Scary, right? Well, there may be some kind of truth to the alarmist sentiment. But this recession might be different in the jobs creation department.
Look at this McKinsey graph about job creation and its lag after rises in GDP after recessionary troughs. We are a full 60 months behind any healthy uptick in jobs creation, which usually lags behind any increases in GDP during or after a recession.
A recent TechCrunch article posited that this recession is different, and that the future might already be here — an economy without jobs, because technology outpaces the skills available to use it meaningfully. TechCrunch blogger Jon Evans writes:
Unless Martin Ford and/or Arnold Kling are right. Ford essentially argues that we have hit an inflection point at which technology destroys jobs faster than it creates them. Kling writes (at length, but it’s worth reading): “The new jobs that emerge may not produce a middle class … gains in well-being that come from productivity improvements [may] accrue to an economic elite … we could be headed into an era of highly unequal economic classes. People at the bottom will have access to food, healthcare, and electronic entertainment, but the rich will live in an exclusive world of exotic homes and extravagant personal services.”
We already see evidence where people are shopping differently, turning to the mobile device, and using things like Square, which founder Jack Dorsey explains is pulling in $11 million in transactions a day, and not just for cab rides. What does that do your company’s sales force?
I’ve long argued that our education system is not preparing people for a world they can work in, nor is it preparing them to use the tech they need to use as consumers. Or leaders, or entrepreneurs. The education system is only teaching them how to get through the education system and qualify for accolades and awards that only make sense to the people in the education system.
With massively inappropriate under-preparation like this, what happens to our GDP, or our jobs, or our lifestyle over time?
People in the Occupy Movement may think it’s about 1% of the people of the world possessing nearly all the wealth, but I would have to disagree. It’s about 99% of the people being poorly prepared to make it in the world. In fact, the saddest part of it is that they are only introduced to the realities of the world AFTER their education. And what kind of education is that, then?