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.
If technology and systems didn’t come so naturally, I really believe that I would have become an economist. I just find it fascinating. The “business information systems” major was such a perfect fit for my abilities, that I didn’t really think twice about selecting it when I was choosing my major at Lehigh. But, as I continue to read up on the current economic climate, work in an industry where consumer confidence greatly matters to our offerings, and I uncover little gems like this article by John Tierney, I realize that my interests run far deeper than technology and design. I wonder if I should have studied more micro and macro economic principles than the 4 semesters I ended up with…
“Maybe, sometimes, old-fashioned economics is just about right,” Dr. Shayo says. “Maybe when it comes to food, people do have reasonably stable preferences. Some people like shrimp and some don’t, even if it’s worth a lot of money.” [via NY Times]
Check out the article. It’s a rather interesting read about consumer preferences and how price affects those preferences. Oh, how I fondly remember those indifference curves and plotting consumer preferences…
International Business Machines has long been viewed as a barometer for corporate technology spending. And its second-quarter results, announced after the close of the market on Thursday, provided another encouraging sign for the technology sector. Yet I.B.M.’s performance, analysts say, is probably an indication that the company’s strategic steps in recent years are paying off, rather than a broad endorsement for the technology industry as a whole.
[via NYTimes]
In a survey released in September 2008 by KPMG, the audit, tax and advisory firm, two-thirds of those polled said that green technology investment is sustainable. Almost all said they expected venture capital for start-ups producing these technologies to continue to increase in 2009. Half predicted an increase of 20 percent or more over 2008 levels. [via NYTimes]
I wonder what the current statistics look like for the first half of 2009? I have a feeling they were very close. Green is not only trendy right now, but it’s the way of the future. Green is sustainable, and makes good business sense. Message to firms out there: get in before you’re toast.
