America's tough new job market

The recession has accelerated and broadened the corporate restructuring that began in the mid-1980s. To date, an estimated 1.6 million jobs have been eliminated. Companies are not just laying off - they are flattening their organizations and shrinking payrolls to a core of highly productive primary employees. The trend will be especially pronounced among service companies. In this tough new marketplace, a greater proportion of the employed will face permanent uncertainty about their security. The unemployed will find fewer new jobs similar to the ones that they have lost. Many people will go to work for smaller companies, including contractors providing specialized services to other companies. To succeed in the new marketplace, people will not only have to be skilled but also adaptable and able to keep learning. Those who are at a disadvantage in the new working environment are the victims of past educational malpractice. One approach to lifting the skills of all workers involves the creation of a training tax credit.