Friday, 22 November 2013

Falling Economies, Rising Disengagement Rates

The United States, as we all know, is the strongest and most developed nation on earth. However, with falling economies across the globe, some shocking figures might just throw you off guard and open your eyes wide enough to understand and accept that all that glitters is not gold. I’d like tossed light on hidden unemployment in the U.S., which is not always apparent to the media, government officials or the masses.

Disengaged employees have a staggering effect

The Bureau of Labor Statistics is an autonomous body and the main U.S. government agency that keeps a complete record of labor and job trends on a regular basis. They provide complete statistics and detailed data that inspire most labor policies enacted by the U.S government. Every month they calculate the number of new jobs created both nationally and within individual states. Although these figures are always delayed by a month, they provide a true, clear and concrete picture of the labor and job trends prevalent in the country. Hence, based strictly upon the most recent BLS report released on November 8, 2013, one might be pleased that 204,000 new jobs were created. Furthermore, if we sum up the jobs numbers for the last six months, we get a whooping figure of 1,053,000-jobs created, which sounds really enticing considering many of the government’s policies over the last several years have run contrary to jobs creation. Unfortunately, those figures only focus on those “purely defined” as unemployed.

employee disengagement

However, digging more deeply into BLS figures, we unearth that 21.7 million workers in the U.S are either a) unemployed or b) underemployed (people who are not left with an option but to work part-time because they cannot find a full time job) or c) having just given up looking for a job! When those figures are added to the unemployment numbers, the rate explodes from 7.3% to almost 16%! That is 1 in every 6 people you meet on the U.S. streets!

Counter rampant employee disengagement

A lot more needs to be done to create jobs. Especially to assist small companies, which is the traditional engine of jobs growth. Many of my clients are small business owners and they regularly convey to me that they wish to add new personnel. Unfortunately, they are afraid of the current government climate including many new regulations that will add a lot of necessary burden to them. Instead, government should lessen the regulatory load on small businesses so we can further expand the jobs market in the U.S.!

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