#economy #YourEconomy #jobs #raises
OK. The numbers show a booming economy.
Corporate profits are up. The unemployment rate is at a historic low.
So, how are you doing – financially, that is?
Arizona Republic columnist Russ Wiles poses that question in a column for USA Today. It was also published July 1, 2018, in The Atlanta Journal-Constitution.
If you don’t find yourself in a booming financial situation now, here’s what Wiles suggests: find a better, steadier job, while the unemployment rate is so low; He admits, however, that a lot of jobs pay poorly or feature irregular work hours.
He also suggests getting financial help from someone outside your household – hey kids, ask mom and dad or supplement your income with a part-time job in your off hours.
He even suggests the bold move of asking your boss for a raise. Wiles says the employee may be in the driver’s seat in this economy. We’ve all been told, perhaps, that it never hurts to ask. After all, the answer is always NO if you don’t ask. As a practical matter, however, most request for raises generally receive a NO, perhaps in a more graceful manner.
Let’s look at this problem from the employer’s perspective. The general rule of thumb is to pay people as little as you can get away with. However, if you have good, dependable people working for you, it may improve your bottom line – and cut down on work you have to do yourself – to INVEST in those people.
It’s not just in raises, though they indeed may be necessary. You want to make sure that if you know of some particular hardships that a good employee is enduring at home, that you help relieve some of that stress as best you can. Recently, an Alabama worker just hired by a moving company walked 20 miles, hitching rides along the way, to make sure he showed up for his first day of work.
The employee’s car had broken down and he had no other way to get to work. The boss, realizing how difficult it is to buy that kind of dedication, gave the young man a car.
That CEO should make sure he has a decent career ladder crafted for that employee, so that he never leaves.
Of course, at the same time, we read about employers dealing with workers who don’t show up for interviews, or, worse, are hired and don’t show up for their first day of work. Or, they abruptly leave a job without giving the employer any notice.
Reports indicate that during the recession, people would apply for or be interviewed for jobs, and the employers never get back to them. This may be in retaliation for that.
If you follow Wiles’ suggestion and consider getting a second, part-time job to boost your finances, consider a thought outside the box. There are many ways out there to pick up some extra money – perhaps eventually enough to quit a lousy job you hate, that doesn’t pay you enough – that do not involve a second, traditional job. To check out one of the best such vehicles, message me.
In short, these are supposed to be among the best of times for workers. However, many jobs involve hard work and low pay – or at least lower pay than many deserve. Companies have to keep their costs down to compete. The employers have to make money. No one wants to work for someone forced to go out of business.
It’s up to employers and employees to learn more about each other’s circumstances. There’s really no good reason for people not make good wages, while companies make decent profits. It does workers little good to keep changing jobs, and it does employers no good to have to be constantly rehiring.
Everyone – employers and employees – wants options. If everyone treats everyone fairly, there’s no telling what great options everyone will have.
Peter
Tag Archives: jobs
ROBOT TAKING YOUR JOB? DON’T TRY TO STOP IT; ADAPT
#robots #RobotsTakingJobs #automation #jobs
Experts everywhere are trying to figure out what to do when robots take over the lion’s share of jobs.
Though it is already happening, many speculate it will be more widespread in years to come.
The Houston Chronicle took on this topic in an article that was also published in the June 16, 2018, edition of The Atlanta Journal-Constitution.
Some would have the federal government give everyone what they needed to live on, while the robots did all the work, the article says.
In a Roosevelt Institute paper, titled “Don’t Fear the Robots,” economist Mark Paul writes that a series of not-so-radical policies would go a long way to ensure the technological advancement would be widely enjoyed, the article says.
Paul argues for overhauling intellectual property law so that the companies that develop valuable patents and trademarks don’t have such a long monopoly on their innovations, the article says. Paul also sees more people working part-time, sharing jobs, as a way to keep unemployment low, the article says.
He also argues that that the rapid shift in needed skills and technologies would strengthen the case for more publicly funded higher education and training, the article says.
Whatever solutions are developed, our attitude should be to embrace technological innovation, rather than stymie it. After embracing the new technology, even if it personally affects us, we can then figure out what our own next steps should be to not just make a living, but to potentially prosper.
Fortunately, there are many vehicles out there that we can check out to potentially solve our problem. The good news: no robot could take those options away. We just have to be open enough to check them out, even if it means doing something you never thought you would ever do.
If you see yourself losing a job to a robot, or someone else, or if the job you are doing now is not helping you fulfill your dreams, message me if you want to check out one of the best alternative vehicles.
Our knee-jerk reaction to change is to try to stop it or stand in its way. Remember, those who stand in the way are more likely to be run over.
Technology, efficiency and innovation are all coming. We can’t stop them, so why not embrace them?
Factories will continue to hum along, just, perhaps, with many fewer people.
More work will be untouched by human hands.
Progress cannot be stopped.
We just have to figure out how we will fit into the new world.
Much like the weather, progress will be what it will be. It will take us wherever it will take us.
Standing in its way will get you body-slammed.
Don’t just stand there. Adapt.
Peter
LABOR UNIONS GETTING MORE CLOUT
#LaborUnions #MoreUnionClout #workers #jobs
Labor unions, and their power to create a lifestyle for their members, have been declining for years.
And, government has been assisting in that decline by passing laws reducing the unions’ bargaining power. Recently, the Supreme Court ruled that government workers who declined to join unions that represent them in collective bargaining cannot be forced to contribute to those unions.
That ruling would certainly have an impact on a union’s ability to raise money to cushion labor disputes etc.
But, according to an article by Nicholas Riccardi for the Associated Press, there’s a little more enthusiasm now for labor unions. His article was published June 29, 2018, in The Atlanta Journal-Constitution.
“There’s kind of a spark going on now with unions,” the article quotes Mike Hinton, 39, a UPS delivery driver and Teamster from Campbellsville, Ky.
Whether its Las Vegas workers striking at Strip casinos, and winning concessions, or teachers striking in states that have chopped education budgets for years, unions are trying to make a comeback, the article says.
In fact, the article says labor unions picked up 262,000 new recruits last year.
It’s not clear why unions are making a comeback. “I don’t know if locals have been unusually organized rather than things have just gotten very, very bad,” the article quotes Moshe Marvit, a Pittsburgh-based labor attorney and fellow at the Century Foundation.
Some historical perspective is in order. As the Industrial Revolution took hold, factories – often called sweat shops – emerged. People moved off the farms to get jobs in these factories and, at the beginning, those jobs paid very little for the hard work people had to do.
So, organizers got the idea of trying to negotiate better wages and benefits for the workers. If they didn’t get what they want, they would convince most, if not all, the workers to strike until demands were met.
Over time, those demands created inefficiencies in the workplace, and companies could not change things without union approval. Of course, the unions’ mission was to preserve as many jobs as possible, with the best pay and most benefits.
Technological progress sped up, and companies found ways to produce their goods more efficiently with machines, rather than human power.
As fewer people worked in factories, unions gradually lost their clout, with the exception of the public sector unions.
Some recent improvements in working conditions have taken hold because of a tightening job market. Still, in general, job security is almost non-existent. Raises are few and far between. Employee benefits, pensions etc., have gradually gone away. The income gap between rich and middle class grows wider. The middle class is declining.
Perhaps, with a strong economy and companies unable to find enough workers, labor feels emboldened.
The lesson here might be that, for as long as it took for unions to gain power in previous decades, workers may not want to wait for that to happen again.
If you have a job that doesn’t pay you enough, or give you enough benefits, you might want to find some part-time, off-work hours in your schedule to check out the many ways to earn money that doesn’t involve a W-2 job. To check out one of the best, message me.
Organizing labor is risky, as the article points out. The way things are, or the way things are headed, may make workers believe it’s worth the risk to organize.
Remember, whatever choice you make, think it through and make sure it’s the right thing for you to do. There are ways to bolster your financial future with much less risk.
Peter
BUYING A HOUSE REQUIRES MUCH THOUGHT
#HomeBuyingMistakes #homebuyers #BuyingAHouse #DreamHouses
Buying a home is a big decision, no matter where you are in life.
“When you’re in your 20s, your life isn’t the same as when you’re retired, and yet you’re both going to make some timing mistakes (when buying a home),” Natalie Campisi quotes Ilyse Glink, author of “100 Questions Every First-Time Home Buyer Should Ask.”
Campisi wrote her article for Bankrate.com. It was also published June 11, 2018, in The Atlanta Journal-Constitution.
Campisi discusses the various mistakes buyers in different age groups make. Young buyers, in their 20s, often get the wrong type of mortgage because they may not have had the ability to save as much for a down payment. The lesson here is to avoid adjustable rate mortgages, tempting as they might be for young buyers who see a great introductory rate.
Buyers in their 30s, meanwhile, may not be considering a future family when standing in the middle of a downtown condo with great views, Campisi writes.
Middle-age buyers in their 40s and 50s tend to overestimate their budget and buy houses they can’t afford. One can avoid this by figuring out his or her lifestyle comfort level, Campisi quotes Glink. When figuring out a budget, these buyers should leave enough room for things that are important to them, such as private school tuition for the kids, Campisi writes.
Retirees, in their 60s and older, tend to fall in love with a vacation home, Campisi writes. They get attached to a vacation home before making the decision where they might want to retire – either where they live now, a warmer climate location or even another country, Campisi writes.
In short, buying a home requires careful thought and wrong decisions, no matter how old you are, can be costly.
Younger folks may opt for a smaller, more affordable house as a starter, with plans to trade up as they get more financially settled and decide when, whether and how big their family will be.
Older folks may go from bigger house to smaller house, as children leave and the desire for less upkeep strengthens.
But it boils down to money. What if you could buy whatever you wanted, wherever you wanted? For most, that’s a dream. Yet, it could be a reality if you consider ways other than a traditional job to make money.
There are many such vehicles out there for those willing to consider escaping – even for a few hours a week – his or her comfort zone. If you are that type of person, and have the desire to live where you want and in whatever house you want, message me to check out one of the best such vehicles.
The Bankrate.com article talks a lot about the practical considerations to home buying, and less about emotional considerations.
For example, you may have sentimental attachments to a house – perhaps it’s where you raised your family or, as the article pointed out, it’s where you liked to go on vacation.
Remember that adding emotion into such a big decision can complicate matters. So, if you buy a house, think of it strictly as a house – a financial asset that provides you shelter, and comfort, of course. Your home is wherever you are.
A dream house can be created with building materials. It can also be purchased already built. A dream home is wherever you decide to settle. You can create a dream home by making the most of life wherever you are.
Peter
MILLENNIALS’ FINANCIAL DITCH
#millennials #StudentLoans #CollegeDebt #FinancialSecurity
Some millennials find themselves in not just a financial hole, but a ditch, just as they start their adult lives.
They come out of college deep in debt, and wind up with a low-paying job, making it difficult, or impossible to keep up with their loan payments.
Tom Allison of the Young Invincibles, an advocacy group, discussed this in an article that was published May 1, 2018, in The Atlanta Journal-Constitution.
Allison talked about Siara Sellers, 28, who owes almost $13,000 in student loans. She’s working part time at a UPS warehouse near her Detroit home, making $11 an hour. She had to leave school in 2013 after her grades plummeted. Her older, now-retired husband became sick at that time, the article says.
“Young adults with college degrees and student debt, for example, find themselves looking at a median, negative net wealth of $1,900, based on research by the Young Invincibles. Simply put, they owe more than they own,” Allison writes.
“There’s no question it used to be much easier to build financial security 25 years ago with a college degree,” Allison says.
So what is a young person to do?
First, don’t let circumstances get you down. Learn to make the most of what you have, and appreciate what is good in your life.
Second, the employment picture is improving greatly. It was reported recently that there are about as many jobs as there are unemployed people, which is just about the best of both worlds. That could send wages and salaries higher.
If you have a marketable skill, find different ways to use that skill and, if you have enough ambition, a clean record etc., you should be able to find something suitable.
Once you get a job that suits you, pay down your debt at whatever speed is comfortable. Obviously, paying it down sooner rather than later is preferable. Then, once it is paid, use that payment, plus any income increases you may get, to put toward your retirement.
Easier said than done, you say? Well, there are many other ways out there to make money working part time in your off hours, without taking a second, W-2 job. If you are motivated and want to help others prosper, you can learn about one of the best such vehicles by messaging me.
Those who are older may want to be young again, but others who are older do not. What the young folks are going through is tough to watch. In fact, some older workers are “being retired” sooner than they want to.
In short, if you are young and considering college, think about what it will cost you, and what you will do with your education on the other side before deciding to go to college. Though all education is valuable, it may not be worth taking on what would seem like a lifetime of debt for a degree that won’t make it easy to pay off.
Just as you need, as a young person, to have the right attitude, you also need to make decisions that will be best for you in the long run. That may require opening your mind to things that may lurk outside your comfort zone.
Times are tough. But tough people get through them – even to the point of seeing prosperity.
Peter
DON’T COSIGN YOUR GRANDCHILD’S STUDENT LOAN
#SchoolLoans #CosigningSchoolLoans #EndangeringRetirement #StudentLoans
Students looking to go to college might hit up one or more grandparents to co-sign for a student loan.
Personal Finance columnist Liz Weston recommends against it, for the most part. She discussed the topic in an April 29, 2018, edition of The Atlanta Journal-Constitution.
Here are Weston’s reasons: late payments will trash the grandparents’ credit; if grandparents have to take over payments (perhaps because the student, presuming he or she graduates, may not find a job immediately, or has to take a low-paying job), the strain on their finances can endanger their retirement.
Of course, this could be a moot point if the grandparents are independently wealthy.
So, if you are considering co-signing a student loan for your grandchild, or the child of a friend or relative, consider this scenario: the child graduates from school with a five- or six-figure debt, and can’t find lucrative work – or, at least, work that would match what he or she studied. If you’ve co-signed a loan, the debt collector will notice that and come after you almost immediately, because there may be a house or other assets they can tap quickly.
If you are a student, do you want to put your grandparents, or other friends or relatives, in that position?
If you are the grandparents, or other co-signers, do you want to mortgage your future for the sake of that student? At least in theory, the younger generation should be working to help the older generation, not the other way around.
If you are distant from the student, and co-sign a loan because your friend or family urged you to, how much do you think the student would care that he or she has saddled you with this debt? Many students believe college loan debt is something they can blow off temporarily until they get financially settled. If the debt collector has already been repaid by a co-signer, the student may not be obligated to repay you. What lesson(s) does that teach?
It all goes back to the reason a student chooses college in the first place. Certainly, students with good grades and a clean record should actively consider a college education. Perhaps that student can opt to start his or her education in a low-cost community college, and graduate up to a four-year school.
That would ease the college tab a good bit. But as the student and parents think about the student’s future, they have to consider what the student will do with the education, and whether what they do would be worth the investment (or expense, depending on how you look at it).
Another idea: defer admission for a year, and have the student get a job that will allow him or her to save a good chunk of money for college.
Also, does the student have the discipline, ambition and tenacity to do well in college, in spite of temptations that could distract him or her? A smart student with no drive is like a shiny car with no engine.
And, if the student has the drive and smarts for college, but chooses a field of study that will be enjoyable, but not terribly lucrative, perhaps the family should consider a vehicle that will help the student pursue his or her passion, while earning a potentially good income with a few part-time hours a week.
There are many such vehicles out there. To check out one of the best, message me.
Weston, in her column, goes on to advise grandparents, and other co-signers, how to deal with the problem if they’ve already cosigned.
Here’s her warning, if you are in too deep: “Talk to a bankruptcy attorney. Student loans are extremely difficult to erase in bankruptcy court. …. If you don’t have any assets other than retirement funds, and your only income is from Social Security and pensions, you may be “judgment-proof. That means, if you are sued, the creditor can’t collect anything.”
Try not to get yourself in that situation. If you are asked to co-sign, say no, firmly. Your grandchildren, relatives and friends may be disappointed. If they are, so be it. You will have done the right thing by you.
Peter
HAPPY RETIREES
#HappyRetirees #mortgages #MultipleSourcesOfIncome #FullCalendar
There are three characteristics that make happy retirees.
Those are a paid-off, or at least paid-down mortgage, multiple sources of income and a full calendar of activities.
So says Wes Moss, who writes a Money Matters column for The Atlanta Journal-Constitution, and has a Money Matters radio show on WSB in Atlanta. He discussed happy retirees in his April 24, 2018, newspaper column.
Moss narrowed the happiness criteria down from the research he did for his book, “You Can Retire Sooner Than You Think.”
The mortgage issue is certainly up for debate. Certainly, when one is working, paying down mortgage debt is certainly a good use of money. It’s not a substitute for saving and investing, but if you have a relatively high mortgage interest rate, applying extra money to one’s principal in mortgage payments is like putting money in your pocket.
Of course, if your interest rate is relatively low, and you have a good financial adviser, you can probably do better saving your cash and investing it well. A rule of thumb: if you have a 5 percent interest rate on your mortgage, and you have a good financial adviser who can certainly make you a good deal more than that on your money – on average, of course – then saving and investing could be more lucrative over time.
On the other hand, in a down financial market, paying down that mortgage debt IS a good use of excess cash you might have. It’s certainly better than spending it on frivolous things.
Keep in mind that the more debt you pay down early in the mortgage, the less interest you’ll be paying toward the end of the mortgage. As more of your monthly payment is applied to principal, the sooner your mortgage will be paid off.
Multiple sources of income is also a good thing – not necessarily more income, as Moss points out.
We think of income sources for retirees in terms of a pension, Social Security and perhaps a low-stress part-time job that you like doing.
If you’d been a good saver and investor in your working years, you might also use some of the dividends, interest and other income your nest egg is now earning for you. Try to refrain from touching your nest egg’s principal. Whether you die young or live a long time, as long as your principal is relatively intact, you will NEVER outlive your money.
As for a part-time job, it may serve two purposes. It will provide some pocket money and keep you busy in your elder years. However, if you don’t need the job, your time may be better spent pursuing your favorite hobbies or other activities like, say, golf or travel.
Or, you could add to your sources of income one of the many vehicles out there that allow folks – retirees or not – to make a potentially substantial income by spending a few part-time hours a week. To check out one of the best such vehicles, message me. It could allow you to spend some non-stressful, even fun, time adding to your income sources and help friends do the same.
The lesson here is to plan for your retirement while you are young. You never know when you will retire – or be retired by your employer. You never know when that one bad manager comes into your orbit and kills your career.
If you plan well, perhaps forgoing some immediate pleasures to save money, you can retire, as Moss’ book title says, sooner than you think. If you are forced to retire before you want to, good planning could allow you walk away from that job with a smile.
Peter
SAVE EARLY, SAVE OFTEN
#SaveEarly #SaveOften #retirement #jobs
In previous generations, people (usually the man of the household) worked, using the money to raise his family.
Couples married fairly young, had children young, and concentrated on giving the kids the best life they could.
When the kids grew, graduated college etc., parents were still working, still fairly young, and began to save for retirement.
In the few years between when the kids grew up and when they actually retired, investing their nest eggs into fairly safe investments, they could accumulate a decent amount of money. Using that savings, plus pension and Social Security – and, if desired, a low-stress part-time job – they could put together a pretty good life in retirement.
That was then. Now, young people, who may or may not marry young, need to begin thinking about saving for retirement as soon as they get their first jobs. But, as life would have it, most young people postpone saving for retirement, and pay the price later.
Two articles from USA Today, both also published April 22, 2018, in The Atlanta Journal-Constitution, take on this topic.
“Wasting just five short years at the start of your career would cost you nearly $500,000 (if you invest $250 a month), reads a headline under a column by Peter Dunn, known at Peter the Planner.
“Too little cash. Don’t know what I’m doing. Not the right time.” These are some of the excuses cited in an article by Adam Shell about postponing key financial decisions in life.
To sum up these articles: save early, save often. Let time work in your favor. Whatever inconvenience one must endure to put a regular amount of money from each paycheck away, not to be touched until later in life, it will be so worth it.
When you analyze the scenario above, you realize that times have greatly changed. Previous generations could bank on a certain amount of job security. Today’s workers have virtually no job security, no matter what they are doing.
The job security of previous generations allowed them to wait until later years to save. They knew they could work until, say, age 65, and save for a comfortable retirement in a few short years.
Today, many workers are forced to retire long before they want to. Younger people may work for eight, nine or 10 employers over their lifetime, without little, or no, pensions. Social Security probably won’t go away, experts say, but in coming years benefits could be reduced.
That leaves the bulk of one’s retirement nest egg up to his or her own decisions.
That means that no matter what you are earning, put some of it away and let it grow. You may only be able to afford, say, $5 a week. Start with that, and keep increasing it as your pay increases – presuming it does. (There’s no assurance of that anymore).
Something else to consider: perhaps you might take a few non-work hours a week to pursue your dream of a comfortable retirement. How? There are many vehicles out there that, with a few hours a week of part-time effort, could produce a substantial income, without interfering with your regular, W-2 job.
To check out one of the best such vehicles, message me.
Since one cannot count on employers or other entities to ensure a good retirement, one must take matters into his or her own hands. Certainly, you want to provide a good life for your family, if you start one. Certainly, you want to pay rent or a mortgage, put food on the table, pay the electric bill etc.
But you HAVE to think about the future. You have to think about what will happen to you if your job goes away. Presuming you don’t want to work until you die, you have to think about, as the TV ad says, not how long you expect to live, but how long you could live.
If you are young, time is your best ally. If you are nearing retirement, and don’t have what you need, you have to perhaps think outside the box on how you are going to make up what you didn’t, or were unable, to do when you were young.
Save early, save often.
Peter
ECONOMY AFFECTS MILLENNIALS’ HOMEOWNERSHIP
#HomeBuying #homeownership #millennials #RealEstate
Contrary to what one might think, millennials actually want to buy houses.
But, the economy is stopping them from doing so, in significant numbers.
As with previous generations, they believe owning is better than renting.
“We’re wasting money where we are right now,” said Chris Eidam, 27, who lives with his girlfriend near Bridgeport, Conn. “We just take our rent and we throw it away. That money doesn’t go to anything,” said Eidam, who was quoted in an article on the subject buy Agnel Philip for Bloomberg News. It was also published in the Jan. 1, 2018, edition of The Atlanta Journal-Constitution.
The article points out that stagnating wages, rising housing costs and lack of supply are hindering first-time home buyers.
Still, the article says, for two straight quarters, homeownership rate among those 35 and younger has increased.
But, these are not their parents’ times. Decades ago, a lender would look at a young person that had a steady job, figure out what payments they could afford and determine whether they could buy a certain house. The lenders actually bet on a person’s good name and reputation and loaned them the money.
Today, lending restrictions are stricter. Buyers, sellers and real estate agents, too, have to hope that the agreed upon price meets the lender’s appraisal. Often, the appraisal comes in less than the agreed-upon price, prompting sellers to back out of the deal. Lenders have encouraged appraisers to be strict, to come in less than the fair market value.
Secondly, today’s young folks don’t have the job security that their parents often did. If their parents worked at, say, the local phone company, and had a decent wage, the lender could look at that as an income unlikely to go away. Today, no job is “secure,” and paychecks could dry up just like that. Lenders don’t really want to own real estate and, during the recession, that real estate often came back to lenders worth less than the money owed. Some of that can be blamed on homeowners playing fast and loose with home equity, but that’s another story.
In the overall scheme of life, stricter lending standards may be a good thing. But to those wanting to buy their first home, they are a detriment.
Lending standards have relaxed some in recent times, the article says, but younger folks are carrying record levels of student debt and can struggle to qualify, according to the article.
Home building today is also geared more toward high-end homes, and away from so-called starter homes, the article says.
Still, the experts, according to the article, believe the home-buying market among millennials will equal, or come close to, that of their parents decades ago, the article quotes Ralph McLaughlin, chief economist at Trulia.
So what is a young person, or young couple, that wants to buy a home, to do? First, figure out what you can afford. Don’t expect your first house to be perfect, especially, as the article points out, if you expect to change jobs, or move away from your location. You can always trade up, or remodel, later.
If your income, debt load etc. is making home buying difficult, look for a vehicle that can augment your income by devoting a few, part-time, off-work hours a week. There are many, non W-2 vehicles out there to do that. To check out one of the best, message me.
Finally, if you see a house you can afford, and you are reasonably happy with the location, overlook any cosmetic deficiencies. You can fix those eventually with time, patience and elbow grease. Remember, too, that perfect houses, like perfect people, don’t exist. Every house will have something about it you don’t like. Don’t dismiss good deals out of hand over something you can ultimately fix.
Remember, too, that homeownership is not for everyone. It may have been part of the American Dream, but it’s no sin not to own. Owning your own home comes with great responsibility. If you don’t want or need that, rent, and invest in other things. In short, do the math, figure out the kind of life you want and proceed accordingly.
Peter
RURAL AREAS NEED ECONOMIC DEVELOPMENT, BUT …
#RuralAmerica #EconomicDevelopment #jobs #employment
Rural areas want to boost their economy.
They want to attract companies/employers who can employ lots of people who are now out of work for a variety of reasons – not the least of which is where they live.
Kyle Wingfield, a columnist for The Atlanta Journal Constitution, took on this issue, as it applies to rural Georgia, in an Aug. 27, 2017, column.
“There are a lot of different factors that affect the quality (of the workforce),” Wingfield quotes Amy Lancaster, director of workforce development for the Metro Atlanta Chamber of Commerce. “The education system is a big piece of that … but the opioids (epidemic), criminal justice reform – all those things have a big impact, so it’s hard to limit or confine it to one issue or agency,” the quote continued.
Regarding the education system, Wingfield discussed the community college system with Lancaster. “The course offerings may not be aligned with local demand, at least not from the employer side,” Wingfield quotes her. In other words, what the employers want the students to learn is not what the students themselves want to take.
She told Wingfield that there are no incentives for colleges, either two-year or four-year, to offer what the employers really need students to learn.
Let’s break this down further. Rural areas, be they in Georgia or any other state, have a distinct disadvantage to urban areas in terms of attracting employers. It’s difficult to attract the type of talent employers seek because the workers they want to attract, usually young and fairly educated, don’t want to move to a rural area. They look for the multitude of life options urban areas provide in abundance. And those workers already living in rural areas may not be the type of workers Company X needs.
Secondly, though there is relatively high unemployment in rural areas, it doesn’t appear that people are willing to do what it takes to become more employable. In other words, if a company needs, say, welders, and people are not willing to take the necessary training to become a welder, there’s a mismatch between the supply of employable people and the demand for the needed skills.
From the worker’s perspective, he may think, “is it worth my time to get the extra training that Company X wants me to have, only to find that a year or two later, the employer demands something else – or needs to reduce staff — and I’m no longer needed?”
Many workers who thought they had secure jobs have lost them, so it’s easy to figure out why they would ask whether the extra training and effort would be worth it in the long run.
An example might be truck driving. Would a prospective new truck driver want to go through all the training that it might take, only to discover a few years later that his company will be going to driverless vehicles?
Welders may be in demand now, but will they be replaced by robots later?
It’s a tough position all around. But, if you are a prospective worker who is examining what to do with your life, you might want to think outside the box. There are plenty of ways out there to make a potentially sizeable income, without a W-2 job, if you are open to checking them out. To learn about one of the best, message me.
If you are an employer, consider that workers willing to be retrained for the skills you need now will want some assurance that they will be able to adapt as your technology changes. And, in fact, that they will still be welcome as needs change. So, it’s not only the educational institutions that need incentives to offer courses in skills employers need, the workers, too, need incentives that a decent future awaits them, if they make the effort to be retrained.
It’s not just technical skills that employers look for. The so-called soft skills – being able to work as a team, being friendly and attentive to customers etc. – can be just as important to employers.
It’s a tough world. Good things come to those willing to adapt. How you adapt – and how you think about the future – could make all the difference in your success.
Peter