Employment: A Call to Action for the Next President of the United States
Picture from the GAN board meeting, hosted at the White House on Oct 6, 2016

Employment: A Call to Action for the Next President of the United States

Dear Next President of the United States,

Over the next four years, America will face a number of challenges, employment being one of them.

Filling skills gaps, addressing employability issues, keeping the cost of labour fair, tackling inclusion matters, solving the rising cost of college tuition or mending demographic divides, the next president will have to confront critical policy issues.  

America is not alone. Currently, there are more than 197 million people unemployed around the world and some 71 million of them are young people. According to IMF President, Christine Lagarde, “If the unemployed were a country, they’d be the fifth largest in the world.” The world can no longer afford to ignore what has become an epidemic of unemployment. 

During every election cycle, the topic of “jobs” is a major building block of the political contest. However, employment is about more than jobs. Employment is a key indicator of the long-term health of a country’s economy and its labor force. Nations that provide a robust nexus between skills and opportunities are best positioned to enjoy long-term employment across generations, regions and social classes. It is these countries that continue to grow, prosper and meet future employment demands for generations to come.  

In the U.S., the economy is on track, current GDP growth rate standing at 2.43. But the labor market statistics paint a mixed picture of the nation’s overall economic health. Although the unemployment rate has declined from 10% in 2009 to 4.9% today, the labor force participation rate has dropped to historic lows. In June, the IMF highlighted the US low labor participation rate and youth unemployment (11.5% ) among the four major challenges facing the country over the next decade. (https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp062216). 

Further complicating the situation, the aging population will require leaders to rethink labor policies in order to be more inclusive of an aging workforce that will not want to be, nor should be idle in their advancing years. Employers should be encouraged to think creatively about how to keep this experienced and valuable workforce active and engaged. Therefore, we can no longer afford to ignore the demographic shifts, nor the need to educate and prepare individuals to meet the “Future of Work.” In fact, the “Future of Work” is already here.

In the not-so-distance future, robots will be working alongside us, for all the right reasons, reducing the risk of injury while performing hazardous and dangerous tasks. By integrating more smart technology into the workplace, people can focus on what humans do best: innovation, service and problem solving. But we also cannot forget about “The Present of Work,” the thousands of analog jobs that employers still struggle to find workers to fill. So, what is the right prescription for this multigenerational, multinational, multifaceted workforce dilemma? 

  1. Make sure the funds allocated to spur job growth, foster innovation and encourage entrepreneurship are going to the right place. Don’t forget the private sector: by incentivizing job creation, employers can ensure workers retain and gain the skills they’ll need in the future. The next president will find willing allies in U.S. business leaders who are concerned about the growing skills gap and its impact on their companies and the nation’s future competitiveness. (http:/changetheequation.org/press/ceos-say-skills-gap-threatens-us-economic-future)
  2. Address the cost of education and spur vocational training. According to the 2015-2016 Global Talent Competitiveness Index developed by Adecco Group, INSEAD and HCLI, the U.S. ranked number four for attracting, retaining and developing talent. Among the several factors that contribute to a young person’s difficulty to settle in the world of work are the high tuition cost ($16,000-$46,000 annually). Young adults should not be bearing such financial burdens at the start of their career. And their skills should be rewarded from the early stages on, when they engage in the contract of educating themselves along the skills that businesses need, for the benefit of all.

The U.S. has been considering a country like Switzerland with high employment, low youth unemployment, a high participation rate of youth and women in the labor market and a high level of productivity. Studies show that nations that understand the strong correlation between the needs of employers and relevant training “deliverables” enjoy greater long-term economic success. Switzerland takes this connection so seriously that these missions reside in the same ministry, the Federal Department for Economic Affairs, Education and Research and is headed by the President of the Swiss Confederation. Could Mrs. Clinton or Mr. Trump consider such a move for her or his administration?

The future president of the United States would do well to continue learning from Switzerland’s example and its high employment participation rates. Now, one might argue: how can one compare the United States, a diverse country of more than 300 million people to Switzerland, a small country of 8 million which is significantly less diverse. Well, we can do this because the solution has nothing to do with the number or composition of people. It’s a solution that is universal and applicable anywhere there are people and opportunities. Apprenticeships. While it is lesser known in the United States, it’s a model that has worked successfully in certain European countries for decades. We therefore welcome the efforts triggered under the Obama Administration, where Secretary of Labor Tomas Perez has championed the apprenticeship solution as a creative way to wed talent with needs (https://www.dol.gov/featured/apprenticeship/find-opportunities ).

In October, as Americans begin to consider their choice in November, representatives of the Global Apprenticeships Network - GAN (www.gan-global.org) is gathering in Washington D.C. to strengthen awareness around Apprenticeships and work-based learning programs, such as educating young people and families on the value of these models. Its advocacy goes beyond the typical blue collar jobs in the construction sector and includes opportunities in service, retail, hospitality and healthcare. The goal is to convince policymakers and business leaders in different sectors and geographic locations to explore and embrace apprenticeship solutions. 

Thanks to the GAN, we are expanding apprenticeship opportunities around the world. Today, more than 800,000 young people are employed through apprenticeships, trainee programs or jobs around the world via the GAN network. And by 2020, more than 9 million opportunities for youth will be created by GAN Global Member Companies. On behalf of The Adecco Group, we will continue to contribute. By 2020, in the US only, the Adecco Group North America pledges to facilitate 10,000 work-based learning opportunities, with an emphasis on apprenticeships. This commitment will be made possible through partnerships with organizations and businesses across the nation, who share our North American goal of closing the skills gap and preparing for the future of work (http://www.prnewswire.com/news-releases/adecco-group-north-america-pledges-10000-work-based-learning-opportunities-by-2020-300340647.html?tc=eml_cleartime).

So I call on Mrs. Clinton and Mr. Trump to spread the word on America’s best kept secret: Apprenticeships, investing in the workers who will fill of the jobs of the future. Mrs. Clinton, Mr. Trump: the ball is in your court!

Min Oo

Sales Assistant at Adecco

1y

Qq A

Like
Reply
Pete Chatziplis

Private Equity Advisor - Front Office Corp Fin, M&A, Biz Dev, Strategic Alignment Orientation

7y

Agreed on the need for a focus on employment albeit have difficulty to understand why you’re addressing that to the next POTUS only and why you are basing your arguments on employee participation. -As you said the US economy is doing pretty well; on the other hand the other big economic pole in your neighborhood, EU, is not. Why not ask the EU President (or whoever is taking the decisions there) to bolster growth with direct investment rather than QE, especially in Southern Europe. Greece for example has 25% unemployment (50% among youth) and a further 5% have left the country. -Why is labor participation a representative health measure of a job market or an economy? For sure the largest the number of jobs the best for the recruitment industry. On the other hand labor participation was much lower in the not so near past (50’s etc). Some people might find it preferable if possible not to work based on current market circumstances. Unemployment however is a problem for sure; it means that some people do need to find a job and they can’t. You also probably need to look at other measures of prosperity such as number of retirees, students, level of criminality, poverty or health to see whether an economy is doing well. -It’s not about number of jobs but quality of jobs too. What if let’s say a government outsources all high salary jobs and replaces them with low paid service industry jobs? Labor participation, in the absence of other survival options, will shoot up (no offense to service industry jobs but usually they pay less and are not the first choice for graduates). Or I don’t know whether you’re talking about offering apprenticeships for laid off office workers; that pretty much would work like some recent comedies (The Intern/Rob deNiro, The Internship/Vince Vaughn etc probably companies don’t entertain at all) Yes, indeed things can get worse in terms of automation but it’s not only manual work that is automated but also white collar jobs (Artificial Intelligence, digital archiving and process, roboadvisors etc). Justifiably so as many white collar jobs are mundane and mentally draining. Humans are more creative. On the other hand if jobs are automated that doesn’t mean that humans won’t have a way to make a living. Is this something along the lines of the Swiss referendum regarding the minimum guaranteed income? If you think about it, there are a lot of activities that humans do but don’t get paid for today. In other case we’re looking at a dire future of high unemployment; but if so how will social security be sustainable? -The apprentice system sounds interesting. On the other hand don’t you think that the venture capital/startup sector, at least in the US, functions in similar fashion? It prepares many educated youth for the marketplace and it is supported by companies and private funds even if startup jobs are not always economically justifiable (based on success rates). On the other hand what would you think of the German labor system of flexible hours vs laying off and how it performed during the Great Recession? see for example: “A Closer Look at the German Labor Market 'Miracle'” by S Fujita, Philadelphia FED http://connection.ebscohost.com/c/articles/99807288/closer-look-german-labor-market-miracle December 2014. Finally I’m trying to understand the usefulness of bringing up Switzerland as the ideal example. For sure the macroeconomic and unemployment numbers are spectacular. In particular noted here that deposits represent 170% of GDP shooting up during the last 20 years from historical 90-100% while in USA it is around 80% and in the world around 48%. Having a surplus of capital probably helps. And I think that there are at least three main official/spoken languages in Switzerland which probably creates significant diversity wouldn't you think and complexities in labor movement in the absence of other policies (to your point about homogeneity).

Like
Reply
Tom Kelner

Owner at Alpine Bed and Breakfast

7y

The ball, as always is in our collective court. Way too many have waited for government to fix way too many problems for way too long. Apprenticeship looks like a good idea. But, we have to come up with our own ideas, plan the fulfillment of those ideas and see it through.....in spite of whatever the government is doing TO us. If it is a good idea that produces better workers for our respective industries then it is in out best interest to implement that plan regardless of any government programs.

Like
Reply
Lilian Furrer

Corp. Responsibility Communication Lead

7y

Thank you for this strong message. Proud to work with the Adecco Group on a strong purpose: meaningful employment for all.

To view or add a comment, sign in

Insights from the community

Explore topics