Life keeps getting tougher for folks to survive. While politicians and media pundits seize the opportunity of each life-changing event, families seek to make the best of a struggling economy. According to the latest government job report this month, just 74,000 more people were employed in December versus 205,000 expected by USA Today’s survey of 37 economists.
Life will become tougher for job seekers as globalization sweeps down on country after country. For some countries, they will become industry leaders while others will fade into the night of obscurity. Many Americans are retreating from the workforce, causing the unemployment rate to fall to 6.7% in December.
In fact, only 62.8% of the adult population is participating in the labor market now; participation rates relate to those individuals who have employment or those actively seeking employment. Heidi Shierholz, an Economic Policy Institute economist, explains: “We’re going to have a long-term unemployment crisis for a long time.”
This current low participation in the job market matches the lowest level since 1978. According to USA Today business reporter John Waggoner, the economy could be puzzling to the average American: “…corporations have plenty of cash in their coffers to expand and meet future demand. But the job numbers don’t reflect that yet.”
Companies taunt their corporate responsibility to the community with such public relationship activities as sponsoring local events. Yet, more workers wish these companies would renew their social contracts with American employees to ensure them of a decent wage.
Consequently, some workers often become victim of their company’s good fortune. Thomas Friedman, author of The World is Flat, explains, “The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists—not to save money by firing more people.”
The world’s poor stands at more than 1.1 billion people, mostly rural Africans, Indians, and other South Asians. In fact, the poorest fifth of the world’s people earn just 2% of the world’s income. With companies moving into emerging markets, they can raise the standard of living for millions.
Today world’s middle class earns an average of $700 to $7,500 per family member according to the United Nations’ Millennium Development Report. Many companies would argue that their global reach has improved the quality of life for millions around the world and this is a small price to pay for the loss of a few jobs domestically.
Discuss if American businesses must deal with the search for cheaper labor and the consequences on the quality of life for millions of individuals locally.
© 2014 by Daryl D. Green