Jobless Recovery: Human Capital Utilization
By Robert Teal, CCP, CBP
For some time now, indications are that the current economic recovery, which is slowly taking place, will be a “jobless” recovery. By that it is meant that jobs lost in the downturn will not reappear or will reappear in significantly less numbers than prior to the recession. If this is the case, the recession of 2009 will be the third such jobless recovery since 1990. The first and second jobless recoveries occurred in 1991 and 2001 respectively. Prior to 1991 recession-recovery cycles resulted in as many jobs being created as were lost and in some case, excess jobs were produced. According to The Economist online, the current recovery is following the same path that the prior jobless recoveries of 1991 and 2001 took: a permanent loss of jobs.
To be perfectly clear, it is not the role of private business to create jobs. Jobs are created in the business sector only when a valid business need requires to be fulfilled. (more…)