Keeping The Job Market Healthy: It’s Complex.
By Eli Amdur
President Joseph Biden has refocused on inflation as the top domestic priority of his administration.
It’s not that simple.
Associate Professor of Management Matthew Bidwell of Wharton, in a recent commentary based on his own research – in which, incidentally, he gave a roaring approval of the job market’s performance – made an interesting statement: “We don’t have a great track record of bringing inflation down without pushing up unemployment.”
Of course not. They’re two equal and opposite reactions in their natural states. Let’s not forget that this inflation is fueled, in part, by powerful job creation, growing payrolls, widespread open jobs, and rapidly rising wages. We don’t really want to give that up so easily.
This is a conundrum – and it can’t be left to function in its natural state. It must be managed. Otherwise, as employment continues to rise, inflation is likely to rise with it. Or if we too forcefully fight inflation, that could bring down employment with it. So far, that’s simple.
Is this a Sophie’s choice? It doesn’t have to be, but the answer isn’t to be found in a simplistic, one-dimensional approach. Other factors are involved. To wit…
Professor Bidwell also stated, “The more investment we make in the human capital of the workforce, the better our economy is going to run.” Exactly. But here’s where things get complex.
In 2013, I authored a six-part commentary dealing with – and asking you to think about – extremely broad currents, strong directions, and permanent changes in the American workplace and culture. Part six was entitled “The Four Partners.” A cooperative and equal effort by employers, higher education, government, and individuals would be, I said nine years ago, the only way to meet the demands of the 21st century workplace with an abundant supply of highly-skilled, broadly-educated workers, thereby (a) regaining the edge in global competitiveness and (b) ensuring that the core pillar of the American dream – each generation doing better than its predecessor – will continue to stand.
Here we are, nearly a decade older (and wiser?) facing the same challenge. As we deal with a
serious deficit of qualified workers in all fields – there were 3.9 million open jobs when I wrote the commentary, 11.5 million today – employers cannot fully meet the surging market demands that will lead to further growth, more jobs, and so on.
Now we face even greater complexity. Professor Bidwell’s comment about workforce investment might, to the uninitiated, seem to place the responsibility on the shoulders of employers. To a certain extent that’s true, and it seems like big tech is answering that call, offering intense training programs – and well-paying job prospects – in programming and coding. In my opinion, that’s great, with one caveat: it’s in direct opposition to the time-honored tradition of a liberal arts education which, as regular readers know, is top priority in my world view. One cannot thrive at the expense of the other.
Be that as it may, when all is said and done, each of the partners must ante up. Higher education must turn STEM into STEAM (A is for Arts). Government must step forward to do what only government can: fund huge initiatives and coordinate state and federal programs, not just for the sake of our workers, but to continue to remain innovative and competitive as nation. Employers must expand training, apprenticeship, and even hiring criteria.
And that leaves the individual. No matter how robust the actions of the other three partners, it undeniably comes down to this: You either take responsibility to invest in yourself or you’ll find yourself frantically searching for a paddle as you get further and further up the creek. Dire as that sounds, the opposite is even more wildly optimistic, given the job market’s pressing need for qualified workers. All you have to do regarding your investment in yourself is (a) commit to it, and (b) actually do it. The payoff will be immediate and long-lasting.
There hasn’t been a better time in the history of our job market in which to do this, and there hasn’t been a time in which this investment was poised to bring such long-term returns.
Thirty years ago, I had a boss who used to say, “Life is simple, never easy.” That may have been true in the nineties, but it holds no water today.
Life is neither simple nor easy. But decisions are. And history is the story of decisions.
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Career Coach Eli Amdur provides one-on-one coaching in job search, résumés, and interviewing.
Reach him at [email protected] or 201-357-5844.