[ST] Job Market
Con Droata
Dia duit,
today I’m going to write about economy. Something I can’t understand and something which always occupied my attention is why do people hire employees? The current state of job market isn’t profitable to huge majority of the company owners and yet there’s still plenty of well-payed jobs on the market. I can understand that some people simply wants to produce their own weapons, houses and food, but is there so many of them?
I took eSerbia as one of the strongest economies for example. They have the best resources, pretty acceptable taxes and strong stability. Their tax income per day is huge, it’s somewhere around 290 000cc per day, which is over 2 million CC per week. Let’s compare this to Ireland. Our daily taxes are around 2500. It means that Serbia makes in 3,5 days what Ireland makes in a whole year. Is that unfair to smaller countries? Maybe it is, but Serbia has been much more capable community and they earned their current state. I was just trying to explain you why did I choose Serbia. It’s a massive economy.
Is it profitable to hire employees in the biggest Erepublik’s economy? No, not even there. And yet, there’s so many job offers. The only industry which can make money with extra workers is house production industry, but I have strong doubts that all those job offers are placed by the people who own houses. Also, if that would be true house prices would simply fall apart.
Losses per worker which gets an average wage of 63,27 CC is a bit more than 12 CC in Q5 food companies.. Now, the highest offer is over 90 CC which means that losses with the current wages are even more. Having workers with average wage in Q7 weapons company will make you a loss of 16 CC. Having workers in house companies will bring you 29 CC profit, without counting raw material needed to build the houses. If we count that, your total loss will be 20 CC. Which means no companies are profitable with having workers. Now we’re returning to the main question of this article. Why do people hire workers?
The current state of job market isn’t nearly profitable for company owners. Even though there’s so many offers...the wages should be lower to make employing people profitable. Average wage should be around 40 CC, only in this case all the companies would make a profit. Now.. what would happen if company owners would stop hiring people? There would be massive inflation of weapon prices since there wouldn’t be produced ones. A normal, not gold-buying player wouldn’t be able to buy a Q7 weapon with wage only.
I still haven’t answered on the main question because I don’t have a logic explanation. Why do people hire workers?
Erepublik-Deutschland
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Go raibh maith agat le haghaidh léamh!
Yours,
nord86
Comments
First o/
Good analyzed anyway !
Thanks mate! 🙂
The house industry is the main driver of wages. Wages increased dramatically after housing was introduced. Since you can't work as manager for that, there is no choice but to hire workers. I assume there is some sense to it, but I'm not in that business myself.
I think most Q7 weapons are coming from communes and work as manager. Most other weapons are probably produced at a loss, but that's a tiny amount anyway (I assume).
Also, sometimes even the Q7 weapons market doesn't make sense relative to the cost of raws and taxes, even WaM, indicating that a lot of people are producing their own raws (rather than buying) to feed factories and not doing the math, or maybe just don't care.
Thank you for your opinion.
House industry isn't profitable at all. Your expenses are around 20cc, why would anyone bother building those companies?
Q7 work as manager produces 20 weps, most of those with such companies use at least 50-70 per day, which means that's about 3-4 companies. Surplus isn't enough to cover all the offers on the marketplace. Working in the communes isn't a thing since 2013. almost no one does that anymore (or at least no one who tried to calculate profit/loss).
"indicating that a lot of people are producing their own raws (rather than buying) to feed factories and not doing the math, or maybe just don't care."
-couldn't agree more, but I still don't understand..why..
fwiw, when I left the eUSA ... a couple of months ago ... communes were still going strong there, and were by far the most common work arrangement. Punitive taxes are levied on everything else there. New players in eUSA are told it's the only way to go. When I started out I was in an official government MU, told to work for a commune factory in China, got a $1 wage, and was provided some tanks and food, but only if they thought I did enough fighting that day and properly requested supplies in IRC. I left that servitude before long, but others stay.
in reality,
small open countrys price must follow massive countrys price, called World market price,
although all country have opend to each other, customers and workers move other county is still restricted, due to custom diffrence and so on..(also countries trade barrier countibute)
anyway, undeveloped countries can keep low wage than developed country
in other worlds, they have a comparative advantage
but in the erepublik. workers moving is very easy
if the wage is unsatisfied, employees find another company in the other country
only Powered country owners meets their demands
(serbia, romania, greek? , also USA, but their WT is too high not attract to employee)
in addition, weak county cannot have a valuable resource more seriously than Real undeveloped country
markets conditions only adjusted by major countries situations
under situation 'average wage' cannot have a more literal meanings
so I little doubt that explain erepublik economy with a 'average wage'
if the laborers worked with low wage, reason is simple
they dont know exist of high wage workplace, or engaged employers-workers mutual relationship
and.. tire to move other countires.... 🙁
oho.. in other words*
Great comment!
and house system is only market of making profit
but required important conditions, have a 100% bonus,
sadly, at present in the Eworld, serbia, romania, and usa only meets this condition
(but USA have all house bonus in thier core region, this is very invaluable advantage)
but except House RAW materials and Q1 house, common people not easy to enter the company
only rich people could keep the high rank house companies
perhaps, house system also do not meet ideal market
Q7 tank factory? answer is simple
making a profit is possible, if the manager make needed all WRM
this means company owners build a Q7 tank factory and.. very vey many WRM factory
(681 gold(Q7 Weapon factory cost, 45% sale season) + @@@@@@@@@ Gold)
to achieve making a stable profit,
you need 2441~3761 Gold, it is IMPOSSIBLE to common user!!!!
and another answer is using a Multi.
it is more easy way.
meet needed workforce and WRM through internal transaction
[removed]
Can you tell me your calculation?
Sorry i deleted the Comment by Accident xD xD
Example:
a Q7 Weapon Factory, RW cost 10 cc per Weapon,
You can sell for 15. So if you make 20 Weap(all bonuses)
You have 100cc Per factory, So employees under that wage is worth it.
Is there something i got wrong there?
Also RW can be hard to sell, so might aswell produce some if you don't loose money.
Food is easy to make in your own factories because Quality doesn't matter as much.
I see maybe RW can cost more, but as i said if you make it Yourself it can be hard to sell, And some maybe buy cheap and have left from cheaper days.
And I meant food is cheap because people make it easy them self.
It's late for me that is why i am making such a mess here xD .
Wrong price of wraw, you forgot taxes and wage for worker, also workers productivity. Just check out erepublik deutschland pagr I linked in article, use company calculator tool and it will all have much more sense.
Working as manager is profitable, but it wont return your investment in company for more than 5 years (lol). Having workers isnt nearly profitable.
Yet another good article 🙂
A strong part of the game is alliances. Big countries have much more efficient economy, but they waste much more due to wars (as domination is the reason countries exist in-game). Smaller countries-communities can co-operate with big allies , in order to achieve better efficiency in economy. How is that possible? Communes - region trades and maybe other ways too.
This game is certainly pay-to-win but at least if you can handle to unite many people, you have more options as unity. As a single player , unfortunately if you want to improve massively , you gotta pay...
houses bonus rules the job market
100% bonus MAX 95cc job market
90% bonus 85.5cc
80% bonus 76cc
70% bonus 66cc
60% bonus 57cc
50% bonus 47.5cc MAX
Profit would be possible only if housing industry wouldn't require raw. When you count in wages you spend on raw material companies you're making a loss regardless of the bonuses :/
We calculate wages by raw not by houses company's
1 worker produce 250 raw
250x 0.19cc = 47.5cc
that means everything what you pay him under 47,5 is for you
if you sell in a country without TAX for raw export
HALLELUJAH !!!!!!!
That question bugged me enough, great article.
A lot of people just don't do the maths and produce at loses, others pay people but don't produce, they just save the "labour power". Don't look for economic sense in eRep, cause there's not.
პარახურამენტო
actually prizes is now at 17.18 * 14 = 240 minus 65 minus work taxes still would give a profit in q7. wrm is usually produced by the player themselves. the problem with workers is players pushing their multies onto your offers . go and ask don croata why he does this? it does not make that much sense. and then usually keeping a constant workforce is a bit tiresome.
but besides that one has still wam clicks in q7's
Actually while working as manager you make around 50cc profit on the Q7 company. Which means you're going to return the investment in 8218 days.
You're making a loss of -3,61cc with having one work. If you have 20 of them you're going to make a bit more than 60cc loss per one company and you'll never return the investment.
But yeah, you can keep talking about things and point fingers instead of doing some basic math. Which I believe is too hard for you..
i have almost 200 factories including 2 Q7 Factories. The ROI has already been discussed by me. ROI is a consideration for a rl business but this is a game. There is stuff that offset ROI like other more profitable businesses /BH medals / stashes and one can take say 5 companies and just each month upgrade one or 2 or all at the start. one needs flexibility. and who is going to just build up a fat bank account.
also there is no work tax on worker tickets 😛 so that would make your total argument invalid
http://cdn.lolbrary.com/2013/12/6/lolbrary.com_29032_1386345090.jpg
http://img.izismile.com/img/img6/20131025/640/its_a_factyour_argument_is_invalid_640_24.jpg
Do some simple math , or just check the reply on your previous comment.
well im already at +- 200 factories. Our prizes is almost at the 10 gold a day profit stage for me. So each day I make enough money for a new factory. One builds up an account . And as well you forget you can sell the Q7 factory as well as dispose of it for half. So if you have it you always have the opportunity to cash it in again if you feel other areas maybe more profitable. as far as i know ROI must include the sales value of the item if its a property i mean you can push it back in the market. so if is paid 600 gold for it and make 100 gold from it and push it in for 590 gold what would be my ROI then mister calculator.
http://www.investopedia.com/articles/basics/11/calculate-roi-real-estate-investments.asp
as you can see as i pointed out ROI on a sale able property like a factory is, would include prize of purchase and sales prize as well as income made on it. i can sell my 2 q7 weps factories at any stage for near their original purchase prize. what is the purpose of an economic game other than having a daily reasonable income.
in the meta game one would then take your worker tickets create weps and then use it to build up a good mu.
Fun fact:
This is not a RL
yep and thats why you buy q7 weps factories so you can make some weps of your own. job market is a mess because people do not stick around and is to fickle and is many times just around for a few days before they consider the game boring.it is cheaper to pay a worker to produce some weps for u than buying it on the market. and as well in a high prize market like this you could use your build up tickets to great effect.
as well as players are just ppl. if you have them in you can negotiate with them and even make them work for part of the production rather than pay. your not totally wrong but my problem with workers is mostly that their lazy and many times goes inactive in a very quick time. your 10 workers can quickly dwindle to zero.
if you have a commune you could have the full production without any work taxes.
Your whole theory is wrong when you do the math, just do it!
your whole article contains no math. you go do the f* math and place it in your article you lazy a*
Placing your goods on a foreign market exposes you to crippling import taxes on top of the standard national vat of the nation. But buying from a foreign market incurs only standard national taxes. Once those goods are in your inventory you can post them on your own market facing only standard national taxes from anywhere in the world. And it doesn't really cost anything to travel.
Theoretically a single player with eIrish citizenship can move permanently to eSerbia and continuously peg eIrish markets to the larger economy's. So our markets are always trying to drift to near the sum national taxes of our nation, and that of the market leading nations of the world.
Our low population does make the process erratic and unreliable however.