Saturday, November 29, 2014

The young are too expensive to waste

In a labor starved economy, in the end labor will win the negotiation over pay and work conditions if businesses do not roll over and die first. Then unemployment will rise as the economy tanks. This is the script for bigger countries which is practically for significance, everybody else.

To be pragmatic businesses have to change their attitudes not only to older workers but especially the young ones. The young work harder at school than their forebears, so they are not lazy. They just need to be motivated differently and what is wrong with that? Isn't that progress if it is in disguise by older bosses who lack imagination.

Metaphorically the old would want to as always done when they were younger, carry water. The young on the other hand will want to lay the water pipe first, scare you with the cost and risks for doing so and ask for more money for their dare and energy despite their lack of experience.

The young are increasingly choosing to be unemployed because there is more than enough jobs to go around. Many of these are water carrying job versus the pipe laying ones the young want.

Unfortunately it has become only fashionable for business to talk long term but walk the short term. Listed companies live from quarter to quarter. We have in the making a Tragedy of the Commons from businesses who only think in terms of the next bucket of water instead of long term benefits of laying a pipe. This is especially true in the construction industry.  I learned from my nephew from wifey's side that he had switched from civil engineering to the BCA.

Everyone including very often this government is now short sighted because of failing foresight in an environment that is getting only more uncertain.

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