Sustainable Job Creation

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We are in troubling times. Americans don't understand why politicians can't get this done. It doesn't play well with common sense approaches. In my new book, Don't Be An Old Fool: Common Sense & Gratitude, I advocate the usage of common sense approaches for most problems in life.

In August of 2011, our nation posted no job gains. This economic slump is historical since it's the first time since World War II that the economy has shown precisely zero net job creation for a month. Retail, manufacturing, information services, and construction all lost jobs.

With over 15 million people unemployed in our nation, worried US citizens look to their government and/or business leaders for job creation. Is this faith misplaced? The concept of job creation is a hot buzz word among politicians and media pundits. On September 8, 2011, President Barack Obama announced a "job creation jumpstart" plan before a Joint Session of Congress. A $447 billion American Act proposal, consisting of infrastructural upgrades, was proposed. Yet, partisan politics make this job creation initiative an uphill struggle. Furthermore, many people ...
... doubt that the government can create any sustainable jobs.

However, others have grown weary of corporate promises of more jobs too. According to the Federal Bureau of Economic Analysis, corporations reported an annualized $1.68 trillion in profit in the fourth quarter. The previous record (without being adjusted for inflation) was $1.65 trillion in the third quarter of 2006.

For example, General Electric posted worldwide profits of $14.2 billion, while JPMorgan Chase's profits went up 47%. The financial firms were some of the biggest winners. While the federal government provided aid during the economic downturn to save many of these "too big to fail" institutions, these firms did not return the favor.

Today's leaders from varying industries must be willing to work together in order to solve the job creation matter. This also requires a strategic approach rather than a short-term one. Given this financial crisis in America, there are two concepts at odds with each other: economic viability and quality of life. Economic viability relates to creating jobs that are necessary for a business. Quality of life involves an unwritten standard of living for a citizen to live in reasonable comfort given his or her work effort.

This reality for many organizations has meant outsourcing high-cost activities, such as manufacturing, to countries abroad, like India, China, and more underdeveloped countries. If it costs $20 an hour for customer service in the US, would a business give up sending that work abroad for $1 per hour? Therefore, companies that focus on a low-cost strategy will continue to search for the newest low-cost labor market to be competitive. Yet, this reality drives down the wages for U.S. workers and the quality of life for U.S. citizens.

The concept of job creation as it relates to sustainability is a difficult problem for any nation to solve. Consequently, government leaders and business executives must work together to solve this matter, and not try to solve it in a vacuum. This reality means using a common sense of approach to getting this done. There are millions of Americans who lack the basic skills to compete globally.

Some industries need to be more strategic in attacking global competitors with a value-based strategy that places the customers at the center of the buying process. While depending solely on a low-cost strategy leaves businesses helpless, searching for a cheaper labor force across the globe, creating value for markets provides sustainable success.

While American politicians debate job creation, millions of individuals are demanding more than lip service about this national crisis. Like described in my book, Don't Be An Old Fool: Common Sense & Gratitude, today's leaders must abandon contemporary practices that alienate individuals and return to common sense of respect and cooperation.

The article demonstrated the importance of a deliberate approach to the issues of sustainable job creation. It is a matter that can be solved if America's leaders will commit to cooperating together with a shared vision. Human capital is a critical piece in the financial crisis puzzle. Therefore, today's leaders must be willing to approach this situation of sustainable job creation with a strategic vision over the long term.

© 2011 by Daryl D. Green

Dr. Daryl Green provides motivation, guidance, and training for leaders at critical ages and stages of their development. He is the author of the new book, Don't Be An Old Fool: Common Sense & Gratitude. For more information, you can go to nuleadership.wordpress.com or www.darylgreen.org.