CNN/Time reports that 2.6 million jobs were lost in 2008. When the unemployment rate also goes up (it’s over 7% now), that means jobs are totally eliminated and not replaced by new ones.
- Does more people competing for fewer jobs really drive down salaries (like it’s a “buyers market”)?
- Do employers often use this argument to pressure people who are interviewing into accepting lower paying positions?
- How can a person — whether a new hire or long-time employee — justify the right salary for their contribution?
It would seem like a vicious cycle and a recipe for disaster if employers eliminate jobs and then drive down the salaries (and quality? morale?) of employees by saying that it’s a “buyers market”, knowing that people could probably be easily replaced due to the tough job market.
Employers must be mindful of the benefit of keeping good employees and the costs of training and bringing new hires up to speed after letting people go. But are they?