The year has started with an uncertain start, both in the UK as well as around the globe. In January, oil prices plunged, and Chinese growth slowed, which has scared market participants (but surprising none). In the midst of the turmoil and uncertainty of the market volatility, some economic trends are likely to continue to dominate throughout 2016.
Here’s a summary of some major developments that will define our society over the coming months to be.
Work for women
A lot of developed countries are seeing an increase in overall job opportunities. In the majority of cases, it is due to one key factor, which is the increasing number of women who are joining the workforce. This is one of the most significant social shifts in the present era. For instance, in the UK, the rate of employment for women is among the highest since records began, which is 68.8 percent, which is due in part to the continuing gender equality between the retirement ages of women and men.
There are massive gaps between the rights of women in the workplace and the opportunities that women have all over the world. In the end, those countries which do not have women working are left behind. Research has shown that women’s abilities on the job contribute significantly to the nation’s economy. This is, of course, due to the low wages and the gender gap in promotion, as well as the fact that more advancement is required to tackle these issues.
We can expect women’s jobs to grow and be associated with the growth of economics and other social benefits in spite of the global economic downturn. In 2016, organizations and countries that offer positive opportunities for employment for women will have better chances of thriving even in difficult times.
The debt trap
Although women’s jobs can provide optimism in the current economic climate, the current trends in debt and credit provide less assurance. Following the financial crisis, central banks and governments ripped an intestine to pump cash into banks to allow them to lend. However, there is the feeling of déjà vu and the feeling that the world could be hit with another crisis of credit in the year 2016. Two obvious indications are present: One in the UK and another from abroad.
The first is that the top central banker of the league, Mark Carney – who was transferred to Canada into the Bank of England as the ultimate master of inflation is now facing a baffling issue. There is no inflation he can master.
Inflation is not bad for our economy, much like a glass of wine every week to boost your health. The UK economy is currently far from its goal of 2.2%. Inflation could reduce the amount of debt that is currently in place and make it less burdensome. In a world with no inflation, it can be not easy to increase wages. The most likely scenario is that the cost of debt grows as wages and prices fall.
In other places, other countries, and other areas, a modest increase in interest rates within the US has made credit costly for a variety of. Companies operating in fast-growing countries that borrowed money in the days of cheap dollars are now in danger. For those countries that are tied to credit based on the dollar, There’s reason to be worried about the rising value of the dollar versus the local currency.
Expect to see debt statistics be a source of concern for the media throughout the year. Be on the lookout for a new policy approach that attempts to stimulate credit through central banks and governments. The need for new strategies is to bring money into areas of the economy that can increase productivity and provide real, long-term dividends, such as renewable energy. This is better than using credit to increase the value of assets, such as housing stock, or even company mergers and acquisitions.
A transport boom
In terms of productivity growth, transportation is a major growth sector within the world economy, and it is likely to remain on this track.
In the UK, railways have been a growing area for over two decades, with more investments planned. However, it is not without pitfalls in the political realm. Furthermore, China has witnessed an extraordinary increase in the development of high-speed rail and usage.
In addition, air travel increased globally throughout 2015. in 2015, and “hub” countries such as the UK and Gulf States benefit from this. The low oil prices make flights more affordable and promote growth. The air transport industry within the UK is in a prime position to expand, but it’s tied to an uneasy political decision regarding the runways in London.
The global automobile market continues to grow in a period when oil prices are low. While the number of electric vehicles increased more quickly this year, the numbers make up a tiny portion of the total.
The growth of transportation needs to be discussed along with the need to adoption of greener technologies. A lot of governments realize that the final reward will be advancing in the creation of electric cars as well as the infrastructure required for them to decrease pollution and improve the health of people.
For instance, the UK government has recently funded the development of four UK cities to offer better charging and parking facilities for electric cars. In London, the mayoral candidate, Zac Goldsmith, has made clear the connection between electric vehicles and the environment and proposed financial incentives to promote the use of electric cars. Tesla has been in operation for a while. The US has made huge sums in the hope that electric vehicles will be more well-known. The odds favor the brave.
We can expect to see an ongoing expansion in air and rail travel. At the same time, the nations and businesses that invest in advancing with electric vehicles and other transportation alternatives are likely to reap the highest long-term returns. Oil won’t stay at $30 per barrel for long.
Young people in poverty
Another major trend is the level of poverty faced by young adults. Students in the UK are leaving with more long-term debts, and Australia is taking steps to ensure that student debt is paid. For the US, student debt currently stands at $1.3 trillion.
Alongside housing, debt will be a significant problem for this particular group. The cost of housing is rising in major cities like Sydney, Vancouver, London, and New York. theTheserkets require large deposits, and rents are increasing. In the UK, this is making the gap between generations more severe in terms of the wealth of those who are 50 and above, who own the majority of the wealth in assets in the UK and housing.
In this time of economic hardship, these issues are a threat to governments looking to cut the cost of welfare. Recent information suggests that for UK cities, the increasing number of jobs with low pay has resulted in a rise in claims for welfare benefits, such as housing benefits, which is a major obstacle to the government’s plans to cut expenditure.
These challenges that affect young people are prevalent across the majority of developed nations. We can expect young adults to become more dependent on the transfer of wealth from their parents to pay off student loans and ensure housing, whereas those who are not receiving this support are facing a growing disadvantage. Only significant changes to policies can reduce the risk of further inequalities for the next generation.
Politicians are focusing on the needs of the aging population that is living longer. However, the younger generation is paying the price for their lost opportunities, and they are at risk of the future of social and economic change.