Essex County Ponders Job Cuts
Wage Freeze To Save The Essex County Jobs And Livelihood
With the economy still having an impact on the job market, many employers are struggling to keep their workers adequately compensated. In the past, people could typically look forward to getting raises every year or so. Now, however, some employers must cut back on raises and instead put a cap on how much workers can earn. While this news often is met with disdain, people may do well to understand it may be necessary to implement a wage freeze to save the Essex County jobs and the area’s livelihood.
Some economic experts warn that unlimited raises put a hardship on employers. When they fail to make a profit, companies may lack the money to pay out raises. However, if they give people more money to suit the demand for raises, companies are left with little cash on which to operate.
When they have little cash on which to operate, businesses might have to start cutting positions and stop hiring new employees. When applicants cannot get hired on anywhere, they are left to fend for themselves or apply for government benefits to survive. Both businesses and applicants could expect to suffer financially because employees already on staff wanted to have their wages increased.
However, when they put a cap on earnings and freeze wages, businesses in effect try to save the local economy from undue hardship. While their workers may be unhappy about stagnant wages, this move also could save employers from having to cut staff members or not hiring enough staff to fill the need. It lets them focus on making a profit and allocating cash sources to the appropriate needs until the economy improves.
This move also keeps the local economy moving as well. When workers have wages to pay their bills, they avoid getting evicted or foreclosed on and having to move. They also could have enough to buy groceries and help stores survive. This partnership and allocating of local resources proves to be vital during difficult economic conditions. If people had no money to spend, other businesses could suffer and fail as well.
When businesses must make these kinds of decisions, they often are advised to help their employees adapt and survive until things improve. For example, a company might provide its staff with resources to help them find lower cost housing or social programs that could boost their family budgets temporarily. Likewise, they could learn about programs to help their kids like the school lunch program or after school programs.
This move also may protect employees from having to cash out their retirement savings. If their employer fails to protect their best interests and gives into the demand for raises, people in the company may have to get cash out their retirement savings if or when the company cuts back or goes under. With freezing wages, retirement investments may be protected.
With an Essex County wage freeze, things temporarily may be difficult to tolerate. However, economists know that these kinds of moves are essential to saving jobs. It also protects the local economy.