Jobs, Education & The Growing Wealth Gap

Original Article from Fox Business Brian Sullivan

Economist Mark Thoma wrote a fine piece wondering where the good jobs will come from in the future.

It’s a great question.

As many Americans struggle to find a job – any job – Thoma correctly notes that just getting a paycheck is important right now.   But he adds that ultimately it is the quality of the job that matters more in the long run to families’ and the overall economy’s economic prospects.  Thoma writes:

But in the long-run the quality of jobs matters a lot, and when the
private
sector finally begins reabsorbing the unemployed, the underemployed, and
the discouraged, we want
people to be able to find jobs with decent wages and benefits — jobs
that are as good or better than the jobs they had before.

From my perch the trend toward higher quality jobs is not good.  It is difficult to envision what the next big growth sector will be.   Perhaps another way to express it is: what will be the next IT?

Consider that twenty years ago information technology was a relatively small, specialized field of tech wonks.  If you told someone you worked in ‘network support’ most wouldn’t have a clue what you were talking about.  Now it’s likely that every one of us knows at least a few people working with computers, networks, mobile technology or related industries.   This sector, tiny two decades ago, is now one of the largest employers in America and all with well-paid and relatively secure positions.

So what is the next boom industry that will provide jobs to not only the currently unemployed, but also the million-plus new people entering the American economy every year?  Another good question.

In my view, the only industry I can see with any significant new employment upside is alternative energy.  America must use our existing manufacturing infrastruture to become the world leader in solar cells, wind turbines and other new technologies.   There are factories across the midwest that can repurposed fairly easily, near transportation hubs and with a trained labor base.  It is foolish to believe auto manufacturing will recover enough in Michigan and Ohio to rehire all those who have lost their jobs.  Jobs building new energy technologies would be skilled, well-paid and with benefits.   Of course, the near-term problem is that we are already behind the curve in this growing industry.   For our entire economy’s sake we must ramp it up.  This is not about climate change or a carbon tax; it’s about jobs.   Good jobs.

As bad though as the overall job market is, let’s not pretend there aren’t jobs available.  Employability, however, often comes down to education.  Thoma adds:

Education is part of it, better education means better jobs on average,
and
it’s easy to imagine a substantial fraction of the population benefiting
from
an educational advantage.

He’s right again.

Attending the Google Developer and All Things D conferences in California recently was eye-opening.  Nearly every single company at these events was hiring aggressively.    For example, Samsung Mobile has 100 people at a facility in Silicon Valley and is looking to hire another 50.  A 50% jump in employment!   The problem, a Samsung manager told me, is that they simply cannot find enough qualified people to fill the slots.   Other companies at the conferences told me a similar story.  What other industries can say that these days?

So why can’t these tech companies find enough qualified workers?   A poorly trained labor base is likely a big reason.   How many kids are taking <a

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