Monday, March 7, 2011

America's Economy: Within 5 years we will have a Severe Worker Shortage!

Paul Krugman and Michael Moore have written excellent articles about the state of our country's current economy. Both articles cite the need for more jobs residing IN America (vs off-shoring) and suggest Unions are vitally needed to give the working middle class a voice and strength through collective bargaining. Otherwise, greedy Big Business will continue to drive down wages and benefits and continue to outsource jobs offshore. Krugman also said technology lessens the need for advanced degrees in certain areas (eg: the growing use of software to conduct legal research vs armies of lawyers and paralegals conducting this research). Instead, study of the future labor needs in our country suggests an increasing need for service and manual labor type jobs.
I decided to test out Krugman's and Moore's theories re: future labor needs. First, I studied the current US Census Bureau statistics. I studied the rate of population, by AGE, between the years 2000 to 2008. Then, based on these numbers, projected the population, by AGE, over the next 20 years, through to 2028. What the data tells me is, over the next 20 years, the rate of Baby Boomers in retirement age is going to double the current rate. The working population, those between 20 and 50, will need to increase in order to meet the needs of the Boomers. Boomers are going to need plenty of "IN America" - service workers to assist them through their Golden Years. These are jobs that CANNOT be outsourced offshore.
America's Future Job Needs include:
. Medical: Doctors, Nurses, Hospital Workers, Home Healthcare and Hospice workers
. Assistance: Drivers, Delivery (Food, Products), Maid Service, Lawncare, Home Protection-Electronics, Monitoring
. Entertainment: Home; Electronics, Vacation/Hotel
. End of Life Planning: Nursing Homes vs In-Home Care Decisions; Funeral Planning (Caskets; Funeral Homes; Cemeteries; Groundskeepers; Cremation)
. Financial: Investments; Annuity, Insurance, Retirement Planning and Account Assistance.
. Service: Call Center Support for Healthcare, Medicare, Social Security, Life Planning, Financial, Nursing.

Other than Doctors and Nurses, many of these jobs DO NOT require advanced degrees, however they do require on-site, manual labor. Most of these are jobs CANNOT be out-sourced and MUST remain here, in America.
If I were President Obama, I would focus on Jobs that America needs in the future. He should have weekly or monthly chats with us to explain the changing demographics and our country's future needs. As the Boomers continue to age and approach social security, we are going to need MORE workers in America, NOT Less. Between 2018 and 2028, we will be facing a severe worker shortage soon. The shortage will be particularly in young, strong workers required for the Home Healthcare industry.
What we should be doing is focusing on how to build the rate of YOUNG, strong workers in our workforce, here in America. As we build this new workforce, more taxes will be paid and more money will be put back into the economy. Young entrepreneurs should be thinking about how to best meet the needs of America in our near future.


los angeles maids service said...

The thing nowadays is that businessmen doesn't want to pay high wages and benefits too. That's why they prefer outsourcing their workforce. Also, they won't have to pay for the electrical consumption in the office of the remote worker and there's no need to provide them office space and furniture.

ultima said...

While there may be a temporary shortage of workers, we can survive without bringing in more immigrants or allowing illegals to continue to flood across the border. Insurance, investments, annuities, etc. require well-educated workers just like the doctors and nurses. All of the investment advisors, CPAs, and brokers I have dealt with were well-educated, many with advanced degrees. Even with the available software, many people still go to H&R Block because the tax rules are too complex for the average person to understand. Obama has already argued for a more skilled labor force trained to operated computerized equipment and able to do math problems related to work.

Dee said...

I'm glad you both agree and understand we will soon be facing severe labor shortages. I agree that Big Business is going to outsource offshore whenever/where-ever possible. Call Center work is already outsourced off shore, so much of this investment, banking work (anything type of discussion that takes place by phone or internet) most likely will be outsourced.

However, what CANNOT be outsourced and the jobs that will be most needed are the on-site, hands-on medical/health/home assistance that the massive number of boomers will need very, very soon. President Obama/Administration should be focusing on these jobs and encouraging students to go into the medical field and into these service type jobs.

Entrepeneurs should be focusing on these areas as well.

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