Employment Growth Rates Research Articles

Regional Workforce Dynamics in West Virginia: Insights from Shift-Share and Location Quotient Analysis

West Virginia, home to approximately 1.77 million residents, has been grappling with significant economic challenges characterized by persistent poverty and sluggish growth. Despite ongoing development efforts, the state’s Gross State Product (GSP) has seen only a modest increase of 0.1% over the past five years, reaching USD 71.7 billion, while the unemployment rate remains at 4.0%. The annualized employment growth rate of 0.7% lags behind the national average, and only about 54% of West Virginia’s adult population is either employed or actively seeking employment, resulting in one of the lowest labor force participation rates in the nation. In contrast, certain industrial sectors, such as healthcare, social assistance, retail trade, and accommodation and food services, have shown intermittent growth at the county and regional levels. To explore the unique characteristics and significance of these regions in relation to employment growth, this study examines regional employment patterns in West Virginia from 2001 to 2020, focusing on the main regions of the state: Metro Valley, Mid-Ohio Valley, New River/Greenbrier Valley, Mountain Lakes, and Potomac Highlands. Utilizing shift-share and location quotient (LQ) analyses, this research identifies the sectors driving regional employment and assesses their performance. Key findings reveal strong sectoral performance in mining, manufacturing, and finance in the Mid-Ohio Valley; wholesale trade, transportation, and utilities in the Metro Valley; agriculture and administrative services in the New River/Greenbrier Valley; agriculture and manufacturing in the Potomac Highlands; and scientific services, healthcare, and utilities in the Mountain Lakes region. Based on these insights, this study recommends targeted policy interventions to address regional disparities, enhance sectors with significant short- and long-term benefits, and foster balanced economic development across the state.

Некоторые основные проблемы экономического развития современной России

The work provides assessments of trends and factors of economic growth in modern Russia. The research was carried out on the basis of constructing econometric models using Rosstat data. Research results show that the main trends in economic development consisted of a decrease in the rate of economic growth and the rate of growth in labor productivity. The main factor of economic growth was the growth of labor productivity. There were no significant trends in changes in the growth rate of employment and the growth rate of accumulated fixed capital. The growth in labor productivity was achieved, to a large extent, due to an increase in the capital intensity of production. The basis for economic development was largely an ineffective archaic mechanism, the mechanism for the formation of an industrial economy. Employment growth had a negative impact on economic growth rates. The results obtained indicate that the most important factors of competitiveness and economic growth - human capital and new technologies - are insufficiently and ineffectively used. They did not ensure an increase in labor productivity due to investing in outdated technologies, attracting workers who do not have high qualifications, which is due to a decline in the quality of education and a reduction in the scale of scientific research and development. Education has largely lost its function of forming human capital. The research and development system does not sufficiently serve as a source of new technologies. The identified problems are obviously due to shortcomings in economic policy, shortcomings in financial management and investment processes, insufficient funding and ineffective management of the education system, research and development.

Market Regulation, Cycles, and Growth Dynamics in a Monetary Union

AbstractWe build a two‐country currency union dynamic stochastic general equilibrium (DSGE) model with endogenous growth to assess the role of product market regulation (PMR) and labor market regulation (LMR) for growth and the adjustment to shocks. We show that with endogenous growth, there is no reason to expect real income convergence. Large shocks can lead to permanent changes of output and real exchange rates. Differences are exacerbated by different PMR and LMR. Less regulated economies have higher trend growth and recover faster from negative shocks. Results are consistent with higher inflation, lower employment, and disappointing total factor productivity (TFP) growth rates experienced in more regulated euro area members.

기술투자 중소기업과 일반 중소기업의 고용효과 비교분석

This study confirmed whether the employment effect of technology-invested SMEs was significantly different from that of general SMEs from an ex post perspective. Through this, the possibility of expanding the employment effect of the technology appraisal model for investment was confirmed. Through propensity score matching, 1,632 technology-invested SMEs and 1,632 general SMEs were ultimately used in the analysis. The employment effect was used in the analysis by dividing it into absolute employment effect (employment growth rate) and relative employment effect (sales employment coefficient). As a result of the analysis, the employment growth rate of technology-invested SMEs was found to be significantly high and continuous. On the other hand, the sales employment coefficient was high and consistent for technology- invested SMEs, but was not statistically significant. Therefore, it was confirmed that the current technology appraisal model for investment is sufficiently expandable in relation to the absolute employment effect (employment growth rate). In addition, as the sales employment coefficient of technology-invested SMEs continues to remain high, the conclusion was drawn that it is possible to secure discrimination in the relative employment effect (sales employment coefficient) by adjusting the appraisal model.

The effect of output on employment in Poland during the COVID-19 pandemic

The COVID-19 pandemic caused a significant decline in output, as well as economic policies aimed at mitigating the negative effects of the pandemic. Both of these factors had an impact on the labour market. This paper investigates changes in employment across groups of workers during the coronavirus pandemic in Poland and the effect of output on these changes. Firstly, it examines changes in employment growth rates across different groups of workers in 2020. Secondly, the paper analyses the impact of the coronavirus crisis on employment by comparing actual and predicted employment growth during the pandemic period (2020). Using Okun’s law, Ordinary Least Squares, and quarterly data, the elasticities of employment growth with respect to GDP growth in the pre-pandemic period (2003–2019) are calculated. These elasticities are then used to estimate projected employment growth during the pandemic. The results suggest that the total employment response to output change was relatively small, compared to the historical pattern. However, the response was unequal across groups of workers. The youngest workers, particularly women, and those with temporary employment contracts were most affected by the pandemic.

The Impact of Tourism on the Labor Market of Local Service Industries in Barcelona

This study examines the impact of tourism on the labor market of local service industries in Barcelona, focusing on employment trends, job quality, and economic implications. Utilizing quantitative data from the Spanish National Institute of Statistics and the Barcelona Tourism Board, the research reveals that tourism has significantly driven job creation in sectors such as hospitality, retail, and transportation, with employment growth rates outpacing the city’s overall average. However, the predominance of part-time and temporary positions, coupled with lower wage levels, raises concerns about job stability and quality. Seasonal employment variations and spatial distribution analysis highlight the dependence of certain districts on tourism, leading to economic volatility and socio-economic challenges such as rising housing prices and cost of living. The study underscores the need for balanced policy approaches that enhance job security, improve labor conditions, and address housing affordability to ensure sustainable and inclusive economic growth. Recommendations include promoting year-round tourism, diversifying tourism offerings, and implementing regulatory measures to protect local residents’ quality of life.

Revisiting the Creative and Cultural Industries in Türkiye

This study aims to investigate the developing framework of creative and cultural industries (CCI), focusing on Türkiye from 2008 to 2022 by adopting the widely accepted DCMS classification and introducing a Türkiye-specific classification to provide insights on the dynamics of creative and cultural industries over the last 5-10 years. The study differs by covering a broad period and adopting a Turkey-specific classification, applying a commonly held approach into the industry's dynamics. In this way, it also aims to provide a comparison with the results in the international literature. The methodology involves a descriptive analysis of employment and workplace data within CCIs, employing location quotient (LQ) for provincial specializations and clusters. According to the results, the CCI employment (% of total employment) is 3.66 % in 2022 and close to the EU level. Also, the growth rate of CCI employment is much higher than total employment for the same year. On the other hand, the results of the LQ analysis re-emphasize the creative hub characteristics of Istanbul and Ankara, while Kocaeli has also specialized in CCI as of 2018. Izmir still maintains its potential specialization characteristic. Finally, the share of CCI employment by occupation (%) shows the impact of digitalization and innovation on non-traditional CCI sectors.

Determinants of labor productivity regional diversity in Italy

The aim of the paper is to assess the causes of spatial variations in labour productivity of Italian regions using the gravity model of economic growth. The model is an extension of Robert Solow’s economic growth model. The authors calibrate the model parameters using historical data and carry out numerical simulations of the long-run equilibrium states of the model. The scenarios considered in the paper vary in forecast investment rates, employment growth rates and urbanization rates. To achieve the full convergence in labour productivity, it is necessary to maintain higher investment rates in the south of the country than in Lombardy (by about 4-11%), and to keep investment rates in central and northern Italy at a similar level as in Lombardy. The fall in investment has affected the poorest regions, southern Italy, the most, followed by central Italy and the richest regions of the north of the country the least

Social Entrepreneurship, Employment, and Financial Performance: A Latent Growth Modeling Approach

The social value created by organizations has been in the spotlight during periods of rapid social change, such as COVID-19. However, the existing literature has been limited by the inability to demonstrate the cumulative effects of social value over time, which has led to academic and practical limitations. Drawing on stakeholder theory, socially responsible customer behavior, and institutional theory, the author collected data from 208 social enterprises in South Korea over 3 years, from 2017 to 2019, and tested hypotheses using latent growth modeling. This analytical technique, which uses structural equation modeling, estimates the latent growth rate of each data measure by year and analyzes the causal relationship between the growth rate of each variable. The results show that higher levels of social entrepreneurship are associated with higher growth rates of total employment and vulnerable worker employment, followed by higher growth rates of financial performance. The implications of this paper are as follows. First, this study reports that social entrepreneurship can help social enterprises develop sustainably by increasing financial performance. Second, this study overcomes the methodological limitations of the existing literature by reporting the relationship between growth rates. Third, this study reports that social enterprises can help solve employment problems for vulnerable populations, who are often the first to be affected by the economic crisis. Fourth, this study contributes to resolving the conflicting and contradictory perspectives of practitioners and academics on the relationship between social and economic value. Fifth, it offers suggestions for the future direction of the academic field.

Determinants of digital technology development in sub-Saharan African countries: evidence from panel data analysis

The primary objective of this research is to explore the elements that shape the progression of digital technology in Sub-Saharan African nations. The study employs data obtained from 16 countries, covering the period between 2000 and 2020. Employing fixed effect panel regression analysis, our research indicates that various non-technological factors significantly impact digital technology development in the region. The results highlight that variables including general government final consumption expenditure, inflation rate, employment growth rate, financial development, ease of doing business index, logistics performance index, international migration, access to electricity, and access to safe drinking water have a positive impact on the development of digital technology. Conversely, international trade is identified as a negative influence, primarily due to insufficient infrastructural development. These findings underscore the significance of non-technological elements, encompassing aspects like globalization, economic conditions, favorable digital ecosystems, and the fulfillment of basic human needs, in shaping the landscape of digital technology in the region. The study, while acknowledging limitations in terms of selected indicators, years, and countries, emphasizes the need for broader investigations in future research. Practically, the study suggests that governments in the region should prioritize addressing these non-technological factors to fully leverage the potential of digital technology development. The originality and value of this research lies in its exploration of non-technological determinants, shedding light on their pivotal role in shaping the digital technology landscape in sub-Saharan Africa.

Business dynamism and regional growth across the business cycle: Implications for recovery from the COVID‐19 crisis

This paper sheds light on regional recovery prospects from the coronavirus disease 2019 (COVID‐19) crisis by examining the link between gross rates of establishment openings and closures and local economic growth spanning the 2001 recession and the 2007–2009 global financial crisis (GFC). Consistent with existing literature, our results show that US counties with historically higher rates of dynamism – measured here as rates of establishment openings and closures, or churn – experience faster medium‐run employment growth rates. Our novel finding relates to the time‐varying effects of churn. Using a fixed‐effects panel model of US counties from 1998 to 2018, we find higher pre‐recession churn to be associated with larger employment losses during the GFC, and slightly faster employment gains during the subsequent recovery. High‐churn counties experienced slower gains in median household incomes during both the 2001 recession and the GFC, but more rapid decreases in poverty rates during macroeconomic expansions. We conclude by identifying regions with historically low establishment churn that have suffered high employment losses during the COVID‐19 crisis and may be in need of support to aid recovery.

Measuring the impacts of the two-child policy on industrial structure and economic growth in china using a CGE model

Facing the challenge of population aging and labor force shrinking, the Chinese government has been trying to reform its family planning policy since 2015. This paper analyzes the impacts of China’s Two-child policy on economic growth and industrial structure from 2020 to 2060 using a dynamic Computable general equilibrium (CGE) model. This paper constructs an effective labor input index accounting for changes in educational attainment and labor force participation rates by age and sex to simulate the effects of the demographic changes on labor supply and economic growth, rather than using simple working-age measures. This paper sets two policy scenarios, the One-child policy and the Two-child policy, to simulate the changes in the employment structure, industrial structure, and main macroeconomic indicators under different population policies. The main finding is that under the Two-child policy, the average GDP growth rate is expected to be 0.3% and 1.0% points higher than the One-child policy in the period of 2015–2030, and 2045–2060; the employment growth rates of the manufacturing and service industries are higher than that under the One-child policy; the shift of industrial structure from manufacturing to service industry will be slightly slower than the One-child policy. The positive impacts of the Two-child policy on China’s economic growth are not significant in the short run. From the perspective of the quantity, structure and quality of labor supply, this paper reveals how a more relaxed family planning policy will affect labor supply, and ultimately affect economic structure and growth in a long run.

Personnel adjustments during the Covid-19 pandemic: did co-determination make a difference?

Using a unique dataset of establishments in Germany surveyed during the Covid-19 pandemic, this study investigates whether personnel adjustments during the crisis differed between establishments with and without a works council. Our regression analyses show that the hiring and dismissal rate as well as the churning rate were lower in establishments with a works council. In contrast, the net employment growth rate over the pandemic and the implementation of short-time work did not differ significantly between establishments with and without a works council. We conclude that worker co-determination did indeed make a difference in terms of higher employment stability for the incumbent workforce during the pandemic.

УПРАВЛІННЯ СЕСТЕЙНОВИМ РОЗВИТКОМ У ВІЙСЬКОВІЙ ТА ПІСЛЯВОЄННІЙ ЕКОНОМІЦІ: СТРАТЕГІЧНІ РІШЕННЯ ДЛЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ

The study identifies global and national challenges to sustainable development. In particular, global problems include climate change, infectious disease epidemics, population ageing, and human rights violations, which require cross-border cooperation between countries to be effectively addressed. The economic security of a country is determined by the state of the national economy, which makes it possible to maintain resilience to internal and external threats, ensure high competitiveness in the global economic environment and is characterised by the ability of the national economy to grow in a sustainable and balanced manner. The macroeconomic security of a country is characterised by indicators that reflect the stability and resilience of its economy, in particular, the growth rate of gross domestic product (GDP), inflation, employment (unemployment), public debt, and foreign trade balance. One of the components of the country's economic security is production security, which ensures the most efficient use of the country's existing production capacities, their modernisation and expanded reproduction. The following areas are highlighted as important measures for managing business activity under martial law and post-war recovery: strategic planning, risk management, crisis management, financial stabilisation, communication and cooperation, innovation and adaptation. Violations of rules, laws and regulations in areas such as employment, product and service safety, and public health have a significant impact on economic security through increased economic costs in the form of financial sanctions for businesses; loss of consumer confidence; threats to public health through the provision of unsafe products or services of poor quality; reduced investment; loss of competitiveness; and other negative consequences.

Региональные особенности российских компаний-«газелей» в пандемию

In the context of global turbulence, the Russian national economy needs positive economic practices of resilience and subsequent development. This need is even greater in regional economies, where a few relatively small growth points, including high-growth firms (HGFs, ‘gazelles’), can become drivers for the entire region. The study analyses the performance of high-growing firms and their impact on regional resilience during the acute phase of the global economic crisis caused by the COVID-19 pandemic (2020–2021). A sample of 11,940 firms (including 403 HGFs) in Sverdlovsk, Vologda, Kurgan, Lipetsk, Orenburg, Chelyabinsk regions, Krasnoyarsk krai and the Republic of Bashkortostan was examined. The research uses such approaches as estimation of the shares of HGFs by number and output and assessment of correlation using the nonparametric method of Spearman’s coefficient. The share of HGFs in the sample as a whole and for each region is consistent with global trends (2-4 %). The industrial structure of high-growth firms differs across regions, meaning that HGFs manifest themselves individually in various regions. ‘Gazelles’ demonstrated a greater ability to preserve jobs during the pandemic in most regions of the sample. For example, while an average employment growth rate was 2 % in 2020, this figure was 25 % for HGFs in Krasnoyarsk krai and Sverdlovsk oblast. During economic recession, ‘gazelles’ positively affect regional resilience in such activities as transport and storage, wholesale and retail trade, and mining. The result is the opposite for manufacturing: a larger share of high-growth companies was characteristic of regions with slower output growth rates for this type of activity in 2020–2121. The findings can be used to substantiate the significance of developing and implementing government support programmes for HGFs at the federal and regional levels.

IS THE EMPLOYMENT SITUATION IN INDONESIA FAVORABLE? IMPLEMENTATION OF VERHULST MODEL DIFFERENTIAL EQUATION

This research aims to calculate the limit number of workers and unemployment in each province of Indonesia which is estimated to use Carrying Capacity and calculate the employment growth rate of each province in Indonesia. This calculation will help to identify provinces in Indonesia where the growth rate of the working population is negative, the unemployment rate is positive. All of these calculations use the Verhulst Model Differential Equation. The data used in this research is secondary data obtained from the internet from the official website of the BPS-Statistics Indonesia regarding the Labor Force Situation in Indonesia from 2020-2023. The provinces with a lower working population growth rate, especially have negative value demands particular focus on labor absorption that are West Papua, Central Sulawesi that have high level warning status as well as Maluku and Bali that have medium level warning status. Besides the province with a greater unemployment population growth rate, especially has positive value demands particular focus on labor absorption that is Central Java that have medium level warning status

From establishment to scaling up of an SME in the IT sector: deliberate and emergent strategies as critical essentials for the sustainable business model

Purpose The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months. Design/methodology/approach Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study. Findings As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business. Research limitations/implications It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory. Practical implications The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase. Social implications Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning. Originality/value Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

An Empirical Study on Jobless Growth as a New Phenomenon of Developing Economy like India

One of the economic conditions known as ‘Jobless Growth’ occurs when the economy as a whole expands but does not increase the number of employment opportunities. In recent years, the Indian economy has found itself in a dire scenario where, despite increased economic expansion, employment growth has deteriorated. Economic analysis, reveals that while India's GDP growth rate significantly accelerated during recent years but, the employment growth rate remained flat. This clearly highlights the risks of a structural shift in employment in the upcoming years, which, if it occurs, would be a significant issue for the Indian economy. The objective of the current study is to assess the effects of rising unemployment on the Indian economy. The study aims to inquire and determine the impact of rising unemployment on India's unemployment, poverty, and inequality rates. Rising unemployment has been predicted from exceptionally low employment rates.

Regional Employment Impacts of Biorefineries in the EU

SummaryThe European Commission aims to achieve a climate‐neutral economy by 2050 and positively affect the employment growth rate while reducing fossil‐based production activities. For that reason, according to the European Green Deal, decarbonisation and modernisation of fossil‐based industries is essential. Thus, replacing fossil fuel‐based inputs in these industries with bio‐based inputs through the establishment of biorefineries can contribute towards this goal. This article reports the results of a study on the impact of biorefineries on the regional employment rate, and other regional socio‐economic indicators. A unique regional level dataset provided by EU Joint Research Centre and the EU H2020 BioMonitor project is used to examine the impact of the biorefinery industry on local employment. This dataset covers multiple European Member States and enables us to account for regional characteristics over a 10‐year period (2009–2018). Our results show that introducing biorefineries to a region can be associated with a higher regional employment growth compared to regions with no biorefineries. Improving biorefinery data availability and quality can assist further the research in this area and promote the development of bioeconomy in Europe.

Employment growth and profitability in European SMEs: the 100% speed limit

ABSTRACT We investigated the relationship between employment growth and profitability and propose that small and medium-sized enterprises (SMEs) hire employees, they experience an increase in profitability due to their acquisition of additional human capital. These benefits, however, are limited by the firm’s ability to efficiently integrate the newly recruited employees and adjust its internal managerial practices and organization accordingly. Using a large sample of SMEs in the European Union, we examined the relationship between employment growth and profitability as a quadratic function with an inverted U shape. The empirical results strongly supported our prediction as we observed that profitability decreased when SMEs exceeded a 100% growth rate in employment. Importantly, we observed strong homogeneity in our results across various industries. This paper empirically documents the ‘maximum’ speed at which firms should grow and highlights the homogeneity of this result across industries.