It should be noted that unemployment “stabilized” in November and if the trend continues, we should see the rebound starting to take place.
Lawrence H. Summers, President Obama’s top economic advisor, predicted on Sunday that by the spring the ranks of working Americans will start to grow once again.
via Summers Predicts Job Growth by Spring - NYTimes.com.
Jobs should continue to be lost, but at fewer rates, and at some point, the “leaner” firms will have to refill the spots that they lost due to the shrinking economy. When that happens, as simple logic tells us, job growth will hit the “zero point” and be positive thereafter.
It may not be much consolation for those who have lost their jobs, or those that have not been able to find work after graduation or being unemployed, but the economic situation has forced forward thinking firms to focus on sustained competitive advantage and ensuring costs are in line with their offerings. Peter Drucker would have recommended firms focus on innovation and investment in the future within these “uncertain times,” and those that have, will be poised for growth and ultimately the creation of jobs.
I would expect, as might seem like common sense, to see larger more innovative firms already starting to hire, and more staid industry leaders to follow suit when economic indicators are more favorable.
And this should come as welcome news to many.
Job Drought in U.S. May Be Near End as Temporary Help, Working Hours Surge — The worst U.S. employment slump in the post-World War II era may be about to end as companies hasten to hire temporary workers and boost hours, according to economists such as John Ryding and Zach Pandl. [Bloomberg]
G.E. Makes It Official: NBC Will Go to Comcast — After nearly nine months of negotiations, Comcast, the nation’s largest cable operator, announced an agreement on Thursday to acquire NBC Universal from the General Electric Company. [NY Times]
Geithner Sees `Progress’ in Job Market, Unemployment Below 10% in a Year — Treasury Secretary Timothy Geithner predicted the U.S. unemployment rate probably will be lower than 10 percent in a year and said the economic recovery is moving closer to a period of job creation instead of losses. [Bloomberg]
World’s tallest building, Burj Dubai Tower, opens as a golden era closes — Dubai Tower opens next month. But will this crowning jewel also be the city’s high watermark? [CS Monitor]
Dubai Loses `Sovereign Halo’ as $3.5 Billion Nakheel Debt Deadline Looms — Sheikh Mohammed bin Rashid Al Maktoum wanted to turn Dubai into a global hub for finance and tourism, the next London or Hong Kong. To help execute his vision, the ruler relied heavily on Dubai World, the web of state-owned companies that includes everything from DP World, which operates 49 ports across the globe, to property developer Nakheel to investment arm Istithmar World. [Bloomberg]
Celgene Cancer Pill to Triple Sales on Threat to J&J — Celgene Corp. can more than triple sales for its best-selling cancer pill Revlimid on new data that may convince doctors to choose the drug as a first option over Johnson
& Johnson’s intravenous medicine, Velcade. [Bloomberg]
Sony Chief Pushes Online Plan for Recovery — Sony’s chief executive, Howard Stringer, has a grand idea: an all-in-one online network that pipes Sony’s films, music, games and other content to its TVs, Walkmans and PlayStation game machines. [NY Times]
In the strongest jobs report since the recession began two years ago, the nation’s employers all but stopped shedding jobs in November, the government reported on Friday, and they appeared to be on the verge of finally rebuilding the work force.
The man who popularized the Web browser has started a venture capital fund to back the next generation of new technologies.
Marc Andreessen, who co-founded Netscape, is announcing on Monday that he and Ben Horowitz, a longtime business associate, have raised $300 million that they intend to invest in technology companies. The venture capital firm, Andreessen Horowitz, will risk small sums, as little as $50,000, on new ideas.
Then, if they work, they will put in more money, as much as $50 million, for the companies to grow globally. The fund will have its offices on Sand Hill Road, the stretch in Menlo Park, Calif., that is home to top venture firms.
Andreessen Horowitz will be testing a theory of investing, one that has lost favor in recent years in Silicon Valley, that smaller funds making smaller investments in very young companies will yield higher returns.
I think this concept makes complete sense. Take a visionary leader a ton of money, small projects, and higher stakes in new companies sounds like it’s a no brainer to me. Any thoughts?
