Governments wooing larger businesses for job relocation
There is a definite issue with unemployment in the United States. Over the last five years there have been many family members who have lost a job without receiving any real benefits to get them through until they are able to find employment again. There are a lot of questions about what is right with regards to employment, both on a company and on a personal level.
First, on a personal level it may seem like a great idea to undergo job relocation to keep your job if it is offered. You know that you will have a position so that the income is not lost; however, you have to think about the costs of moving, the housing value loss you may suffer, and whether it is the best thing for the family. A person without a family and with few roots can make a move to a new city more easily than an entire family that owns a home. Still, if only one person is currently working it may be necessary for relocation to happen to ensure the family’s protection. The concepts explored here are just a few things that individuals might need to think about when it comes to relocation.
From a business standpoint there are several reasons that may entice a company into business relocation. Business relocation can be undertaken in the same city, often to find a new and larger office or to downsize. Moving a business from one city to another in an entirely different state is something completely different. A lot of local governments have examined certain corporations of late to determine if their relocation to a new location is worth bidding for to get that company to their doorstep as opposed to another city.
For instance, company A has decided to look around for a place to relocate to, perhaps to reduce costs or to consolidate. Government A tries to keep the company in their city, but Governments B, C and D are offering enticements to get the corporation to move to their doorstep. Governments are doing this to help stimulate their economy. Business relocation when a company goes to a new city often means more funds in the economy from the employees that are being brought with the company. Their income will be spent on gas, groceries and other needs that the new city has to offer. Also, it is widely known that not all employees will be asked to relocate or that employees will not accept the relocation if offered. It means that the company will probably need to hire a few employees from the local market to fill the positions they have open. This is why local governments have been bidding to bring a few corporations around the US to their state.
The question of whether the business relocation truly helps the local government is based on the enticements given to the company to choose their new location, and also whether there will actually be jobs open to help the local economy or not.
Jon HuserBack to all blogs
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