“Obstacles to job creation in America are as a result of policy, not of motivation” Rick Scott (Gitis, N.p.) Therefore, one of the main issues that affect job creation in America is the government policies that are put in place. These regulations by the government are a huge hindrance to the economy and job creation in particular in the nation. They are enormous threat to job creation, especially since they often tighten up the policies related to the creation of jobs in the market. These regulations often raise the expenses of organizations and in effect; they increase the cost of various products in the market (Gatusso N.p.).Therefore, the enforcement of these strategies has been a huge hindrance to the creation of jobs in the USA because it has complicated all the processes that lead up to the creation of employment in the nation.
Another factor that has affected job creation in the country is the deregulation of labor markets. The move has led to uncertainty in the sector, and the employees no longer commit to the companies. Therefore, the creation of more jobs has been put in jeopardy by the enactment of this policy (Gitis, N.p.). When an organization is unstable, and it is not able to retain employees, then it is difficult for that organization to offer employment opportunities to new workers because of its unstable mechanisms. In the US, this policy has set back the nation’s job market and has effectively caused a lot of market uncertainty.
Another policy that has affected job allocation in the nation is the deregulation of temporary contracts to employees that has had an effect on the allocation of permanent contracts. When the government bars companies from freely issuing temporary contracts to employees, then it make it financially difficult for organizations since it is regulating them from seeking temporary employment for its employees (Gatusso N.p,..). In effect, the company will have to face the prospect of seeking more capital to hire these workers on a permanent basis. These government regulations make it difficult for an organization to manage its financial records, and, therefore, the same organization will have to seek alternatives.
The healthcare law has been another huge hindrance to job creation in the nation. The law has forced employers to replace full-time employees with part-time workers. Furthermore, those employers who fail to provide full-time benefits to workers often face a stiff penalty of $2000. The policy has affected many workers since the organizations that have continued to rely on part-time employees have had to reconsider their options (Gitis, N.p.). Also, the situation has forced many organizations to lay off a significant number of their employees.
Another policy that continues to have an effect on policies in the United States is the high taxation rates that affect many of the private corporations. Such policies may influence the proper development of many of these organizations because these are added expenses to the employer and may hinder an organization from comfortably employing workers to a satisfactory level. Another policy that has contributed to the increase in unemployment is the increasing minimum wage in the nation, which has raised unemployment rates in the country. The increase in the minimum wage has seen a 0.18% increase in job creation rate and another 1.48 percent rise in unemployment rate.
Gattuso, James. ‘Jobs, Regulations and Broken Windows’. The Heritage Foundation. N.p., 2011. Web. 2 Nov. 2015. Retrieved from <http://www.heritage.org/research/commentary/2011/03/jobs-regulations-and-broken-windows>
Gitis, Ben. ‘How Minimum Wage Increased Unemployment and Reduced Job Creation in 2013 | Research’. Americanactionforum.org. N.p., 2014. Web. 2 Nov. 2015. Retrieved from <http://americanactionforum.org/research/how-minimum-wage-increased-unemployment-and-reduced-job-creation-in-2013>