscal regime) when inflation was consistently below 3%. That same day, BlackRock imposed a mandate that staff return to the office three days a week, per an internal email seen by Yahoo Finance. “We have to get our employees back in the office,” Fink said on The Claman Countdown, arguing that a rise in productivity will offset some inflationary pressures. In Fink’s eyes, returning to the office will help create greater productivity.
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