Employment Relativity

Vacation, all I ever wanted
Vacation, had to get away

-The Go-Go's

For those of you who never really get away from it all, I highly recommend a vacation. Not spending a few days off to catch up around the house and not taking a quick trip to the beach. I'm talking about a full-fledged separation from the work life, a break from the daily grind.

I spent last week in Cabo San Lucas, Mexico at a resort that sits on a cliff with direct beach access, acceptable food and terrific service. It was a great place to gather my thoughts about the economy, career, family, and in general, perform a 27-point inspection of my life after many months of working long days, work-related travel and overall stress about the economy.

Given what we've all been through the last couple years and the dim prospects for significant recovery any time soon, the economy took precedence in my thoughts this year. (I'm happy that I have something more significant to contemplate than my 40th birthday today!).

It kicked off as we checked into the hotel and loaded up on the Toro-built modified golf cart that would take us to our room (no hiking up and down this cliff!). Our driver - let's call him Oscar - was a very happy, chatty fellow who quickly let it slip that he had only been working at the resort for six months. Previously, he had worked at a Chrysler plant outside Mexico City where he lost his job when it was shut down.

Obviously an energetic, personable young man, he pursued employment with little regard for location or career development; his only immediate goal being to feed and support his budding family. Now, working six to seven days a week, usually ten hours a day, he chats it up mostly with American tourists, smiling from ear-to-ear.

His family did not come with him, but out of his few hundred dollars per month salary (plus tips), he is able to send them enough money to help pay the bills. In the meantime, he hopes for something better, trying his best to put himself in the right places at the right times for the next big opportunity.

Thinking about young Americans today and, I admit, generalizing greatly, I wonder if there's a widening gap between young Oscar's thought process and the typical young worker in this country.

Most of us have experienced the stereotypic "satisfaction-now" attitude of our own youth and realize this mindset can lead to great hardships and heartbreak as maturity arrives. But it wasn't until meeting Oscar that I made the connection to the millions of young workers across the world who are more than willing to make great personal sacrifices today for something better tomorrow.

We have now lost 7.2 million jobs since December 2007 and have experienced wage freezes, bonus blanks and forced furloughs. The American workforce has been forced to adjust to this new reality and may have to adjust expectations about everything from retirement benefits and spending power to educational standards in order for us to rebuild and compete. Too many economies are coming online, not only in Asia, but in South America as well.

Turning our nose up to a less-than-expected opportunity may seem the right thing in the short run, but en masse it is a gamble on a rapid economic recovery which, unfortunately, is not in the cards.

Key Developments
Consumer credit outstanding declined another $12 billion in August, making a seventh straight decline totaling $115.6 billion in credit reduction over the last 12 months. Though deleveraging is a good thing in the long run, an absent consumer portends lagging growth.

The August trade deficit for goods and services narrowed to $30.7 billion, driven by a decline in imports even as petroleum prices were on the rise. Once again, the data reflect lagging consumer activity.