dispatches from the new world of work

Churn, Baby, Churn!

The U.S. of A. created 500,000 new jobs in Q4 of 2006, according to Barron's (09.10). Not bad at all. One imagines a raft of firms starting or expanding to give us those jobs. Well, sorta—but mostly "no."

To get to a net of 500,000 we actually created 7,700,000 new jobs—and lost 7,200,000. Now that's a whole different kettle of fish! America's longterm economic strength is hidden here, or not so hidden—we are an insanely dynamic economy, growing and shrinking with near reckless abandon, but the net is a job creation record that is peerless in, and the envy of, the developed world.

More later.

Tom Peters posted this on 09/10/07.

Comments

Churn Baby indeed - California alone now has a GDP similar to France or England - San Francisco area as world innovation capital!

And speaking of our friends in England - challenges ahead per 9/17 BusinessWeek article below - amazing their subprime & finance debt load!

"British consumers owe $2.7 trillion on credit cards, mortgages, and other consumer loansâ€”or more than the country's entire economic output. Household debt as a percentage of gross disposable income is 166% ..."

"There are already signs of strain as homeowners start to feel the pinch of five consecutive interest-rate hikes, to 5.75%, in the past year. Foreclosures and personal bankruptcies are up by 30% in the first half of 2007."

Meanwhile USA investor class ala Warren Buffet & Bank of America for example - have made brilliant forays into devalued financials - cash is king!

http://www.businessweek.com/magazine/content/07_38/b4050069.htm?chan=search

Posted by John at September 11, 2007 9:37 AM

This is interesting, and makes me wonder about the type of jobs that churn this fast. I suspect it's not the higher-level "knowledge workers," but temporary work like fast food and housing? It seems that, to keep/sustain the kind of advantages we have, we need to focus on the kind of innovative thinking that comes from creating great thinkers and problem-solvers...

Posted by Matthew Cornell at September 30, 2007 8:05 AM