Some important landscape events this week have strong bearing on where we may be headed this fall; but if you’re from the Austrian school of economics, you’re probably more focused on what we’ll need to do in the short term…
Right now —
The President is leading the way toward interesting times. His staunch defense of middle class tax breaks, defeating Bush era tax cuts and fostering a return to Clinton-era taxation is powering markets. Immediately as he spoke, his message was driving a surge in stock market prices. He’s probably glad to finally learn how to do this, after nearly two years of depressing them.
Corporate profits also ride a tsunami of productivity growth — and by tsunami, I mean a ten foot wave two thousand yards long. Firms have solidly learned how to retain and marshall talent. This also means pushing more individuals out of work, as we dread rumors of tens of thousands of layoffs on Wall Street.
Having tons of cash on-hand inside of blue-chip firms will hasten investment in significant initiatives. This makes firms act like small investment banks in themselves, more capable of driving large investments; this type of courageous investing, creating new markets for new things — is only possible with monstrous loads of cash to bet on strong horses. It signals employment around the bend, especially as the White House bets its own political future on creating tax breaks for R&D.
Social media remains a questionable place for career networking for students. UK law students in a recent poll shed doubt on the efficacy of big social media in helping them in a job hunt. As Facebook’s college demographic wanes, and linkedin’s uptake among older workers strengthens, both environments challenge young people to imagine how they will be found in their massive user bases.
Foreign management talent is in-demand, and US colleges are swelling with graduate students. ASU reported record graduate student enrollments, up over 50% since last year.
We remain committed to the mission we undertook three years ago this week, to build linkage between higher education and the labor economy.
We see the increasing need for high-productivity workers fueling a recruitment process that favors heavy filtration, and heavy pre-qualification of graduates. Given the competition for all jobs, after graduation, we also see students as highly capable of returning significant value on their education, if they’re able to match their training with the right firms.
Simply applying to Google and Goldman will not do, so long as smaller, less iconic firms can equally compete for the graduating class. We believe corporate america will realize that hiring students is a brilliant solution to solving the cash/labor crunch, and we intend on balancing this dicey equation.