Outsourcing Our Kids In 2012. Future Employment In The Middle East.


Monica Malik, Chief Economist at EFG-Hermes, said: “Across the region, the big issue facing economies and policymakers is how to create jobs and absorb new entrants into the market. This has been an underlying problem in the Middle East for quite some time; it is not something new and it is one of the biggest challenges facing the region.”

“The skill sets produced by education systems do not meet private sector requirements, which in some cases reflect the high level of expatriate workforce.”  Full Read.

So our teen unemployment rate in the U.S. is on par with countries in the Middle East; however, the projected economic growth rate in the Middle East is greater than that of the U.S.  Further the education systems in the Middle East do no support the skill sets required of this new growth meaning these companies will hire abroad…as in here.

Only 24% of teens have jobs today as compared to 42% as recently as the summer of 2001. So over the course of the last decade the unemployment rate for teens has essentially been halved.   Aside from the current economic malaise; why?

Top Ten Reasons:

  • Congress passed minimum wage increases, raising the minimum wage in stages to $7.25 an hour in 2009 from $5.15 in 2007. Raising the cost of hiring the young and unskilled while employers are slashing payrolls was unwise.
  • We have 12 million illegals in the US, and hundreds of thousands of visa workers, along with employers who employ them.
  • The combo effect of parents not demanding teens work as they once did, “year-round school schedules, and athletic programs.
  • Federally funded programs like Experience Works, a job training program for older workers has increased the employability of seniors desiring to return to work.  I’m not slamming the program, but it is a contributing factor towards teen unemployment.
  • The Center for American Progress, has recommended another increase to $8.25 an hour while unemployment is 9.1%, claiming this would “stimulate economic growth resulting 50,000 new jobs.”  See bullet point #1 above and join me in a collective “huh?”
  • In certain circumstances employers can now pay teens a minimum of $4.25, but only for 90 days.  90 days;” just long enough to be underemployed until I return to school…why bother?”
  • Another hurdle facing teenagers this year is that the federal jobs program, which was funded with stimulus funds in 2009 and 2010, has no money this summer.
  • Tighter municipal budgets also mean fewer jobs at libraries, parks and pools.
  • Consumer spending is down, hammering the retail sector, which has traditionally been a stronghold of teen employment.
  • State run “Youth-Works” type programs have seen budget cuts on average of 15% reducing both readiness, and resources for teens.

Unless we get this turned around, our kids will soon be following our products in the outsourcing and off-shoring process.

Advertisements

Posted on July 1, 2011, in Uncategorized and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: