LAST week, we celebrated Labor Day. This is a holiday set aside to celebrate all of our labors and, historically, to recognize the impact of labor unions. Today, I want to talk about jobs.
Employment statistics indicate the current unemployment rate, depending upon your source, is over 10 percent nationally with 2 to 4 percent considered acceptable. My observations are that the current unemployment rate is caused by a few key elements. Certainly this small list does not cover all of the reasons for our current unemployment problem, but it is a start.
Technology is a great friend and vicious foe to employment. I have cut grass with a push lawn mower and I much prefer the fine piece of engineering and technology that now cuts my grass. However, in our drive for efficiency and cost reduction, here are a few examples of how technology has impacted significant job loss.
In casinos, there used to be human blackjack dealers. Some casinos replaced human dealers with blackjack machines featuring attractive human-like avatars. Most grocery stores, banks and large retail operations have replaced checkout people and tellers with self-checkout lanes and automated teller machines.
The list of technological replacements of jobs goes dates back to antiquity. However, perhaps the most significant recent impact is that of robotics. I am awed by the impact that robotics have had on the manufacturing industry. Robots have improved the processes, reduced the danger, reduced costs, reduced tolerances of welds and joints and replaced thousands of jobs. In another example of robotics advancement, an aunt of mine recently had a successful surgical procedure primarily performed by a robot. Think about that one for a minute.
“Off shoring” is the concept of moving jobs either physically or electronically to another country. The concept was enhanced by Reagan-era tax policies that allowed corporations that manufactured products outside the United States to avoid paying federal income taxes on those products. The result was that many plants were closed and jobs were moved to other countries. Additionally, NAFTA has been credited with a loss of jobs to Mexico and Canada. Government policies shape the business environment, but the decisions about jobs are made by company executives and heavily directed by customer choices.
The above elements enabled the physical loss of jobs. The electronic transfer of jobs had its acid test in the years leading up to 2000. Remember the Y2K fears? There were not enough programmers with the appropriate skills in the United States, so companies had to turn to India and other countries for assistance. The Internet and global technology companies passed the Y2K test, and the door was opened to the global transfer of computer-enabled jobs. Today, jobs from ordering at a fast-food restaurant to a doctor’s evaluation of an X-ray can be performed from nearly anywhere on the planet.
Mergers and acquisitions by one company acquiring another company represent one of the hallmarks of capitalism. It is a concept taught in every business school and is the proven road to market share and personal reward. Most acquisitions, regardless of industry, result in the loss of jobs.
I would be remiss if I did not mention the plight of the small business owner. We refer fondly to them as “Mom and Pop” businesses, but they are increasingly under pressure. Competition from larger organizations has taken its toll on the downtowns across the country. Talk to any small business owner, from a primary care physician to a trucker with three vehicles, and they will all tell you the economic playing field is not level.
Let me suggest three actions. First, pay attention and respond positively to those governmental policies that support job creation and preservation for small and large businesses. Second, support local small businesses whenever and wherever possible. Odds are that small businesses hire locally and are more connected to the community. Finally, I transact business at the checkout lane with a person. Sometimes I lose time and may even have to pay more for a transaction with a person. But I think a job is worth my sacrifice.
Source:-http://www.nhregister.com/articles/2010/09/12/business/ff4wright0912091110.txt
