The stability of the economy is based on the ability to maintain a low unemployment rate and provide a safe workplace. Employees benefit from a pleasant workplace and companies in turn save money. When there is a strong relationship between the individual and their work environment, society in general benefits as well.
Benefits of employment
William Baumol, author of “Macroeconomics”, explains that the employment rate and economic growth are linked. This is because employment contributes to economic growth: workers produce valuable goods and services and in turn receive a salary that they can spend on the purchase of the goods produced. More employment means a greater number of goods that can be produced. Before the industrial revolution, workers depended only on what they could individually produce. This resulted in a limited number of products for sale, which generally included meat, grains and textiles. Since production and employment grow with a business, so does the variety of products and services offered. The availability of electronic items, various food specialties.
Benefits of the workplace
The workplace also has great importance in society. Companies strive to create a welcoming work environment for employees for many reasons, mainly to save money. When workers enjoy spending time in the workplace, this reduces the replacement of personnel. On the other hand, companies improve and use the skills of workers when the replacement of employees is lower; Training for employees, especially in highly technical fields, is somewhat expensive. Another benefit of the workplace is that the corporate culture is instilled, which infuses the rules and the ethics of business in the workers. A 2010 article from “Business Insider” explains how the workplace can also impart positive traits and attitudes,
The importance of the workplace and employment forces some groups to control and change the employment rate. The US government and the Federal Reserve monitor the employment rate by observing economic indicators, adjusting the interest rate and monitoring GDP. Economic indicators, such as retail sales and the unemployment rate, reflect a willingness to spend disposable income and the number of workers seeking employment, who have not yet found a job. Gregory Mankiw explains in the book “Fundamentals of Economics” that by reducing the interest rate, the Federal Reserve allows companies to grow by allowing access to credit. The US government increases consumer confidence and employment, offering tax incentives for purchases and the creation of employment programs such as “Teach for America” and with job censuses. The government also establishes labor laws by establishing a minimum wage, the application of overtime laws and the implementation of mandatory safety standards.
Many companies do business abroad. When companies outsource departments such as customer service, textile manufacturing and technical support abroad, these divisions are subject to hiring and labor laws that govern that nation.