UNEMPLOYMENT IN AMERICA

PART III

© Preston Williams III

Continued…

UNEMPLOYMENT IN AMERICA - PART III

TIMELINE  The Unanticipated Consequences

WHO ARE THE UNEMPLOYED?  The Unmentionables

WHAT DOES IT REALLY MEAN TO BE OVERQUALIFIED?

UNEMPLOYMENT: THE REAL STATISTICS  Observations  Beyond the Numbers  Diary of an American Bankruptcy BEEFING UP THE HUMAN RESOURCES DATABASE

THE DANGERS OF OUTSOURCING AMERICAN JOBS TO THIRD WORLD COUNTRIES

IDENTITY THEFT – THE NEW NIGHTMARE ON ELM STREET  Biometrics

ABOUT THE AUTHOR

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

TIMELINE
. Several American Presidents have had to deal with unemployment under their watch. In recent history, President Jimmy Carter dealt with this issue during the last six months of his administration (1981) while President Ronald Reagan had to deal with it for the first eleven months of his first term in office (1982). President George H.W. Bush managed a recession from July 1990 to March 1991, and President George W. Bush saw two recessions during his administration, the first starting in March, ending in November 2001 and again from December 2007 to December 2008. President Barack Obama inherited that same recession and dealt with it for the first nine months of his administration (2009). The National Bureau of Economic Research (NBER), composed of academic economists from Harvard, Columbia, The Massachusetts Institute of Technology (MIT), Duke University, Stanford, Princeton and several other universities reported that the last recession began in early March 2001, seven months before the September 11th attack and ended in November 2001 ending over ten years of uninterrupted growth and expansion. Reference: CNN Money, November 26, 2001 According to The National Bureau of Economic Research (NBER), the recession of 2001 lasted eight months while the most recent downturn is reported to be eighteen months ending in June 2009 - the longest in recent US economic history. Last Four Recessions and their Durations 12/07 3/01 7/90 7/81 - 6/09 - 11/01 - 3/91 - 11/82 18 months 8 months 8 months 16 months

Source: National Bureau of Economic Research | www.nebr.org Despite the official government position that the recession ended in 2009, our country is still reeling from the far-reaching consequences that come with such an economic blow. Perhaps we are traumatized with this recession because it is not just the longest in recent memory but also the deepest. All aspects of our very existence are being impacted by the lack of jobs. The socio-economic and political woes of our nation are being felt in every home, neighborhood, city, and state. Source: Unemployment in America – Part I, Preston Williams, 12/15/2008
© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
In 2001, a number of companies experiencing financial difficulties in the United States carried out massive “Involuntary Resource Actions” (layoffs) and even closed down some of their operations in various parts of the country. IBM was one of the many US companies which began to “downsize” their workforce. The company laid off over 19,000 employees worldwide because it claimed that its international service market dried up after the unfortunate September 11, 2001 attack. Cisco laid off over 8,000 employees reducing its workforce by 16%. The automotive industry claiming downward movement in sales was also hit hard. CNN Money, March 9, 2001 reported that General Motors (GM), Ford and DaimlerChrysler executed over 85,000 layoffs, while the L.A. Times reported that the Hotel industry lost over 100,000 jobs following the September 11 th terrorist attack on the United States. In subsequent years, many other US based companies like Dun & Bradstreet (D&B) began to “outsource” “non-critical” aspects of their operations to countries where they could take advantage of abundant and cheap labor. Some quickly determined that in order to be profitable and report “glowing” quarterly performance results to Wall Street, they would use labor in Third World countries. Many of these Third World employees / contractors earn the equivalent of about $3,840.00 US Dollars a year at the rate of $2.00 per hour or sixteen dollars ($16.00) per day. The cost comparison is stark when you consider that a US citizen doing a similar job, albeit with more education, experience and specialized skills would be paid approximately $15.00 an hour plus benefits. Large US corporations decided to reduce cost and increase their profit margins. “Let the chips fall where they may.” Very little thought, if any was given to the macro/micro economic outcomes that their actions would have on the domestic US market or the iterative multiplier effect on all other markets. Perhaps Senior Management at these conglomerates did not consider the fact that the cost of living in America is also comparatively much higher than it is in almost any Third World country. They might have also determined that attaining projected profit margins was more important than any adverse impact their decisions would have on the domestic labor market.

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
The Unanticipated Consequences As these corporations began to outsource jobs to less costly labor markets, the following issues began to manifest in the local economy:  People who lost their jobs in the US found themselves unable to maintain the lifestyles that they had become accustomed to. No longer could they afford the over-priced homes (McMansions) they bought when they had “good – paying jobs”.  Families were forced to make drastic adjustments in their lifestyles to reflect their new daunting circumstances.  Customers began to experience the difference in the quality of expertise and service from the new talent pool handling their requests.  The nature & scope of training that had become common place in the local American market began to take on a different flavor.  Corporations which had made significant investments to ensure they had the most trained and responsive customer support team in the past were now having calls answered by less qualified staff who barely spoke the English Language and sometimes had not received the same intense level of training as the American employees they were replacing.  Desperate Americans seeking a life line are falling prey to Job Scams.  Families are falling apart & the American Dream is becoming an illusion.  Some like Stephen Tantrel, unable to deal with the loss of income after losing his job as a New York Commodities Broker have turned to a life of crime.

Source: Struggling Economy Makes Environment Ripe For Job Scammers By: Gwen Parkes, Posted Jan 29th 2011 @ 9:47AM Source: Unemployment in America – Part II: By: Preston Williams, January 24, 2011

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

WHO ARE THE UNEMPLOYED?
The unemployed come from all walks of life. From Custodians/Caretakers (Janitors) to Chief Executive Officers (CEOs) and every position in between, people from every spectrum of the labor force have lost their jobs during this global recession/depression. While some lost their jobs due to layoffs, others lost their jobs due to company closings, pressured resignations and downright burnout. Some have been victims of prejudice while others have been let go because of their opinions and/or politics. Then there are those who never even got a chance to be employed in order to become “unemployed”. This is the unique plight of recent college graduates who are unable to find work and cannot collect unemployment because they did not have a job to lose. As discussed in Unemployment in America - Part I, this is just one of the many groups that never make it into the Government’s statistical analysis of unemployment in The United States. How can the US Department of Labor, Bureau of Labor Statistics account for the young adult who dropped out of High School after his/her 17 th birthday and has been working for tips doing odd jobs which pay cash over the last year or two? Similarly, how can they capture the status of a professional with a terminal degree (PhD, Ed.D., MD, etc) who has not been able to land a job after graduation over a year ago? People like the young man depicted on the cover of this article. In addition to the already dismal picture of unemployment in the “New America”, we are also experiencing a new form of “underemployment” whereby companies are requiring two or more individuals to perform a single role in order for them to continue to earn a living. The companies claim that due to significant revenue decline they cannot afford to keep all of these individuals in Full Time roles. Therefore these employees can either quit with no severance pay, be forced out by work place bullying tactics or succumb to the pressure of providing for their families by sharing a job once performed by a single individual. Employees categorized as anything other than “Exempt” or “Regular” are subjected to a whole new array of beleaguering issues. From health insurance coverage to vacation and bonus pay, everything becomes a moving target. Work place antics have become even more cut-throat and the fight to continue earning a paycheck at all cost has changed the moral compass of some individuals.

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
In some instances, former employees with access to “company secrets” are required to sign a “Non-Compete Agreement” or “Non-Disclosure Agreement” upon separation. Although they may not have elected to leave their positions voluntarily, and were forced to take a “package”, some companies still feel that they can coerce these individuals to sign off on “qualifiers”. These restrictions prohibit them from getting similar positions with the competition or to start their own business in direct competition with their former employer. This is just one of the many “unethical” business practices that the unemployed in America face every day. “The Unemployed” are not a nameless, faceless mass as some would have you believe. They are NOT unemployed because they are lazy, stupid or unambitious. In most instances they are the unsuspecting “victims” of Corporate Greed and Political Demagoguery. Moreover, they are our friends, family and loved ones. They are US!

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

The Unmentionables
Another factor that continues to have a major impact on the difficult economic conditions in the United States is the fallout from criminal behavior by some corporate executives. In Unemployment in America – Part II, I explained the role of politicians in the shenanigans of such Corporate Giants as Lehman Brothers Holdings Inc. and Bernard L. Madoff Investment Securities LLC. However, let us not forget those other “Icons of American Greed” who preceded them and began this downward spiral in the US economy. Companies like ENRON, Arthur Andersen and WorldCom / MCI. Several Executives at those companies sacrificed the continued employability and well being of their employees. In their quest for self-aggrandizement, they were willing to lie, deceive and defraud investors.

People like Andrew Fastow (ENRON), Kenneth “Ken” Lay (ENRON) and Jeff Skilling (ENRON) were so entrenched in their desire to remain key players on the “Who’s Who” list of powerful American CEOs that they became poster pin ups on Fortune Magazine’s list of “Corporate Convicts”.

Source: CNN Money: Corporate Convicts: Where are they now?

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
Others with close political ties like Bernard “Bernie” Ebbers (WorldCom / MCI), Conrad Black (Hollinger Inc.) Sanjay Kumar (Computer Associates), John Rigas (Adelphia Communications) and Richard Scrushy (HealthSouth) were willing to game the system and did so successfully for many years until their fraudulent actions were finally investigated and prosecuted. Some of these folks like Dennis Kozlowski (Tyco) and Sam Waksal (ImClone) are spending long prison sentences for such crimes as fraud, conspiracy, insider trading, grand larceny and obstruction of justice. Their actions have triggered an exponentially destructive wave of overwhelming losses for our nation. Because of their actions, multi-billion dollar corporations were forced into bankruptcy in order to reorganize or simply shut down. Some of these companies once employed tens of thousands of hard-working Americans. With their closure some people not only lost their jobs, they lost their dignity. Even more unfortunate individuals living on the edge from one paycheck to another, lost something they could not regain – their sanity! From the custodians who cleaned Lehman Brothers’ Corporate Headquarters in New York City, New York to the Sales Executives who traded utilities at Enron’s downtown Houston, Texas office, almost everybody was hit hard when these companies closed up shop. The only people who escaped somewhat unscathed were those with “golden parachutes” which allowed them to walk away with significant payouts. Employees on the lower rungs of the corporate ladder had no such protection and became the victims of a very unfortunate situation. Many other issues have helped to drag down our economy. Criminals have had a significant impact on the global economy. Other factors impacting the unemployment dilemma includes scams by criminals like Tobechi Onwuhara who created money laundering schemes to defraud Americans of their hard earned money. American businesses were forced to foot a $40+ million dollar bill. Yet, other Americans found themselves victims to Identity Fraud by people like Albert Gonzalez in “Operation Get Rich or Die Tryin”. As a consequence of large operations losses from such criminal activities, businesses again chose to layoff staff to help address diminishing revenues.

Source(s): Wikipedia: www.wikipedia.org : Fortune: The King of Home Equity Fraud : CNBC: American Greed - Hackers: Get Rich or Die Tryin’

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
Fortune Magazine named ENRON "America's Most Innovative Company" for six consecutive years from 1996 to 2001. When the company filed for bankruptcy protection in the Southern District of New York in late 2001, approximately 20,000 people lost their jobs. Consequently some lost their properties. Several of these individuals had invested heavily in the company’s stock when it was riding high and now their portfolios were worth “Zero, Nada, Zilch”! The same thing happened when Arthur Andersen and WorldCom / MCI shut their doors. That is the nature of unemployment in America. Several professional people with good education, long-standing pillars of respect in their communities now find themselves losing everything that they have worked so hard to attain after many years of diligent, dedicated and committed service. They did the best job they could only to be thrown out on the street because the “Big Kahunas” at these companies are “white collared gangsters”. A March 2010 report by the court-appointed examiner indicated that Lehman Brothers’ executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finances appear less shaky than they really were. Talk about “cooking the books”. The global market is now an intertwined world economy where decisions, policies and actions by any major Transcontinental Enterprise can have an impactful ripple effect on several continents. Decisions and actions by transnational corporations like IBM, Microsoft, Andersen Consulting and Dun & Bradstreet tend to have long reaching effects on multiple markets in several countries. Americans who have lost their jobs as a consequence of some of these shenanigans are being dealt another blow when they try to find work. In some instances, they are being forced to pursue jobs that are several levels below where they have been for the last decade or two. For example, after working with a company like ENRON for over two decades and rising to the level of a Senior Vice President in the company’s Marketing Division, an individual may find that the job crunch is such that she/he can only find a Sales or Marketing Representative position in the state where they have lived for the past quarter century. When they decide to apply for such a position in order to earn a living and provide for their family, they are in for a rude awakening. They are likely to be informed that they are “overqualified” for the job.

Source: An Economy in Chaos: By: Preston Williams III, 12/02/2008

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

WHAT DOES IT REALLY MEAN TO BE OVER-QUALIFIED?
There are many reasons why people are being labeled as “over-qualified” in this current recession. For one thing, several “Baby Boomers” who started their careers over three decades ago are now dealing with “ageism”. Some establishments are looking for much younger employees to join their organizations. Despite the many years of service and insight gained through such an extensive work history, Baby Boomers are being ushered out of the current work force at an alarming rate. If they are lucky, they are sent packing with an “Early Retirement Package”. Even “Generation Xers” are being overlooked for some positions because there is an ample supply of “Generation Yers” with considerably less education and/or experience that are just entering the labor market and willing to accept much lower pay. After all “Generation Yers” usually have much less financial obligations and perhaps do not even have family responsibilities. Logically their expectations about their earnings are quite less than their parents’. They are not yet saddled with out-of-control mortgages, high child rearing and education costs and the fear of what might happen if they lost their jobs and benefits.

Many job seekers wonder how being qualified can be a bad thing, but it’s a Catch-22 in today’s upside down economy. They can’t get hired for positions relevant to their experience so they apply for jobs at lower levels. The problem is that they can’t get hired for those positions, either, because they’re “overqualified”.

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
Some of the reasons Hiring Managers give for labeling applicants as being overqualified include:

     

You will be bored and unmotivated The salary will be too low for you You will be unhappy You will leave the minute something better comes along You could possibly steal his/her job You won’t be able to step down from a leadership role

While any of these reasons may be true given a particular circumstance that is often not the case.

“Ageism” is very much a part of the code for labeling someone as overqualified. Moreover, there are other less obvious reasons that a person is not being given a shot at a particular job. Despite the many remarkable strides that we have made in our society, “Racism” and “Sexism” are still unfortunately an integral aspect of the ongoing conversation about life in America. If a person of color or a female aspires to a position that reports into a white, male-dominated enterprise they may be told that they are “overqualified” for the job. While the classification suggests that the position is below the applicant’s skills, abilities and/or experience, very often it is not being withheld for those reasons. Rather, they are not being considered for this position because the corporation’s leadership is not comfortable with someone other than their core group of friends and associates (The Good Ol’ Boys Network) being placed in a position of authority equal to or above them. Basic, Fundamental Questions:  Does a person’s age or race impact their ability to perform in a role which is in line with their background (education, expertise, experience)?  What does a person’s sexuality have to do with their ability to understand and execute their responsibilities in a capacity for which they have been adequately trained?  Can a person ever be “overqualified” to eat?

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

UNEMPLOYMENT: THE REAL STATISTICS AGE • GENDER • RACE • EDUCATION • ETHNICITY
Source: US Department of Labor, Bureau of Labor Statistics

HOUSEHOLD DATA Table A-2. Employment status of the civilian population by race, sex, and age
[Numbers in thousands]

Not seasonally adjusted

Seasonally adjusted(1)

Dec. Employment status, race, sex, and age WHITE Civilian noninstitutional population 2009

Nov. 2010

Dec. 2010

Dec. 2009

Aug. 2010

Sept. 2010

Oct. 2010

Nov. 2010

Dec. 2010

191,628 192,641 Civilian labor force 124,344 124,735 Participation rate 64.9 Employed 113,416 114,254 Employment-population ratio 59.2 Unemployed 10,928 Unemployment rate 8.8 Not in labor force 67,284 Men, 20 years and over Civilian labor force 64,870 Participation rate 74.4 Employed 58,653 Employment-population ratio 67.2 Unemployed 6,217 Unemployment rate 9.6 Women, 20 years and over Civilian labor force 54,823 Participation rate 60.0 Employed 51,116 Employment-population ratio 55.9 Unemployed 3,707 Unemployment rate 6.8 Both sexes, 16 to 19 years Civilian labor force 4,651 Participation rate 35.9 35.2 4,506 7.2 3,960 55.7 51,195 60.0 55,155 8.6 5,583 67.7 59,492 74.1 65,074 67,907 8.4 10,481 59.3 64.7

192,749

191,628

192,245

192,391

192,527

192,641

192,749

124,309

124,703

125,358

125,333

124,914

124,824

124,700

64.5

65.1

65.2

65.1

64.9

64.8

64.7

114,035

113,439

114,457

114,433

113,975

113,728

114,079

59.2

59.2

59.5

59.5

59.2

59.0

59.2

10,274

11,264

10,901

10,899

10,940

11,096

10,620

8.3

9.0

8.7

8.7

8.8

8.9

8.5

68,439

66,925

66,887

67,058

67,612

67,817

68,049

64,978

64,884

65,571

65,579

65,215

65,088

65,041

73.9

74.4

74.8

74.8

74.3

74.1

74.0

59,280

58,846

59,720

59,759

59,425

59,137

59,484

67.4

67.5

68.2

68.1

67.7

67.3

67.7

5,698

6,038

5,850

5,820

5,790

5,951

5,557

8.8

9.3

8.9

8.9

8.9

9.1

8.5

54,927

54,817

54,878

54,961

54,846

54,953

54,914

59.7

59.9

59.8

59.8

59.7

59.7

59.7

51,261

50,771

50,989

51,000

50,835

50,817

50,920

55.7

55.5

55.6

55.5

55.3

55.2

55.3

3,667

4,046

3,889

3,961

4,012

4,136

3,994

6.7

7.4

7.1

7.2

7.3

7.5

7.3

4,404

5,002

4,910

4,793

4,853

4,783

4,746

34.4

38.6

38.2

37.3

37.8

37.3

37.1

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

HOUSEHOLD DATA Table A-2. Employment status of the civilian population by race, sex, and age
[Numbers in thousands]

Not seasonally adjusted

Seasonally adjusted(1)

Dec. Employment status, race, sex, and age Employed 3,647 Employment-population ratio 28.1 Unemployed 1,004 Unemployment rate 21.6 2009

Nov. 2010

Dec. 2010

Dec. 2009

Aug. 2010

Sept. 2010

Oct. 2010

Nov. 2010

Dec. 2010

3,568

3,494

3,822

3,747

3,674

3,715

3,775

3,676

27.9

27.3

29.5

29.2

28.6

29.0

29.5

28.7

938

910

1,180

1,162

1,119

1,138

1,008

1,070

20.8

20.7

23.6

23.7

23.3

23.4

21.1

22.5

BLACK OR AFRICAN AMERICAN Civilian noninstitutional population 28,437 Civilian labor force 17,484 Participation rate 61.5 Employed 14,759 Employment-population ratio 51.9 Unemployed 2,725 Unemployment rate 15.6 Not in labor force 10,953 Men, 20 years and over Civilian labor force 7,896 Participation rate 68.7 Employed 6,579 Employment-population ratio 57.3 Unemployed 1,317 Unemployment rate 16.7 Women, 20 years and over Civilian labor force 8,891 Participation rate 62.2 Employed 7,786 Employment-population ratio 54.5 Unemployed 1,105 Unemployment rate 12.4 Both sexes, 16 to 19 years Civilian labor force 698 Participation rate 26.2 24.9 23.4 27.9 25.7 23.1 26.5 26.3 24.6 657 615 744 682 611 700 693 648 13.0 12.5 13.1 13.2 12.7 12.8 13.1 13.2 1,203 1,143 1,170 1,203 1,152 1,176 1,211 1,211 55.4 55.0 54.5 54.7 54.9 55.2 55.2 55.0 8,035 7,998 7,783 7,911 7,948 7,998 8,017 7,993 63.6 62.9 62.7 63.1 62.9 63.3 63.6 63.3 9,238 9,141 8,953 9,114 9,101 9,173 9,228 9,204 15.7 16.4 16.8 17.2 17.4 16.2 16.6 16.5 1,269 1,321 1,331 1,389 1,405 1,309 1,346 1,341 58.2 57.6 57.4 57.4 57.1 57.8 57.6 57.6 6,815 6,758 6,588 6,691 6,661 6,763 6,753 6,764 69.0 68.8 68.9 69.3 69.1 69.0 69.1 69.1 8,084 8,079 7,919 8,080 8,066 8,072 8,099 8,106 10,886 11,061 10,822 10,879 11,017 10,885 10,845 10,939 15.4 15.2 16.2 16.2 16.1 15.7 16.0 15.8 2,772 2,715 2,856 2,904 2,857 2,818 2,878 2,839 52.7 52.3 51.9 52.1 51.8 52.5 52.5 52.3 15,206 15,120 14,760 14,972 14,920 15,127 15,142 15,119 62.3 61.7 61.9 62.2 61.7 62.2 62.4 62.1 17,979 17,835 17,616 17,876 17,777 17,946 18,020 17,958 28,865 28,896 28,437 28,755 28,794 28,831 28,865 28,896

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

HOUSEHOLD DATA Table A-2. Employment status of the civilian population by race, sex, and age
[Numbers in thousands]

Not seasonally adjusted

Seasonally adjusted(1)

Dec. Employment status, race, sex, and age Employed 394 Employment-population ratio 14.8 Unemployed 303 Unemployment rate 43.5 2009

Nov. 2010

Dec. 2010

Dec. 2009

Aug. 2010

Sept. 2010

Oct. 2010

Nov. 2010

Dec. 2010

356

365

389

370

310

366

372

361

13.5

13.9

14.6

14.0

11.7

13.9

14.1

13.7

301

250

355

312

300

334

321

287

45.8

40.7

47.7

45.7

49.2

47.7

46.3

44.2

ASIAN Civilian noninstitutional population 10,904 Civilian labor force 7,163 Participation rate 65.7 Employed 6,560 Employment-population ratio 60.2 Unemployed 602 Unemployment rate 8.4 Not in labor force 3,741 4,041 4,032 7.6 7.2 555 526 59.6 60.0 6,780 6,829 64.5 64.6 7,335 7,355 11,376 11,387 -

Footnotes (1) The population figures are not adjusted for seasonal variation; therefore, identical numbers appear in the unadjusted and seasonally adjusted columns. - Data not available. NOTE: Estimates for the above race groups will not sum to totals shown in table A-1 because data are not presented for all races. Updated population controls are introduced annually with the release of January data.

OBSERVATION(S): To ensure that we properly capture data about active participants in the job market, underemployed individuals and those who for any reason are not showing up on the Department of Labor’s radar, the Government can track our workforce by vetting information readily available through the US Department of Health & Human Services. With passage of appropriate legislation, the government will be even closer to capturing the “under the table” (cash) labor market. Furthermore, by using the proper relational database tools, the US government can perform comparative scenario iterations of Social Security Numbers (SSN) to ascertain a more accurate representation of the domestic workforce.

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

Beyond the Numbers
The US Department of Labor (Bureau of Labor Statistics) captures a variety of demographic information about the nation’s workforce. However, there are a wide ranging variety of data that is almost impossible to report. The previous report does not provide such demographic information as the level of education or ethnicity of those affected by unemployment. Such information would be quite helpful in planning university curriculums. This will allow us to assess and develop academic programs at all levels geared towards full employment in the careers of tomorrow. A much closer look at the statistics might also reveal shocking disparities of affected groups, by race, and to some extent by class. Federal & State reports capture and track but do not report on the correlation between race, age, gender, education and ethnicity as it pertains to people who have lost their jobs in this country. It captures statistics about company closings, state bankruptcy filings and layoffs. However, there are no statistical inference analyses available to assess the impact of unemployment on the nation’s healthcare system, socio-cultural trends including marriage, drug addiction and violent crimes. For example, it is one thing to talk about a company or municipality filing for bankruptcy, but it’s another thing to talk about the carnage that comes after the entity ceases to exist and former employees are left to forage for themselves. It is quite frightening after many years of dedicated service. The Department of Labor cannot capture what happens to families when one or both parents lose their jobs. The statistics does not reflect the number of families that are destroyed and the consequent divorces that are a direct result of job losses. Despite the fact that our government does not capture and report on such matters, nonetheless this sort of thing is happening every day in our society. It is inescapable. As parents lose their jobs, vulnerable marriages fail and the children of destitute parents become bitter and disoriented.

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
Many of the social problems discussed in Unemployment in America II become unbearable realities as households succumb to foreclosures and whole communities are destroyed as a consequence of lost income. Another variable that needs to be considered is the change in the pace and quality of civil discourse. People become easily agitated and less tolerant of each other. Some even resort to mental cruelty, violent outbursts and physical attacks. One reason that this is disconcerting is because it reveals an unraveling of the very fabric of human decency that is an integral part of American life. For those still hoping that the US Government and US Corporations will find prompt solutions to the devastation, the sign reads:

“Due to recent budget cuts and the cost of electricity, gas and oil, as well as current market conditions and the continued decline of the U.S. economy, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.”

Source: Unemployment in America – Part II: By: Preston Williams, January 24, 2011

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III
The following article from the Huffington Post is a vivid reminder about what it means to be unemployed in the New America:

Diary Of An American Bankruptcy: Workers Left Behind In Cuts
The American real estate boom turned Vallejo, California -- previously known for little more than the freeway that runs through it -- into a hot property market in the San Francisco Bay Area. But when the home-building stopped, so did the flow of money into municipal coffers, sending the city into bankruptcy nearly three years ago. That was merely the beginning of sustained pain for Vallejo's municipal employees. As the community adjusts to a wrenching new budgetary reality, one no longer propelled by exploding property revenues, the burden has fallen on ordinary city workers. David de Alba, a 45-year-old mechanic who has worked for the city for eight years, typifies this process. Vallejo has slashed its budget to get its books in order, reducing its general fund payroll by more than 100 workers, or about 30 percent, since 2007. De Alba has seen his monthly pay drop by about $1,000. Last summer, after missing mortgage payments, he went into default. In November, he filed for personal bankruptcy. Financial troubles strained his marriage, and his wife left him, taking their teenage children with her. This month, the bank foreclosed on his house. He moved out last Friday, relinquishing his home of nearly two decades. He now plans to move to a trailer park.

Source: In Vallejo, A Municipal Bankruptcy Means Big Sacrifices For Ordinary Workers , The Huffington Post, January 31, 2011 First Posted: 01/31/11 08:14 AM Updated: 01/31/11 12:36 PM

© Preston Williams III

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UNEMPLOYMENT IN AMERICA - PART III

BEEFING UP THE HUMAN RESOURCES DATABASE
As more Americans lost their jobs during this recession/depression, the United States labor market has become increasingly saturated with people scrambling for a way to earn a living. This dilemma has created an opportunity for some companies. They are taking advantage of this recent development to beef up their Human Resource Department’s database. People looking for jobs in this new digital age are doing so primarily by logging onto the internet and applying for positions listed on job boards or signing up to open accounts with various organizations on their web sites. The online job application process usually requires submission of a Cover Letter, Resume’, Curriculum Vitae, Letters of Recommendation, Market Segment Profiles and other personal information in order to be considered for a particular position or any position for which a candidate may be qualified. Some of these organizations even require that an applicant supply their Social Security Number (SSN), Professional Certificate Registration Number (CPA, CISSP, MCSE, RN, CFP, CNE etc) and Security Clearance ID in order to complete the application process. Many of these organizations store applicants’ personal information in databases where the Human Resources staff can access, review, screen and recommend the most eligible candidate(s) to a Hiring Manager. This also empowers staff with hiring authority to conduct intranet searches for a particular caliber of talent when trying to fill a role in their department. While this is a very efficient way to contain such an extensive amount of information, there are some necessary safeguards that need to be in place in order to protect applicants while availing this critical mass of information to the company’s HR Department.
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Sometimes these databases are the targets of hackers looking for “corporate secrets”. If they are not properly secured/encrypted they can be compromised and millions of people’s very private and personal information can fall into the wrong hands. Some companies are strategically positioning themselves to execute buyouts or hostile takeovers of other companies with such rich and potentially viable sales & marketing data which can be mined from these databases. Additionally, “smart” foreign companies are taking an interest in the intellectual capital and business intelligence inherent in these companies’ databases. The possibility of what these “acquirers” could do with such information is endless. With the business climate being as dismal as it is, more and more American businesses are being acquired by “cash rich” foreign entities. Perhaps the most important asset that some of these US companies have to offer to say an Indian Chinese, Nigerian or Russian Consortium is the personal information about American citizens in their sizable HR databases. Some American companies have chosen to retain control over their databases while outsourcing the hiring responsibility to third party vendors. Some of those sourcing contracts eventually find themselves being sub-contracted to companies based in Third World Countries.

© Preston Williams III

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THE DANGERS OF OUTSOURCING AMERICAN JOBS TO THIRD WORLD COUNTRIES
A new development which is quickly becoming a troublesome concern is the practice of outsourcing almost every non-CEO role & responsibilities to a cheaper cost center. Today, several American companies have opted to employ external / contract recruiters to hire new staff. While the market is over saturated with experienced talent, we continue to hear talks about the lack of adequately trained and experienced professionals in the domestic US market. Here again, we see the lack of foresightedness in assessing the long-term outcome of such a decision. Instead of creating a more stable environment where US citizens laid off from their once very well paying jobs, can find adequate employment in a timely manner, US based companies have outsourced this activity to a new genre of recruiters, many of whom are based in India. Several Indian recruiting firms have now become very astute at working this new development to their advantage. They leverage new and sometimes controversial technologies to enable them to be quite successful in this burgeoning market of “talent trading

”.

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Several new “Job Placement & Recruitment” firms have sprung up in the aftermath of the recession. With the introduction of new technologies including internet job boards, applicants have new portals to find career opportunities. With these new venues, American candidates are comfortable in the fact that a job listing includes what appears to be legitimate contact information. They are lulled into a sense of calm because they assume that they can always call “Joe” at the local Columbus, Ohio number to get a status on their candidacy for what seems to be a “good job” with his client company. It is only when the recruiting process catches a snag because of what seems a severe lack of professionalism (i.e. - e-mails are not being responded to or there is no follow-up to close the feedback loop on the status of their application) that these American applicants begin to get concerned about the authenticity of the opportunity. They are usually crestfallen when they call to speak with “Joe” and realize that although his listed phone number is Columbus, Ohio, he is actually based in Bengalore, India. Some of these Indian recruiters use localized number referencing technology from companies like REBTEL and Voice over IP (VoIP) like SKYPE or “Caller ID Spoofing” from service providers like SpoofCard in order to create a false sense of calm for the American looking for what seems like an exciting opportunity in Columbus, Ohio or Dallas, Texas. There are many possibilities why the recruiting process is so frustrating. Some of it has to do with the nature of the labor market today. However, it is also a matter of availability and incentive. After all, what is the incentive for an Indian recruiter earning the equivalent of $15,000.00 USD per annum to identify and place an American candidate in a Senior Vice President, Director or C-Level Executive position with a $150,000.00 - $200,000.00 per year compensation package? Moreover, what better way to justify the issuance of H1-B Visas to Indian professionals when you can claim that you are unable to find knowledgeable and capable local US talent to fill a particular position? Rather than identify and select an American citizen or resident to fill this role, the Indian recruiter is incentivized to recommend hiring someone with that skill set in India. After all they now have an abundant supply of knowledge workers with the required skill set in in India… . Several Indian firms are working this angle to the hilt and “gaming” the system quite successfully. If this trend continues, watch out. The next thing you know, “America’s Got Talent” and “American Idol” will feature Indian performers. “Tonight on American Idol, our first guest is Pooja from Mumbia!” After all there will be no need to look for talented Americans anymore! Bottom Line: America’s bust is India’s boom!

© Preston Williams III

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IDENTITY THEFT – THE NEW NIGHTMARE ON ELM STREET
Question: What is the likelihood that American professionals will participate in a massive exodus to leave these shores in search for jobs in India or Malaysia or Senegal? Answer: None. You must be dreaming! Caveat: So long as the United States continues to have the highest per capita income in the world with the most stable sociopolitical environment, Americans aren’t going anywhere! As Americans gear up for another round of economic recovery, we will come to the harsh realization that several multinational companies like IBM, EDS, CSC, HP, ACS, Accenture and Keane have moved beyond “outsourcing” and “near shoring” to “offshoring” everything from database design and storage, to financial data amalgamation and hosting of medical records. Most of the digital footprints that comprise our American DNA have been exported to China, India and other countries. China holds most of the US Federal debt while simultaneously maintaining a negative balance of trade position with the United States. As more Americans find themselves using new tools to find their next employment opportunity, they will increasingly fall victims to Identity Theft. Several companies posting job opportunities on dubious web sites are exposing American citizens to a potential onslaught of e-scams including individual misidentification and/or direct misrepresentation. Fraudulent businesses can set up web sites in less than 24 hours and post job opportunities that do not really exist. They can create e-mail addresses and appear quite legitimate. When an unsuspecting candidate submits all of their personally identifiable information to the job board, online application form, etc, it enables an Identity Thief to begin the work of collecting and changing that candidate’s information.

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This provides the basis for unscrupulous characters to assume a person’s American identity for the purpose of siphoning funds from their accounts, making fraudulent credit card purchases in their name or even applying for large loans on their behalf. In a recent report dated January 19, 2011, the US Federal Bureau of Investigation (FBI) revealed that cyber criminals engaging in ACH/ wire transfer fraud have targeted businesses by responding via e-mail to employment opportunities posted online. Breaches occur on a regular basis. However, few organizations go public when their systems are compromised. Companies like eFinancial Careers do a great public service when they take responsibility for an infraction and alert their user community about a breach. This kind of proactive response will empower enrollees/registrants to adopt the necessary steps to protect themselves from any further damage. See E-mail below. We are no longer that whom we were. In order to get a full and complete view of who we are as “Americans” will require Indian, Nigerian or Chinese lenses.

© Preston Williams III

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© Preston Williams III

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BIOMETRICS Cyber attacks exploit vulnerabilities in people, process and technologies. In the aftermath of such devastating losses, people are looking for solutions. One of the most viable technologies available today is Biometrics. This technology allows individuals to establish, maintain and guard their privacy as they traverse the World Wide Web. Companies like Biometric Signature ID offer a variety of options to help deal with securing one’s privacy in the cyber stratosphere. The company’s services include:         Dynamic gesture biometric Language, gender and location agnostic – global use Requires no special hardware… Assures non-repudiation of origin (NRO) Designed for Internet access on fixed or mobile devices Uses mouse, stylus or finger on a touch screen Provides robust audit trail, security analytics, security alerts… Provides exceptional Depth of Defense Authentication

Biometric Signature ID focuses on providing this technology to Higher Education as well as State and Federal Agencies in the United States. Other companies like Life Lock represent new innovations for creating a viable arsenal of tools which can be used to guard the only thing that may be of true value regardless of your wealth, influence or political status – your REPUTATION!

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ONCE YOUR IDENTITY IS STOLEN, WATCH OUT…

-Submitted By:

Preston Williams III
B.Sc. • M.Sc. • CPA • CIS

Founder | Senior Partner & CIO GBC® Global Services Information Technology Solutions Internet: http://www.gbc-inc.net Date: February 16, 2011
PrestonW

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ABOUT THE AUTHOR
Preston Williams III is Senior Partner & Chief Information Officer (CIO) at GBC® Global Services. He is a pioneer and futurist with 20+ years of Big 4, Fortune 500, Global 100 and entrepreneurial experience. That experience includes Senior Auditor with Price Waterhouse (PriceWaterhouseCoopers), Controller for Lynn-Phill, IT Consultant with McGladrey & Pullen and Andersen Consulting (Accenture) as well as Project Executive at IBM Global Services. Mr. Williams also worked as the first Product Manager for Global Data Collection with Dun & Bradstreet (D&B) and the first Chief Information Officer (CIO) at Langston University. From 2002 to 2004, Preston Williams served as the first Chief Executive Officer (CEO) & Managing Partner at GBC®. Incorporated in Delaware, USA; the firm operates in Liberia, Kenya, Uganda and the United States. Preston has successfully implemented sound, reliable, dynamic, scalable and robust IT systems integration and financial management solutions in North America, Asia Pacific (APAC), Latin America (LATAM), Europe, the Middle East and Africa (EMEA). Mr. Williams is a member of the American Business Network (ABN), former Technology Committee Chairman of the Oklahoma State Council on Information Technology (CoIT) and a former member of the Innovative Technology Advisory Council of Oklahoma (InnoTech). He is a member of the EDUCAUSE CIO Constituent Group, the Carolina Information Technology Professionals Group (CITPG) and the Massachusetts Institute of Technology (MIT) Enterprise Forum of Cambridge. Preston is also a member of the International Entrepreneurs Club, the International Technology Channels Association ( ITCA), Tech Republic and the Global CIO Think Tank. Mr. Williams is DUNSRight™ certified with Dun & Bradstreet (D&B) and an IBM Signature Selling Methodology (SSM™) certified professional. Preston holds a B. Sc. Degree in Economics from Cuttington University College and a M. Sc. in Regional Planning with a Specialization in Regional Resource Allocation & System Dynamics from the University of Liberia. He studied Auditing at the Institute of Chartered Accountants in England & Wales and holds a CPA from the Liberian Institute of Certified Public Accountants. Preston has a CIS from Great Plains Software in Fargo, North Dakota, USA. He also studied Comprehensive General Management at the Executive Education Program of the Harvard Business School at Harvard University in Boston, Massachusetts, USA. Preston Williams III is Chairman of the GBC® Board of Directors, an Associate Member of ExecuNet, recipient of the IBM® Global Services Leadership Award, Published Author and a Moderator of the Internet Evolution Executive Clan.

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