Balance in creation and destruction of employments


Employments are often destroyed as well as created. This is a natural cycle in any active society. They get destroyed when an entity boosts its workforce, and they get destroyed when the opposite happens. For instance, in a country such as France, we evaluate the number of job creation and destruction per day to 10 000 employments ! Which is quite a number. Of course, the process of creation and destruction of employments is pretty much different from the creation and destruction of jobs.

How are the employments created ?

In order to create an employment, the company has to simply declare that it needs an additional person to meet the working growth, for the creation of new jobs, or to fill the place of a newly promoted member.

The destruction of the employments

To destroy an employment, however, many conditions need to be met, amongst them, the lack of the employment’s profitability, or the financial problems of the enterprise. It is also possible, and it happens that employment get destroyed by pure economic measures or shareholding motives.

The balance between employment creation and destruction

To boost the growth of the employment, it is often recommended to resort to the process of time share. This is, of course, usually criticized by the liberals, but also many other economists. The point is, if too many employments are being created, this will cause a massive disorder into the employment and job market. Such a thing may have hardly reversible heavy consequences on the economy. This is why a good balance has to be maintained.