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Those who are looking to make an impact in their business sector, to innovate the future, need to take time at the outset to really understand their starting point
No one ever pretended that the labour market was easy to understand. And certainly no one ever pretended that there was one universal tick box solution which would enable those who are looking to shape future government policy and business growth to accurately predict trends.
It’s only short while since Deloitte were reporting the results of a study which came to the conclusion that although technological improvements had given rise to the loss of substantial numbers of low-paid jobs, it had more than replaced these with higher skilled employment opportunities. Now a speech by Bank of England Deputy Governor Ben Broadbent appears to contradict the Deloitte finding, commenting that in 2013 and 2014 job creation was skewed towards the less well-paid jobs although this trend is starting to subside. According to Ben Broadbent the prevalence of low-paid jobs may go some way towards explaining why wage inflation remains weak and productivity remains below expected levels.
In truth both sets of findings may be equally valid as they look at different aspects of the labour market. And this can create problems for those who are looking to shape the future. Concentrate on one set of statistics and you get one answer, look at the statistics in a different way and the world appears very different. As Ben Broadbent says “the modern economy is hugely diverse and, underneath the surface, highly dynamic.
It’s another reason why those who are looking to make an impact in their business sector, to innovate the future, need to take time at the outset to really understand their starting point and the internal and external conditions which would affect the journey and its outcome. You may never get all the answers but the more you take time to investigate and to understand at the outset, the greater your chance of success.