Work Hard, Earn Less

If you ever doubted the brutality of the labor market, take a look at articles in yesterday’s New York Times or today’s Christian Science Monitor.

Yesterday the Times reported on the changing job promise at Caterpillar. While employees once saw generous wages and benefits in exchange for their long term job tenure and commitment to the organization, the younger workforce has a strikingly different offer -- less wages, paying more for benefits and poor job stability. On the bright side, Caterpillar is working with the community college to enable workers to gain new skills and prepare for other types of work. Just think -- this is what's happening at a PROFITABLE company!

Today's Christian Science Monitor also looks at the struggle of younger workers. On many measures, younger workers are falling behind. Median incomes are falling for younger households, education costs are rising dramatically -- leaving younger workers with high student loan and credit card debts, and rising healthcare costs are being shifted to the new workforce.

I wish these stories went a little farther talking about who will succeed in the labor market. The Monitor alludes to the fact that people with skills demanded by employers and/or a commitment to lifelong learning will fare better in the labor market.

This is why we need HCPI speakers to get into the community and provoke thought and action with regard to career education and workforce development. Talking about what's wrong with the labor market only gets you so far. We've got to give people the tools to succeed.

Finally, I should mention that I wanted to also recommend an article by Paul Krugman about rising economic inequality. Ironically, though, you can only view the article online if you pay for/subscribe to NYTimes Select. Once again, the poor get imperfect market information.