For a substantial increase in GDP we agree that we need increased consumer spending and for increasing consumer spending we need to put money in people’s pockets and for that we need folks to get jobs.
This train of thoughts led me to see which occupational areas are promising and see a potential growth and here is what I pulled from a couple of sites
Unemployment statistics
• Number of unemployed = 14 million
• % Unemployed Present = 9.1
• Long term unemployed (27 weeks and over)= 6 million
• % Long term unemployed = 49.2 % of Unemployed
• % Unemployed Jan 08 = 5 %
From the U.S. Department of Labor, U.S. Bureau of Labor Statistics the fastest growing occupations from the year 2008 and projected to year 2018
I have shortlisted this list only for folks with Moderate to Short-term on-the-job training (the reason being we cannot send masses to a 4 year degree and short to moderate on the job training would be practical way forward).
Here are the areas of occupation and % increase we see majority of jobs being created in the Healthcare sector so in case we focus on this area more than other areas we can see a substantial growth in job market
• Home health aides 50%
• Personal and home care aides 47%
• Physical therapist aides 36%
• Medical assistants 33%
• Physical therapist assistants 30%
• Occupational therapist aides 30%
Source of my data : http://www.bls.gov/emp/ep_table_103.htm
Monday, October 10, 2011
Sunday, September 25, 2011
Credit Crisis and its roots ...
If we were put things in perspective and chronologically enumerate the actions they would be like ..
• THE GLB Act of 1999 allowing commercial and investment banking to merge which in turn allowed risky investment vehicles to start running at full speed ( the birth of CDO and MBS)
• 2001 – 2002 Historically Low interest rates by FED to spur easy credit and interbank loans
• With all the above things and media promotion and an average Americans dream of owning a home which was construed as safe investment finally led to subprime crisis
• Finally when the bubble crashed ,t he excess inventory started showing up with home prices declining and inability to refinance led downward spiral with banks failures leading to liquidity crunch and high unemployment
Savings– In 1960 average American saved 11 % of paycheck , in 1990 decreased to 5 % and in 2003 fell to 2.5% but due to economic situation its increased to around 6%
Investment- 401K and IRA have been affected by the crisis but if we look at it from long term we have seen growth in this investment, The house which was supposed to be the safest of all has declined substantially Unemployment The drastic rise in this area averaging about 4% in Q1 2000 to 6% in 2003 and 9.1 % present is probably the biggest indicator of economic crisis and can be linked as directly proportional to savings and investment combined
• THE GLB Act of 1999 allowing commercial and investment banking to merge which in turn allowed risky investment vehicles to start running at full speed ( the birth of CDO and MBS)
• 2001 – 2002 Historically Low interest rates by FED to spur easy credit and interbank loans
• With all the above things and media promotion and an average Americans dream of owning a home which was construed as safe investment finally led to subprime crisis
• Finally when the bubble crashed ,t he excess inventory started showing up with home prices declining and inability to refinance led downward spiral with banks failures leading to liquidity crunch and high unemployment
Savings– In 1960 average American saved 11 % of paycheck , in 1990 decreased to 5 % and in 2003 fell to 2.5% but due to economic situation its increased to around 6%
Investment- 401K and IRA have been affected by the crisis but if we look at it from long term we have seen growth in this investment, The house which was supposed to be the safest of all has declined substantially Unemployment The drastic rise in this area averaging about 4% in Q1 2000 to 6% in 2003 and 9.1 % present is probably the biggest indicator of economic crisis and can be linked as directly proportional to savings and investment combined
Saturday, September 10, 2011
Presidents Job Plan
On the President’s address to nation last night .Let me know if I got this right?
Presidents latest job speech suggested many big items involving amounts to hundreds of billions, but there was a small item which proposes that companies will get 4000$ one time money to hire workers who are out of job for period of six months ( 8 billion $ div by 4000$ = 2 million jobs) . Now for low tech jobs this can be an impetus to hire but think about how an mid to big sized organization would behave (in fact this will work in any sized business if there was a back fill position and hiring is on for that position).But would a small business owner hire a new person pay him a salary, healthcare, etc (I am not even going on the length of employment) for this one time 4K
Corporate America is not very forgiving for people who are out of job(coming from personal experience as some of my family/friends are in job market) ,so my question is would the ethos of companies change for 4000$ ? The reason I am asking this question is for 2 million jobs to be created the big guns of the industries have to be a part of this equation and only small business would not alone work out.
Viewing this from our "supply and demand" lens if a new job created is the end product on demand axis and labor force on the supply axis, I think this "4K per new job created" capital injection will not be potent enough to move the equilibrium.
Your thoughts....
Presidents latest job speech suggested many big items involving amounts to hundreds of billions, but there was a small item which proposes that companies will get 4000$ one time money to hire workers who are out of job for period of six months ( 8 billion $ div by 4000$ = 2 million jobs) . Now for low tech jobs this can be an impetus to hire but think about how an mid to big sized organization would behave (in fact this will work in any sized business if there was a back fill position and hiring is on for that position).But would a small business owner hire a new person pay him a salary, healthcare, etc (I am not even going on the length of employment) for this one time 4K
Corporate America is not very forgiving for people who are out of job(coming from personal experience as some of my family/friends are in job market) ,so my question is would the ethos of companies change for 4000$ ? The reason I am asking this question is for 2 million jobs to be created the big guns of the industries have to be a part of this equation and only small business would not alone work out.
Viewing this from our "supply and demand" lens if a new job created is the end product on demand axis and labor force on the supply axis, I think this "4K per new job created" capital injection will not be potent enough to move the equilibrium.
Your thoughts....
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