| I am sure you are aware that unemployment | | | | technology and telecommunications has made this |
| figures have boomed over a minimal period of | | | | achievable, but it does have a detrimental effect |
| time and there is evidence to suggest that this | | | | on our own economy. |
| boom is going to continue. Today I am going to | | | | An example of ‘demand-side' is the car sales |
| explain why this is true and why experts predict | | | | market. Because of the perception that our |
| that it could continue to happen. | | | | economy is struggling, some people are now |
| The leading factors contributing to unemployment | | | | reluctant to purchase brand new cars, opting for |
| can be put into two categories: They are | | | | less expensive used cars, or putting off upgrading |
| ‘supply-side' factors and ‘demand-side' | | | | their vehicle altogether. If you have researched |
| factors. | | | | buying a newly produced car recently you will |
| Supply-side factors are dominant when an | | | | have seen that there are exceptional offers |
| organisation is unable to fulfil product demand for | | | | available, as the manufacturers and distributors |
| the same price as their competitors. There is still | | | | are struggling to generate custom. |
| a market for the company's product or service, | | | | Although this is the reality there is very little we |
| but it is available for less elsewhere. Minimum | | | | can do about the situation. However, by being |
| wage restrctions stop the employer from | | | | concious of it, we can look at alternative ways of |
| reducing employee salaries and so the company is | | | | earning additional income, taking advantage of the |
| often forced to downsize. | | | | trends. |
| Demand-side factors occur due to reductions in | | | | If you have ever considered starting your own |
| demand for a product or service provided by a | | | | business then you would benefit greatly from |
| business. This affects the company's revenue | | | | identifying the impact that technology and the |
| and hence, they must reduce outgoings. This is | | | | Internet is having on industry and business. What |
| often achieved by downsizing. | | | | you should notice is that most successful |
| An example of ‘supply-side' would be the | | | | businesses today rely on the Internet to market |
| outsourcing of call centres. Some companies | | | | and promote products. This proviedes them |
| now opt for outsourcing call centre operations to | | | | access to a global market and with the advancing |
| countries like India, due to the vast difference in | | | | information age it is necessary to harness the |
| cost for the same service. Some people are | | | | world wide web whenever possible! |
| offended by this, but if you owned a call centre | | | | I hope this article gives you valuable insight, if and |
| and could reduce overheads by as much as 50% | | | | when you consider starting a part-time business in |
| would you not consider it? Improvements in | | | | the future. |