Has Outsourcing Come Full Circle?

A recent study found that Indian companies have begun outsourcing call center work to another country: the U.S.

Apparently our high unemployment rate has resulted in a large pool of workers willing to work in call centers for $10-12 an hour, and India's dramatic growth has made hiring cheap overseas labor a necessity.

I think we'll see more of this as wages around the globe fall into alignment in the global economy.

Jobs Do Not Equal Security

The U.S. job market continues to flounder; when we do have growth, it's very weak. While this article suggests that the Japanese tsunami and earthquake may be partly to blame, the fact is that this is an ongoing weakness and the hallmark of a shaky economy.

No one is predicting that this problem will be solved anytime soon. Some believe it's a systemic problem with no easy answers. So our children will likely enter adulthood in an economy where the phrase "job security" is an oxymoron.

What can we do? We can raise entrepreneurial children who understand how to develop a side income, and help them become financially savvy so that they know how to stretch the dollars they earn. I cover those subjects in great depth in Thriving in the 21st Century: Preparing Our Children for the New Economic Reality.

Teens' Unemployment Rate Now 25%

Working teens get an education that they could never receive at school or home. They learn a variety of skills in addition to working for someone besides their parents. The pay is just a bonus. All teens should work.

But it's getting harder for them to find jobs. A recent study found that 1/4 of today's teens ages 16-19 can't find work. This is a shame, as they're missing out on learning so many things that they'll need to know as adults.

If your teen can't find a job, encourage him or her to create a job by finding unmet needs in your neighborhood. Many a teen has made good money by washing cars, walking dogs or watering gardens.

Entrepreneurial Kids Finding Success

The high unemployment rate of the past few years has been particularly hard on teens, who are at the age where they're eager to get started on their working lives.

These teens decided to be proactive by starting their own businesses, and the results they've gotten will encourage your teens. Send them the article link; it may be just the inspiration needed to get going on a dream.

The Antidote to Unemployment

Unemployment rates continue to rise in all the largest American cities; the worst areas seem to be those hit hardest by the bursting of the housing bubble.

One of the best ways to counteract the loss of income due to losing your job is having a side business. Even a small regular income can make life much easier.

Do you have a side business? If not, why not start one and get your kids involved in it? It's a great way to prepare them for survival in a rapidly changing economy.

It's All About Jobs

The housing market has still not recovered. In fact, new home sales are at a 47-year low. Increasingly, the jobs situation is being blamed for the slow housing market. There are too many unemployed people; not only can they not buy houses, but their large numbers makes those who are employed afraid to buy houses, because they worry that they could be the next to lose their jobs.

This long stretch of unemployment is caused by more than just the poor economy. Many of the jobs have been lost to automation or off-shoring and aren't coming back. We can't tell our children to aim for a single career. They'll have to be versatile and self-reliant in order to support themselves.

The Jobs Situation Continues to Change

One morning this week, I heard a radio news report announcing that the government announced there was an increase in new jobs last month. Just as I was thinking, "They'll adjust those numbers downward in a few weeks like they always do," I happened to see this online: "Announced U.S. Job Cuts Rose 20% From Year Ago, Challenger Says."

Our job situation in the U.S. is so tenuous these days, with jobs being created and disappearing at a faster pace than ever. It's not like the old days, where a person held a job for 40 years with one company and retired with a gold watch and a nice pension. Our kids will work in a much different world than their parents or grandparents did. And we need to prepare them for that reality.

Book Update

Thriving in the 21st Century: Preparing Our Children For The New Economic Reality is at the printer; we're awaiting the delivery of proof copies this week. The book will be out in April!

Newbies to this site may not know that I began investigating the changes in the economy several years ago, when my husband's manufacturing-related business began slowing down due to increasing competition in his industry from China. Once I realized how much the economy was changing, I began to study how to prepare our children for a very different world of work than the one my generation had known; my study led me to write this book.

Here's the back cover copy for Thriving in the 21st Century:

Today’s children will reach adulthood in an economic environment unlike anything the world has ever seen. The 21st century global economy is powered by an increasing rate of technological change as well as growing foreign competition; both are contributing to the high U.S. unemployment rate and stagnating American wages. How can we as parents prepare our children for success in this growing maelstrom that many are now calling “the new normal”?

In Thriving in the 21st Century, Barbara Frank demonstrates that we must move beyond the common wisdom of the 20th century that emphasized a college diploma and lifelong employment with a large company as the only way to success. Instead, we need to set our children on a new path, one that will help them not just survive, but thrive in the 21st century.

In this book, you’ll learn:

• The Seven Strengths your child will need to prosper in the 21st century, why they’re needed and how you can develop them in your children
• The most efficient (and increasingly popular) way to give your child those Seven Strengths
• Why public education has failed to prepare our children for the 21st century
• How we can help our children become the lifelong learners needed in a rapidly changing global economy
• The surprising truth about today’s colleges and universities
• How economic change is affecting a variety of career areas, and which of them are projected to grow dramatically in the coming years.

This book is packed with ideas and resources for raising our children to become adults who respond proactively when faced with economic challenges, and who can prosper during times of great change. We can help our children reach young adulthood ready and able to tackle the future with all its challenges. And that, of course, is the key: we must prepare our children for the future…not the past.

I'll share more information as it becomes available. Keep an eye on this site!

Less Work for More People?

Across the pond, 97% of recently created jobs were part-time jobs. Here in the U.S. we're seeing a decrease in working hours, too, although not that extreme. Not yet, anyway.

Some believe this is just the beginning. Years ago, Jeremy Rifkin's The End of Work predicted this would happen. No one knows for sure what the future holds, but playing it safe seems prudent. If we teach our kids to handle money wisely and carefully, they'll be able to handle life on a small salary better than those who aren't taught to stretch a buck.

More College Grads are Looking for Work

According to the Bureau of Labor Statistics, the unemployment rate among college graduates is the highest it's been since 1970.

Traditionally, blue collar workers suffered most from layoffs and cutbacks during recessions. But this recession is different, and unemployed college grads are being blamed for driving the unemployment rate up higher than normal.

Some say our current situation is the new normal. Let's hope not. But unless you have pots of money or a highly motivated smart kid, you may want to rethink going along with the popular trend of "All kids must go to college."

Looking for Someone (Something) to Blame?

One of the biggest reasons that finding a job has become harder is that we now automate many jobs that were once held by human beings. Check out this article about how robots ensure that catalog companies ship your holiday orders in time. Back in the day, humans picked those orders, and maybe even earned overtime during the busy holiday season. But not anymore.

NOTE: I'll be taking the next 10 days off to spend time with my family over the holidays. Merry Christmas and Happy New Year! See you in 2011.

Making Sure Our Kids Will Have Options...and Hope

Just watched the heartbreaking PBS special "Close to Home" (watch free here), which describes what people are going through in this recession.

Especially striking is the fact that most of the people looking for work are looking to work for someone else, yet sending out hundred of resumes with no luck. The only person with some semblance of security (albeit reduced, thanks to the poor financial shape of her customers) is the person who is self-employed.

It's sad to see people without hope. When you rely on others (employers, the government), you have that sinking sense of having no control over your situation. Those who aren't afraid to try self-employment (admittedly a scary proposition after 20 or 30 years of working for others) are the ones who still have options, and hope. We need to plant the idea of self-employment in our kids' heads so they'll always understand that they have that option!

Even China Has Unemployed New College Grads

That's right; we're not the only ones churning out college grads who can't find work. China has the same problem, and these young people are caught in a bind: they can't find work in the city, but they don't want to return to the country, where there is nothing for them.

The moral of the story? A college degree is no guarantee of work. It's a new world, and there are no automatic solutions to finding work that pays enough money to live comfortably....even in the world's biggest booming economy.

Young Entrepreneurs Finding Success

Here's a great article you'll want to share with the young people in your life. It describes young adults who have decided to bypass the traditional (and currently bleak) world of working for someone else by starting their own businesses. Using today's technological tools, many are finding financial success, and all are learning to rely on themselves instead of an employer. Smart kids!

Just Because a College Offers a Certain Major....

....doesn't mean the major provides a degree in an industry that offers any hope of growth, or a future job.

This article made me so sad because I was once a journalism student. While I don’t believe I was as idealistic as some of the students quoted, I enjoyed every bit of my journalism education, and looked forward to a career in journalism. A lousy economy at the time of my graduation ruined that dream for me back then.

Today, these kids are graduating into a lousy economy and a deteriorating journalism scene (the original version of this article included comments from recent journalism grads who can’t find work). The rise of the Internet and the clear bias of American media have resulted in newspapers dropping like flies. Yes, there are far more writing opportunities online than in print, but they pay less, too. It’s much harder to make a living as a journalist now than it was 30 years ago when I graduated during the Carter years.

Yet the professors quoted in the article let the students believe that “it’s all going to be ok” when they surely know better. Gotta keep those paychecks coming in, I guess. (Same reason so many colleges and universities inflate grades these days, but I digress….)

The moral of this story? Just because a college offers a specific major does not mean your child will be able to find work after obtaining that degree. Help your child make a wise career choice. Check out specific careers and their predicted futures at http://www.bls.gov/. Most of all, don’t believe the hype of colleges that need to keep a certain number of warm bodies coming through their departments in order to maintain their own employment.

College Grads and Unemployment: Will This Affect Them for Life?

The rate of unemployment among recent college grads has doubled, and many of those who have jobs are not working in their chosen field, or even in a job that requires a degree. Will this experience scar them for life or make them stronger? You decide.

Our Kids’ Competition for Future Jobs

When I hear that the unemployment rate is still going up, my immediate thought is for our kids and their future. We’ve been told that many of the jobs that were lost aren’t coming back due to technological change and offshoring. So how will our kids make a living? Will they have to deal with long periods of unemployment in their lives?

Those concerns are why I’ve written my new book, but talking to two of my children who are working adults has given me hope that things won’t be as bad as they seem. Both of them tell me that despite the high unemployment rate, it’s still hard to find good workers. They’ve expressed frustration with job applicants who barely speak during interviews and lazy new employees who spend their time texting instead of working. (These aren’t isolated incidences; they say it’s a pattern they see every day.)

These young employees have some ethical issues beyond laziness. One new employee borrowed a customer’s coupon during a transaction to get an additional discount on her own purchase. A self-identified Christian young man hired as a manager flunked his drug test.

As a result of experiences like these, my kids (who live in different states, by the way) think the high unemployment rate reflects a large number of incompetent people who can’t hold a job. That wouldn’t apply to several people over 40 I know who are among the long-term (2 years +) unemployed. But I think they’re having a hard time getting hired because they’re used to higher pay, and their age makes offering them health insurance a more expensive proposition. As for the younger people, maybe my kids are right.

In that case, we don’t have to worry as much about tough competition for our kids. If we raise them with moral character and a good work ethic along with the skills needed to compete in the 21st century, they should be ahead of most of their peers from the start.

Note: Simulposted at Barbara Frank Online.

Self-Reliance is Necessary Now

This man submitted nearly 2,000 job applications but was never hired. So he wised up and started his own business, which is doing well. He used his personal experience to come up with the idea for his business. Smart! This is the kind of thinking that pays off in the new economy. It's how our children will need to think.

Which Career Areas are Growing?

Here's an excellent resource: a spreadsheet that shows the change in the number of jobs in a variety of careers; stats are for the time period May 2008 to May 2009.

The first page shows general career areas; click on the link "all job catagories(sic)" to see specific jobs. Note that frequently off-shored jobs are italicized. Numbers are from the BLS.

Paints a bleak picture, doesn't it? But some areas are doing better than others, which gives you an idea of where the least affected areas are, i.e. those to encourage your kids to look into for future employment.

Here's Your Diploma....and Your Bill for $24K

According to a recent survey, the average new college grad owes $24,000 in student loan debt at a time when the unemployment rate for college grads has set a record by jumping from 5.8% to 8.7%....in one year!

Keep in mind that the lower-than-average unemployment rate of college grads is partly due to them taking jobs that don't require a college degree because they need something to help pay back the loans that come due within a year after graduation. That explains why there are an awful lot of college-educated truck drivers and burger flippers at work these days.