Kean University Employment in the US Commercial Banking since 1980 Paper

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Running Head: EMPLOYMENT IN THE US COMMERCIAL BANKING SINCE 1980

Employment in the US Commercial Banking since 1980

Student’s Name
Institution Affiliation
Professor’s Name
Course
Date of Submission

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EMPLOYMENT IN THE US COMMERCIAL BANKING SINCE 1980

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Employment in the US Commercial Banking since 1980
Commercial banking in the US had been the biggest provider of the most sought-after
jobs before the 1980s, uplifting the economies and job securities of many states. However,
with the impending crisis of banking systems a little after 1980, the regulatory systems and
employment schedules had to be reorganized, giving rise to competitive pressures that
economies could not uphold sustainability for long. Several authors give insight concerning
the overall collapse in the market in the aftermath of the closure of banking systems and its
effects on the employment sectors and capabilities. This essay aims to show the adverse
effects caused on the employment reduction by banking enterprises drastically cutting their
needs for labor staffing using statistical evidence presented in the past years.
Financial markets have always been dependent on the paradigms offered by banking
facilities and systems. Banking systems work, so that capitalist countries thrive as the most
profitable yet as the most volatile systems in terms of being unstable by the slightest change
in the financial markets. In banking, borrowing in the short term and lending in the long term
is how they create the reality of a virtual economy through enhancing the essence of credit.
On the other hand, what this means is that credit for the most involves the bank putting itself
in a vulnerable position dependent on how debtors remit their earnings and keep their sources
of income flowing in the long term. This arrangement makes the system highly fragile,
especially in cases of distrust from either side. Therefore, a crisis would ensue if the rate at
which the withdrawal of depositors would surpass the credit coming in and out of the
systems.
Following the efficiency of the market paradigm created by an attraction in the
intelligence levels of financial markets, most economists were swarmed by the ideas in the
1970s. Sporadically, the creation of banking systems saw the need for a labor market that the
then policies and workforce could not fulfill. According to the Bureau of Labor Statistics, a

EMPLOYMENT IN THE US COMMERCIAL BANKING SINCE 1980

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survey done showed that increased competition and weathering the difficulty in economic
conditions and eventually industrial developments were so abrupt that the economic situation
did not have time to cope with such a demand for labor. However, when the market tipped
over by 1990, the branches drastically increasing by ten percent, with banks cutting from
13,699 to 12,345 and the branches moving their numbers from 46,574 to 51, 225. The
branches meant more competitive edges were being created. Simultaneously, the merges in
the bankin...


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