Tuesday, March 20, 2007


Bill Testa, and this Paper by Dey, Houseman, and Polivka, think that BLS statistics on employment in the Manufacturing sector fail to account for the rise in employment in Employment Services, which allow Businesses to outsource many functions where it is difficult to maintain consistent competency, steady rates of employment necessary for Permanent Hires, and to avoid the increasing Costs of Personnel Hiring procedures and provision of Health/Pension services. Bill Testa makes the real Case that Manufacturing Employment is hidden because data from Employment Services is listed as Service data, not Production data. There is also much artificial increase in Productivity rates, simply due to BLS numbers not catching the increased devotion of ES employees to production functions, though unlisted in gross Productivity calculations.

Read both article and Post if the Reader is interested; but my major venture here is in the study of the flow of Employment into ES, check out the Paper on exact values for this increased flow. It truly amazes Me how what goes around, comes around the study of Economics. Business is abandoning Permanent Employment as too costly all-around, though they must have a source of trained Labor. Labor is coming to find that assurances of Business will lead neither to Job Security, or adequate protection on the Job for Health provisions Costs–likewise for Retirement security. Outsourcing and Offshoring emasculate the ability of Unions to artificially inflate Wages and Benefits. No One in the Employment process holds optimum placement for highest Profit for themselves, or All Participants.

Now the Reader may ask why the goes around comment. The only venue I see viable to meet and match all Participant needs are Guilds. What? Guilds serve as the perfect vehicle to train Labor to the skilled professionalism required by industry. Guilds easily acquire the negotiations skills to contract Labor to Business. They provide the greatest Population, and best avenue to negotiate for Group Health Services. Guilds would generate the least friction of any organization in setting Employee Withdrawals for Retirement plans; Wage rates would be even and consistent, Employment could be maximized across the Country and World by internal dispersal of Labor assets, and Pension Rights could be easily established. Most Guild negotiation with Consumers and Providers could be via Internet. Business, Investment Broker, and Health Insurer would all possess knowledge of Guild resistance to lower Wages or higher Fees. Is it the way to go for Labor? Yes! Is it the way to go for Business? Actually, Yes! Will They? lgl

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