Phony Job Creation

When you hear that jobs are being created always consider:

One: Are jobs make-work for government or are they permanent?

Two: Are the jobs full time or part time? And if so, for how long?

If the work is for government, are they unionized with special pension programs? If the answers are that they are overwhelmingly government-oriented, you know they may be phony and costly. Particularly when so much of the so-called Obama administration stimulus went to states which added government jobs.

Another important statistic: While economists may differ, spending for a government job is known to have an economic multiplier effect of 1.4 or 1.5, On the other hand, private jobs have an economic multiplier of close to 3.5.

So beware of job claims during a recession, especially when you get those politically-inspired varieties.

Extended Unemployment Checks

Unemployment benefits have an impact on unemployment statistics. Extending benefits tends to make the unemployment rolls greater because it’s generally a disincentive for seeking jobs.

Studies show that most unemployed, who are not desperate, put off looking for work until unemployment checks are ready to run out.

But the media operates with just selective reportage. They find a small percentage who truly need more benefits and make it appear that all the unemployed require to be on a dole forever, or else they starve.

With no remedy, other than an unemployment check.

Real Unemployment Numbers, Part 2

Average unemployment numbers are what we get, covering all age groups. That average can consist of different classes, each of which is affected differently. Classifications contain teens up to age 25. Or all adults 25 and older Or high school graduates, or college graduates; skilled and unskilled.

The adjusted unemployment rate now is closer to 17.5%, not the 10% reported by the media and the government. The youngest job-seekers are suffering the most from the current recession.

Real Unemployment Numbers, Part 2

Average unemployment numbers are what we get, covering all age groups. That average can consist of different classes, each of which is affected differently. Classifications contain teens up to age 25. Or all adults 25 and older Or high school graduates, or college graduates; skilled and unskilled.

The adjusted unemployment rate now is closer to 17.5%, not the 10% reported by the media and the government. The youngest job-seekers are suffering the most from the current recession.

Inaccurate Unemployment Figures

Raw government-announced unemployment figures can be misleading. They must be carefully interpreted. They never fully are in the media, often for politically-slanted purposes.

Examples: Unemployment numbers don’t tell you how long the unemployed have been out of work. Or how many are not working full days or have permanent jobs. Nor how many have given up looking for work. Those out of work a long time may not even be looking for employment, and are not being counted as unemployed,

All that results in a better than reported unemployment figure.

Moreover, the time of year reported is a factor. And weather conditions may have much to do with short-term implications of job statistics.

Management Ability

It is true that an executive must operate with the hand being dealt. If the business environment or the economy is poor, an excellent manager may do extremely well by just minimizing losses. But there are no real standards to go by.

Look at the management techniques used and they are all the same. The same acronyms to describe managerial approaches. Those that worked in the past may not be working now. The ones that did not work in the past may be working today.

A lot of luck is involved and lots of persistence. You do need an earnest game plan Also an eye on protective management technique that actively avoids serious problems. That, for example, keep away from damaging lawsuits, especially employee harassment and EEOC complaints. Management has to consciously stick to the employee manuals set up.

The CEO Role

Studies have looked at the effect of top management changes and have found they account for only about 10% of added profitability.

Often it is other circumstances that result in a company’s doing better or worse. The economy, business or general industrial conditions may have much to do with any company’s near-term fortune.

There are business cycles. Moreover, the bigger the company, the harder it is for a CEO to turn operations around on his or her own.

The CEO is certainly important, but never to the extent the public, or the media, may believe.