We are in a period right now of an artificial panic demand for jobs. I read an article in the newspaper yesterday telling how people are starting to solve their job crisis situations by not looking for jobs anymore. They've spent so much time and money looking for jobs that don't exist that they're realizing no return on their investment.
The article claimed that the applicants per available job ratio is quadruple what it was during the last three recessions. People are sending their resumes out everywhere in a frantic drive for a job, and employers are being flooded with applicants. This is an artificial supply of applicants, which does nothing more than drive low wages further downward. In addition, businesses are not creating new jobs. Even though there are signs of the economy improving slightly, why would anybody in this economy hire somebody when they can take care of the extra work load by working overtime for more money? The refusal to create new jobs I think is helping to drive the panic.
The artificial panic demand for jobs is similar to the artificial panic demand for homes just a few years ago. As lenders were becoming more loose with lending standards, more people qualified for home loans. So many people were making offers on homes that were rising in price due to the demand that people started making more multiple offers on homes in order to score one acceptance. If an area had 1200 people looking for 1000 homes, it would be one thing if people were making one offer on the home they liked. It would be another for 1200 people to make 10,000 offers on 1000 homes. Each individual home seller would see a flood of offers on his home, and can the price accordingly.
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