Since 2008-2009 global financial crisis, it is clear that the process of job creation has tremendously changed. Unemployment in every economy has a lot of impacts on countries economy. As a matter of fact, job creation is an objective of every government, especially in the competitive world. Perhaps, information-age and globalized economic era, comes up with important economic issues than job creation that the government should undertake to guarantee economic development and growth. Generally, there are crucial economic issues concerning the ability of the government to influence job creation.
Undeniably, the government will focus more of its policies on job creation. It is always challenging scenario for the government to ensure that its policies redirected towards one agenda. Other economic components will be assumed, which may lead to economic downfall. Additionally, the government will gear monetary and budgetary policies towards fine-tuning of unemployment in the economy (Howe 28). Government in most cases assert that it is dedicated to job creation polices, yet in the real sense the government knows very little about nature and trends of job creation in the market economies. Moreover, the government ability to influence job creation is through adjustments of interest rate.
Economic research is one of the issues that government must undertake in job creation process. Certainly, the existing job market shows that many citizens are employed in work that are not skilled on. Hence, the government and responsible stakeholders will use resources to ensure that the ever-growing economic trends in job market, meets skillful and experienced personnel. Technology is swiftly changing the nature of work; in that, jobs have been made virtual, disaggregated, and organizations depend on flexible labor. Taxation is also another economic issue determining the ability of government. The government will have to adjust tax depending on its impacts on job creation and level of employment. In economic point of view, taxation has both indirect and direct force on job creation; hence, the government should analyze critically (Howe 30).
Generally, the government plays a critical role in influencing job creation. The economic issues concerning the ability of government to influence job creation include taxation, polices implementation, resource allocation, interest rate, as well public spending. This economic issues need to considered to by the government, and at the same time balance other economic components affecting countries output.
Work cited
Howe, J. Regulating for Job Creation. London: Springer, 2008
