Jobs and The Economy
By Hilbert Morales
El Observador
Superficially that 160,000-job increase during March 2010 was taken by many as an indication the economy is now in a recovery mode. When analyzed, the Census Bureau had hired 48,000 to perform the 2010 Census effort, and it takes 100,000 new jobs per month just to maintain employment at a 'steady-state' level, so that leaves an increment of 12,000 new jobs. The outcome of this analysis is that many individuals will face continued unemployment.
In a community such as the County of Santa Clara where 27 percent are Hispanics, it is the school dropouts who make up those with the highest unemployment rates. The economy of the nation has changed because many manufactured items are now being made offshore (India, China, Southeast Asia, and South Korea). The recent closure of the NUMMI vehicle assembly factory in Fremont, CA is a direct result of this trend.
The service economy that exists today requires employees who are 'knowledge workers' in some field. Already, educators are getting behind programs which encourage and motivate students to stay in school to learn the essentials of future careers in science, technology, engineering and math (STEM programs).
This program, along with the Obama Administration's current effort to focus on jobs, mean well but do not deal with the entire issue. It is the private sector (i.e., small businesses) that creates jobs and is responsible for 75 percent of all employment. The fact is that as a result of policy decisions made since the 1960s, today's American economy has changed quite a bit. This is even more apparent when one takes into account the impact of information technology (IT) on the way our domestic economy operates in a global competitive economy. The focus of many business leaders is to minimize regulation by governments, minimize taxes, and minimize employees needed-especially where enhanced efficiency is made possible by robotics and automation. This makes it very difficult for a youth to imagine a future, which is of interest today so that there is motivation to prepare for a livelihood having adequate income.
Employers want to hire employees who are able to perform on the job with the least amount of orientation and on-the-job training. Corporations are willing to hire employees who have demonstrated abilities to learn new skills while maintaining high production levels. Business leaders are focused on profits. In this climate, it is essential that parents guide their children to learn to read with comprehension, write, and know as much math as possible. Additional skills are the ability to communicate (preferably in two or more languages), to be an effective team member and to have the social skills to be involved, engaged, and included in a group. A commitment to non-violent inclusive diversity is a requirement for future success in this global competitive business environment.
Today our national economy is being 'stimulated by massive amounts of federal funding' which targets infrastructure projects that are 'shovel-ready'. But once the infrastructures (roads, bridges, mass transit systems, etc.) are completed, our nation must have an ability to do business in a global economy as well as our domestic economy. The future will require production of services and products that can compete with the low cost labor available offshore. The jobs of the future must be aligned with this future import/export economy, which is being currently developed in response to global market opportunities. Latino youth need to focus on their ability to develop and sustain products and services needed by Latin America to the south of us, as well as those service industries which will always be located and needed by local populations and businesses. The future economic recovery of the American economy will not be the same as with prior ones because too many factories here have closed. It would do well for the Obama Administration to communicate to all, especially ethnic communities, regarding the kind of skills and knowledge that will lead to having a job. A wholistic approach is very much needed if the American consumer economy is to emerge like a phoenix from the global business forces today. Today's student needs to prepare to be a 'knowledge worker' who is essential to the success of a global business. Information technology is transforming everything: cultures, access to information, hyper-efficient manufacturing, communications, etc. Those who prepare for that new economy will be most successful. It is not just about jobs; it is about the future national and global economy where we may all hopefully live in peace and prosperity. ∆
NOTE: Highly recommended reading: The 14 page Special Report on 'Rebalancing the American Economy', The Economist, April 3-9, 2010.