No, Tech Firms Are Not Huge Job Creators

You have to look at jobs as a percent of the entire labor force. When you do that, sample set of companies looks like 20 years after their founding:

Modern tech companies are all at the bottom. The only exception is Amazon, and it’s arguable just how much Amazon is really a tech company anyway. Putting a web interface on retail doesn’t really count, but then again, providing cloud services does. So they’re about half and half, which probably explains why they’re in the middle of the chart.

For better or worse, modern tech companies just aren’t huge jobs producers—and as machine intelligence progresses, they’re likely to become even smaller players in the employment market.

— source By Kevin Drum

Nearly 80,000 working-age men have disappeared from the labour force

The EVA study says that there are over 50,000 men who should be in their best working years (25–54) who do not have jobs and who are not actively seeking jobs. This does not include men who are studying or who are on disability pensions. The authors of the labour market analysis refer to this group as “the lost workmen”. In statistics, they fall under the category of “others not in the workforce”. In addition, there are over 28,000 unemployed men in the same age group who are looking for jobs, but are unlikely to ever return to the workforce. Even while unemployment levels decline, the numbers of lost workmen have grown steadily over the past few years.

— source

this is how obama reduced unemployment rate.

Solar jobs are booming

The number of people employed by the solar power industry in the U.S. surged 25 percent last year, to 260,000 workers, according to a count by the Solar Foundation, a pro-industry group. Twenty-five percent is huge. For comparison, the rest of the economy added jobs at a rate of 1.45 percent. The Solar Foundation predicts the industry will add another 25,000 jobs in 2017.

— source

Keystone XL will provide 35 full-time jobs

Trump said Keystone XL would create jobs for 28,000 American workers. But that number is not even a number that comes from TransCanada’s applications or from the State Department’s exhaustive, multi-year study of the Keystone XL tar sands pipeline.

What are the numbers?

35 full-time, permanent staff (and up to 15 temporary contractors)
3,900 “person years of employment”

construction work related to the pipeline to support 3,900 people working full time for one year. Because the project was expected to take two years to build when it was first proposed, a more realistic way to view this number is 1,950 full time construction jobs lasting for the two year timeline of the project’s construction.

— source

Surgical strikes for fetching jobs

Recently, the Labour Bureau released its findings from the annual household survey on employment. India’s economy grew at 7.1 per cent in the first quarter of 2015-16, one of the world’s fastest. But our unemployment rate is 5 per cent, a five-year high.

For a country where more than 65 per cent of the population is eligible to join the workforce, it is bad news. Further, India’s employment sector remains highly unorganised; only 10 per cent of total employment comes from the organised sector. This makes the employment scenario more complicated. But is all this new to us? No.

The trend of jobless growth started in 2004, and still continues. It was in 2004 that the previous National Democratic Alliance (NDA) government was routed until it came back to power with a historic majority in 2014. In-between, the United Progressive Alliance ruled for two five-year terms. The NDA led by Prime Minister Narendra Modi has promised 10 million jobs a year. After two years in power, his promise seems to be difficult to keep. But he was right in 2014 while campaigning for elections that the decade preceeding suffered jobless growth. In 2011, the National Sample Survey Office (NSSO) released data on employment. It showed that during 2004-05 and 2009-10, only one million jobs were added per year. During this period, the Indian economy grew at 8.43 per cent annually, a historic high.

So how is Modi going to fix this problem? His recent aggressive postures against cross-border terrorism that included the much-talked-about “surgical strikes” across the Line of Control[]— have not only propelled his image as an action-oriented leader but also as someone who keeps promises. Like terrorism, jobless growth is also a problem which continues across governments. Politically, unemployment is more lethal than terrorism.

That is the reason Modi seems to be equally serious about jobless growth. In two recent television interviews, he spoke about employment and jobless growth. In his typically optimistic style, he declared that his recent employment-creation programmes would lead to more jobs. These include: Start up India, Digital India, the MUDRA or Micro Units Development & Refinance Agency Ltd. scheme, Make in India (for the manufacturing sector), and boosting infrastructures that create jobs. In all these programmes he sees economic growth trickling down and creating jobs. But will these programmes help create jobs proportionate to economic growth?

Optimism is not always a good guide for the economy. Not just in India but also across the globe, the employment creation potential of Gross Domestic Product is coming down. Still, India’s employment elasticity is least in the world, according to Arun Maira, member of the erstwhile Planning Commission. According to his recent blog post, it has been less than the global average from 2000 to 2010. The average employment elasticity of the global economy was 0.3 in this period, while India’s was only 0.2, he wrote. Although there are various reasons for this, the most important one is automation of economic activities in key sectors. Add to it, the unequivocal focus on creating jobs from only industrial/services sectors and ignoring traditional sectors like agriculture which still create the maximum employment in the unorganised sector.

This means Modi has to shift the focus from programmes already in place to create jobs and absorb the demand of 12 million people joining the workforce every year in India. Agriculture may be stagnating, but its employment potential remains high. Padded with alternative jobs at village level, it will substantially increase employment in villages, where the maximum demand for jobs will emerge. So, it is all about rethinking the job creation formula instead of reinventing it. For this, one need not cross the border; just think in India.

— source By Richard Mahapatra

In U.S., there are twice as many solar workers as coal miners

SolarCity, the largest installer of residential solar systems in the U.S., nearly doubled its workforce last year, hiring 4,000 people to do everything from system design and site surveys to installation and engineering.

The hiring spree at SolarCity isn’t slowing; it’s picking up speed as the company attempts to install twice as many rooftop solar systems than last year and readies its 1.2 million-square foot factory in New York, which is scheduled to reach full production in 2017.

SolarCity SCTY -0.29% plans to eclipse 2014’s hiring numbers, CEO Lyndon Rive tells Fortune. In 2016, SolarCity will hire “quite a bit more” than it will in 2015, Rive says, though he didn’t provide specific numbers.
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The company’s expansion is indicative of what’s happening within the broader solar industry. More than 31,000 new solar jobs were created in the U.S. in 2014 bringing the total to 173,807—a 21.8 percent increase in employment since November 2013, according to a report released Thursday by The Solar Foundation. This is the second consecutive year that solar jobs have increased by at least 20 percent.

The solar industry is still dwarfed by the 9.8 million workers that the American Petroleum Industry says are employed the oil and gas industry. However, the Solar Foundation is quick to point out the industry is starting to surpass some fossil fuel-related job categories.

Solar already employs more people than coal mining, which has 93,185 workers, and has added 50 percent more jobs in 2014 than the oil and gas pipeline construction industry (10,529) and the crude petroleum and natural gas extraction industry (8,688) did combined, according to the Solar Foundation.

One out of every 78 new jobs created in the U.S. over the past 12 months were created by the solar industry, representing nearly 1.3 percent of all jobs created in the country. Solar companies surveyed for the fifth annual census plan to add another 36,000 employees this year.

“That’s just insane,” Rive says. “The solar industry is literally contributing to the job growth of the U.S. economy—and it’s just so understated.”

Third-party financing that allows homeowners to lease solar systems, a stabilizing manufacturing sector and utility-scale solar developers scrambling to finish projects before the federal investment tax credit drops from 30 percent to 10 percent on Jan. 1, 2017 has helped drive growth, says Andrea Luecke, president and executive director of The Solar Foundation.

The solar job-growth trend has spilled beyond the confines of companies solely dedicated to the renewable energy source.

NRG Energy, one of the largest U.S. independent power producers and owner of 88 fossil fuel and nuclear plants, is expanding its solar business rapidly. NRG’s Home Solar group, the residential solar division of NRG Home, hired 500 people in the past 12 months and now has 1,200 workers.

“We’re growing explosively in several markets,” NRG Home Solar president Kelcy Pegler Jr. said in an interview with Fortune on Thursday following the company’s investor day presentation.

As a result, Pegler’s residential home solar group plans to add “hundreds of jobs” this quarter and will double its current headcount in the next two years.

NRG Energy, which employs 10,000 people, reorganized last year into three business lines: NRG Business, NRG Home and NRG Renew. The company NRG 3.21% has a number of other solar-related jobs within NRG Renew and NRG Home, including its power on the go division which was expanded after the 2014 acquisition of portable solar power company Goal Zero.

Overall, solar is one of the fastest growing segments within NRG Energy and the NRG Home group, a business unit that also includes the company’s electricity providers, home services, power on the go products and electric vehicle charging, Pegler says.

Residential solar’s role in creating jobs is largely under appreciated by the public, he says: “These aren’t just part-time jobs either, these are careers.”

— source By Kirsten Korosec

Automation will make 20 crore young Indians jobless in next 9 years, warns Mohandas Pai

About 20 crore middle class young people would have no jobs or less jobs by 2025 due to increasing automation and improvement in technology, industry veteran T V Mohandas Pai said today.

“By 2025 there will be 200 million young people in the age group of 21-41 with no jobs or less jobs and no body knows what to do with these people. Government policy does not know what to do as they don’t have proper data,” Pai, who is the Chairman of Manipal Global Education Services, said.

“We are going to have demographic nightmare,” he said at AIMA’s National HRM Summit.

About 52 per cent of people, compared to 62 per cent 10 years earlier, are employed in agriculture and number of population which depends on services and industries is growing at 10 per cent, Pai said.

“Disparity between people in agriculture and in service industry is widening and that is getting social attention all across India which has led to various agitation across states,” he said.

He said that companies are looking at automation, developing artificial intelligence in machines which have potential to replace process based jobs.

“Rule based jobs will get eliminated. Much of middle class people are involved in rule based jobs. Rule based jobs can be made by algorithms. Machines are still not creative. People who are creative will remain,” Pai said.

He said that companies like Foxconn have started deploying robots at work, driver less cars and trucks are being made which are going to adversely impact jobs in coming days.

“Robots are taking over at large number of places. Robots don’t want appraisal, they don’t want work life balance. They work 24 hours. In Delhi, metro is going to be automated. Automobile industry which employees 1 in 6 people in the world is going to be automated,” Pai said.

He said that in banking sectors too jobs are shrinking because of automation of payment system with the help of ATMs, digital payments.

“Bank branches and employment are now shrinking in America. In India in last 15 years, banks have growth 10-15 times in assets and liabilities but employment has grown 5 per cent. In India very soon there will be robo finance which will search all portals and give you bank loan quote in half an hour,” Pai said.

He said that job creation will be impaired by automation, process of technology, new class of job seekers is going to come in market and HR mangers need to solve this problem.

Make My Trip co-founder and CEO Rajesh Magow said that the company has reduced work force at call centres over the years because of automation in process.

Info EdgeBSE -0.26 % Managing Director and CEO Hitesh Oberoi said that HR managers need to work as extended arm of CEOs and groom talent base to help organisation scale up their businesses.

— source