The global job market is struggling. The US job market is at record lows. The unemployment rate has been at all time lows, over the last 5 years it is approximately 14%. This is significant when compared to 1980, which was 4%. The market boom for the U.S. is seemingly over. We will get back to this idea shortly.
There are 3 main reasons why the unemployment is high and more than likely stay high moving forward:
First, there is outsourcing. This concept of outsourcing started in the early 80’s. Companies outsourcing work to other companies to lower cost made companies a lot more profitable. In fact, most products are not made in the US. I did my own experiment and my shirt, shoes, table and computer was manufactured in another country. I drive an American made car but when I researched it most of the parts are from outside the US. Outsourcing is here to stay. My people don’t know that all of the Fortune 500 companies are involved in outsourcing in one way or another.
The next reason is automation. Whether it’s a computer program or machine companies are looking to automate as much as possible. This also provides companies with an increase in profits. Think about when you call your credit card company or cable company. In most cases your first line of contact will be an automated voice that will route you to the right person. This reduces the number sales people the company will need.
The last is companies are getting leaner. Said another way companies are focused on hiring fewer people and come to the table with either highly specialized skills like computer engineers or a broad topic knowledge based like a marketing professional with experience in advertising, marketing, copy writing, social media marketing and project management skills. Let’s compare Facebook with IBM. Facebook generated $5.1B in revenue with 5,784 people. IBM generated $104B in revenue with 475,000 employees. This is a significant difference, the revenue per person is 5 times larger.
Entrepreneurship is the lifeblood of America. People like the Fords, Vanderbilts, and Ray Kroc help built this country. Back then to start a company it required a significant amount of capital. Today you entrepreneurship is much more accessible. Think of all the people that started companies in their garage or while in school. Bill Gates, Mark Zuckerberg are just a couple. The list goes on and on. Students are now creating successful companies every day.
According to the Wall Street Journal by the year 2019 entrepreneurship will be the #1 career option, replacing medicine, business and law for the first time in America. What are your students capable of? Will they be the next big young entrepreneur? Cultivate your students. BridgePrep provides the tools necessary for students interested in entrepreneurship. Learners will learn from seasoned entrepreneurs. Our Youth Entrepreneurship Initiatives provides schools with a discount. At BridgePrep we think it’s important to provide schools with vital curriculum and students with the knowledge and skills to succeed.