IF THE ECONOMY IS
GETTING BETTER, WHERE ARE THE JOBS?
Gregory P. Smith
President George
Bush says the "economy is showing signs of promise." Productivity — the
amount an employee produces for each hour of work — increased at an annual
rate of 6.8 percent during the April-to-June quarter. This was "stronger"
than the government’s first estimate of a 5.7 percent growth rate
according to MSNBC news.
At the same time the
labor department said new applications for jobless benefits rose by 15,000
to 413,000 for the week ending Aug. 30. Corporate profits are
improving--layoffs are slowing. Economists appear pleased, but many of
your friends are still looking for work. If the economy is improving,
where are the jobs?
Much of the U.S. job
growth in the past several months has come from lower paying, less skilled
jobs such as food, office assistants, and other service sector jobs.
Going, going, gone.
One reason jobs are harder to find is many of them have been outsourced
and sent overseas. Forester Research estimates by 2015 over 3.36 million
jobs will be exported. In the 1990's, over 800,000 jobs went to China.
(U.S. News and World Report) It goes without saying that along with the
evaporation of these jobs so goes $136 billion dollars worth of annual
wages. In June, the Conference Board sponsored the 2003 Strategic
Outsourcing Conference. According to the Atlanta Journal-Constitution,
(June 27) over 125 executives attended this conference to learn how to
export jobs to other countries such as to "India, Philippines, China,
Malaysia, and elsewhere."
A factory worker in
China makes about $200 a month. On the other hand, U.S. autoworkers make
that much in one day or less. This comes at no surprise that Hondas and
Toyotas are outselling most American made automobiles. On the wave of
cheap labor, GM is the first U.S. automaker to build a plant in China and
expects to increase production by 50%. All-in-all this country is
importing more than it exports creating a huge trade deficit.
Crisis or
opportunity? We live in a global economy. When it comes to commerce,
territorial borders disappear. China has the 6th largest economy in the
world and is growing at 8% a year, while the U.S. is creeping along at
2-3%. More jobs overseas means more profits for U.S. multinational
companies. Currently, Wal-Mart is China's 8th largest trading partner
according to U.S. News and World Report spending $12 billion last year on
Chinese made products.
I don't pretend to
be an economist, but you don't have to be a rocket scientist to see a
storm on the horizon. Most of us have felt the impact of this economy on
our wallets. Sure, healthcare and the government sector jobs are growing
by leaps and bounds. But, I am concerned that for most of us the future is
still in question.
In the "old days"
good skills and a good education meant you were guaranteed a good paying
job. This is changing for many career fields and certainly is not true if
your job is exported. There is going to be a long-term impact on your life
style, not to mention your spending power.
Will this country
become a nation of "haves and have-nots?" In order for this country to
stay competitive we need to readjust our expectations, maybe even our
wages. Every business must focus on innovation and new job growth. Take
advantage of every productivity enhancement available. And for those who
have lost their job, don't be afraid to learn a new career.
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Greg Smith is a
nationally recognized speaker, author, and business performance
consultant. He has written numerous books and featured on television
programs such as Bloomberg News, PBS television, and in publications
including Business Week, Kiplingers, President and CEO, and the
Christian Science Monitor. He is the President and "Captain of the
Ship" of a management-consulting firm, Chart Your Course International,
located in Atlanta, Georgia. Phone him at 770-860-9464. More articles
available: http://www.chartcourse.com
