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High Unemployment

Today, I analyze other possible means of action to put an end to the chronic problem of high unemployment which exists in Spain compared to other countries, the price. The labour market responds to some extent to the classic economic model of supply and demand (not in this article will go into any other considerations or situations that we could take into account). In this way, crossing between labour supply and demand determines the price (wage) and the amount (and therefore the level of employment). Get all the facts for a more clear viewpoint with Fix Price. This can be clearly seen in the effects of the housing bubble, which led to a great demand for workers in this sector, and thereby increased the salaries paid. Instead, with the current crisis many workers consider a job change or accept one if they are on unemployment–even gaining less than before, i.e., before the lowering of demand fall in its price. Filed under: Millenium Management. For this reason, some economists argue that given the weakness in the demand for employment, and the current situation of almost deflation, a solution to lower the unemployment would be lower wages (as the shopping cart prices are maintained or down, purchasing power would not be greatly affected, and would improve Spanish competitiveness abroad). However, there is a psychological aspect difficult to eliminate, by which people prefer to lose power purchasing since for example, his salary increases by 1% and inflation has been a 3%, than by a lowering of their wages.

Thus, in the recent agreement on Seat in Martorell factory, agreed to a wage freeze for 2009, in exchange for maintenance of jobs, and this was mostly accepted; If a reduction in wages would have voted, he had a more complicated vote. This can be fixed by linking the salaries of all employees to the company’s profits (and not only the address, or the sales,) as it usually happens. Simple? Although it seems that you don’t have to be complicated, few companies carried out, a system of remuneration that works has its complexity (which won’t go now), but the benefits are many.