Lost in all the unemployment headlines is the fact that underemployment in the United States has now reached its highest recorded level. Underemployment hit 14% in January 2009 and that figure is significantly understated.
A quick look at the US Government's measurement reveals why.
The underemployed includes three population groups:
1. Unemployed workers (increasing at an alarming pace of 600,000 downsized employees a month).
2. Jobless workers who are no longer actively seeking employment ("marginally attached" workers).
3. Part-time employees seeking full-time work ("involuntary" part-time workers).
What is noticeably missing in this measurement are the millions of full-time workers who are overqualified (and likely underpaid) for the work they are currently doing.
How many professionals with advanced degrees are now accepting hourly labor to have full-time work? How many employees have more experience than their manager? Or, for that matter, have more experience than their manager's boss?
As a social media experiment, I have started a Facebook group called "I am UNDERemployed in America. Stand Up and be Counted" to give a voice to the millions of underemployed workers in America.
Monday, February 9, 2009
Tuesday, February 3, 2009
Corporate Layoffs: Necessity or Bandwagon?
The sun has now set on one of the most storied American corporations. For the 15 year period from 1982 to 1997, it was THE top performer in the entire US stock market. Jim Collins immortalized the company in his 2001 bestseller Good to Great. Today, Circuit City has gone out of business and laid off 34,000 employees.
Back in October, consulting firm Watson Wyatt reported on CNN Money that a quarter of US employers expect to make layoffs over the next twelve months. That estimate may be conservative now with some analysts predicting unemployment at 10 percent or higher over this next year. Corporate layoffs have become the daily news headlines.
Circuit City's layoffs were out of necessity because the work is clearly gone. But are some corporations simply cleaning house during this economic downturn? There are altruistic executives out there, but the cold reality is that publically traded companies are accountable to shareholders. Are some companies simply reacting to market pressure to cut costs? Or is the work clearly gone and layoffs are an absolute necessity?
Do you feel the US Government's stimulus plan will create a sufficient number of new jobs in the short term?
Back in October, consulting firm Watson Wyatt reported on CNN Money that a quarter of US employers expect to make layoffs over the next twelve months. That estimate may be conservative now with some analysts predicting unemployment at 10 percent or higher over this next year. Corporate layoffs have become the daily news headlines.
Circuit City's layoffs were out of necessity because the work is clearly gone. But are some corporations simply cleaning house during this economic downturn? There are altruistic executives out there, but the cold reality is that publically traded companies are accountable to shareholders. Are some companies simply reacting to market pressure to cut costs? Or is the work clearly gone and layoffs are an absolute necessity?
Do you feel the US Government's stimulus plan will create a sufficient number of new jobs in the short term?
Subscribe to:
Posts (Atom)
