To be considered part of the civilian labor force, a person must be working or actively seeking employment. In the past (during the 40s), the labor force participation rate ranged between 58% and 59% - over the past few years it reached an all-time low of 65.3%. This means that in recent years more people have dropped out of the workforce than at any other time in modern day history.
To put it bluntly, this is a real problem. Job creation is a function of a productive and vibrant economy. As businesses respond to consumer needs for goods and services they must employ workers to perform different activities. Over time, activities change in response to need for different goods and services. Ability to anticipate change goes a long way to determining future demands that dictate what kinds of activities that will need to get done.
If we think of jobs in terms of activities to perform it becomes possible to learn what kind of skills will be in demand. As businesses retool to meet future demands, they need to find qualifies workers to fulfill job requirements. In the past, economic activity was largely driven by industrial activities. Today, activity is driven by information. This has created need to look a job creation from a completely different perspective. The problem is that business and government have not adequately kept up with the pace of change. This is intern means that workers haven’t successfully shifted from the industrial based economy of yesterday to the information based economy that exists today.
The solution to stimulating job creation is in knowing what kind of future we want to create. This intern can help us learn what kinds of activities will be in demand and what kinds of new skills will be needed to satisfy future job requirements. The degree to which government and business work together is contingent on ability to generate foresight to anticipate changing market demands and future opportunities for new jobs. Unfortunately, outdated policies, regulations and systems used to manage government and business impact productivity and ability anticipate changing needs.
Opportunity to reduce inefficiencies in government and business creates enormous need for entrepreneurs. The objective is to optimize the way capital and resources are deployed to meet economic demand. Markets ebb and flow in response to changing needs for goods and services. As technology displaces outdated products and services, one area of economic activity declines while another grows. Developing capabilities to anticipate change creates opportunity understand changing needs. To meet long-term opportunity for creating new jobs, it is vital to change the way we think about educating students and training entrepreneurs. The solution is to gain better understanding about what people actually do to perform their jobs. This involves understanding how different activities impact value creation.
To solve the job deficit problem, we need to create opportunity to generate 500,000 new hires a month. We believe the solution is rooted in improving productivity in government and business. Job creation would be a function of putting people to work upgrading outdated policies, regulations and systems that impede ability to stimulating economic activity. The more productive government and business become the more competitive America becomes in world markets. The objective should be to improve agility and innovation in government and business. Cost savings alone would create opportunity to stimulate demand for new products and services in world markets. The unknown is to determine what types of goods and services could be in demand in emerging markets. As consumer growth escalates in emerging markets America would be best positioned to meet new demand with competitive offerings.