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FEB 10

From McKinsey Quarterly - five myths about unemployment




With the unemployment rate in the United States lingering just below 10 percent and the midterm elections just nine months away, job creation has become the top priority in Washington. President Obama has called for transferring $30 billion in repaid bank bailout money to a small-business lending fund, saying, “Jobs will be our number one focus in 2010, and we’re going to start where most new jobs do: with small business.” The fund is among several measures—such as tax incentives, infrastructure projects, and efforts to increase exports—that the White House has proposed to help boost employment. As Americans consider the various approaches, we must have realistic expectations. We need to debunk some myths about what it takes to stimulate job growth.

1. Surely there’s a quick fix.
Oh, were that only the case. The scale of the challenge is enormous. Quick action is important, but remember that the US economy has lost more than 7 million jobs in the past two years. The country would need to create more than 200,000 net new....

 

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Five myths about creating jobs

 


 


tags: unemployment, unemployment myths
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