Job security in the United States

Job security in the United States depends more upon the economy and business conditions than in most countries because of the capitalist system and the minimal government intervention in businesses. Job security in the United States can vary a lot since the supply and demand for jobs depends on the economy. If the economy is good, companies experience more demand for their products and create more jobs, which increases job security. However, in periods of economic slowdown or recession, companies try to cut costs and layoff workers which decreases job security. Importantly, employment in the United States is at will, meaning that apart from certain limited exceptions, an employee's job security is generally at the mercy of the employer.

In the aftermath of the dot com boom, computer related jobs experienced low job security whereas the situation was just the opposite prior to that. Since 2005 automotive sector jobs have experienced very low job security, and since 2007, real estate and mortgage related jobs have seen a big decrease in job security.

A growing number of American men have dealt with their unemployment and feelings of job insecurity by not returning to work. In 1960 5% of men ages 30–55 were unemployed whereas roughly 13% were unemployed in 2006. The New York Times attributes a large portion of this to blue collar and professional men refusing to work in jobs that they are overqualified for or do not provide adequate benefits in contrast to their previous jobs.

According to data from the 2010 National Health Interview Survey, 32% of all of current workers experienced job insecurity, defined as being worried about becoming unemployed. Job insecurity was higher for men than women, workers aged 30-64 compared with other age groups, divorced or separated workers compared with other relationship statuses, and workers having less than a high school diploma compared to workers having more education. Workers in the construction industry had the highest prevalence rate of job insecurity (55%).

Immigration and overseas outsourcing may decrease job security for people in certain occupations. For example, telephone call center positions in the information technology sector are increasingly being outsourced to India where the same roles can be filled at a lower cost.

 

JOB SECURITY IN EUROPE

The main difference vis-à-vis the United States is the system of indefinite contracts. In most European countries many employees have indefinite contracts which, whilst not guaranteeing a job for life, make it very difficult for the employer to terminate a contract. Employees who have legally acquired these rights, for example because they have been with a company for two years continuously, can only be dismissed for disciplinary reasons (after a number of formal warnings and subject to independent appeal) or in the case of a company undergoing restructuring (subject to generous laws on redundancy payments and often with retraining paid for by the company). In Spain, for example, such employees are entitled to 45 days redundancy pay per year worked. The high cost of redundancy payments is in practice what gives employees job security.

Whilst employees who have such legally-binding, indefinite contracts are in the enviable position of knowing that they (and their family) have complete financial security for the rest of their lives, it is important to realise that these obligations work both ways. In some countries such as Germany a company may prevent an employee (whose occupational training they have paid for) from leaving to take up a better post elsewhere until compensation is agreed. Even an employee of a company which is known to be about to fold may find himself compelled to stay with the company until the end even if he is offered work with a different firm.

Every company will have a mix of employees on different types of contract. Indefinite contracts can also exist for seasonal work. These so-called discontinuous contracts mean that a hotel, for example, may dismiss its staff in the autumn, but it must take the same people back on again the following spring.

The proportion of the workforce on indefinite contracts has fallen across Europe in response to increased competition and globalization. Companies may dismiss an employee just before he reaches the two-year mark and then re-hire him as a new employee. Many economists argue that greater labour market flexibility is necessary. Economics professors argue that the threat of unemployment is necessary to maintain incentives to high productivity. Jobs which are not backed by an indefinite contract are still poorly-regarded in many European societies, often disparagingly described as "precarious" or "McJobs", even when the company has good prospects.

 

GEOPOLITICS

Geopolitics is the study of the effects of geography (both human and physical) on international politics and international relations. Geopolitics is a method of foreign policy analysis which seeks to understand, explain, and predict international political behaviour primarily in terms of geographical variables. Typical geographical variables are the physical location, size, climate, topography, demography, natural resources, and technological advances of the state being evaluated. Traditionally, the term has applied primarily to the impact of geography on politics, but its usage has evolved over the past century to encompass wider connotations.

Geopolitics traditionally studies the links between political power and geographic space, and examines strategic prescriptions based on the relative importance of land power and sea power in world history. The geopolitical tradition had some consistent concerns with geopolitical correlations of power in world politics, the identification of international core areas, and the relationships between naval and terrestrial capabilities. Academically, the study of geopolitics analyses geography, history, and social science with reference to spatial politics and patterns at various scales. Also, the study of geopolitics includes the study of the ensemble of relations between the interests of international political actors, interests focused to an area, space, geographical element or ways, relations which create a geopolitical system. ⁴ Geopolitics is multidisciplinary in scope, and includes all aspects of the social sciences—with particular emphasis on political geography, international relations, the territorial aspects of political science and international law.

The term "Geopolitics" was coined at the beginning of the twentieth century by Rudolf Kjellén, a Swedish political scientist, who was inspired by the German geographer Friedrich Ratzel. Ratzel published Politische Geographie (political geography) in 1897; that book was later popularized in English by the Hungarian historian Emile Reich and the American diplomat Robert Strausz-Hupé (a faculty member of the University of Pennsylvania). Although Halford Mackinder had a pioneering role in the field, he never used the term geopolitics himself.

ECONOMIC LIBERALIZATION

Extending property rights protection to the poor is one of the most important poverty reduction strategies a nation can implement. Securing property rights to land, the largest asset for most societies, is vital to their economic freedom. The World Bank concludes that increasing land rights is ‘the key to reducing poverty’ citing that land rights greatly increase poor people’s wealth, in some cases doubling it. It is estimated that state recognition of the property of the poor would give them assets worth 40 times all the foreign aid since 1945. Although approaches varied, the World Bank said the key issues were security of tenure and ensuring land transactions were low cost. In China and India, noted reductions in poverty in recent decades have occurred mostly as a result of the abandonment of collective farming in China and the cutting of government red tape in India.

New enterprises and foreign investment can be driven away by the results of inefficient institutions, corruption, the weak rule of law and excessive bureaucratic burdens. It takes two days, two bureaucratic procedures, and $280 to open a business in Canada while an entrepreneur in Bolivia must pay $2,696 in fees, wait 82 business days, and go through 20 procedures to do the same. Such costly barriers favor big firms at the expense of small enterprises where most jobs are created. In India before economic reforms, businesses had to bribe government officials even for routine activities, which was in effect a tax on business.

However, ending government sponsorship of social programs is sometimes advocated as a free market principle with tragic consequences. For example, the World Bank presses poor nations to eliminate subsidies for fertilizer that many farmers cannot afford at market prices. The reconfiguration of public financing in former Soviet states during their transition to a market economy called for reduced spending on health and education, sharply increasing poverty.