Income is perhaps the most important social determinant of health. Level of income shapes our overall living conditions, affects our view of the world, and influences our health. Income determines the quality of other “social determinants of health” such as food security, housing, and other basic prerequisites of health. [Social Determinants of Health THE CANADIAN FACTS, 2010]
The fact is that every time there is an injection of extra income into a local economy, it creates a “Multiplier Effect.” This Multiplier Effect refers to the increase in final income arising from any new injection of spending. When a job is created, more dollars are entering a local economy, to be spent on local goods and services. For example, if John gets a job, and has $2,500 a month to spend, he will likely spend some of his income on groceries, he may take his wife out for dinner, get some car repairs that were needed and so on. Each of the local businesses that earned those dollars, will then re-spend that money on more local goods and services. This cycle happens several times before the money is finally spent outside the region. The multiplier effect varies, but generally the multiplier effect is thought to be between 3 and 8. In other words, John’s pay of $2,000 has an impact in the local community of between $7,500 and $20,000 every month!
The new Thrift Warehouse in Bancroft has created two full time jobs already (and we’re not even open!). We hope to create more part and/or full time time jobs over the next few months. That’s a lot of economic impact in North Hastings!
7 other advantages of job creation:
1. Job creation increases financial security.
This one may be obvious, but when individuals are unemployed, they often must deplete their savings, incur debt or rely on public and/or private assistance of some kind. Having an income brings more financial security.
2. Job creation results in increased spending, translating into higher sales and profits for businesses.
When a community suffers from high unemployment, it is denied important purchasing power. Local businesses will lack the sales they need to support investment and employment. Additional layoffs may occur, increasing these problems. Job creation provides at least some people with a steady income stream which then has the “multiplier effect” referred to above.
3. Job creation is the key to good physical and mental health.
Individuals who are unemployed/underemployed are more likely to lack health insurance. Parents may be less likely to take their children to the doctor if they cannot afford transportation or worry about paying for medicine. Studies have shown that unemployment is directly related to poorer physical and mental health, and prenatal care. And of course lack of income creates stress and anxiety. Job creation helps improve those issues.
4. Job creation helps alleviate poverty.
Unemployment/underemployment is a major cause of poverty. Job creation is the best antidote as it is contributes to the ability to have adequate housing, sufficient and healthy food, recreational activities and other things that contribute to quality of living.
5. Job creation is good for the elderly.
Many elderly are dependents, and so job creation increases their security by increasing the ability of their children/family to support them. This doesn’t have to be direct financial support, but could also be giving family enough money to drive over frequently to check on mom or dad, help with chores, and purchase necessary items that will help them stay at home.
6. Job creation may allow children to return to school or complete more years of schooling.
Unemployment is directly related to increased school dropouts. Families where the parents are unemployed often need their children of working age to help chip in to support the family. Job creation may allow those children to return to school or complete more years of schooling. In the long run, this results in a more educated, better skilled labor force, increasing productivity, and all the benefits that go along with that.
7. Job creation promotes community.
Unemployment/underemployment not only affects individuals, but high unemployment can depress an entire community. Job creation ignites hope in both individuals and communities, and promotes a positive sense of community.
Thrift Warehouse Bancroft is a social enterprise of SIRCH Community Services.
You can support Thrift Warehouse, and job creation, by:
• Donating clothing, household goods, furniture, lighting, tools and more
• Buying reasonably priced items from Thrift Warehouse – check here first!
Thrift Warehouse Bancroft – 29556 Hwy 28S (between Kawartha Dairy & JJ’s Diner)
GRAND OPENING Sat Apr 4, 2015 10 am (ribbon cutting at 11 am)
Donations of gently used household items being accepted Wed-Fri 10 am – 5 pm
Check out Thrift Warehouse Bancroft on Facebook!