Reading Summary – Article Example
Reading summary This article reveals that more than ten percent of employees in the U.S part with their employers each quarter. Theresearch shows that some workers left their workstation to look for new jobs; some become jobless while other leaves the workforce forever. These new trend of separation and hires in the U.S labor markets reveals how the process of employee retention, screening during application and matching of skills is taken seriously. The authors argue that the economic forces that influence workflow can be classified s demand side where employers establish new jobs for workers and eliminate old ones. In addition, it is clear that workers move from one job to another or change employment due to supply side in that they have to cope with things such as family relocation, retirement and labor force entry.
Work creation is sure for a growing or new business, and employment devastation is certain for a contracting or leaving business. Totaling crosswise overhead honchos inside a district or industry commonly yields extensive positive qualities for both employment creation and occupation devastation. While a solitary superintendent can either make or annihilate occupations amid a period, it can at the same time have positive contracts and detachments. Consequently, the stream of contracts surpasses work creation, and the stream of partitions surpasses work obliteration.
As an illustration, consider a business with two stops amid the period and one substitution employ. The specialist streams at this business comprise of two divisions and one contract, and there is a net change of one devastated occupation. These ideas of laborer streams and occupation streams are effectively totaled by cumulating over business entities.
Steven, D., & Haliwanger, J. (2006). The Flow Approach to Labor Markets: New Data Sources and Micro–Macro Links. Journal of economic perspective, 20 (3), 3-26.