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What Happens If Jobs Never Come Back? What Happens If Jobs Never Come Back?

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What Happens if Jobs Never Come Back?

Contract workers. Outsourcing. Artificial intelligence. Robotics. And now, the largest economic crash in a century. The pressure on American workers staying employed keeps slipping further away.

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Long before the Covid-19-induced crash, workers were facing entrenched financial pressures. Years of poor policy design, offshoring, technological advances, stagnant minimum wages and declining unions have extracted a big toll.

Inflation-adjusted wage growth of typical workers since the early 1970s has been virtually flat at 0.2% per year. The value created by workers continued to move up to businesses and investors. While employees, who primarily rely on wage income and not investments, saw ballooning health care, schooling and housing costs that far outpaced inflation and wages.

Remember, it was only 2008 when we experienced an “unprecedented” worldwide economic collapse. Trillions of dollars of value vanished in thin air, while millions of people lost their savings, homes and 401K retirement nest eggs.

The subsequent rebound brought stock market highs and full, but uneven employment. Real wage growth barely budged. Then came Covid-19.

What full employment really means

An unemployment rate of just under 5% is considered full employment. This rate means that people who want a job will likely have one or will get one soon. But that rate doesn’t really exist.

The U.S. Bureau of Labor Statistics does not count those who stopped looking over the past four weeks. This leaves a big gap for the real number of unemployed, underemployed and barely attached to the workforce. True unemployment numbers are always higher by at least a few percentage points.

In the case of Covid-19, the number was significantly higher due to furloughs and others not being counted in official unemployment numbers. Many of these workers will be let go as the anemic economy limps on.

Why this economic crash is different

Notwithstanding the enormous human toll of Covid-19, the impact on the labor force and society will far outlast it. One side-effect the pandemic is job automation will continue to gain momentum at a difficult time for us to absorb it.

Employers will turn to robotic and AI (artificial intelligence) automation to augment, and many times replace, current and future employees. It not only saves labor costs, it also helps future-proof businesses from the workforce disruptions like we’re experiencing now.

In January 2019, the Brookings Institute released a study citing that 36 percent of U.S. employment (52 million jobs) is at risk for high exposure to automation 2030. Another 57 million are at medium risk. That is a significant percentage of the 164.6 million in the U.S. workforce we have today.

We are unprepared for the coming wave of automation

Covid-19 has exposed many weaknesses in our government’s ability to handle crisis, even when that risk was in plain sight. The pandemic has exposed how little investment we’ve made in the health and wellbeing of workers over the decades—all in the shadow of massive wealth and stock market gains.

This transition will be hard on the labor force and the country. The massive technical and social shift that may rival the economic upheaval the country experienced by the advent of the Industrial Age if not handled well. One thing for sure, it will change our country, society and how we view work forever.

 

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Business

5 ways the Russian-Ukrainian War is Impacting Software Development Outsourcing

The Ukrainian-Russian conflict is having a ripple effect on the software development outsourcing industry. Here are 5 ways the war is impacting software development outsourcing.

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Outsouring software development to Ukraine

Outsourcing software development has become a popular way for businesses to get their products or services to market quickly and at a lower cost. However, the Russian-Ukrainian war is having a major impact on the once-booming tech outsourcing industry of the region. Here are 5 ways the war is impacting software development outsourcing: 

Businesses are hesitant to outsource to Russia or Ukraine

With the Russia-Ukraine war raging, businesses are understandably hesitant to outsource any work to companies based in these countries. The political instability in the region makes it a risky place to do business, and there is no telling how the situation could escalate in the future. Many countries and business interests are also cutting business ties with Russia. This will unlikely change for the foreseeable future as Russian war atrocities mount and the present regime remains in power.

There is a shortage of workers in both countries as people flee conflict zones 

The conflict in Ukraine has led to a mass exodus of people from the country, with over 5 million people fleeing since the start of the war. This has resulted in a shortage of workers available to do software development work. It has also driven up wages for those who are still in the country and available to work.

Companies are understandably relocating their operations out of the region, which further limits available developer resources.

Quality of work may be impacted as developers are working under more stressful conditions 

The ongoing conflict in the region is no doubt having a negative impact on the mental health of workers in Ukraine and the region. This, in turn, could lead to a lower quality of work as developers are working under more stressful conditions. 

Project deadlines may be impacted as companies struggle to get work done in the midst of the chaos. These risks are pushing clients to look elsewhere for development services while the conflict ensues.

There is an increased demand for IT professionals in other countries, such as Poland 

The Russian-Ukrainian war is having a major impact on neighboring countries, as well as a corresponding increase in wages. Due to the risks associated with outsourcing to the region, businesses are increasingly looking to other countries in Central and Eastern Europe, or to Asia, for resources. This has led to an increase in demand for IT professionals, which is showing no signs of decreasing in the short term.

As Outsourcing Options Tighten, Costs are Rising

Outsourcing software development services to the Ukraine and Russia was once a popular option for Western businesses looking to save on costs. However, with the current conflict between the two nations disrupting business activity in the region, many companies are now moving their operations elsewhere and building resiliency plans. 

The instability in eastern Europe is causing wages to rise and businesses are becoming more risk-averse, both of which are making it difficult for Ukrainian, as well other regional service providers to remain competitive. If you’re looking for a cost-effective alternative to outsourcing software development services, it’s time to consider India or China.

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Business

What Are Non-Fungible Tokens (NFTs)

Ever heard of Bitcoin, Ethereum, and the various altcoins? There’s a new cryptocurrency type on the block and it’s called a Non-Fungible Token or NFT for short.

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What Are Non-fungible Tokens

Ever heard of Bitcoin, Ethereum, Litecoin, and the thousands of altcoins that make up the cryptocurrency world? Well, there’s a new kid on the block and it’s called NFT or short for Non-Fungible Tokens. If you’ve been following the cryptocurrency space in the last few months you know what I’m talking about. For the uninitiated, get ready to be rocked.

What Is a Non-Fungible Token (NFT)? 

Non-fungible tokens or NFTs are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

Source: https://www.investopedia.com/non-fungible-tokens-nft-5115211

How Are NFTs Used?

The distinct construction of each NFT has the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.

In fact, in the last several months there have been several large art sales happening with the most expensive (at the time of this post) being the Beeple sale of $69 million. Yes, you read that right. As crazy as that might sound, the NFT marketplace is booming with some crazy digital art sales.  Here are 11 of the highest NFT sales.

As NFTs gain in popularity, so are the amount of NFT marketplaces growing in numbers. According to the guys at Influencer Marketing Hub, these are the top 10 Marketplaces for buying and selling non-Fungible Tokens (NFTs):

NFTs in a Nutshell

What you need to know about NFTs

Source: https://www.investopedia.com/non-fungible-tokens-nft-5115211

If you’re an artist or a digital media creator it wouldn’t hurt to try your hand at selling some of your artwork on one of the many NFT marketplaces. Who knows, maybe it just might be a life-changing experience with life-changing rewards.

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Business

Using Fiverr to Generate Over $300k

There are a growing number of people using Fiverr to generate over $300k per year doing what they love almost anywhere in the world. Learn How.

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Making $300k per year with Fiverr

Nowadays there is no shortage of ways to make money at home with the skills you already have or new skills you can acquire in a short amount of time. One of the biggest platforms fueling the freelance economy is Fiverr. In fact, there are a growing number of people using Fiverr to generate over $300k per year doing what they love almost anywhere in the world.

So what exactly is this Fiverr we speak of? Fiverr is one of the world’s largest marketplaces where freelancers can provide digital services to consumers and businesses alike. The price of services freelancers provide varies from $5 to $10,000 with the ability to upsell faster turnaround time and better quality services. At any given point, their databases contain millions of gigs freelancers can secure to earn as much income as they can handle. 

Alex Fasulo $300 Fiverr Freelancer

The guys over at The Iced Coffee Hour interviewed Alex Fasulo , a Fiverr freelancer making over $300k per year off Fiverr gigs. Check out the interview above.

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