Labor Market Information in a Flat World

Presented by Michele Martin, The Widing Group

In 2005, 500,000tax returnswere processedoverseas.

In 2005, over 400,000 tax returns were preparedoverseas.

Radiologists in other countries are reading your MRI.

Someone inIndia is takingyour orderor fixing your problem

You can pay your bills, apply for a loan and doall your banking withoutever talking to anyone.

You’ve become your own ticket agent, baggage handlerand concierge.

Advances in Computer tech,Biotechnology andNanotechnology are automatingeverything.

The Internet links workers and work, 24/7.

Companies can go where the talent is cheap

And they do.

There are 150 million people in the entire U.S. workforce.

Since 2000, 150 million educated workers have joined the global workforce.

In 2005:

•3.3 million Chinese graduated from college, 600,000 of them with engineering degrees.

• 3.1 million Indians graduated, all fluent in English. 350,000 have engineering degrees.

•1.3 million Americans graduated, 70,000 with degrees in engineering.

$700 a month provides a solid living for a college-educated call center worker in India.

A Chinese manufacturing worker makes$265/month or $3,195/year.

How did we get here?

The Flatteners—Phase I

•Berlin Wall, MS Windows

•Netscape

•Work flow software

The Flatteners—Phase II•Open Sourcing

•Outsourcing

•Off-Shoring

•Supply Chaining

•Information Diving

•“The Steroids”

What does this mean for us?

Traditional View of LMI• Workplace is reasonably linear, stable

and predictable

• We can predict:– What work will be available– What skills/training will be required– Career paths

• Pace of change is slow--time to change if necessary

• Traditional education/training programs will work

Traditional views won’t cut it anymore.

•Chaotic and unpredictable•Decentralized•Collaborative•Technology-intense•Information-rich•Entrepreneurial

Work is . . .

Workers must be . . .

•Informed

•Adaptable

• Literate

•Highly Skilled

•Entrepreneurial

Three kinds of jobs . . . •Fungible jobs

•Anchored jobs

•Value-add Jobs

Fungible jobs:•Are easily digitized

•Don’t require face-to-face interaction

•Rely on “rules”

•Require minimal interpretation or decision-making

•Can be partially or completely automated

These jobs can be outsourced

Bill/Mortgage processing

Travel/ticketing “Junior” accounting and legal

Medical testing/diagnostics

Computer programmingMedical transcription

Anchored Jobs

Must be performed in particular geographic location

Anchored-Tier 1Low skill/low wage

Anchored—Tier 2High skill/higher wage

But there can be fungibleparts of anchored jobs

•Radiologists in India are reading X-rays for American patients.

•McDonald’s is outsourcing drive-thru ordering.

•Hospitals in India now offer reasonably-priced post-surgical sight-seeing trips.

•They serve 55,000 foreign patients/year•75% are uninsured and underinsured Americans

Value-Add Jobs• Depth/breadth

of skill

• Constant change

• High levels of interaction, decision-making, creativity

• Technological proficiency

Traditional Questions

•Demand?•Wages?•Working conditions?•Preparation?•Advancement?

New LMI Questions

• Less money somewhere else?

• Could it be automated?

• How will technologychange work requirements in the future?

• Turbo Tax has replaced your accountant.

• ATMs and on-line banking have replaced your bank teller.

• E-ticket check-in has replaced your ticket agent and baggage handling.

• Automation and “do-it-yourself” tests may make Med Techs obsolete.

Automation?

Average Global Salaries for Programmers

Poland/India/ China$5k-11k

Canada/Ireland$23k-34k

USA$60k-$80k

• With the Internet you can be your own lawyer.

• “Wireless healthcare” changes how medical professionals interact with patients.

• Automotive technology—workers must be able to work with computerized shop equipment, electronic components and traditional hand tools.

• Financial Planners—more focus on empathy, ability to work with people.

How Does Tech Change the Job?

Career Plans in a Flat World• Evaluate career paths for fungibility and potential for automation.

• Monitor impact of technology.

• Anticipate & respond to job/skill changes.

• Prepare for Tier II Anchored or Value-Add jobs.

• Focus on Life-time Employability.

Career Plans in a Flat World