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The Effect of a Weakening Economy on the Job Market

By Jun 11,2014 Follow Me on Google+
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Summary

In this article Harrison talks about the need for innovation in America in order to stimulate the current economy. You can succeed despite an economic downturn by becoming innovative. In the current economic crisis more jobs will be going abroad. According to Harrison, innovation from abroad is not a bad thing, but workers in America must prepare for this evolving global job marketplace. More jobs are soon to go elsewhere. American economy needs major, widespread and immediate innovation in order to create new jobs. America has always done well when faced with challenges, and Harrison believes that the Americans will rise to the challenge again.

In the latter half of 2008 Wall Street and the banking system were undergoing major changes. I remember hearing the stress in people’s voices when I spoke to them in New York, and I believed we had reached a sea change of sorts, in the way the job market and the economy were about to shift.

The economy was clearly in very serious trouble. After 9/11, the Federal Reserve lowered interest rates, which stimulated many housing purchases across the land, allowed for the refinancing of homes, and put a lot of money into the economy. This was largely possible due to the securities markets, which at the time were in their prime. Had none of this occurred, the current economic situation would probably be markedly different.

The rise of securities jobs and the lack of defaults on mortgages were due to rising home values caused by falling interest rates. Securities, with their inherent risks, were not being adequately priced on the market. The housing bubble, as it is referred to now, made a massive impact on the job market, since a lot of the money stimulating the economy came from revenue generated by securities.

I believe the situation in the market became much more severe due to the rise of the Internet.  While its growth initially created a lot of jobs, it also made it very easy for people to do information-intensive work anywhere in the world (such as IT jobs), which has created fierce job competition.  Moreover, information-intensive companies have little incentive to keep their work in the United States, where the wages are higher than in many other parts of the world.  The result is that many Americans have moved further and further into a “protectionist mode” with regard to their jobs over the past several years. Consequently we have seen less innovation.  This is especially true of manufacturing jobs in the United States.

America needs innovation in order to succeed, and having wide-open borders for information to pass through will foster innovation from abroad.  While no one can offer career advice that will completely change the marketplace, you can succeed despite an economic downturn by becoming innovative.

The most sophisticated professions here in the United States, such as engineering jobs, aviation design jobs, and others, can already be easily outsourced to engineers abroad. This is not to say that innovation from abroad is a bad thing. However, I do believe workers in America must prepare for this evolving global job marketplace.

Manufacturing jobs have taken a huge hit in the United States, and I believe that more jobs involving information and communications–such as journalism jobs (which can now be done from overseas provided an Internet connection and access to news sites), customer service jobs, graphic design jobs, and others–are soon to go elsewhere.

This leaves the American economy in a position of needing major, widespread, and immediate innovation in order to create new jobs. I am very curious to see the outcome of this shifting dynamic.

America has always done well when faced with challenges such as those we are facing now.  I believe we will rise to the challenge again.

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  • Dickson Johnston

    I found this artical to be refreshingly (and unfortunately) agreeable with my own nonpopular observations.
    As a small business owner at the top of my service industry for 15 yrs, I wish I knew as much about the underpinnings of the current global economic recession as I do about my own business. Despite the realestate hype 6 years ago, my suspicions of irresponsible lending practices , led me to buy a my first house at a fifth of my qualified lendability. As profit driven american companies and consumers alike are able to capitalize (via the internet) on equal design, production, retail and consumer service talents rising from lesser fortunate economies, I’m surprised to find that so many have not run the numbers. Americans are either unknowingly, or ingnorantly living in a globally connected job pool. In order to progress as a country, we have to get past our notions of the american company’s dependence on it’s connection to the local people. I don’t see a solution to that (unpublicised problem) addressed in President Obama’s rebuilding of the infastructure plan. The internet connection has and certainly will continue to draw jobs from the american economy in the areas of design, production, retail and communications services. The only services that seem to be untouchable are physical onsite services. If so, there could be a massive clash of overeducated meets illegal immigrant workers to compete for those onsite needs. I hope my perspective will never be realized.

    I came across this article while googling, ” current underpinnings of the economy,”. I found the article to be an insightful and honest reflection, butted with a hopeful mention of U.S. innovation. I felt compelled to respond to it because, while reading it, I felt that the author seemed to have an unwritten opinion (possibly as unpolitical as the article) on what he thought the future would look like.

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  • Lauren

    I think it’s going to be rather interesting to see how things will turn out in 10 years. I heard this somewhere, but I am not exactly sure… That students currently in college are preparing for jobs that don’t even exist yet. I believe it!

    Lauren did not rate this post.
  • Greg

    I think it’s going to be rather interesting to see how things will turn out in 10 years. I heard this somewhere, but I am not exactly sure… That students currently in college are preparing for jobs that don’t even exist yet. I believe it!

    Greg did not rate this post.
  • Strangerthanreality

    Quote:”…..a lot of jobs, it has also made it very easy for people to do information-intensive work anywhere in the world (such as IT jobs)….”

    Though it might seem like it just caused negative things happening, I think in the future, it’ll also increase the quality of the works. ‘Cause, more and more people will be available for the same position, and the result will be; more competition(and more quality)!

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  • http://www.99-job.blogspot.com Faysal

    Thanks for your good and informative post.I think it’s going to be rather interesting to see how things will turn out in 10 years. I heard this somewhere, but I am not exactly sure… That students currently in college are preparing for jobs that don’t even exist yet.Please keep going.
    Thanks
    Faysal

    Faysal did not rate this post.
  • JoshuaNorman

    Rise of securities jobs? Where? With whom? Requiring what skills? Since 2003, I have not seen that many original securities type jobs, the ones I’ve seen the posting was posted on multiple job boards, social media websites and even recruiters. Plus they were requiring years of experience in a specific discipline, as well as other specific skills even though they were staff-level jobs.

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    • Sugeng

      I agree do things that fit your bguedt. I think thats what got us into this mess people buying things they could not afford and going way over the top. My MIL did bankruptcy a couple of yrs ago and her credit is so good it makes mine look like it’s below the negative mark. She is able to buy a house and a car with no problems but she is being smart and not getting into any of that this go round.

      Sugeng did not rate this post.
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  • marsha

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Job Market

You Need to Be Able to Close

By on Jul 24,2014

In this article Harrison explains why the ability to close a sale is the most important skill in selling. Many people may get consumers interested in their products and lead them to the edge of making the sale, but it is the final push where the customer makes the actual purchasing decision which is the most important. Similarly it is good to be able to secure an interview, but what actually counts is the ability to push the employer to make the final hiring decision. There are a million possible closing techniques ranging from using the power of money and the power of issuing a deadline to identifying with a particular cause that could be important to the employer. All you need to do is tap into your instinctual ability and push employers that extra bit to ensure you get the job.

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