onomy is expected to slow, albeit to varying degrees, by mostly anyone in the economic world with a shred of credibility. If this prediction proves accurate then the pressure will subside on wage growth and Greenspan will get a good night’s rest. Another factor that is microeconomic but plays a role in affecting other microeconomic elements as well as the macroeconomic environment is unemployment. Because unemployment is so low, workers on all levels of skill are in short supply and the acceleration in wage growth over the past twelve months (at a pace that also made many CEOs sleepless) may be due more to employer bidding-wars than a brazen workforce pressuring their employers for higher wages. This theory would be especially true in the skilled technology occupations (computer systems analysts, programmers, etc.). Still, it is likely that the unstable nature of a job environment that includes downsizing, outsourcing, temporary workers, and continuous learning (especially where technology is concerned) will raise a crop of overconfident employees demanding higher paychecks any time soon. Therefore, it is likely that unemployment will remain low and job growth will continue to evolve without having setting off wages inflation due to worker job insecurity which remains high despite it being an “employee” market, “…a key measure of worker security-the quit rate, or voluntary job leavers as a percent of those unemployed-continues to languish below the levels reached in earlier expansions, suggesting that workers still lack confidence about job prospects” (Koretz 1).
The GDP is used as a barometer of the nation’s economic health covering the goods and services produced inside a nation’s borders. Recently, stalled global growth, profit stagnation and slow or falling markets have made many predict that the GDP, which has been enjoying a booming 4% annual growth rate with double-digit profits, will definitely suffer...