If the Economy is Getting Better,
Where Are the Jobs?
by 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 August 30, 2003. 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
lifestyle, 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.
Gregory P. Smith shows businesses how to build productive
and profitable work environments that attract, keep and motivate their
workforce. He is a popular speaker and author of the book, Here Today Here
Tomorrow: Transforming Your Workforce from High-Turnover to High-Retention. He
speaks at conferences, conducts management training and is the President of a
management consulting firm called Chart Your Course International located in
Conyers, Georgia. Phone him at 770-860-9464. More articles available:
http://www.chartcourse.com
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