Jobenomics

Goal: Creating 20 Million Jobs By 2020

Jobenomics - Goal: Creating 20 Million Jobs By 2020

Jobenomics Veterans Center(s)

The Jobenomics Veterans Center (JVC) Initiative is designed to help wounded and combat veterans transition to the civilian workforce by providing training and financing to start their own Service Disabled Veteran Owned Small Business (SDVOSB) or Veterans Owned Small Business (VOSB) oriented to the skills that the vet learned during his/her tenure in the US Armed Services.

While publicly venerated for patriotism and service, veterans have a much harder time finding work than most citizens. Veteran unemployment rates have been consistently higher than average citizens.   While the job market is slowly improving for most Americans, it’s moving in the opposite direction for Iraq/Afghan vets.  Veterans, aged 18 to 24, have a 30% jobless rate, up from 18% a year earlier. For for black veterans, aged 18 to 24, the unemployment rate is approching 50%.   Returning combat veterans need a “hand-up” more than they need a “hand-out”.  More specifically, they need jobs, which are in short supply in today’s economy.  Combat veterans face even a more difficult challenge after being in austere conditions, many of whom face degrees of post dramatic stress syndrome and other combat related disabilities.  Of the 2.2 million Iraq/Afghan vets, 624,000 (28%) have filed for some sort of disability with the Veterans Administration.

JVC will focus primary on combat veterans (soldiers, sailors, airmen and marines) returning from Operation Enduring Freedom (Afghanistan) and Operation Iraqi Freedom (Iraq).  The goal of this training is to help veterans transition into civilian life via a 6-month business training and creation program.  JVC is designed to provide an environment that will address the challenges of a successful transition from combat to civilian life as well as helping the vet start a SDVOSB or VOB.    Successful creation of a SDVOSB or VOB will provide veterans their own company as well as making them more competitive in getting a job at an established company, whether on a full-time (W2) or a part-time (1099) basis.  Having their own company will also build confidence in their ability to function in the civilian workforce and greatly shorten the transition time from combat to workfare.  While accolades from the American public are extremely gratifying, providing meaningful employment opportunities are the highest form of appreciation for their service and sacrifices.

Via the Jobenomics movement, JVC has agreements with leading entrepreneurial, business development, academic, financial and veteran experts and networks.  JVC will use proven professionals, human resources personnel and college and vocational placement specialists to aid in the transition from military to civilian life.  JVC features wellness programs, social events, excursions and motivational speakers. By the end of the 6-month program the vets will have:

  • A thorough knowledge of business practices on how to set up and run a successful small business taught by successful entrepreneurs and leading instructors with expertise in small business creation and implementation.
  • An established SDVOSB or VOB with:
    • An Employer Identification Number (EIN), incorporation (S-Corp, C-Corp or Limited Liability Corporation), and the essentials to run a fully operating company (accounting systems, business plans, legal/regulatory, branding/marketing/sales, financing, etc.).
    • All vets will be supplied a computer with accounting, business planning and website/social networking systems.  Training will be also provided including how to obtain appropriate accounting (e.g., book keeping and CPA), information technology, and sales/marketing/ advertizing/branding support after graduation.
    • All registration/licensing completed in the state and municipality of their choosing.
    • Supplementary business systems (e.g., website, social networking, bank accounts, etc.) that will facilitate the promotion of SDVOSB or VOB growth.
    • Supplementary education while at the JVC, including.
      • Enrollment in an on-line learning course on other on-line universities to pursue continuing education and certification, which will be initiated and taught by qualified instructors while at the Center.
      • Access to micro-business coaching and micro-business financing from private sector sources during and after training at the Center.
      • A JVC certificate of completion from and any supplementary certifications from the academic organizations affiliated with the Center.
      • Potential classes with local accredited academic institutions.
  • Understanding on how to access US government grants, veterans set-aside funding and investment capital (debt and equity financing) from private sources (commercial banks, investment banks, and high net worth individuals/angel investors).  Jobenomics is in the process of setting up micro-business loans for the JVC similar to the $20 million micro-business loan program (loans ranging to $50,000 for qualified new businesses) that was initiated for the Jobenomics-Harlem program.  The Center will also work with municipal, state and the federal government to underwrite the new SDVOSB/VOBs.
  • Low cost business incubation facilities and/or offices at local industrial/business parks.
  • A network of entrepreneurial organizations and an on-going business support network.

The JVC, via the national Jobenomics team of entrepreneurs and faculty, has world-class instructors, small business entrepreneurs and big business leaders.  These instructors, entrepreneurs, business leaders are from prestigious academic, entrepreneurial networks (like the 20 year old CEO Space entrepreneurial network with a world-class faculty and a network of hundreds of thousands of small business leaders across the US) and Fortune 500 executives who are willing to volunteer to help returning combat veterans.  The leading aerospace and defense corporations have expressed an interest in working with the JVC to outsource work to these newly created SDVOSB or VOB.

JVC pilot projects are currently being targeted for locations in Massachusetts, Texas and Nevada.

 

Jobenomics Women-Owned Businesses Initiative

From a Jobenomics perspective, women are the greatest untapped asset in
America.  The women-owned business initiative is paramount in the Jobenomics 20 million new private sector jobs by the year 2020 campaign (20 by 20).

Jobenomics’ emphasis is on women-owned businesses, as opposed to women-in-business.  The US has approximately 18,000 big businesses, 6 million small businesses, and 22 million self-employed businesses.  While there is nothing wrong with women pursuing opportunities in big business, Jobenomics believes that most women will find greater opportunity and satisfaction by creating their own small, self-employed business, tailored to their individual lifestyles. In comparison, today’s highly competitive corporate workspace tends to require employees to conform to corporate culture, which can conflict with other roles women may juggle, such as caring for children or aging parents.

The 2010’s is certain to be the Decade of Women-owned businesses. (1) The Great Recession has encouraged many women to join the workforce, due to necessity or desire, of which many are college educated. (2) Male-dominated industries, like construction and manufacturing, aren’t likely to return to normal until the end of the decade. (3) Social norms are changing, allowing greater participation of women in business. (4) Many of the future service-related jobs, like elder-care, are likely to be dominated by women. (5) Women-owned businesses emphasize small businesses, rather than large, and are more likely to experience growth in the next decade. (6) The traditional “nuclear” families, with a male-head of household, have given way to households headed by women. (7) Most importantly, the rate of employment growth and revenue of women-owned businesses has outpaced the economy and male-dominated businesses for the last three decades.

Today, there are approximately 10 million women-owned businesses that employ 23 million direct and indirect employees, or 22% of the US private sector civilian workforce.  9 million women-owned firms are self-employed businesses without employees.  If each women-owned business hires one additional person this decade, 10 million new jobs would be produced.  This would equate to 10 million direct jobs—half the 20 by 20 goal.  The jobenomics effort intends to help create the conditions that will motivate and incentivize growth of women-owned firms.

Jobenomics is working with several leading women’s organizations (Women’s Information Network, Women’s Radio, and California Leading Ladies) to help define women-owned business initiatives in areas like direct-selling, direct-care, cloud computing, and women veterans’ small businesses.  The Jobenomics Community-Based Business Generators will feature a number of programs that will facilitate creation of women-owned businesses.

The Women’s Information Network: http://thewinonline.com

Women’s Radio:  http://www.womensradio.com

California Leading Ladies: http://www.leadingladiesconference.com & www.EventComplete.com

 

Jobenomics Institute

The Jobenomics Institute is an initiative to establish American business incubators and business generators that will enable the creation of millions of new small, emerging and self-employed businesses.  Business incubators are designed to “incubate” individual entrepreneurial-based businesses from a host of possible opportunities.  Business generators are designed to “mass produce” businesses in high growth industry sectors.  The Jobenomics team is currently negotiating with several locations for the Jobenomics Institute that could host the following functions:

Jobenomics Center for Industrial Development (JCID) is a business training center and industrial incubator dedicated to foreign industrial development in the United States with emphasis on Asian economies, like China.  JCID’s main functions include a Foreign Executive Program and The College Preparatory School & Admissions Program for the children of foreign executives.

  • Foreign Executive Program focuses on foreign professionals who are interested in starting businesses in the United States.  The program will feature a School of Entrepreneurialism, motivational speakers from CEO and entrepreneurial communities, and meetings with business owners.  By the end of the program, the graduate will have all the skills, certifications/registrations/licenses, business systems to start a business in the United States.
  • The College Preparatory School & Admissions Program will help the children of foreign executives to prepare, visit and apply for entry into major US undergraduate programs.    Thousands of students come annually to US colleges and universities.  The College Preparatory School & Admissions Program will provide instruction on the English language and idioms, American culture, and the US higher educational landscape.  The program will include visits to leading US universities as well as assistance for college admission.
  • EB-5 Foreign Investor Program.  The Bureau of US Citizenship and Immigration Services (USCIS) administers the EB-5 Investor Program, created by Congress to stimulate the US economy through job creation and capital investment by foreign investors. Foreign Executive and College Preparatory School Program graduates are likely to want permanent visas to conduct business or attend colleges in the US.  The Jobenomics team has worked with numerous EB-5 Regional Centers throughout the US and will create an EB-5 program for the Jobenomics Institute.

Jobenomics Veterans Center is designed to help wounded and combat veterans transition to the civilian workforce by providing training and access to financing to start their own Service Disabled Veteran Owned Small Businesses (SDVOSB) or Veterans Owned Businesses (VOB) oriented to the skills that the vet learned during his/her tenure in the US Armed Services.

CEO Space.  Jobenomics is a strategic partner with CEO Space International which is a business incubator with a thirty-year legacy of training business owners, executives and entrepreneurs in over 140 countries.  CEO Space forums are held five times per year with ten-day programs ranging from 250 to 1000 people per forum.  CEO Space Forums are streamlined, professionally hosted events. Teams of professional trainers are invested in preparing each class to offer expert advice over a wide spectrum of entrepreneurial topics.

SynerVision Leadership Foundation. In a format of a nonprofit leadership excellence summit, the foundation provides cream-of-the-crop corporate trainers who teach tax-exempt organizations and NGOs the business skills they need to utilize the funds their sponsors and donors gift to them in the most cost-effective productive ways possible. This expertise is provided through world-class summits supplemented by scalable programs for individual tax-exempts that need customized value-added resources beyond what the training conferences provide.

Other Programs.  Jobenomics is currently exploring other business generator/incubator programs including local entrepreneur programs, Jobenomics boot camps, One World Expo, Direct-Sales Institute, Forum for CEOs, and Women-Owned Business Training.

Self Employment Screen

Welcome to the Jobenomics “Self-Employment Screen“.

“20 Million Jobs by 2020″.

What is the Self-Employment Screen (SES)? The SES analyzes the key inherent characteristics and attitudes that influence entrepreneurial success and can help predict which of the four major entrepreneurial business environments a person is most naturally suited to: agent/representative, consulting/contract, franchises or small business.

The SES does not pre-judge whether someone should be self-employed. Rather, it provides the person interested in becoming self-employed with insights into her/his business development style, motivational factors, developmental needs and the type of self-employment that she/he would be most naturally suited to.

A copy of the SES report is provided online immediately upon completion of the survey.

For your complimentary assessment to determine the best type of opportunity fit for you, click here: Take the Self-EmploymentScreen

 

Veterans

If you are a Veteran, we invite you to complete the CareerManagementPro™.

This profile will provide you with key insights into yourself and your personal strengths as you make important career decisions.

To begin this assessment, please click here: CareerManagementPro™ for Veterans

 

More Information

For more details and to purchase available profiles, please click here.

To hire small business coaches, contact: Hugh Ballou or Micro Biz Coach

5 Million Government Layoffs Ahead?

Recent US Employment Trends addressed the three most important employment sectors: private sector service-providing industries, private sector goods-producing industries, and the government sector.   This article examines the government sector in more detail and hypothesizes how many more job losses could occur in the near future.

2012 will be a pivotal year for the US economy.  For 2012, Jobenomics assesses the following probabilities:  20% chance that the economy will improve, 30% that it will continue to muddle along, and 50% it will get worse depending on the severity of financial disruptions (see 2012 Jobenomics Outlook article).  Given this 50/50 forecast, Jobenomics forecasts that the current government trend of government layoffs will continue.

The Jobenomics plan calls for creation of 20 million new private sector jobs with emphasis on small, emerging and self-employed businesses in service-providing industries in order to generate a robust economic recovery.   Our plan also calls for zero government growth as opposed to cuts in government employment.  However, since the US is creating new jobs at only 45% of what is needed (see Recent US Employment Trends) reductions in the government workforce appear inevitable.  A drop of 5.4 million government jobs is our best guess given current economic conditions and trends.  It is our hope that these reductions will not occur if the economy improves on its own, or is nudged by the Jobenomics national grassroots movement.

Local Government Civilians: 2 million potential job reductions. 

State and local governments have been shedding jobs for the last three years. This trend will likely accelerate and perhaps double from the current rate of 250,000 (see BLS/CBPP chart) to as much as 500,000 layoffs per year.  There are four major reasons for this assertion.  The first reason deals with decreased discretionary income due to unemployment, under-employment, and declining middle-class wages and net-worth.   Decreased discretionary income translates to reduced consumption and lower government tax revenues.  Second, federal stimulus funding has ended and new stimulus funding is unlikely.  Third, non-essential state, municipal and local programs and services have already been cut.  Future cuts are likely to involve personnel.  Fourth, reduced property tax revenues will be a major new factor with local governments that are responsible for 82% of all recent government sector layoffs.

Property taxes are the main source of tax revenues for municipal and local governments.   Because it takes years to process property assessments, the collapse in housing values are just now beginning to impact local governments at a time when federal and state aid are ending.  Most local governments predict that their tax base, generated by residential and commercial property taxes, will shrink consistently each year over the next five years.

Since the Great Recession of 2008, when tax revenues from inflated property values and federal/state aid were plentiful, local governments were compelled to shed hundreds of thousands of jobs.  Today times are much worse financially.  Rainy-day funds have been largely depleted.  Cuts in non-essential programs and services mostly have been made.  Without a robust US economic recovery, a perfect storm is brewing where local governments may have to make deep cuts in essential services including teachers, police and firefighters.  Since education constitutes 56% of local government employment, teachers will be particularity hard hit.

In the last two years, local government jobs decreased from 14,498,000 to 14,078,000, a loss of 420,000 jobs or 1.45% per year.  Due to the shrinking tax base, it is likely that this rate could increase to 3%, resulting in 2 million job losses over five years.

State Government Civilians: 340,000 potential job reductions.  Over the last three years, states had budget shortfalls of $430 billion.  State governments rely heavily on sales taxes, income taxes, business taxes, excise taxes and tuitions for state-funded universities.  All of these sources of tax revenues are likely to increase, which should keep state layoffs to the minimum.  On the other hand, increasing entitlement (Medicaid) and welfare expenses, dwindling federal subsidies, persistently high unemployment rates, and a sluggish economy make balanced budgets a difficult goal for the 42 states that are projecting a $110 billion budget shortfall in 2012.

In the last twelve months, state government jobs decreased from 5,144,000 to 5,073,000, a loss of 71,000 jobs or – 1.4%.  While states have the capability of raising many forms of taxes, Jobenomics predicts that voters reject most of the legislative efforts to increase taxes.  Without additional tax revenue, states will continue to reduce its public sector workforce.  Consequently, it is likely that the -1.4% trend will continue and 340,000 jobs will be lost over the next five years.

Federal Government Civilians: 300,000 potential job reductions.  In the last twelve months, federal government employment decreased from 2,844,000 to 2,817,000, a loss of 27,000 jobs or – 0.9%.   This modest rate is likely to increase due to budget and deficit concerns.   There are growing calls from Congressional conservatives that the US federal government should reduce size by as much as 10%.   While opposed, Congressional liberals are faced with a dilemma justifying high federal government salaries in relation to growing needs of the unemployed and other financially challenged groups.  Jobenomics predicts that federal civilian workforce reductions (not including the US Postal Service and DoD Civilians) will average 2.5% over the next five years, which would result in 170,000 job losses.

612,000 US Postal Services employees are federal employees.  In the last twelve months, the postal service lost 30,700 jobs, or 4.8% of its workforce.  Due to inefficiencies within the postal service, private sector competition and increased use of email, this trend is likely to continue at its current rate for a loss of 130,000 jobs in five years.

US Military: 435,000 potential job reductions.  The Department of Defense (DoD) is comprised of 1,430,895 active duty, 848,000 reserve, and 779,000 federal civilian employees for a total of 3.1 million personnel.  Secretary of Defense Leon Panetta is considering reductions once thought sacrosanct.  Planned cuts of $450 billion will reduce the military budget by 7% to 8%.  According to Panetta, “Rough estimates suggest after ten years of these cuts, we would have the smallest ground force since 1940, the smallest number of ships since 1915, and the smallest Air Force in its history.”   SecDef’s forecast does not include $600 billion of other potential congressionally mandated DoD reductions which could increase DoD cuts to approximately 20%.   $600 billion is half of the potential $1.2 trillion sequestration amount.

Priority currently is being placed on cutting weapons programs, but in the end, manpower will have to be reduced since it is the largest component of the national security budget.  Due to annual trillion dollar budget deficits, a flagging economy, priority given to mandatory accounts (Social Security, Medicare) over discretionary accounts (National Security), attrition of returning Iraqi and Afghani veterans on top of normal attrition, rising personnel and retirement costs, and inflation, the DoD is a prime target for severe cuts in manpower.

Jobenomics estimates that the US military and civilian workforce is likely to decrease at an annual rate of 3% per year over the next five years.   If this occurs, 435,000 positions will be lost.

Government Contractors: 2.3 million potential job reductions.  Exact numbers of government contractors are hard to obtain.  So Jobenomics accessed data from USAspending.gov which provides the public with information about how their tax dollars are spent.  According to USAspending.gov, in fiscal year 2011, the US federal government’s direct payment to federal government civilian contractors was $895 billion.   Jobenomics estimates the approximate number of federal contractor employees by dividing their estimated average wage and benefits of $120,000 (triple the median private sector wage, but equal to the average federal government civilian pay) into $895 billion, which equals 7.4 million federal contractor employees.   While the number of state and local civilian contractors jobs are unknown, it is safe to assume at least 2.6 million (1/3 of federal contractor jobs), for a total of 10 million government (federal, state, local) civilian employees.

Due the size of budget deficits at all levels of government (federal, state and local), 5% cuts are likely for federal contractors over the next five years, resulting in the loss of 2.3 million jobs.

Cuts of this magnitude would cause a crisis for defense and aerospace industries.  While national security enthusiasts will vigorously resist the magnitude of these cuts, similar defense industry cutbacks occurred after WWII, Vietnam, and the Cold War.  Cold War spending was replaced by the so-called “Peace Dividend” which reduced military expenditures as a percent of GDP by approximately 50% over ten years.  Considering the severity of annual trillion dollar budget deficits, and a potential post-Iraq/Afghanistan peace dividend, it is conceivable that massive defense contractor reductions could occur in a period of five years, if the US economy does not significantly improve soon.