Business Generator | Jobenomics

Jobenomics U.S. Unemployment Analysis: Q2 2016

Jobenomics U.S. Unemployment Analysis: Q2 2016

By: Chuck Vollmer

Contact information: [email protected]

Download 50-page report at:

Jobenomics U.S. Unemployment Analysis - Q2 2016 - 6 August 2016

6 August 2016

Jobenomics reports on U.S. unemployment and employment size, characteristics and trends. This Analysis focuses on how the U.S. government reports on unemployment and income statistics, why Americans who can work chose not to work, and the impact of 109.8 million non-working able-bodied citizens are having on the U.S. labor force and economy. The Jobenomics Employment Analysis focuses on the U.S. labor force, business and job creation, and transformative trends—with emphasis on 60 million workers in the rapidly growing contingent workforce.

Executive Summary

According to the U.S. Bureau of Labor Statistics (BLS), the U.S. labor force has three statistical categories: Employed, Unemployed and Not-in-Labor-Force. Understanding the dynamics between these categories is required to understand the American labor force and ultimately the U.S. economy.

From an unemployment perspective, policy-makers, decision-leaders and the American public must address three major trends: (1) growing voluntary workforce departures, (2) contingent workforce expansion, and (3) below average wage earner issues that are becoming more pervasive.

Sooner or later, the American public will figure out that it is theoretically possible for the United States to have a zero rate of unemployment while simultaneously having zero people employed in the labor force. The reason for this disquieting statement involves how government measures unemployment. To be classified as unemployed, one must be looking for work. Able-bodied Americans who quit looking and voluntarily depart the workforce are classified in a nebulous and obscure Not-in-Labor-Force category that few people comprehend.

Six unemployment categories (U1 through U6) are reported monthly by the BLS. Each category requires that an individual must be actively looking for work. These categories are calculated as a percent of the Civilian Labor Force (Employed + Unemployed). The BLS also calculates the number of able-bodied adults who can work, but are not looking for work, in a category entitled Not-in-Labor-Force, which is not part of the Civilian Labor Force (159 million), but part of the larger Civilian Noninstitutional Population (254 million), which is a subset of the entire U.S. population (324 million).

The latest BLS Employment Situation Summary[1] reports that 122.1 million Employed Americans work in the private sector[2] versus 109.8 million citizens who are Unemployed (U6, defined as total unemployed and underemployed people who are looking for work) and Not-in-Labor-Force (NiLF, defined as able-bodied adults who are capable of working but not looking for work for a variety of reasons). From 1 January 2000 to 1 July 2016, the working population (Private Sector Employed) increased by 11% compared to a 40% rise in the non-working population (U6/NiLF). The non-working population briefly exceeded the working population during the 2007-2009 Recession and is likely to outnumber the working population by 2024 if current trends exist, or earlier if an economic downturn occurs.

The U6 population includes the long-term unemployed (U1), job losers and temporary workers (U2), total unemployed workers (U3), discouraged workers (U4), marginally attached workers (U5) and underemployed workers who work part-time because they can’t find a full-time job. It is important to remember that a person must be actively looking for work to be counted as unemployed in any of the six BLS unemployment categories. In January 2000, the U6 population was 9,953,000. The height of the Great Recession, U6 peaked at 26,440,000 April 2010, an increase of 166% since the turn of the Century. Since peak through Q2 2016, the U6 dropped by 11.2 million people to 15,252,000 today. Despite all the political fanfare, 15,252,000 unemployed, underemployed and marginally-attached citizens still represent 53% more people out of work than existed 16 years ago.

Able-bodied adults who are neither employed nor unemployed are not in the labor force. Those who have no job and are no longer looking for a job are accounted by the BLS in the Not-in-Labor-Force category. From 2000 through Q2 2016, the Not-in-Labor-Force cadre grew from 68,655,000 to 94,517,000, an increase of 26 million citizens who more often than not are dependent on public/familial assistance.

Since the post-recession April 2010 U6 peak in Q2 2010, the Not-in-Labor-Force cadre grew by 11.8 million, which offset the 11.2 million people that were no longer part of the U6 population. Today, the Not-in-Labor-Force exceeds the U6 Unemployed cadre by 6-times (94,517,000 versus 15,252,480) and 12-times the number of people enrolled in the U3 Unemployment category that is generally referred to as the “officially unemployed”. This great disparity is rarely addressed by policy-makers, analyzed by decision-makers or mentioned by the media’s talking-heads, all of whom focus almost entirely on the “Official U3 Unemployment Rate” that is now at a post-recession low of 4.9%.

The ability to work should be the determining factor for unemployment as opposed to whether or not a person is looking for work. Jobenomics contends that all able-bodied Americans who can work, regardless if they are looking or not, should be considered “functionally” unemployed. Functional is defined as capable of working. An able-bodied adult who is capable of working but chooses not to work should be considered unemployed for the same reason that “discouraged”, “marginally attached” and “part-time workers for economic reasons” are included in the U4, U5 and U6 Unemployment categories.

This chart shows U3, U6, NiLF and the Jobenomics Functionally Unemployed numbers in relation to the Civilian Labor Force. The 4.9% U3 and 9.6% U6 are percentages of the Civilian Labor Force that consist of Employed and Unemployed workers who are currently employed or looking for work.

Hypothetically, if compared to the Civil Labor Force, the Not-in-Labor-Force cadre would equate to 59.5%, and the Jobenomics Functionally Unemployed (NiLF & U6) would be 69.1%, which gives one a sense of how large a challenge that the Not-in-Labor-Force cadre presents to the U.S. labor force and the American economy.

In order to achieve a sustainable economy and labor force, U.S. policy-makers and decision-leaders must shift their attention from an U3/U6 unemployment focus to understanding the reasons that able-bodied Americans who are capable of working are no longer looking for work and joining the ranks of those no longer in the U.S. labor force. When as many people drop out of the labor force as enter it, the U.S. economy cannot grow as it should.

Most economists believe that economic growth depends on job and GDP growth. The ideal rate for U.S. GDP growth is 2% to 3%. For the United States, a mature economy, sustained GDP growth significantly over 3% tends to led to overheating and bubbles. Anything below 2% is considered sclerotic growth and makes the economy vulnerable to financial downturns. During the post-WWII recovery, U.S. GDP grew at an average rate of 3.5% which created tens of millions of new jobs each decade. Since 2000, U.S. GDP averaged 1.76%. During the post-recession recovery period to today, U.S. GDP averaged 2.0% but is now slowing significantly. In Q1 2016, U.S. GDP grew by an abysmal 0.8%. Q2 2016 is estimated to be not much better at 1.2%. Consequently, the combined GDP rate for 2016 is only 1.0%—an alarmingly low rate of growth.[3]

As far as the future, many economists feel that a recession (two quarters below 0% GDP growth) is likely. The United States averages 3 financial downturns and 1.7 recessions per decade over the last 7 decades. This decade (2010s) has been recession-free largely due to government deficit spending, increasing money supply, low interest rates, stimulus packages, bailouts, buyouts and foreign investment. Now that the era of easy money is coming to an end, an anemic U.S. economy will have to operate under its own steam.

The period of frail GDP growth from 2000, has dramatically impacted the American middle-class and the U.S. labor force that gained 13,395,000 workers but lost 25,862,000 through voluntarily departures. To make matters worse, the U.S. population grew by 44 million citizens since year 2000, which places a greater burden on taxpaying workers. For most American workers, real wages (purchasing power) have not increased for decades and are not projected to improve soon.

Another alarming trend involves the dramatic rise in the contingent workforce, which now stands at 60 million employed workers, or 40% of the Private Sector Labor Force. The BLS defines the contingent workforce as the portion of the labor force that has “nonstandard work arrangements” or those without “permanent jobs with a traditional employer-employee relationship”. The Jobenomics U.S. Contingent Workforce Challenge Report estimates that the contingent workforce could be the predominant source (over 50%) of employed U.S. labor by 2030, or sooner, depending on economic conditions and seven ongoing labor force trends.[4]

The contingent workforce is comprised of two general categories: core and non-core. Core contingency workers include agency temps, direct-hire temps, on-call laborers and contract workers. Core workers generally represent low wage earners that have nonstandard work arrangements out of necessity, often subjected to exploitation, and usually not entitled to traditional employer-provided retirement and health benefits. The non-core category includes independent contractors, self-employed workers and standard part-time workers who work fewer than 35 hours per week. Non-core workers generally seek nonstandard work agreements as a matter of choice.

Jobenomics views the non-core workforce as a positive economic force that will grow significantly via the emerging digital economy. On the other hand, Jobenomics views the core contingency as a major labor force challenge as more and more citizens work for substandard wages, become frustrated, and seek alternative sources of income. The contingent workforce is addressed in this analysis from a Not-in-Labor-Force perspective and discussed in detail from an overall employment perspective in the Jobenomics Employment Analysis.[5]

Contingent work, low wages and the attractiveness of the U.S. welfare/means-adjusted earnings programs are fueling the rapid and increasing exodus of citizens from the U.S. labor force. In 2014, 86% of all Americans (including workers with earnings, Not-in-Labor-Force and those that cannot work, such as children, caregivers, disabled, elderly, etc.) made below average income. Out of a total of 160.1 million full-time and part-time American workers with earnings, 115.2 million workers (72%) make less than the U.S. mean (average) income of $54,964.

As shown, the demographics with the greatest need and potential are women, minorities, new workforce entrants and the growing cadre of poor white males. 96% of new workforce entrants aged 15 to 24, 85% of Hispanics, 82% of Blacks, 80% of Females, 68% White Non-Hispanics, 65% of Males and 60% of Asians earn below average wage. The good news is that both women-owned and minority-owned firms have been growing at rates far greater than the national average.

A major reason for Not-in-Labor-Force growth is due to the growing attractiveness of welfare and entitlement benefits. The U.S. federal government funds 126 separate programs targeted at low income people. State, county, and municipal governments offer additional welfare and public assistance programs. Combined welfare benefits pay more than minimum wage jobs in 35 states—in many cases, significantly more. 35 U.S. states offer welfare packages (not including Medicaid) more generous than the most lavish and liberal European countries. 39 states pay welfare recipients more than the starting wage for a secretary and in 11 states more than the first year wage for a teacher.

Once a person becomes dependent on welfare, transition to workfare becomes difficult. Loss of critical workforce skills increase proportionally to the length of time a person is not working. Most of the 5 million open employment positions in the United States are due to a deficit of skills and the capability to perform effectively in a working environment. Prolonged dependency generates anger, grievances, activism, violence and counter-cultural lifestyles.

In today’s consumption-based and market-driven society, there is never enough public or familial assistance to satisfy the financially disaffected. Consequently, those who need additional income often turn to temporary jobs, barter, the underground economy as well as illicit lifestyles (gangs, drugs and crime) rather than legitimate forms of long-term employment. Jobenomics contends that workfare is the only reasonable alternative to welfare. The problem is how to motive and facilitate this transition.

The solution to growing America’s economy, healing the middle-class and strengthening the labor force involves putting the U.S. small business engine into over-drive. Energizing existing businesses and creating new small and self-employed businesses could create 20 million net new jobs within a decade. To this end, Jobenomics is working with a number of cities to implement Jobenomics Community-Based Business Generators to mass produce startup businesses.

Jobenomics Community-Based Business Generators mass-produce startup businesses by: (1) working with community leaders to identify high-potential business owners and employees, (2) executing a due diligence process to identify potential high quality business leaders and employees, (3) training and certifying these leaders and employees in targeted occupations, (4) creating highly repeatable and highly scalable “turn-key” small and self-employed businesses, (5) establishing sources of startup funding, recurring funding and contracts to provide a consistent source of revenue for new businesses after incorporation, and (6) providing mentoring and back-office support services to extend the life span and profitability of businesses created by the Jobenomics Community-Based Business Generators.

Starting a notional pool of 10,000 candidates, Jobenomics will work with local civic organizations (churches, non-profits, sports teams, etc.) to identify and nominate the top 10% to 25% candidates, who they know, for the Jobenomics Community-Based Business Generator program. This is the first stage of the due diligence process to separate the proverbial wheat from the chaff. These nominees will then be subjected to standard aptitude and attitude tests in order to willow the list down to several hundred trainees who we believe that could become high-quality employees and business leaders. Approximately 10% would undergo business school training and certification (goal is to startup a locally-owned business) and 90% some form of skills-based training and certification that would be needed in our new startup businesses. If each startup employed 10 people, 20 to 30 new small businesses would be created.

While the overall goal is to mass-produce small businesses, the Jobenomics Community-Based Business Generator will help all people who enter the program to find meaningful employment. Many of the initial candidates are likely to prefer working for existing companies rather than going through the Jobenomics process. Anticipating this, Jobenomics will implement a “pipeline” to connect these individuals who have undergone some level of due diligence to companies that are hiring. A common complaint that Jobenomics often hears from companies is that they have a very hard time finding good people who want to work and who have the right attitudes/aptitude for work. Consequently, Jobenomics Community-Based Business Generators will utilize a nationally recognized pipeline system that has recently matched hundreds of thousands veterans with employers.

In summary, the U.S. economy cannot be sustained by only 35% of the population that is eroding in terms of size, wages and income potential.

The private sector labor force produces the majority of American jobs, goods, services and revenue needed to sustain economic growth. 112 million private sector workers support 32 million government workers and contractors, 95 million able-bodied people who can work but chose not to work, 70 million who cannot work and the 15 million unemployed and underemployed. Of the 112 million employed Americans in the private sector, approximately 60% are standard full-time workers and 40% are part-time and independent continent workers.

If American policy-makers and decision-leaders are serious about revitalizing the eroding middle-class, they must address the growing voluntary workforce departures, contingent workforce and below mean income issues. Jobenomics believes that the place to start is with demographics with the greatest need and potential (i.e., women, minorities, new workforce entrants and the growing cadre of poor white males). Jobenomics suggests that the 2016 Presidential candidates, in both parties, should make solutions to these labor force issues their top priority.

[1] U.S. Bureau of Labor Statistics, Employment Situation Summary, http://www.bls.gov/news.release/empsit.nr0.htm

[2] Government workers pay taxes just like private sector workers. However, government relies on tax revenue to pay salaries. Hence, Jobenomics often uses private sector figures when discussing the relative strength of the U.S. labor force and the economy.

[3] U.S. Bureau of Economic Analysis, Gross Domestic Product: Second Quarter 2016 (Advance Estimate)

Annual Update: 2013 through First Quarter 2016, 29 July 2016, http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

[4] http://jobenomicsblog.com/wp-content/uploads/2016/05/U.S.-Contingent-Workforce-Challenge-4-April-2016.pdf

[5] http://jobenomicsblog.com/jobenomics-u-s-employment-analysis-Q2-2016/

Jobenomics U.S. Employment Analysis: Q2 2016

Jobenomics U.S. Employment Analysis: Q2 2016

By: Chuck Vollmer

31 July 2016

Download 100-page report at:

Jobenomics U.S. Employment Analysis - Q2 2016 - 31 July 2016

Jobenomics reports on U.S. employment and unemployment size, characteristics and trends. This Employment Analysis focuses on the U.S. labor force, business and job creation, and transformative trends—with emphasis on the 60 million workers in the rapidly growing, and underreported, contingent workforce. The companion Unemployment Analysis focuses on how the U.S. government reports on unemployment and income statistics, why Americans who can work chose not to work, and the impact of 109.8 million non-working able-bodied citizens are having on the United States.

Executive Summary

Current U.S. employment and job gains/loss statistics since the beginning of the decade are shown above. Between 1 January 2010 and 1 July 2016, the United States has created 14,401,000 new jobs with a net gain of 14,764,000 in the private sector and a net loss of 363,000 in government employment. 81.1% of all new jobs this decade were produced by four service-providing industries (Professional & Business Services; Education & Health Services; Trade, Transportation & Utilities; Leisure & Hospitality). Manufacturing and Construction industries contributed 5.6% and 6.7%, respectively. 77.9% of all Americans are now employed by small businesses that created 77.7% of all new jobs this decade. In June 2016, small businesses created 85.4% of all new jobs with micro-businesses (1-19 workers) employing 69% more Americans than all large corporations with over 1000 employees.

While these employment statistics are positive, they are offset by three trends that threaten economic growth and stability. These disturbing trends include voluntary workforce departures, contingent workforce growth and sclerotic GDP growth.

Voluntary Workforce Departures. In Q2 2016, the U.S. labor force lost 593,000 more workers than it gained due to the exodus of frustrated job-seekers and able-bodied workers to welfare and alternative lifestyles. Since year 2000, 25,862,000 able-bodied workers departed versus 13,395,000 workers who joined the labor force for a net loss of 12,467,000 workers. This net loss does not include the number of unemployed (2.1 million more people are unemployed in 2016 than 2000) or population growth (42 million additional Americans today compared to 2000).

Contingent Workforce Growth. Contingent workers are defined by the U.S. government as “non-standard” workers who work part-time by necessity (temps and day workers) or by choice (free lancers and self-employed). Today, the contingent workforce is approximately 60,000,000 employed Americans or 40% of the total employed workforce. By 2030, this number will grow to 80,000,000 or 50% of the U.S. employed workforce—a trend that is largely unknown to U.S. policy-makers and the American public.

Sclerotic GDP Growth. Most economists believe that economic growth depends on job and GDP growth. The ideal rate for U.S. GDP growth is 2% to 3%. Since 2000, U.S. GDP averaged a sclerotic 1.76%. During the post-recession recovery period to today, U.S. GDP averaged only 2.0%. In Q1 2016, U.S. GDP grew by an abysmal 0.8%. Q2 2016 is estimated to be not much better at 1.2%.

Job creation is the number one issue facing U.S. in regard to economic growth, sustainment and prosperity. Jobs do not create jobs, businesses do, especially small businesses. Unfortunately, America is focused on big business and government employment solutions that have not been very effective growing the U.S. labor force. In fact, the U.S. labor force is in a state of decline as evidenced by the eroding middle-class and the transformation from full-time to contingency workers.

35% of all Americans financially support the rest of the country. As of 1 July 2016, out of a U.S. population of 324 million, 112 million private sector workers support 32 million government workers and government contractors, 95 million able-bodied people who can work but chose not to work, 70 million who cannot work, and 15 million unemployed and underemployed. The U.S. economy is not sustainable with only 35% supporting an overhead of 65%. The growing contingent labor force, which consists of mostly lower paid wage earners, makes the overhead burden even more precarious. More people with livable wages and greater discretionary income must be productively engaged in the private sector labor force for the U.S. economy to flourish.

Jobenomics City & State Initiatives

Jobenomics City & State Initiatives

www.Jobenomics.com

By: Chuck Vollmer

29 July 2016

Download 16-page white paper at

Jobenomics City State Initiatives 29 July 2016

Jobenomics is now working directly with community leaders to develop business and job creation initiatives to mass-produce small businesses and jobs. Emphasis is placed on demographics with the greatest need and potential—women, minorities and youth. Jobenomics New York City, Jobenomics Delaware and Jobenomics Baltimore City initiatives are underway with other city and state efforts in progress.

Jobenomics New York City’s employment goal is for 1,000,000 net new jobs by 2026 in the five boroughs of New York City. Jobenomics New York City is led by a Harlem community leader who is also running for Mayor of New York City. [1]

Jobenomics Delaware’s employment goal is for 150,000 net new jobs by 2026 across the three counties and three major cities in Delaware. Jobenomics Delaware is led by a Dover business executive who is running for Lt. Governor. [2]

Jobenomics Baltimore City’s employment goal is for 100,000 net new inner-city jobs by 2026. Jobenomics Baltimore City is currently being led by a Commissioner of the Governors Workforce Investment Committee and inner-city Baltimore community leader. [3]

These community leaders are working with other community, government and business leaders to develop detailed plans, with actionable milestones, for citizens who desire meaningful jobs or want to start a business.

PowerPoint presentations for Jobenomics New York City, Jobenomics Delaware and Jobenomics Baltimore City are available as footnoted.

[1] Jobenomics New York City presentation: http://jobenomicsblog.com/jobenomics-new-york-city/

[2] Jobenomics Delaware presentation: http://jobenomicsblog.com/jobenomics-delaware/

[3] Jobenomics Baltimore City presentation: http://jobenomicsblog.com/jobenomics-baltimore-city/

Jobenomics Delaware

Jobenomics Delaware Initiative (JDI)

By: La Mar Gunn, Candidate for Lt. Governor

30 June 2016

Download presentation and white paper at:

Jobenomics Delaware Presentation - 23 June 2016

Jobenomics Delaware White Paper 30 June 2016

Together, we developed an actionable plan to create triple the current rate of new job creation to create 150,000 net new jobs in Delaware within the next ten years.

While JDI addresses big business and government employment, its principal focus is on highly-scalable small and self-employed businesses that employ 80% of all Americans and have produced 80% of all new jobs this decade. Specifically, JDI will focus on (1) women, minorities, new workforce entrants and other hopefuls with the highest need and growth potential, (2) mass-producing startup businesses via community-based business generators, (3) attracting new highly-scalable businesses to Delaware with emphasis on filling open job positions and exploiting emerging and new employment opportunities, (4) forming alliances with countries, cities, corporations and entrepreneurs, and (5) identifying sources of investment in order to achieve the JDI business and job creation goal.

The initial JDI notional framework includes nine job creation areas for depressed urban (with emphasis on Wilmington, Dover and Newark), rural (with emphasis on agriculture and aquaculture) and coastal communities. JDI will focus on filling current open jobs and exploiting emerging opportunities in caring services, construction, urban mining, the energy technology revolution and the fast growing digital economy. This notional framework will evolve as community stakeholders adopt new areas for development.

The solution to growing Delaware’s economy and labor force involves putting Delaware’s small business engine into over-drive. Therefore, the JDI team will work with community leaders to implement community-based business generators (CBBGs) that will mass produce startups, extend the “life span” of fledgling firms and accelerate existing businesses by (1) working with community leaders to identify and train high potential small business owners and employees, (2) implementing highly repeatable and highly scalable “turnkey” businesses with emphasis on the service-providing industries, (3) establishing sources of startup funding, recurring funding and follow-on contractual work to provide a consistent source of revenue for new businesses after incorporation, and (4) providing ongoing mentoring and support services.

A 50-page JDI presentation is available at www.GunnForUS.com. If interested in joining JDI or setting up a meet to discuss this initiative, contact me at (302) 218-640.

Jobenomics Baltimore City

Jobenomics Baltimore City

By: Dr. Alvin C. Hathaway, Commissioner of the Maryland Governor’s Workforce Investment Board, and Chuck Vollmer, Jobenomics Founder and President

23 June 2016

Download complete presentation at:

Jobenomics Baltimore City Presentation - 23 July 2016

Jobenomics is pleased to announce a partnership with leading community leaders, led by Dr. Al Hathaway, Commissioner of the Maryland Governor’s Workforce Investment Board. Jobenomics Baltimore City’s goal is to restore the inner-city labor force by creating 100,000 net new jobs in Baltimore City within the next 10 years with emphasis on minorities, women, new workforce entrants and the contingent workforce. Jobenomics Baltimore City will institute local Community-Based Business Generators to mass-produce inner-city businesses in order to achieve the 100,000 new job goal.

Jobenomics Baltimore City’s New Job Framework is tailored to the demographics of Baltimore City. As shown, emphasis is being given to lower skill zones that tend to be more predominant in the poor sections of the inner-city. To date, the Jobenomics Baltimore City plan has been endorsed and lead by community leaders who are now getting endorsement and support from major corporations (Under Amour for manufacturing) and major medical institutions for the healthcare and social assistance programs. The team is also working with non-profits, the State and City managers to finalize and implement an actionable plan.

Jobenomics-New York City

Jobenomics launches New York City initiative to create 1 million net new jobs in New York City over the next decade. This initiative is lead by Rev, Michel Faulkner, a former New York Jets NFL player, who started the Institute for Leadership in Harlem to identify and train potential small business startups in association with Jobenomics. Michel Faulkner is also a candidate for Mayor of New York and a former candidate for the U.S. Congress. (Faulkner for NYC Mayor Website at www.faulknerfornewyork.com). The following white paper describes the Jobenomics-New York City initiative.

Jobenomics-New York City

By: Rev. Michel J. Faulkner

Candidate for Mayor of New York City

17 November 2015

Download PDF version: Jobenomics New York City 19 November 2015. Jobenomics New York City White Paper 19 November 2015.

Also see: Faulkner for NYC Mayor, http://www.faulknerfornewyork.com/.

After ten years of effort, hundreds of meetings with policy-makers, thousands of meetings with business and community leaders and an outreach effort to over two million people, many Americans believe that the Jobenomics Plan for America is the most mature and comprehensive business and jobs creation plan in the United States. Charles D. (Chuck) Vollmer, author and founder of the Jobenomics national grassroots movement, has joined my campaign for mayor of New York City. Together, we are developing an actionable plan to create one million net new jobs in New York City within the next ten years via implementation of community-based business generators that will mass-produce tens of thousands of startup businesses.

Jobenomics deals with economics of business and job creation. Jobenomics national grassroots movement’s goal is to facilitate an economic environment that will create 20 million net new U.S. middle-class jobs within a decade. The movement has reached millions of people via its blog, reports, TV/radio, social media, lectures and word-of-mouth.

Research. Jobenomics produces a series of comprehensive reports including quarterly employment and unemployment reports that address the U.S. labor force, business and economic conditions. Jobenomics provides advice and timely data to policy-makers and decision-makers regarding business and job creation trends.

Focus Areas. While Jobenomics addresses big business and government employment, its principal focus is on highly-scalable small and self-employed businesses that employ 80% of all Americans and have produced 80% of all new jobs this decade. Women, minorities, new workforce entrants and the growing cadre of poor white males represent future business owners with the highest need and growth potential.

National-Level Initiatives. Jobenomics is leading two national-level initiatives called the Energy Technology Revolution (ETR) and the Network Technology Revolution (NTR). These initiatives could create 20 million net new American jobs within a decade. The ETR plan addresses emerging technologies, processes, systems and services across the entire energy spectrum for electrical power generation, transportation, storage and energy-related services. The NTR is characterized by a “perfect storm” of advanced technologies including: cloud computing, semantic webs, ubiquitous computing, advanced networks, machine learning, robotics, credentialing, Internet-of-Things and artificial intelligence agents. The NTR plan addresses America’s transition from a traditional to a digital economy and the transformational impact that the NTR will have on the economy, institutions, businesses and the labor force.

Jobenomics New York City (J-NYC): The J-NYC team is currently operating out of the Institute for Leadership facilities in Harlem (http://www.institute4leadership.com/). The initial draft of the J-NYC plan will be completed by mid-2016, depending on ongoing consensus building activities and community participation, and will be a “living” document with actionable and measurable milestones built on the framework of Jobenomics Plan for America. The J-NYC plan focuses on (1) NYC demographics with the greatest need and potential, (2) mass-producing startup businesses via community-based business generators, (3) attracting new highly-scalable businesses to NYC with emphasis on the network-centric and e-commerce firms, (4) forming alliances with countries, cities, corporations and entrepreneurs and (5) identifying sources of investment in order to achieve the one million net new jobs goal.

The J-NYC Business and Job Creation Plan’s objective is to quadruple the historical rate of NYC new job creation (232,000 per decade) with a goal of one million net new livable wage jobs by 2026. The plan concentrates on (1) implementing community-based business generators throughout the NYC metropolitan area, (2) developing workforce skillsets to fill vacant NYC jobs, (3) exploiting employment opportunities with the largest and fastest growing NYC industries, (4) implementing new business and job creation initiatives tailored to the needs of New Yorkers and (5) positioning the NYC labor force for substantial opportunities generated by energy and network technology revolutions.

J-NYC Community-Based Business Generator (J-CBBG) Concept. The solution to growing the NYC economy and labor force involves putting NYC’s small business engine into over-drive. Therefore, the J-NYC team will work with borough leaders to implement community-based business generators that will mass produce startups, extend the “life span” of fledgling firms and accelerate existing businesses. J-CBBGs will (1) identify and train potential small business owners and employees, (2) implement highly repeatable and scalable businesses with emphasis on the service-providing industries, (3) establish sources of startup funding, recurring funding and contracts to provide a consistent source of revenue for new businesses and (4) provide ongoing mentoring and support services.

Filling Open NYC Job Vacancies. As of November 2015, NYC’s five boroughs had 44,790 job vacancies.[1] 40,240 or 90% of the open positions are related to ten occupations: management, computer services, business and financial, sales, office support, healthcare, entertainment, social services, transportation and food services. Corporations with the largest number of open vacancies were Capital One, JP Morgan Chase, Oracle, King Teleservices and Deloitte with a total of 6,129 open positions. J-CBBGs will work with companies and occupational associations that have a vested interest in fulfilling these vacancies via training or certifying viable candidates with a specific skillset, or starting new businesses that can provide tailored services as subcontractors. The J-CBBGs will work with selected non-profits, such as employment-related institutions and churches (three Harlem mega-churches with over 250,000 parishioners have already agreed to support the J-CBBG concept), to perform the initial candidate due diligence. J-CBBGs will conduct further evaluations (Jobenomics and The Institute for Leadership already perform testing of this sort) to determine if candidates are ready for employment and capable of starting their own small business (self-employed, home-based, e-commerce, contractor, franchise, etc.). J-CBBGs will also build teams of future employees and future startup owners to increase camaraderie, accountability and successful launches.

Exploiting Employment Opportunities with the Largest and Fastest Growing NYC Sectors and Businesses. When preparing a labor force for maximum employment, J-NYC will begin with the largest and fastest growing sectors. NYC employs 4,191,500 workers. 542,000 (13%) work for government and 3,648,900 (87%) for the private sector. J-NYC’s business and job creation effort concentrates, but not exclusively, on private sector service-providing industries that are the largest (82%) employers of New Yorkers and the fastest growing segment (2.1%) of the major employment sectors. While the goods-producing segment (manufacturing, construction, mining) are vitally important, J-NYC feels that there is sufficient attention already being given to this segment that has limit upside employment potential as compared to services.

Within the NYC service-providing sector, the largest and fast growing industries are: Education and Health Services (866 million employees, 2.5% growth in the last year); Professional and Business Services (687M, 2.1% growth); Trade, Transportation and Utilities (631M, 1.4% growth); Financial Activities (459M, 1.9% growth); Leisure and Hospitality (427M, 3.2% growth) and Accommodation and Food Services (340M, 2.3% growth).[2] As a result of this data, J-NYC will work with NYC-based associations and companies in each of these industries to determine the level of interest and support for the J-NYC plan and their desire to engage with J-CBBG sponsorship, employee training and business startups. From our initial conversations with various corporate leaders, there is a keen interest in “feeder” facilities that can provide certified job candidates and independent contractors. Many would prefer to subcontract than hire.

New J-NYC Business and Job Creation Initiatives. J-NYC’s outreach program has already started identifying potential stakeholders for business and job creation initiatives for those struggling to make a livable wage. Most stakeholders say that they are eager to support any viable workfare over welfare initiatives. As the J-NYC plan matures new initiatives and programs will be added to the ones currently being pursued by J-NYC. J-NYC’s top three job creation initiatives are The Leadership Training Program, Urban Mining and Direct Care Centers.

The Leadership Training Program is underway at the Institute for Leadership (IFL) and producing solid results. This program trains, empowers, and partners with leaders and organizations that are already in the community including church leaders, business executives, government officials, athletic coaches and others who function in positions of leadership. The program also is working with leaders on health reform, financial management and entrepreneur training. Perhaps, the greatest benefit of this program is that J-NYC has a solid base of community leaders willing and eager to support the maturing J-NYC plan.
Urban Mining involves monetized urban waste streams such as municipal solid waste (MSW), construction and demolition material, tires and electronic waste. Waste is comprised of organic and nonorganic materials that can be reclaimed as commodities. J-NYC advocates a zero landfill/export policy and programs that convert waste into fertilizers, energy, biofuels and valuable raw materials. Jobenomics created eCyclingUSA LLC (http://ecyclingusa.com/) to help communities reclaim high value metals from electronic waste and use profits (average $30 million per year) for jobs and business creation. A typical eCyclingUSA plant can produce $30 million in profit and employ several hundred people. J-NYC is currently pursuing efforts to locate multiple eCyclingNYC facilities throughout the NYC metro that will hire the disadvantaged and formerly incarcerated.
Direct Care Centers are oriented to training and starting home-based, self-employed businesses that provide in-home eldercare, healthcare and childcare services. Direct Care is ideal for struggling households run by women who are looking for work or supplemental income to support their families. One of the biggest reasons that single mothers are struggling financially is due to the cost of childcare. Direct Care centers can help free many single mothers to join the workforce by training and supervising other single mothers to care for a neighbor’s children for a fraction of the cost of other services. Direct Care Centers can also provide personnel and contract workers to large organizations, like New Partners, a subsidiary of Visiting Nurse Service of New York. The Direct Care Center concept is the next logical step in IFL’s health reform effort.

Energy Technology Revolution (ETR). The ETR will create hundreds of millions of jobs globally and millions for cities, like NYC, that embrace transformative energy technologies, processes, systems and services. Using Jobenomics’ comprehensive ETR report as a baseline, J-NYC is developing a strategy for the greater NYC metropolitan area in regards to the economic impact and employment potential of the ETR. For electrical power generation, J-NYC will evaluate the impact and challenges of cleaner fossil fuels, renewables, grid-level systems, point-of-use systems, greenhouse gas emissions, power density, storage, next-generation technologies, and investment. J-NYC also plans to form alliances with sister cities in California, Japan, China and Germany that are embracing their versions of the ETR. For example, Tokyo’s metropolis is similar to NYC in terms of power density and energy issues. Consequently, it would be prudent to take advantage of any Tokyo’s successful ETR pursuit that could fulfill a NYC energy need. For example, Tokyo Gas plans to install 2,500,000 energy efficient miniature point-of-use natural gas fuel cells in homes and apartments for power and heat generation. NYC can also learn from Germany’s Energiewende (German for energy transition) national initiative to transition Germany from fossil and nuclear fuels to renewable energy, California’s 2030 goal of having 50% of its electrical generation from renewables, and China’s extensive research in next generation ETR technology. In the transportation area, sister cities in these countries are leading the way in advanced vehicles, alternative fuels and advanced storage systems that could be applied to shaping the NYC energy ecosystem. In energy services sector, energy efficiency, energy conservation, energy security and Energy-as-a-Service (EaaS) businesses are growing at phenomenal rates and fertile areas for employment and startups. Over the last five years, the Institute for Leadership has participated in Jobenomics initiatives in the energy services sector including energy audits, weatherization and solar installation certification training. As a result, the IFL team believes that Jobenomics ETR plan is solid and will provide an excellent baseline for the J-NYC ETR plan, consensus building and collaborative engagement.

Network Technology Revolution (NTR). The NTR will create literally billions of new jobs globally as the digital economy takes root. Today, in terms of e-commerce, the overall U.S. economy is 5% digital and growing at 20% per year. The United Kingdom leads the world with a 12% digital economy followed by South Korea at 8% and China at 7%. China’s strategy to become the world’s leading digital economy is as breathtaking as it is comprehensive. China is attempting to replicate its manufacturing miracle of lifting 400 million people out of poverty in two decades by implementing a combined public/private e-commerce strategy to lift an equal amount of rural Chinese out of poverty by 2030. Alibaba Group, a Chinese conglomerate that recently (2014) had the largest Wall Street IPO in history, is positioning itself to be a global e-commerce leader by financing the creation of 10 million new Chinese network-centric microbusinesses. Other Chinese conglomerates and government institutions are pursuing similar efforts. J-NYC plans to collaborate with countries and companies like these, as well as U.S. corporate giants like Amazon, Google, Apple and Microsoft to help NYC create businesses and jobs in the rapidly growing digital economy. J-NYC is in the process of identifying hundreds of emerging companies that have the potential to create jobs and small businesses in the same way that Uber (cars for hire), AirBNB (rental accommodations) and WeWork (office space) has accomplished. Founded in 2010, WeWork is now the fastest-growing consumer of office space in 15 “high IQ” cities and is one of the largest office space providers in NYC. The NTR also has a very dark side. According to recent studies, computer automation can eliminate as much as 47% of the U.S. labor force in the next two decades. Automation has been replacing manual labor for years, but via the NTR cognitive skill jobs are increasing at risk. If there is any doubt just ask Apple’s Siri, Amazon’s Echo or IBM’s Watson. The J-NYC NTR plan will seek to mitigate potentially massive NYC labor force departures (due to automation or voluntary departures) by creating highly-scalable new jobs and businesses that can compete and prosper in the digital economy. The J-NYC NTR team will also work with existing businesses to adapt and harness the power of new NTR technologies, processes, systems and services to compete and prosper more effectively.

Funding. J-NYC will pursue various sources of funding. The Institute for Leadership has an initial bank pledge of $20 million for micro-business loans up to $50,000 for each new J-NYC small business created. Other potential sources of funding include government bonds, debt/equity financing, corporate sponsorships, crowd funding and impact investing. Impact investing refers to investments made to organizations that generate a measurable, beneficial social impact. Socially conscious investing has grown in popularity with family foundations, philanthropic organizations, endowments, pensions, hedge funds, mutual funds and other financial institutions like Blackrock and Bain Capital. NYC has a plethora of “top 1%” organizations and philanthrocapitalists (philanthropists who see themselves as social investors) that could be encouraged to underwrite J-CBBGs for their service to the public good as well as their public relations value to their organizations.

Contact. The J-NYC team is interested in community leaders that are interested in workforce and small business development as outlined herein. Please contact me or the J-NYC team at 212.690.7748 and the address is 245 W. 135th Street, New York, NY 10030.

[1] New York State Department of Labor, Labor Statistics, 9 November 2015, https://www.labor.ny.gov/stats/nyc/

[2] New York State Department of Labor, Current Employment Estimates, https://labor.ny.gov/stats/lscesmaj.shtm

Minority-Owned Businesses

Download PDF Version: Minority-Owned Businesses - 10 Jan 2014

Minority-Owned Businesses

www.Jobenomics.com

By: Chuck Vollmer

10 January 2014

Executive Summary. Today, there are 6 million minority-owned businesses in the US. Jobenomics advocates a national goal of 18 million by year 2020—a goal that is achievable and necessary. Race and ethnicity are important elements of America’s economic equation. Jobenomics forecasts that income opportunity (see Income Inequality versus Opportunity posting) will become a leading domestic issue as minorities assert their growing demographic, economic and political power. Racial and ethnic minorities currently constitute 40.8% of the US population, and are responsible for approximately $3 trillion worth of America’s expenditures and consumption for goods and services (see Consumption-Based Economy posting). This degree of economic power could fuel the creation of millions of minority-owned businesses that would provide income opportunity for millions of Americans.

US Minority Demographic Trends. Today, minorities comprise about 41% of the US population, but will be in the majority much sooner than most people recognize. According to the US Census Bureau[1], for the first time in American history, most (50.4%) American children younger than age 1 are now racial and ethnic minorities. Consequently, America could be a generation away from being a minority-majority nation—perhaps quicker, considering aging baby-boomers and low birth rates in the White-majority. California (60.3% minorities), Texas (55.2%), New Mexico (59.8%) and Hawaii (77.1%) are already minority-majority states.

According to 2010 Census data[2], the largest minority group is Hispanics and Latinos (Hispanic) with 50.5 million people, followed by African-Americans (Black) with 38.9 million, Asian-Americans (Asian) with 14.7 million, American and Alaskan Natives with 2.9 million, Native Hawaiian and Other Pacific Islanders with 0.5 million, and “Some Other Race” with 19.1 million. An additional 9 million Americans identified themselves as multi-racial from two or more races. 196.8 million Americans identified themselves as non-Hispanic Whites (White)—a 59.2% majority compared to a minority population of 40.8%.

Between 2000 and 2010, the White population grew by 2.3 million or 1.2%. Asians and Hispanics were the fastest-growing groups by percentage, or 43.3% and 43.0% respectively. The Hispanic population increased by 15.2 million between 2000 and 2010, accounting for half of total US population growth. Blacks grew at a rate of 12.3% for a total gain of 4.3 million over the decade. Asians added 4.4 million during this period. All other minority groups grew by 6.5 million at a combined rate of 26%.

Minorities in the US Labor Force. The US Department of Labor’s Bureau of Labor Statistics (BLS) recently completed a landmark study[3] regarding US labor force characteristics by race and ethnicity[4]. The three major minority groups that the BLS studied were Black, Hispanic and Asian. The following charts were created by Jobenomics using data from the BLS study to compare these major US minority groups’ employment and income characteristics to those of Whites. While important, smaller minority groups (American Indian, Alaskan Native, Native Hawaiian, Other Pacific Islanders, and people who identified themselves as multi-racial or from some other race) are not included in this analysis due to limited numbers (only 2.5% of the US labor force).

The US Civilian Labor Force includes all working-age persons who are employed or unemployed and looking for a job. In 2011, the US civilian labor force was 153.6 million out of a total population of approximately 309 million. Whites dominated the US labor force with 67% (103.3 million workers) of all workers, followed by Hispanics with 15% (22.9 million), Blacks with 11% (17.1 million) and Asians with 3% (4.7 million).

As shown in the following series of charts, employment in the five major occupational categories is more equally distributed between races/ethnicities than the 67% manpower advantage would imply.

As shown above, the five major occupational categories range from management on top, to service on the bottom in terms of median weekly earnings[5]. Based on these five categories, the three major minority groups fared reasonably well against the White majority as indicated in the following charts.

As a percentage of their group, Asian men (49%) were the most likely to be employed in the top category of “management, professional and related occupations” compared to Whites (35%), Blacks (24%) and Hispanics (16%). In “sales and office occupations” all four groups were relatively equally represented (17%, 18%, 15% and 17%). “Natural resources, construction and maintenance occupations” were dominated by Hispanics and Whites. “Production, transportation and material moving occupations” as well as “service occupations” were led by Blacks and Hispanics over Whites and Asians by 22% versus 14% of their respective work forces.

As a percentage of their group, Asian women (44%) were the most likely to be employed in the top category of “management, professional and related occupations” compared to Whites (42%), Blacks (34%) and Hispanics (25%). In “sales and office occupations” all four groups were relatively equally represented (26%, 31%, 32% and 32%). Women were not a major contributor by employment in the “Natural resources, construction and maintenance occupations” category. “Production, transportation and material moving occupations” were relatively equal amongst all women subgroups with Hispanic women having a slight edge. “Service occupations” were relatively close amongst all women subgroups with Hispanics (31%) followed by Blacks (28%), Asians (22%) and Whites (20%).

It is important to note that these two Occupation Employment charts are calculated as a percentage of their group, as opposed to a percentage of total employed, which, as discussed earlier, is dominated (67%) by Whites. For example, Asian-male participation in the “management, professional and related occupations” category is better represented by 49% (percentage of their group) than 5.4% (percentage of the total employed) as reported by other BLS surveys[6]. 49% reflects that almost half of all working Asian-males are involved in management and professional occupations—an impressive percentage. 5.4% indicates only a small number of Asians are in management and professional occupations compared to the total working population—an unimpressive percentage—that does not account for the fact that the total number of Asians only represents 1/20^th of the US work force. Consequently, major minority groups are faring much better regarding labor force participation than the media and political activists often portray by using percentage of total employed statistics.

Income and Unemployment Inequities. While Jobenomics asserts that minority groups fare much better in the US labor force than generally perceived, Jobenomics also acknowledges that there are inequities that need to be fixed, especially in the Hispanic and Black subgroups.

According to the most recent US Census Bureau report[7], US median household income has fallen by 9% since 2007, hurting all Americans regardless of race or ethnicity. Today, the US Asian community maintains the highest median household income of $65,129, followed by Whites ($55,412), Hispanics ($38,624) and Blacks ($32,229).

Over the decades, income inequality has remained relatively the same between the races, collectively increasing during good times, and collectively decreasing over bad times. During the good times, income inequality was not a politically-charged issue since increasing household income provided a sense of well-being. Since year 2000, the US Employment-Population Ratio has decreased 9.4% with the greatest impact on the middle-class. During the last six years, the precipitous decline in household income significantly impacted the Black and Hispanic communities that were especially hard-hit during the Great Recession, largely due to the mortgage crisis and the erosion of middle-class jobs. As shown above, over the last three years, the Employment-Population Ratio has flatlined, causing considerable anxiety and discord regarding limited income opportunity.

Since the Great Recession, unemployment increased for all Americans, but the Black and Hispanic groups were hit the worst, with current unemployment rates[8] at 13.8% for Blacks and 9.6% for Hispanics, compared to 6.8% for Whites and 5.1% for Asians (not shown on chart due to limited historical data).

Youth unemployment is even more egregious, especially for Black youths aged 16 to 19 years old, which is 38.2% compared to 20.5% for Whites[9].

In summary, Jobenomics concludes that, institutionally, minority groups are not having a major issue with participation. The Asian minority group is doing quite well exceeding White participation in top paying occupations. While Black and Hispanic groups lag behind Whites in participation, they are not lagging by a great extent. On the other hand, Blacks and Hispanics are challenged by their concentration in lower labor categories, high unemployment rates and depressed household incomes.

Minority-Owned Businesses. From a Jobenomics perspective, the primary solution to enhancing minority labor force participation and increasing wealth in minority communities involves minority-owned business creation, which is growing at twice the rate of all US business. If America exploits this trend, millions of minority-owned businesses could be created providing many millions of jobs.

U.S. Census Bureau performs a Survey of Business Owners twice each decade. A survey was conducted in 2007 and the results released in 2011—the latest data available. A survey was conducted in 2012, but the results will not be released until 2015.

Highlights of the 2007 Survey of Business Owners [10] include:

In 2007, more than one-fifth (21.3%) of the nation’s 27.1 million firms were minority-owned.
In 2007, minority-owned firms numbered 5.8 million, up from 4.0 million in 2002, an increase of 45.5%—more than double the 17.9% increase for all US businesses. Receipts of minority-owned firms increased 55.0% to $1.0 trillion over the five-year period, compared with the 32.9% increase for all businesses nationwide.
Of the 5.8 million minority-owned firms, 766,533 had paid employees, an increase of 21.7% from 2002. These firms employed 5.8 million people, a 24.4% increase from 2002, and their payrolls totaled $164.1 billion, an increase of 42.2%. Receipts of minority-owned employer firms totaled $860.5 billion, an increase of 54.3% from 2002.
In 2007, minority firms with no paid employees (mainly self-employed businesses and partners of unincorporated businesses) numbered 5.0 million, an increase of 50.0% from 2002. These firms had receipts totaling $164.3 billion, an increase of 58.9%.
Black-owned businesses grew to 1.9 million firms in 2007, up 61% from 2002 - the largest increase among all minority-owned companies; and generated $135.6 billion in gross receipts, up 53% from 2002. Black-owned firms accounted for 7.1% of all US businesses and employed 921,032 persons.
The number of Hispanic-owned businesses totaled 2.3 million (8.3% of all US businesses) in 2007, up 44% from 2002. Receipts for Hispanic firms increased 55% to $343.3 billion.
Asian-owned firms grew 41% from 2002 to 1.6 million. Asian-owned firms continue to generate the highest annual gross receipts at $510.1 billion in 2007, increasing 56% from 2002.

Jobenomics believes that doubling or tripling minority-owned businesses from 5.8 million to 11.6 million or 17.4 million is very achievable within a decade—if American communities implement viable plans that emphasize highly-scalable small, emerging and self-employed business creation.

Jobenomics Minority-Owned Business Creation Initiatives. Over the last two years, Jobenomics met with minority leaders in dozens of cities to discuss minority-owned business, wealth creation and meaningful jobs creation. These cities include Harlem (NY), Washington DC, Atlanta, Detroit, Chicago, Phoenix, Fort Worth, Philadelphia, San Diego, Las Vegas, Honolulu, Greensboro (NC), Wilmington (DE), Roanoke (VA), Chester (PA) and Bridgeport (CT). What we learned was encouraging—even in the most financially depressed inner-cities.

It was encouraging to find a high degree of entrepreneurial spirit and willingness to create minority-owned business. However, most government and community leaders have relatively little business experience, especially with start-ups and self-employed businesses. To compensate for inexperience, they tend to look to Washington or big-business that has not produced any net new jobs in the last several decades. Jobenomics contends that the most reliable source of guidance resides in innovators and serial-entrepreneurs. Various governmental small business agencies and associations do an adequate job of counseling and providing grants, but have little expertise in mass-producing highly-scalable small businesses.

The Father of American Education, Horace Mann, stated that “education is the great equalizer of the conditions of men, the balance-wheel of social machinery.” While Jobenomics agrees, the educational paradigm in yesteryear was much different than today. The old paradigm, “get an education to get a job…get a better education to get a better job” simply does not work in today’s high-tech, slow-growth economy where middle-class jobs are increasingly outsourced overseas. Most citizens in inner-cities need basic skills as opposed to higher education. If 40% of college graduates have difficulty finding jobs, how can a high school dropout hope to find work?

From a Jobenomics perspective, basic skills include communication, tradecraft and business. For inner-cities, Jobenomics focuses first on business creation. Small businesses offer the fastest way out of poverty through employment for the unemployed. Every city should have a community-based business generator that mass produces highly-scalable businesses. Our second priority is tradecraft—a skill acquired through experience in a trade—with emphasis on skilled service businesses. The third area is communications. In a business sense, communications entails the ability to express and demonstrate one’s value-proposition.

Jobenomics Community-Based Generators (1) identify and train potential business leaders and business owners, (2) implement highly repeatable and scalable businesses with emphasis on service-providing businesses, (3) establish sources of start-up funding, recurring funding and contracts to provide a consistent source of revenue for new businesses, and (4) provide post start-up business support.

Many metropolitan areas have business incubators that are oriented to emerging high-tech and manufacturing businesses. These incubators are often located in affluent areas or high-tech corridors. Jobenomics offers a complementary concept that focuses on business generators that are oriented towards trade-level, service-providing businesses in economically-depressed areas. Rather than incubating innovative business opportunities one-by-one, a business generator mass produces highly-scalable, start-up businesses. When fully operational, the community-based generator will be capable of creating 1,000 new small businesses per year.

Jobenomics has three fledgling Jobenomics Community-Based Generator projects underway in College Park (Atlanta), Harlem (New York City) and Detroit. Jobenomics is in the process of establishing networks of local non-profit and educational institutions to identify entrepreneurial talent. Once identified, the Community-Based Generator will evaluate candidates via self-employment surveys (see initial self-employment survey at www.Jobenomics.com) and counseling to determine their suitability for business ownership and the type of business.

Following the evaluation phase, candidates will undergo a training, certification and implementation process. Classes will be taught by successful small business owners and entrepreneurs with expertise in startup business implementation. By the end of the program the clients will have:

An Employer Identification Number (EIN), incorporation (S-Corp, C-Corp or Limited Liability Corporation), and the essentials to run a fully functional company (accounting systems, business plans, legal/regulatory, branding/marketing/sales, financing, etc.).
A computer supplied with accounting, business planning and website/social networking systems. Training will also be provided including how to obtain appropriate accounting (e.g., bookkeeping and CPA), information technology, and sales/marketing/ advertising/branding support after graduation from the center.
Supplementary business systems (e.g., website, social networking, bank accounts, etc.) that will facilitate the promotion of the new business.
Understanding on how to access government grants and investment capital.
A network of entrepreneurial organizations and on-going business support.

Jobenomics founded eCyclingUSA™ (www.ecyclingUSA.com) as part of its green-jobs initiative and a way to fund community-based business generators in metropolitan areas. Each month, city managers give away millions of tons of whiteware (e.g., appliances) and other electronic waste (computers and televisions) that contain tens of millions of dollar’s worth of minerals (e.g., copper, aluminum, precious metals) that can be reclaimed, sold on the commodities market or used to develop local industries. eCyclingUSA technology is in operation in 60 plants across Europe. eCyclingUSA plans to implement 50 sites across the US and is committed to donating a minimum of 10% of its annual profits (between $1 and $3 million per year per site) to fund Jobenomics Community-Based Business Generators.

[1] US Census Bureau, Most Children Younger Than Age 1 are Minorities, 17 May 2012, http://www.census.gov/newsroom/releases/archives/population/cb12-90.html

[2] US Census Bureau, 2010 Census Briefs, Overview of Race and Hispanic Origin: 2010, March 2011, Table 1. Population by Hispanic or Latino Origin and by Race for the United States: 2000 and 2010, http://www.census.gov/prod/cen2010/briefs/c2010br-02.pdf

[3] US Department of Labor, Bureau of Labor Statistics, Labor Force Characteristics by Race and Ethnicity 2011, Report 1036, published August 2012 and updated 6 June 2013, http://www.bls.gov/cps/cpsrace2011.pdf

[4] Note: the BLS reports monthly on White, Black and Asian groups but not Hispanics. Consequently, this 2011 report provides the latest official US government “apples-to-apples” comparisons of all four groups.

[5] BLS, Median weekly earnings by race, ethnicity, and occupation, first quarter 2012, http://www.bls.gov/opub/ted/2012/ted_20120419_data.htm

[6] BLS, Household Data Annual Averages, Table 11, Employed persons by detailed occupation, sex, race and Hispanic or Latino ethnicity, Year 2012 (retrieved 12 Sep 2013), http://www.bls.gov/cps/cpsaat11.pdf

[7] US Census Bureau, Income, Poverty, and Health Insurance Coverage in the United States: 2011, by Carmen DeNavas-Walt, Bernadette D. Proctor and Jessica C. Smith, http://www.census.gov/prod/2012pubs/p60-243.pdf, issued September 2012

[8] BLS, Unemployment rate by age, race, and Hispanic or Latino ethnicity, January 2008–February 2013, http://www.bls.gov/opub/ted/2013/ted_20130312.htm

[9] BLS, Table A-2 Employment status of the civilian population by race, sex, and age, September 2013, http://www.bls.gov/news.release/empsit.t02.htm

[10] US Census Bureau, 2007 Survey of Business Owners, http://www.census.gov/econ/sbo/

Jobenomics

A National Grassroots Small Business and Job Creation Movement

Tag: Business Generator

Jobenomics U.S. Unemployment Analysis: Q2 2016

Jobenomics U.S. Employment Analysis: Q2 2016

Jobenomics City & State Initiatives

Jobenomics Delaware

Jobenomics Baltimore City

Jobenomics-New York City

Minority-Owned Businesses