We did not have a very pretty employment report (see the chart below since January 2001) this morning and it did not surprise us here at iProceed.com.
The reasons are simple and, in our opinion, the following:
- While offshoring is still a very small component of the overall job market, it continues and there is no way to stop it. The market forces in its favor are just too powerful.
- Globalization is here insofar as the job market is concerned. Since physical location is less important to get things done, Americans now have to compete with Chinese and Indians and anyone else. What companies want is a specific skill at the lowest wage and that does present a problem to a lot of people in the developed world, particularly if they do not have any unique skills.
- New jobs are not being created here in America and numbers clearly indicate that just waiting and hoping is not going to help.
What can we do?
- Americans, and in particular, the politicians, have to stop being in denial. Simply hoping for the job market to improve is not going to help. This is a fundamental and a structural change and we need to deal with it in this manner.
- Americans need to figure out what they can do to live a more globalized (which we happily created in the first place). The growth opportunities are there (and so are the job
opportunities) but they are not just in the physical boundaries of the 50 states. In our opinion, if the Internet allows people all over the world to serve Americans, it should also
allow us to serve them. So let us be creative and find out what can we do. - Retraining is key. A lot of jobs have disappeared from American shores forever and, no matter what, they are not coming back. We just have to learn to live in a changed world and move on. We do not expect public funds to be available to retrain all Americans and that is why it is incumbent upon the individuals affected to take the initiative on their own.
Recommended article: Globalization of knowledge economy means that American competitiveness may be under threat