- “NEARLY HALF THE WORLD’S YOUNG PEOPLE are either outside the formal economy or contributing less productively than they could… Almost 300 million 15 to 24-year olds are neither working nor studying… many employed only with informal and intermittent jobs.” Meanwhile, McKinsey reports that (in nine countries studied) employers “cannot find job candidates with the right abilities… and middle-sized firms between 50 – 100 workers have an average of thirteen entry-level jobs empty.” Much of this disconnect is that capitalistic businesses are involved in a “particularly dramatic period of creative destruction, as new technology is unleashing a storm of disruptive innova- tion which forces a rethink of operations from the ground up. Companies are constantly redesigning work… up or down- sizing and contracting out, and the life expectancy of companies is declining.” In America, the problem is exacerbated by ‘wage scarring’ for people who begin their careers without work’ – a penalty of up to 20%, worsening with the length of joblessness, commonly lasting for around 20 years and “handed down to the next generation.” [THE ECONOMIST – Apr 27, 13]
- EVEN YOUNG LAWYERS ARE IN TROUBLE. After committing several years and up to $300,000 to obtain a law degree, their future is “chaotic, as firms are limiting hiring and lengthening the path to partnership.” The Bureau of Labor Statistics estimates that perhaps 74,000 entry level positions will be available over the next ten years while law schools are “pumping out 25,000 graduates a year – suggesting an excess of 176,000 J.D.s no one really needs.” The prob- lem has been exacerbated by “wrenching structural changes in the legal profession… largely stemming from (a) the spread of a ‘free agent’ mentality among partners which has bred instability as successful rainmakers increasingly jump to whatever firm promises the heftiest paycheck,” and (b) excessive bank borrowing to cover revenue shortfall which has resulted in bankruptcy filings for many large firms over the past several years. [BLOOMBERG BUSINESSWEEK – May 6, 13]
- EFFECTIVELY MANAGING THE LUCKY MILLENNIALS WHO ARE EMPLOYED requires ongoing sensitivity to their ‘Generation Why?’ values, motivations and priorities. (1) These kids are “peer-oriented and likely to feel isolated and disengaged from work” when unable to collaborate, not included in goal-setting sessions, or don’t receive regular and timely status updates on their projects; (2) Their connection to peers (and parents) is through social media and close relationships, so they also expect “ongoing support and feedback at work… including mentoring and guidance to reinforce company culture and norms”; (3) They are motivated to “benefit society through work that has meaning and is connected to a bigger picture,” so sharing the company’s strategic goals & objectives along with “acknowledging the significance of their role” is an incentive for performance as well as retention. [INTERCHANGE-GROUP NWSLTR – Apr 30, 13]
- “NO OTHER U.S. REGION DEPENDS MORE HEAVILY ON FEDERAL GOV’T SPENDING THAN WASHINGTON, DC” so the ‘sequester’ budget cuts will have a major impact. From conservative perspective, reducing bloated federal bureaucracy is a good thing – job reduction between DC and Maryland is expected above 175,000 (according to George Washington U. analysis), with federal construction spending likely to be down $4 billion (according to Associated General Contractors of America). But, no question this will further stymie the ‘Recovery.’ [REAL ESTATE FORUM – Apr 13]
- MOST AMERICANS CONSUME ‘PERFORMANCE ENHANCING’ SUBSTANCES which are forbidden globally by sports-governing bodies, even in miniscule dosage. Energy-boosters in Jamba Juice (synephrine), cold & allergy decongestants (pseudoephedrine), dietary & workout supplements (testosterone), attention-deficit aids (amphetamine), pain relievers or poppy seeds on bagels (opiates), even Starbucks coffees & lattes (caffeine) are all considered to be associated with “focus and perceptions of effort” – in varying degrees related to increased energy, alertness or muscle recovery – which society view as evil or unfair in athletic competition. [BLOOMBERG BUSINESSWEEK – Apr 29, 13]
- THOUGHTS FOR THE WEEK: “In a completely rational society, the best of us would be teachers and the rest of us would have to settle for something less, because passing civilization along from one generation to the next ought to be the highest honor and the highest responsibility anyone could have.” -Lee Iacocca“Action is a great restorer and builder of confidence. Inaction is not only the result, but the cause, of fear.” -Norman Vincent Peale