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“Destruction and Creation – A New Jobs Hyperbole”

 

“Destruction and Creation – A New Jobs Hyperbole”

By

Gregory V. Boulware

What does it take to go from here to there and back again? C’mon, let’s not kid, sugarcoat, or oversimplify our situation. As business model processes and new or current technologies replace legacy ones, it is absolutely essential to question “Creative Destruction.”

Technology, without a doubt, is and remains to be the biggest job creators in the country and quite possibly the world. In fact, our country has been bleeding jobs all over the shores of other countries.

 

As many hierarchal “talking-heads” made promises regarding the mobile industry and public-private Wi-Fi networks, partnerships were being forged. These clandestine plans included Philadelphia, San Francisco, New York, and other smaller metro areas. They were all devising a way to create hundreds of thousands of jobs and close the digital divide as well. This challenge was being addressed with the implementation of heavily weighed underpinnings.

“Such large deployment are tenuous,” says Rob Preston. Mr. Preston is the Vice President and Editor in Chief of Information Week’s Technical Magazine. He says metro Wi-Fi service providers went bankrupt while equipment vendors sought higher ground. In addition, the government opportunists moved on to the next big project.

Even as the national unemployment rate remains at a disconsolate nine percent, tech vendors and policy makers are taking credit for creating jobs - millions of brand new United States jobs.

 

Many of you may well be aware, other parts of the economy is losing jobs as fast as the tech industry creates them. These job-creation claims are at best, an overstatement – a Bunch of Bull.

According to Preston, Cloud, Mobile, Apps, and Big Data are all claiming to create millions of U. S. jobs. And yet, the national unemployment rate is 8.3 percent – and most probably, higher than that. A great many people are not counted due to their inability to qualify for unemployment compensation benefits. These folks are most likely to not be counted or added to the roles of which they constantly quote, creating a mis-count.

 

The jobs creation claims it’s logical for Microsoft to point to the cloud providers. Tech vendors plan to double its’ workforce this year. They’re saying cloud and mobile applications are giving birth to millions of U. S. jobs.

That perplexing boast causes me to wonder; if that’s the case, why is the national unemployment rate at record highs? The United States Unemployment numbers read between eight and ten percent. These numbers are devastating to the U. S. economical system.

IDC reported, in a recent claim, the cloud computing movement would generate more than thirteen million worldwide tech and related jobs by 2015.

 

Mr. Preston also recorded in his report, Seattle based Vorsite and partners plan to double its workforce before years end. However, IDC and Microsoft argue the scale of public and private cloud economies. To free up funds for new business ventures, they would have to lower customer IT and processing costs. This move will add jobs as well. Their analysis left out the efficiencies achieved through infrastructure consolidation. This missed fact will eliminate IT jobs even if it does create new jobs elsewhere. This author certainly agrees with Rob Preston when he realized putting a number on net gains in this case is more guesswork than science. It’s a non sequitur to ascertain the jobs that are relocated, are expected to prove a more productive ROI.

 

The idea of mergers, seem to always result in job reduction as the mother company begins eliminating redundant positions of employment. It promised to bring home five thousand outsourced wireless call center jobs. A mix match of skills was attributed to some of the unemployment and purging or the creation system. Alas, they have created five thousand IT jobs plus… While twelve point eight million people in the United States couldn’t acquire gainful employment. So many new jobs – and one point one million others have simply given up on job finding efforts – and just simply gone away.

 

Big Data CIO’s are looking for business intelligence and Analytics expertise. Another sector, according to a report last year by a U. S. organization, could face shortages of one hundred thousand to two hundred thousand people by 2018. These are the people with deep analytical skills along with more than one million managers and analysts who know how to use the analysis system of big data – allowing for effective decisions. With new jobs come new training and the requirement for re-training for the existing ones.

 

500 MHz will be freed up as part of a deal with the FCC’s National Broadband Wireless Communications Agency - broadcasters who auction off broadband wireless communications control the underused spectrum. The FCC Chairman treats the proposed auctions like a government jobs program.

“Few areas hold more promise for creating jobs than mobile,” is what he said to a consumer electronics show audience.

Shell Gamers and Mobile Technology are the number one job creation attraction. In a desperate attempt to win approval for a $39 Billion deal to grab T-Mobile, AT&T carried enough gumption to argue how a merger would create thousands of new American jobs, reported Preston.

 

AT&T attached some of those jobs to the billions of dollars. They said they would spend for the expansion of its mobile broadband network. 

 

The Analysis Group conducted a study for apple. It formulated indirect job-creation numbers. The analysis applied an employment multiplier; the Federal Bureau of Economic Analysis created this tool. The congressional budget office estimated how many 2009 stimulus jobs were created. The fluctuating numbers danced in and between one point six million and eight point four million.

 

The Analysis Group didn’t include in its job creation estimates bus-drivers, delivery people, managers, butchers, bakers, and candlestick makers – as well as others who may or may not owe their livelihoods to the financial largeness of Apple and its employees, in some way or fashion.

 

Microsoft is not alone in the job numbers fiasco. Like Apple, the buddy’s are under fire for their labor practices. In some of the factories, offshore supplier’s released the results of a study they commissioned to claim its’ responsibility and recognition for the creation and supporting five hundred thousand U. S. Jobs. The partner and supplier companies created two hundred and fifty-seven thousand of them - they claim to have created glass manufacturers and shipping companies. Third-party App development firms lay claim to forty-seven thousand new jobs, which were absorbed as direct employment positions. Apple’s claim to fame is of course, these jobs would not exist if it weren’t for them.

 

South Mountain Economics used a multiplier to estimate the App economy employment figures to that of the remaining U. S. economy. It was noted, the multipliers of 2.4 and 3.4 have been utilized to benchmark the job impact of spreading broadband throughout the country, and multipliers compared to other studies. A conservative figure of 1.5 served as settlement. It would appear that every App economy job generates another 0.5 jobs in the rest of the United States economy.

 

Technet, a lobby group, which represents tech industry CEO’s and other executives, launched a separate study. They found the so-called App economy – third party development of lightweight Apps for Amazon, Google, RIM (Research In Motion), Microsoft, Zynga, Facebook, and Apple along with a host of others – has created and approximate total of five-hundred thousand direct and indirect American jobs since the introduction of the iPhone and it’s App Store creation.

 

How’s that for a Business Intelligent, and Analytical Analysis of employment figures and job destruction - creation Assessment?

 

Sentiment Analysis is gauging the mood of Social Networks and is being incorporated by companies monitoring Community-Driven Websites. It definitely takes new tactics and skill sets in order to acquire a position in the new world of IT, Communications, and Analytics.

 

People do talk, don’t they? All it takes is a cloud…

 

Til Next Time…    

 

 

Inspired By:

"IT Vendors Inflate Job Creation Claims"

Rob Preston, Vice President and Editor in Chief of Information Week Technical Magazine, Pages 42-44 March 26, 2012  

http://destructionandcreationhyperbole.blogspot.com/2012/07/destruc...

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"Twitter"
https://twitter.com/#!/AuthorBoulwareG

 

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