The Future of Jobs in America

(CBS)  Look for the road signs leading to a job recovery in America, and as CBS News business correspondent Anthony Mason reports, you'll find the country at a crossroads.

The U.S. has to find new ways to rebuild its workforce.

For 23 straight months now, the U.S. economy has been hemorrhaging jobs. The report card isn't pretty.

One in six Americans, 17 percent, is underemployed. That's nearly 25 million people who are out of work, have given up looking, or been forced to take a part time job.

Bureau of Labor Statistics

The recession has wiped out 15 percent of our manufacturing workforce. That's more than 2 million jobs that will likely never come back.

The damage to America's labor force is both deep and profound. The Great Recession has obliterated a decade's worth of job growth.
Economic prosperity is impossible without job growth. But in the decade just ended, we created less than half a million new jobs. In each of the previous four decades, the economy generated at least 18 million jobs.

Where America Stands Links
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Inside the World's Largest Corporate Training Center
Hopes and Fears for the Next Decade
Where America Stood, 50 Years Ago

"Its going to take a really long time for recovery," said Heidi Shierholz, a labor economist at the Economic Policy Institute. "We are going to have elevated unemployment for probably the next five years."

More economic research from
Labor Economist Heidi Shierholz


Estella and Mike Pesapane are jet engine technicians. But Pratt & Whitneyplans to shut down their plant this year, and ship most of those 1,000 jobs overseas.

Fighting Foreclosure in Connecticut

"All my experience, what do I do with it," asks Mike Pesapane. "I gotta start all over. I gotta go back to school?"

What's happened? The United States is still the world's strongest economy, but our competitive edge is eroding.

Innovation
Analysts say innovation must be the first in a three-pronged strategy to replace lost American jobs.

In the 1960's, launching the Apollo space program created millions of jobs and led to innovations like fuel cells and freeze dried food.

That same decade, the defense department began building a computer network that became the internet.

Justin Rattneris chief technology officer for Intel. He's the man who developed the first supercomputer to process one trillion operations per second.

(CBS)

"Tens of millions of jobs were created from the innovations around the internet. It's time to do that again," Rattner said. "Now is the time to be investing, not saving. You don't save you way out of a recession. You invest your way out of it."

Research and Development
That's the second part of the solution for job creation: research and development. But government spending on research and development actually fell by 3.8 percent in 2009. That's the worst drop in 30 years. Just when growing young industries like Printed Electronics are looking for money.

Andy Hannah's Pittsburgh company, Plextronics, which makes low cost solar panels, has quickly expanded to 70 employees. But the Europeans have pumped $1 billion into research, while the U.S. has done virtually nothing.

"We are behind," Hannah said. "This can bring a real manufacturing base back to the United States."

Intel just committed $7 billion to build new factories in Arizona, Oregon and New Mexico, to make the next generation of semiconductor devices. That will mean thousands of new jobs, but Justin Rattner said they may be hard to fill.

"Are you telling me that even if we innovate and create new products, we don't necessarily have the people to do the jobs," Mason asked.

"That's right," Rattner replied. "We're not graduating nearly the numbers of engineers that are coming out of universities in China and India and elsewhere."

(CBS)

Education
That's why education has to be the final part of the strategy for job growth. In a recent study, 15-year-olds in the U.S. ranked 21st out of 30 countries in science scores.

What are they up against? India's high tech giant, Infosys just opened a $120 million training center: the biggest corporate college in the world.

Inside the World's Largest Corporate Training Center

Infosys CEO Kris Gopalakrishnan said the 330-acre campus will train an army of 14,000 new engineers a year, just for his company.

"For every employee, we have actually charted out a complete career plan - which takes them from a software engineer to potentially a CEO of the company," Gopalakrishnan said.

Freeman Hrabowskiis president of the University of Maryland/Baltimore County. It's a small school that places a big emphasis on science, math and engineering.

"Clearly the more people we have who are prepared in those disciplines, the more inventors we'll have the more people will be thinking about tech commercialization and starting jobs and starting new companies," he said.

Freeman Hrabowski Testimony On Science and Math Education

Hrabowski is even sending his grad students into grade schools.

In just 10 years, sixth graders will be entering the labor market. But will the jobs be there for them?

America has done it before, made the investment in innovation and education that paid off in decades of unsurpassed prosperity.

"We have to start a lot of things. Not all of them are gonna work out," Rattner said. "In fact, only a tiny fraction of them will turn into an Intel or a Google or a General Electric. But if you're not investing you're not giving yourself really a chance to play."

The benefits of those investments are often unexpected. But a ripple can grow into a wave, and that's how new industries and new jobs are born.

Extra Links
Why Skilled Immigrants Are Leaving the U.S
President Obama on the "Education To Innovate" Campaign
Analysis: Job Market Is a Long Way from Recovery
Re-emerging U.S. R&D
Technology Review's 2009 Young Innovators Under 35

[watcher57]

I say......

We are going to be poorer as a whole unless the flow of money between consumer/worker and corporations/banks is more of a balanced symbiotic relationship and less of an extraction. Corporations/banks are very good at making money. And there is no fundamental reason to give it back to the people. The people HAD a lot of money, but they spent it all unwisely in the last 15 years or so, they saved very little and maxxed out their credit cards. The corporations/banks got it all now.
Of the last 3 economic booms in this country Stock market in the 90's, Internet boom in the 90's and the real estate boom of about 1998-2005... 2 of those were paper booms and not built on tangible goods or wealth. So they could not really hold up. The crash ruined them so hard. But the thing to note is since those booms were on paper they were effectively false and should never have been in the first place. The easy money housing boom was really a false economy. And a standard of living/consumption that should not have been either. And all the industry and jobs created as a result of those booms should never have been as well and needs to be washed away before we can recover. Tough love it is. We will de-leverage and de-couple and re-adjust our needs vs. wants and this will be quite painful for quite a while. Well can you do without the new custom Harley, the Cadillac Escalade, more jewelry, the kitchen remodel etc.? All the not so absolutely necessary things that you thought you had to have?
But the thing to think about is this is still the richest country. Our GDP is 14 trillion a year which equals about $48,000 per person (man, woman, child, baby, retiree etc. ). There is still a lot to go around. But there is no sound economic reason for that to happen. When we work we are very productive, and are constantly improving, which means we constantly need less people to do the same amount of work. I believe we are at the point where we have out-efficiencied ourselves out of a job. If we can get it done cheaper elsewhere, we do. Our basic necessities are the perfect example of this. They (food and especially clothing) are done on the cheap. We would not make enough money to live in this country if we were paid what the average garment maker, crop picker was paid. So we are not going to starve and we are not going to have to go without clothing (hmmm maybe that wouldn't be so bad!, Ok except for in winter).
I tell you what, Corporations tightening their belts and laying people off or shipping their jobs overseas really really hurts the economy. Remember the economy is about 65% of what the consumer spends. Thats incredible. So if you just keep taking more of that money and don't hire people in this country, there is less and less money available in this country to buy the same goods and services that corporation makes. So they are really effectively robbing themselves of customers. They may make more profits in the short term but not in the long term. There is a fundamental problem right there. Short term profits over long term sustainability. That is bad bad strategy as well. We will probably be around tomorrow, next month, next year, ten years from now, 40 years from now etc. So plan on long term, geez.
And if that isn't enough... just remember... In the real world (not the government)... jobs aren't created for the sake of the people to have a job, they are created because the owner of the company needs something done and will make money from you doing it. And if we are eventually going to have robots doing everything... its gonna suck because robots don't shop at Home Depot or eat at Applebee's, or drink Budweiser, or wear Nike's or Croc's so even less money for consumers.
It's going to be like that or it's going to be like "Soylent Green" or somewhere in between.
So if us humans want to live well, we have to look out for ourselves and when in doubt, hire a person to do something, there has to be more balanced cycle of money. If not we will eventually have some horrific stratification of ourselves with the super rich not giving a crap about the multitudes of super poor. We really dont want that.

[mxgt700]

Sigh .... listen, jobs. Look at this from 3 points of view. 1) Recession. This wiped out all jobs created since the year 2000. Since the year 2000, we have had 10 graduating classes from HS, College ect, all looking for work. We also have millions fired / laid off / terminated (pick your poison) competing for the same positions essentially. b) Unemployment / underemployment - well, companies can just hire experienced folks at a fraction of the salary they used to command, and if they say no ... there are 500 ready to go resumes per position (that is jobs that pay decent) most are hitting part time to Frey healthcare / benefits costs ... remember the goal of business and corporation is to maximize profit. (The recession has exposed sever operating flaws, so businesses are learning do more with less personnel, meaning there will be less jobs even when the economy recovers lol) c) Trending ... small business's account for most of the US jobs ... so entrepreneurs wilt hire you, entry level, give you a raise 1-2 years and then let you go ("eliminate your position") and hire somebody else in a similar role or pass your responsibilities to somebody they recently hired within the last year .. this is common in this market to keep costs down since there is a huge labor pool to choose from. No Job security = no consumer confidence = bad economic situation as a debt based / consumer based economy. Now, here's the rub, operating expense. Look at NYC for example, cutting 1000's of jobs and not filing positions because they simply can't afford it ... every state / city is hurting this way, so not only are private sector jobs scare ... but local and state government jobs as well. Congress nixed unemployment benefits for many running out this Nov ... police are cutting jobs back ... educating is taking a hit ... college kids cant pay back loans (no jobs) ... I mean is it just me or is this just a bad riot waiting to happen haha. Solution: Obama has no power ... watch who you vote into state and national senate and congress for one. The little guy you don't know much about on a ballot .. is because he wants real change but doesn't have the corporate money to fund a campaign lol. Don't invest in the stock market, pay off yur debt (all of it) do not borrow and stop buying what you don;t need ... for 1-2 years. When you elect out bad officials and hurt the profit margins of corporations .. well the rick stop getting richer, a big deal gets made .. but uncle sam can't hold a gun to your head and make you buy something ... so less jobs = less tax revenue ... less consumer consumptions and buying of goods = less tax dollars t0 uncle sam = win for america. This naturally will never happen, Dr.King had a hard to boycotting buses for awhile .. but listen. The congress and senate run America along with the corporations that put them there .. just ask any lobbyist how much they take home a year! On one hand I feel sorry for a lot of people .. on the other hand .. you voted some retards in office so you did it to yourself. By the way, it is NOT HUMANLY POSSIBLE to pay off the national debt. In case you were wondering what a dollar is .. it;s a reserve note ... it's a debt based system .. no debt = no money .. again, save your cash, pay off your debt and America will change .. it's the only way it will change ... but like Rome .. the "Plebs" are ill informed and vain, the senate is corrupt and out of touch, and emperor ceasar I mean Obama is too busy playing politics to do any real good. Sucks to be an American right now, especially since China is about to usurp our economy and hegemony ... well needless to say there are too many world powers .. too many chiefs not enough Indians ... wonder what comes next ... WWIII ... world overpopulated .. not enough jobs and competition for resources ... history tells us this gives rise to charismatic leaders and people follow them. Cesar / Hitler ect ... want some real repose ... eliminate all public / personal and national debt. Revalue currency based on national GDP, re-write current legislation and make modern laws to restrict manipulation and loopholes going forward. With no debt, we can I dont know .. create more jobs than people on earth? Modernize infrastructure, fund education and healthcare universally, solve world hunger and strife, put people on the moon / mars .. have CERN figure out how to use antimatter for an energy source, invent fusion, save the whales and transform civilization forever ... and a charismatic president would appeal to the UN in a global recession, talk some sense into people, and lead by example. And if the world doesn't play ball, pull out of the UN, close our borders, eliminate debt in America, bring out troops home, make everything we need here and let our allies come to us.

[LFDR]

We know that the cancer of this dying economy are the CEOs and government facilitators that are killing consumers with layoff venom, as they move factory plants to cheap labor countries as an excuse to fight China?s Trade Disease. What we are also learning is that, this disease is also spreading to other still healthy cells, like people with jobs that will not spend money in cars, houses, home improvements, and other investments, because they are afraid of being contaminated by possible future layoffs due to the continuous selling of America by CEOs and government facilitators of current global trade agreements. What happens to an economy with cheap ?supply? and poor or no ?demand?? Is this so difficult to see? Is there a cure for this cancer?
This is the answer I think of, when someone is trying to find a job:
Want a job in America? It?s simple: Make sure that the government eliminates any ?minimum wage? and union laws, and in your ?resume? you offer CEOs, not only good skills, education, and ideas, but also wages, benefits, and working conditions, equal or less than in China, Mexico, or other cheap ?global? places. You and the economy will be doomed, anyway, because, since CEOs don?t believe in producing wealthy workers as empowered consumers to create demand, the cheap products on their shelves won?t sell, and the business will fall sooner or later. But don?t be sorry for them. They will survive. The term ?bad economy? is just for the rest of us!

[mxgt700]

sorry for the typos and wall of text, just tired and bored about reading all of this ..

[marc957]

Either our economists and journalists are blind or, more likely, they are prohibited by their employers from telling the truth about our economy!

You don't need to be an expert in economics to see that globalization, as it's practiced now, is a destructive form of capitalism which only benefits entrepreneurs and wealthy investors.

What's the point of developing new technologies and being more productive and innovative if the resulting jobs are shipped overseas?

It's getting to the point where you're better off selling hot dogs on the corner than going to college hoping to have a secure future!

Americans need to do like the Europeans:
- Get unionized
- Start going on strike to demand changes to our international trade agreements
- Start voting for people who are against unrestrained globalization

[unemployedlaf]

I am continuously frustrated by the discussion on employment and lack there of. It seems that the people engaged in these discussions are employed and making much more money than the average American. They have no idea what it feels like to wake up every day and worry about how to feed your family, which bill am I going to be able to pay, is today the day someone finally responds to my job application, etc.

As one of those people discussed above, I have two thoughts on how to add more jobs to America. The first is to revive a sector of manufacturing that we have killed by sending it out of AMerica.

Whether it's cars, pharmaceuticals, textiles, whatever, Americans can make it well. It may mean that some of the people on top have to give up a zero or two on their paychecks, but in the long run isn't it worth it?

Secondly, how about rehiring some HR folks? Today's current process of applying on-line is awful. There are not any real live people to contact about open positions, nobody to call to make sure that your resume was received, nothing. Job seekers are left in a giant abyss. It is the most lonely and disheartening thing I personally have endured.

Those are my two cents on how to increase jobs!

[muleskinner0]

If you want a real story, investigate what modern high-tech jobs are like, and you'll find out why we don't graduate more engineers to fill them. With the H1B visas keeping wages depressed and companies increasingly demanding exhausting work hours to meet ridiculously planned schedules, why would young people choose these careers? As a computer science professor, how am I supposed to encourage students to pursue a career as a programmer or software engineer when I know that they could get a business degree with less work at the university level and make more money with easier schedules? The industry is shameful right now. The fixes? Scrap the H1B program completely (it's just a handout to corporations wanting to hire cheap worker drones who will work any amount of hours they demand), and encourage technology workers to unionize. Our students will take the tech career path if we make it worthwhile; right now as a country we are not doing that, and no government program is going to change that without a workplace change.

[sjc_1]

I absolutely agree. I have seen the H1B program in operation and it DOES cost Americans jobs. Hi tech employers say that they can not get qualified people, but who sets the qualifications, they do. There are lots of qualified and talent proven Americans out of work while many come in from other counties to take those jobs. This is happening, just ask anyone that has been there.

[pbarber12]

I'll second this. There are over 900,000 foreign workers under H1B, H2B and L1 in this country (ref. Dept. of Home Land Security) web site. With L1, a company just transfers an employee working overseas into the U.S. with no justification. The engineering jobless rate has almost double in the last two years, and there is no end in site. Why is it that I stand in line over an hour on a business trip, as Canada checks that I'm not taking a Canada job, and here in the U.S. the corporations are bringing foreign engineers in as fast as they can. It is because this is a Federal issue and our Congress is doing nothing. The states just watch and suffer. California is a good example. Too much loss of revenue from their engineers out of work. The Silicon has too many buildings that are vacant. We are losing too much technology overseas when the foreign workers go home. When we will wake up and get our Countrymen back to work and keep our technology at home?

[watcher714]

Some of the people have part of the information. Richard Millhouse Nixon jamed a bill through Congress in the 70's to give business' a deal to go overseas. He and Congress said that we could reduce foreign aid by giving business a tax break to go overseas. Then it was 125% of their cost to move was deductible, now it may be more.
Now just think we have a company called Halliberton "witch is the parent company of Kellogg, Brown & Root" that just moved to Dubi. Halliberton supplys logestics and support in many ways. They supply the food our soldiers eat the truck repair and maintenance and alot of other functions. All done by a foreign based company. Billions of DOLLARS going overseas at an alarming rate.
Change the tax base not paying company's to go overseas and you will see the bleeding of AMERICAN JOBS slow down and maybe stop. Also be very aware of who you vote for and what they can or will do. Get involved it is your country.
Thanks.

[sjc_1]

President Obama said on the campaign trail that companies should not be rewarded for taking jobs out of the country. After healthcare, energy and education I think this will be high on the agenda.

[sjc_1]

We need to invest in innovation. All we have is venture capital and investment banks that look for a big return in a short time frame. Lots of great ideas with what would be good companies never get funded. If we want capitalism to work, we need to make capital available.

[theonewluv]

When I watched the sagment on job creation on The Evening News, yesterday,I was incredulous that " Technology" "Business" "Computers" etc. was all that was needed for a society as diverse as our is. There was no mention of The Arts, History, The Humanities etc..: Nothing, Zip! I almost felt very sad--what to make of this? Unbelievable!

[watcher57]

True. Those are all important things that serve to further us as human beings and document our lives and endeavors great and small, good and bad, and would be tragic to completeley discount and forget even in these trying times. The arts are not only for the prosperous times. They are an indicator, a sensory device of humanity. Without them we become less aware as a whole. Like putting blinders on. I think we can focus well enough without having to put blinders on.

[cdriggs727]

This problem will never be solved until we solve the social problems that lead up to this disaster. Corporations are behaving as sociopaths, and so are governments who don't represent the peoples best interests. As each day ends so will jobs, because of technological unemployment, which means the job was automated.
Capitalism won't work if people aren't employed so that they can purchase goods and services. The whole thing will crumble if people can't afford to purchase.

We need to look at alternatives to capitalism if the people of this planet are to have a decent peaceful lives.
I think the Zeitgeist Movement offers the best alternative for all people to have a better life. So please look into this movement, and see real change.

Thanks