Career Advice for a Son or Daughter?

Here’s some bracing news for the college crowd:  There are 115,520 janitors in the U.S. with bachelor’s degrees or more. Just as surprising is that, even though 30% of the adult population has college degrees, only 20% of the jobs available require one, according to an article by Daniel Greenfield in Frontpage magazine. Students may not be aware of these depressing facts, but they clearly imply that most of the degrees they are now seeking will be largely valueless when they graduate.  It’s possible that some undergrads, especially in the humanities departments, are not overly concerned about such things.  But you can bet their parents are taking a hard look as steeply rising college costs strain many household budgets beyond prudent limits.

It’s not hard to see why the cost of a college education has risen more sharply than the cost of just about everything else:  The U.S. Government, ever eager to blow bubbles,  has made loans to students so cheap and plentiful that they currently total more than $1 trillion. At the individual level this translates into student loan debt averaging $26,000. Obviously, those with professional degrees have borrowed a great deal more – typically six figures.

A Degree in English

Speaking personally, we have a son who is enrolled in a four-year college and another who graduated high school in the spring.  The older son, following in his father’s footsteps, is majoring in an English, and the degree he is scheduled to receive next year will come with a teaching certificate. Although the job market for English majors is not nearly what it was in the 1970s, when your editor graduated college – it is pretty scary, actually — my wife and I have every confidence that our son will succeed in life because he has succeeded so well thus far.

His younger brother is obsessively interested in cars, and we have therefore encouraged him to pursue an apprenticeship with a friend who owns an auto body shop in San Francisco. If he chooses this path, he’ll be the first Ackerman to enter adult life without having pursued a college degree. My wife (who has a master’s degree in speech and rhetoric) and I have no qualms about this because our son is good with his hands, is a meticulous builder of things, and a shrewd bargainer.

A Very Tricky Choice

The Question of the Week is:  What career advice would you give a son or daughter? For today’s grads, the shoals to be navigated have never been trickier. Indeed, the job market is mutating so quickly that even professional recruiters can barely keep up with the changes. Incidentally, when I worked as headhunter myself for a while in the early 1990s, I calculated – incorrectly, as it turned out – that recruiting in healthcare would be a slam-dunk.  Guess again. The $100,000+  nurse administrators I worked with initially became a glut on the market when a wave of hospital mergers eliminated about half such positions within a year. I turned to anesthesiologists, who were making $300,000 to $400,000, a sum that translated into fat placement fees. Unfortunately for me – and for anesthesiologists – the cost-cutting HMOs that were springing up at the time took a meat-ax to inpatient procedures, greatly reducing demand for anesthesiologists, among others. Soon thereafter, I was looking for new job.  If I were to return to recruiting today, I can’t say that it would be any easier to pick a winning field.

What say you, readers?

  • nonplused September 4, 2013, 9:55 pm

    Giving my children advice is like teaching pigs to sing; all you do is frustrate yourself and annoy the pigs.

    The big key for my carreer has been flexibility and a willingness to take on risky jobs that nobody else wanted. Not risky like dangerous but with a high risk of failure and subsequent carreer damage. Not much physical risk pushing a mouse around.

    For those who do go to school, taking courses that lead to skills and knowledge useful in business is always a no-brainer for those not happy living in mom’s basement.

    Right now I work in oild & gas and there is strong demand for labour. I think that extends accross the resource sector.

  • mava September 1, 2013, 8:13 pm

    Cam is likely right on this one. I agree. The only reason to have this war is to provide the scapegoat for the failure of the economy.

    Very well might be, Cam. Nice one!

    • Cam Fitzgerald September 1, 2013, 10:31 pm

      I must just be getting cynical thinking that a short narrow attack would be cover for tapering announcement but that is my theory for the moment. Thanks Mava.

  • Cam Fitzgerald August 31, 2013, 9:51 pm

    Short note to Rick and subscribers.

    Effective tonight we learned that Obama will seek Congressional approval for an attack on Syria (that has already been authorized by presidential authority) upon the return of Congress.

    Congress returns September 9th and a vote could be a done-deal by late day on the 10th meaning the missiles will fly on……….9/11. Of course there is no irony in that date at all. Just a big damn coincidence in timing.

    Proceed with caution September 11th as an equities rout should be anticipated on war news while oil and gold rise sharply. The market is already primed to correct and MUST do so before any announcement of “tapering” by the Fed on the 17th.

    EG: Markets will not therefore be impacted by any Fed announcement on the 17th and this is an opportune moment for them to make an exit. Any serious decline in equities will precede the Fed announcement of tapering and be wholly and forever blamed upon the war in Syria.

    In other words, there will be one quick decisive burst of military activity during the week between September 11th and September 17th that could in theory drop the S&P 10 to 15% and leave the Federal Reserve free and clear to taper without affecting markets that have already taken a nasty hit on war news before they tell us about a taper.

    During this war period bonds will rise on flight to safety, rates will fall, gold shoot up, the dollar strengthen and oil will be going on a tear although to what heights will depend on the response from the Syrians, Russia and Iran.

    Mark it on your calendar. No attack means business as usual but forces and assets are already positioned waiting for the all-clear and the rhetoric is quite heated. I seriously doubt there is any room remaining to back down at this point……so the war is “on”.

    • mario cavolo September 2, 2013, 2:52 am

      nicely laid out Cam, definitely something to be mindful of, thanks, Mario

    • Cam Fitzgerald September 2, 2013, 9:10 pm

      It might just be the dumbest theory I ever came up with Mario. Thanks anyway.

  • mava August 31, 2013, 7:01 pm

    BLK,

    Life is a free market, or should be. In this way, markets resemble life.

    When you say that “Flooding our labor markets with unskilled workers also lowers pay for skilled workers.”, (I presume you detest the effect), you’re correct, but that is the goal – to get rid of expensive (inefficient) workers.

    It is absolutely the same as when the markets are flooded with cheaper newer generation 55″ TV sets at the expense of the stock of older, crappier, yet more expensive 42″ TV sets.

    You would rightly argue, that I have overlooked the fact that you’re not pointing at the cost replacement, but at the quality replacement – “unskilled workers”.

    It is all the same, considering that what we all secretly shop for is cost per unit of quality. There would not be ANY spillover effects to the skilled labor, if they were charging for their labor proportionally to their skill. If that was the case, the cost per unit of quality would remain the same! No spillover.

    The fact that there is the spillover effect, means that some higher skilled workers were charging more that their skill level should command. In other words they were doing better work for much better pay, instead for simply better pay. Their cost per unit of quality rates were higher than the rates of incoming competing lower quality supply of unskilled labor.

    They had to correct back down to more appropriate rates, which they do, and that is the spillover effect.

  • Rich August 31, 2013, 12:28 am
  • David August 30, 2013, 9:54 pm

    The Best advice is to not go with the flow. Meaning i have met hundreds of young people attending college and tech schools to get degrees in Computer Networking. While there is a lot of work out there, the jobs are lower paying than what the schools would have you believe. I graduated with a degree (2003) in networking communications managment, but the only jobs available at the time were low paying $10/hour jobs. I fell back to my Military training (Aviation Electronics) and got a job without the need for a degree for $17.50/hour. I’m now a Systems Engineer getting paid $33/hour. And my company needs more engineers. Experienced engineers are hard to come by or so i’m told but we can hire two or three college grads with Zero experience almost right out of the gate.

    People in the Military have a lot of different experience not just blowing up bunkers. Different rates/mos like Electronics, communications, Networking and many others are out their. the ones who only spent time in carrying a rifle may be the only ones who are having a very difficult time getting a job. But the GI Bill will be used for a degree or technicial training and all will be well once again. Just going to take sometime to get the training and degrees.

  • Willio August 30, 2013, 8:32 pm

    Buster, where do you get this nonsense about use of nukes ?

    /I feel a little dirty even ask you this ridiculous question.

  • Rich August 30, 2013, 7:40 pm

    Only partial fill on RPMGF Buy @ 0.19
    Stock scarce

  • Rich August 30, 2013, 5:07 pm

    284% EQ opening long call/put buying
    = major market jump ahead
    http://www.ise.com/market-data/isee-index/

  • JTR August 30, 2013, 3:11 pm

    Career advice for a Son or Daughter? Encourage them to follow their passion.

  • DG August 29, 2013, 6:23 pm

    At some point, and maybe we are there, folks need to put real economics toward higher education, and consider the utility of a college degree.
    I can state from personal experience, and current data the utility of a an engineering degree in the US has dropped dramatically in the last 30 years. In 1980, the cost of a state school engineering degree was 60% of your starting salary. Today? Not even close. Cost in 1980 was $15k- all in 4yr degree, and median starting salary was $25k. Today, cost is $90k and median is $85k…that is nearly a 50% drop in return…I am sure this exercise makes my point even greater when one applies it to a State School liberal arts degree…far worse when private is considered.
    The ability to pay for this education is far bleaker, as wages for jobs to produce the income for college have dropped even more….I have read that in the early 80’s it took about 900 hours of labor to pay the for the 3500 dollars the education cost (per year)…That is what? $4/hr?..sounds about right (I made $5)….but today it takes nearly 3000 hours to pay for a year of State School….(there are only 2000 or so in a year…..) about $8 an hour….. it can’t be done…better call the banksta..

    At some point folks need to throw up their hands and stop playing the greater fool in higher education. It ain’t worth it. (especially for degrees that can largely be achieved at the local library or online with nothing more than curiosity and determination)
    (as an aside) They must also think long and hard about the sanity of flooding our labor markets with more unskilled laborers, reducing those wages even more for unskilled labor, which is the only way to pay for education before you attain skill…I digress…

    Higher education, as a business, is disgustingly corrupt. There is no other explanation. How is it possible for education, the process of transferring knowledge from one person to others, to rise in cost, when the cost of that information and its transfer has gone down to nearly zero? Education education should be decreasing, not increasing.
    Have you looked at the price of a TB hard drive lately? Libraries were at one point, the epicenter of all knowledge. Today,thanks to electronics, libraries are ubiquitous, via the internet..IF the internet were embraced for education, the cost would be ZERO…and educators would likely be as ubiquitous as any other profession that has been swallowed by the internet…sorry, but I just don’t understand sacred cows….it takes little more than a posing the question “cui bono?” to realize where the corruption in the market lies.

    Why must young people be penalized so buggy whip makers can continue their outdated existence long after the buggy is gone? The administrators and educators in “College Inc” survive only by reality being suppressed via government regulation and banker funny money financialization…pull either one, and the cost of education would plummet, as it should…but it is sustained because the sheep keep getting line for the shearing.

    Just say “no.” Quit supporting corruption. Seek other means of education and invest your money in something that has a positive ROI It is a choice.
    (and I have 3 young kids, btw)
    Otherwise, there is a very good chance your kid will end up as a Starbucks barista, really knowing what Vente means, and $50,000 or more in debt…
    My plan is to have plenty of money set aside for my kids, but at 18 we are going to have some very serious discussions about what to do with that money….
    One word and it aint “plastics”:
    utility. One of the few concepts in economics that is worth chewing on and digesting…question the utility of that degree. Is it worth $50k? $100K? $200K? It is a number. How much would you spend to be a Barista?

    • BKL August 30, 2013, 12:54 pm

      Flooding our labor markets with unskilled workers also lowers pay for skilled workers. There is a spillover effect that affects workers all the way up the ladder. People will accept lower pay to stay above that awful job on the next rung down.

    • PhotoRadarScam August 30, 2013, 5:25 pm

      Your point is well taken, but I don’t agree with the math on the return, and I’m not sure what the fairest measure is, but I wouldn’t measure ROI on a degree by the amount you make in the first year after you get it, but rather over your career-span. A decent engineer starting now at age 22 should be able to easily earn $4M+ over his career. In this perspective the education cost is not so significant. But I would say that people do pay too much for their education as you don’t need to attend an ivy school to have a good career. There’s only one place you need to go to evaluate a school, and that’s the career placement office.

  • Buster August 29, 2013, 9:41 am

    We can watch this conspiracy in real time. It may well have been western directed terrorists who used the chems as a set-up for open war, but what’s a little inconvenient truth between friends when there’s an agenda to fulfill?:
    http://www.wnd.com/2013/08/video-shows-rebels-launching-gas-attack-in-syria/

    It should now be clear why Israel’s use of 4 nukes against Syria has been under a media blackout, as the likely set-up by way of chemical weapons allegations is pushed as the justification for the open warfare the Corporatists who are running Western governments require, since the rebels are losing ground.
    My expectations are that most of the middle east gets wiped out over the next few years, specifically with Israel dealing the major blows via more of these small nukes it’s been using on Syria so far. It’s possible the West doesn’t even get a chance to join in the ‘festivities’. In consideration of the NASA document ‘Future Warfare’, all this could easily be seen as necessary evil, since mankind has failed to solve the age old problems that shame us & soon require a permanent solution. The totalitarian New World Order will be touted as the only solution, & even welcomed by those who’ll grow weary of the carnage.
    In the meantime we have the Western world directed by the cult of corporatism, the East under that of Communism, the Mideast under Islam & Africa under a free for all thug rule, with the four horsemen leading each to expose our human stupidity & barbarity. Feel free to wave whichever flag suits your color. I’ll wash my hands of them all!…. even my robes if that proves to be the way forward.

    • Buster August 30, 2013, 11:12 am

      The UK parliament just failed to agree to Cameron’s push for open war against Syria. They’ll have another go at it later when UN investigations can ‘prove’ Assad’s responsible for the chem’ attacks that look highly likely to have been the work of the death squads sent into Syria by Western interests posing as freedom fighters, but under the immediate directorship of the Saudi regime.
      It looks likely that Russia has drawn it’s own line on the Corporatist advances of recent years at Syria, with Putin preparing to go all out despite Saudi threats of terrorist attacks in Russia if he doesn’t let them take Syria.
      As I’ve stated, my expected timeline suggests Israel will do the job alone in this first round before anyone else has a chance to get involved, which at this stage looks like a small blessing as it’s a temporary containment of the carnage to just the middle East…..for the moment!
      With cyber attacks escalating it may well be prudent to stock up on some staples. Also, it could be time to put together an ‘Aquaponics’ system in your backyard, or at least learning how they work.
      Whether the Nasdaq blackout was a one off, an actual attack or a just a drill, it may be time to think about any effects disruptions could have on your finances, for what little they’re worth.
      I’d also recommend considering where you are living in relation to any deteriorations in diplomatic relations, so to speak. I think you’re more Italian than American, aren’t you Mario?!
      Anyway, I won’t go on too much at this stage other than say there are lot’s of things lining up that suggest it’s worth being very watchful of current events as they may put in motion certain possibilities over the next decade, which I’ll try to expand on if steps transpire.
      Unfortunately the Chinese expression ‘May you live in interesting times’ wasn’t a blessing!

    • Marc August 30, 2013, 5:52 pm

      “It should now be clear why Israel’s use of 4 nukes against Syria has been under a media blackout.” Oh, yeah, the media is always so compliant in looking the other way for Israel. What have you been smoking? Israel can’t even make targeted retaliatory strikes against terrorist leadership without the media casting a critical eye. Statements like that detract from your main point that the rebels may have used chemcial weapons to give the West a justification for invovlement, which is a matter worth investigation.

  • mary August 29, 2013, 9:03 am

    For a variety of reasons, the goal of the university has changed from, as the pr story went, the institution in society where students develop their intellect, to the current pr goal of grooming students for employment. Of course, the academy generally doesn’t achieve either goal. Here’s what it does do: it sorts students into two groups, 1. those who are the children of the powerful and associates of those children. The “top” universities are places for young “elites” to meet and form life long bonds. Think skull & bones. This has ALWAYS been the case, and 2. Everybody else.

    For the most part, university is a social game, not an intellectual exercise. Some do study and learn, mostly the science/engineering majors who are about 5% of the population. The rest perform prodigious feats of mental/physical masturbation/copulation, with a lot of drinking thrown in. Why do you suppose the bookstores sell more condoms than books and the weekend begins on thursday afternoon?

    If your child wants a career in science, he has to go to college bc they have monopolized the facilities and are the only institutions that provide a means for obtaining credentials. Otherwise, it’s a big honking waste of money and the degree should be earned as cheaply as possible, if at all. For example, our daughter took 8 ap tests and summer school at harvard and was able to enter as a second semester sophomore. Had she opted to stay in the US for her senior year of high school instead of travel, become fluent in spanish and teach english to pay her way, she would have taken at least 3-4 more ap tests and entered as a junior. There are enough strategies like this to drop the cost of college to well below $30k and probably below $20k. And if you use proper tax planning, that could be mostly before tax dollars.

    Bottom line: college is a racket. Figure out how to win at the racket rather than being sucked into being a patsy.

  • Jason S August 27, 2013, 4:50 pm

    For what it is worth, I think you do not get your money’s worth out of education today. Here are some quotes from facebook from a couple of college attending folks I know:

    My acting teacher was 35 minutes late but he shortly made up for it when we did hip exercises, humping the air, and he told us to “f*#$% the world”.

    my stats prof said, “I promise i’ll never swear at you. Wazzup bitches???”

  • Guest August 27, 2013, 3:55 pm

    I have two children one in college and one in high school looking at colleges.

    My advice to them get ready to leave the USA be fluent in other languages. Unfortunately the debt that our government is piling up compounded with an ill prepared baby boom generation set to retire means those folks will continue to vote themselves fat benefits packages which will derail our children’s dreams.

    Zirp rates will continue to destroy savings, forcing too much risk and stealing capital. I’m afraid that the rules we were taught as children prudence hard work and savings compounded allowed one to become self sufficient and help others has been destroyed in the USA for generations to come.

    As for car repair with 10 dollar a gallon gas cars will be a rare luxury.

    • BKL August 28, 2013, 9:36 am

      There is one foreign language which will improve the life prospects of anyone living in America. That language is Spanish. You might not move to Latin America, but Latin America is going to continue to move to America.

      Don’t waste your time with Chinese. The chances of you speaking Chinese better than your Chinese counterpart speaks English, is about one in a million. Forget about Japanese, too. Absolutely no point, economically.

    • John Jay August 29, 2013, 4:03 pm

      Guest,
      I have to agree with you to some extent.
      The American worker has been thrown to the wolves since the Vietnam war.
      Jobs and factories sent out of the country.
      Tens of millions of unneeded immigrants brought into the country.
      And, now, to add insult to injury, Government apparatchiks are pontificating that, “American workers can’t cut it”, and “We anticipate a severe labor shortage in the future.”
      I remember the same lie being told twenty years ago to justify illegal immigration by the Government.
      Back then it was:
      “We anticipate a huge labor shortage in the future when the Baby Boomers retire and leave the workforce.”
      The reality is the over 54 segment of the workforce is at all time highs today!
      The only time America experienced a “Labor Shortage” was during WWII.

      And now Obamacare plans to force the young and healthy to hand over either insurance premiums to the Healthcare oligarchs or taxes to Uncle Sam.
      I always had health insurance through work, but I never used it until I was 58!
      More looting.
      Where and how will it all end?
      I t will only continue to get more difficult for the bottom 90% in the future.

    • mario cavolo August 30, 2013, 7:10 am

      BKL, let me further clarify and support your idea about speaking Chinese. If you’re not involved in some way with Chinese people or business and don’t expect to be in the future, there’s certainly no reason to learn the language or anything else about China.

      But if you have a touch of wanderlust to see the world, men’s yellow fever for Asian women, or have some business interests somehow related to China, then by all means, learn the language, it will be very helpful.

      You’re further right that if doing business in China, dealing with the Chinese, even foreigners who speak quite fluent Chinese will be the first to tell you you are at a disadvantage, the negotations in detail need to be done by a native Chinese, so hopefully you’ll have Chinese employees or business partners you trust.

      Cheers, Mario

    • BKL August 30, 2013, 12:10 pm

      By all means, Mario, if you move to China, learning Chinese is a useful and fun way to spend your time. I was absolutely nuts about learning Japanese **** years ago. Was it really that long ago? I could read a newspaper for a while. I became English-man when my son was born 16 years ago, and it has really paid off.

      I simply can’t imagine how you could effectively teach Chinese and Japanese in a classroom in the U.S. There is probably a way; a very expensive way which requires the best four years of your life.

      Cheers to you, too.

      Brad

  • Cam Fitzgerald August 27, 2013, 5:42 am

    I came across a great quote over at Seeking Alpha that pretty much sums up my own sentiments on what you might teach your kids before they go off tilting at the educational windmill.

    The expression, reportedly from Cuba, runs like this…..”It ‘s better to be the head of an ass than to be the tail of a lion.” Says it all in my opinion. The point is you will make a better life running your own show than depending on others to supply your employment.

    Many years ago I had a friend who started a small business right out of high school. He borrowed 3000 dollars from the bank of Dad and bought an oven and a short term lease in a small mall and started making specialty bagels. Everyone else meanwhile was off to University and thought he was a damn fool.

    Bet you can’t guess who was the first one to buy his own house and was in great shape when the recession of the 80’s came around. I would never teach a kid to be anybody elses employee unless there was the opportunity to buy out the business they were working for.

    Fortunately times are great for just that. With all the Boomers heading for retirement a big problem has developed with selling off small enterprises. These companies don’t move fast even if they have been established for decades and all too often the owners just throw in the towel and close the doors for lack of a buyer.

    A kid with a few ounce of smarts will spend a couple years learning the ropes at a place with potential and plenty of goodwill and plan to take it over in time. In slow times (like now) it is a whole lot easier to cut a deal with the owner who might be a lot more flexible on helping to finance the eventual sale so he can get out with a decent percentage of what that business might really be worth.

    Win-win for everyone. And it sure beats the hell out of graduating with a philosophy degree and flipping burgers until you write your first book!

  • Dean August 27, 2013, 4:57 am

    I’m one of those anesthesiologists. I am still employed, but the pace is very demanding. I am 62 and making good money now, but the future is up for grabs. I had a very straight path in my education. I admire people who create businesses, jobs, etc. In my life time, I could have worked on the alaskan pipline and made big bucks. I could have died there, lost it all, etc. My point is that I never considered it. My son, my youngest at 19 is working in the Marcellus gas fields (my back yard) and has taken that opportunity. He worked 96 hrs last week. He (obviously) has a great work ethic, a friendly nature, and desire to learn his job. I’m putting my money on him. We shall see. The key is flexibility. We have families here from all over the country. They are willing to go where the jobs are. I wish them all well, as I do you all. Cheers, Dean

  • Guest August 27, 2013, 3:57 am

    I’ve thought about that question recently. I wish I had an answer. I myself have a degree in hard science and an MBA. But my children are not impressed, since those degrees have not done me much obvious good. I can’t say that I disagree with their assessment, especially considering the enormously increased cost of education since I was in school.

    It’s a damn shame, because I think that education in the liberal arts – never mind occupation-oriented education – pays great dividends not only to the student, but to our entire society. We’re missing out on a chance to have better-informed citizens, and that will cost us.

    What advice would I give now? Boy, that’s a toughie. If your parents are wealthy, by all means go to college. Otherwise use online classes and other self-teaching methods to learn what you need to know to do what you want to do. Trades are still OK so far, but I see that changing in the not-too-distant future. Robotics, 3-D printing, and artificial intelligence continue to make great strides.

    At all costs, avoid becoming a cog in a corporate machine, especially an uneducated cog. Find a way to work independently if at all possible; otherwise, you’ll find yourself laid off in middle age, with scant prospects.

    What would I myself do if I were just starting out? Learn some science for good background for any field. Learn finance and accounting, start your own business. If you want to go into the trades, ALWAYS make sure you keep up with the latest technology.

    I know I’m not giving great advice here, but I told you I didn’t have much of an answer. I wish I did, but this is the best I can offer. Good luck! You’ll need it.

  • gary leibowitz August 27, 2013, 3:14 am

    Rick,
    concerning Yahoo I hope you put into account the 25 percent stake in Alibaba. YHOO at a P/E ratio of 7.6 is pretty darn low.
    =====================================
    “The company’s current market capitalization is around $28 billion and if the valuation of Alibaba at $120 billion is taken into account, this investment alone is worth around $29 billion. This means that you are getting the best of the company for free, including the valuable stake in Yahoo Japan.”

  • Rich August 26, 2013, 9:52 pm

    Some insightful comments here, thanks.
    Daughter was home from medical school masters, so this was a matter of considerable discussion, along with the boyfriend.
    Basically, Gary Shilling pointed out some time ago higher education, particularly public schools, was a racket.
    All these studies that show higher degrees correlated with higher incomes need to be parsed, considering Bill Gates and Mark Zuckerburg were college dropouts.

    Re the market, is it possible TSLA today marked a top?

    Sold TLM and XOM and added to RPMGF

    • mario cavolo August 27, 2013, 2:02 am

      A related issue is that pursuit of an 1-2 year MBA is on top of every Chinese/Asian white collar professionals bucket list. The MBA schools are doing big business all over the APAC region, with MBA’s coming in at a cost of $35-100,000 depending on how highly ranked the MBA school is. Point is, with everyone getting one, without one you’re further behind the 8-ball.

      The mantra goes that by having the MBA you’ve just doubled your starting and future salary. Whether that makes sense or not, it means that the sector which needs to be examined is HR. They are the ones driving the market in terms of their perception of HR’s role, responsibility and guidelines in their recruitment process.

      I would further say that the vast majority of MBA’s are in international business, marketing, trade, logistics.

      Supply chain/Logistics expertise is also in extremely high demand, which makes a lot of sense when you consider that as most industries, it is relatively young and underdeveloped relative to a newly emerging Asia led by China.

      A good job/career these days seems to require a knowledge base in a specific sector such as engineering, logistics, professional services fields. The 2nd part of the equation is to obviously look at the market and confirm in which industries employment demand is increasing or decreasing. In today’s world a person can’t afford to willy-nilly pursue their dream, that has far less chance of developing into a successful career.

      Cheers, Mario

    • BKL August 27, 2013, 2:31 am

      Mario

      Asian HR depts are catching up to their western counterparts in seeking measurable skills over impressive degrees. Asians, including HR, are still obsessed with getting into the right high school, and that is perhaps as it should be.

      Students in Japan cover more academic curriculum in high school than in university. My son got into the best private high school in our area, and the math he is doing in his sophomore year is higher than a top senior in an American public high school.

      Still, they can’t learn English properly at school, the way things are set up. If you can tutor your kids, they will be the ones with the cushy, tenured jobs.

      I can see clearly, a coming glut of Chinese MBAs with poor English skills. They would have been better off becoming CPAs. A CPA is the most, perhaps only, internationally transferable professional credential. It does limit you to number-crunching, though. Could lead to unhappiness.(See Monty Python.)

    • mario cavolo August 27, 2013, 12:16 pm

      Sharp insights BKL. And by the way, my boy (and future 2nd child someday) will DEFINITELY be fluent in both Mandarin and English, also have dual citizenship, so between those attributes we give them as much choice as possible in their futures.

      Cheers, Mario

  • Marc August 26, 2013, 5:22 pm

    My kids are still young, both in elementary school, but I do think about this question a lot. I certainly want them to pursue their personal interests first and foremost, since doing something you like is more important than how much you make (as long as you are making a living at it). But if, like most kids, their career goals are not narrowly defined when they get older, I do believe I can offer them two particularly useful pieces of advice. One is that they pursue a career in a field for which there is not a great deal of qualified domestic competition. This is particularly relevant to our older child, who has thus far proven to be a math and science wiz. With the general lack of high-caliber American students in those areas of study, one would expect a field like engineering to be a relatively secure path. Second, I would encourage them to pursue a niche within their field that is not susceptible to outsourcing or replacement by machines. I believe those are the greatest long-term threats to job security that my children will face. One has to be cognizant of the fact that advances in technology, many unforeseen, will make it easier to access a global workforce and will also lead to ever-expanding automation.

    So, for example, if one becomes an attorney, consider being a prosecutor – that job cannot be done by some far-away counsel and can never be replaced through robotics. If one becomes a teacher, consider teaching chemistry – that subject requires teacher supervision of lab work, so it is less likely to become a victim of online courses should that be the direction our education system takes in the future. Whatever the career path, they need to think such issues through so they don’t find themselves or their job rendered obsolete sometime down the road.

  • mava August 26, 2013, 4:52 pm

    I don’t think the US higher ed degree even matters. From my own experience, the graduates do not have the knowledge about basic mathematical, physical and chemical laws and properties of the surrounding world.

    The result is that they miss on the whole point of attending a higher ed institution: obtaining a library of knowledge about the physical world around us and in specific area of interest corresponding to that of leading researchers today. This, if what is going to help in life again and again, endlessly, as you would solve complicated issues easily and with confidence, and choose the direction you need to move to obtain maximum output (dollars).

    This is happening, again, from my experience talking to the young people, because they are allowed to pick and chose disciplines, sometimes all the way from the school! Frequently, they haven’t had instruction in Geometry, Trigonometry, higher Algebra, Chemistry or Theoretical Physics! These are the basics, they can not be skipped. You can skip all of the humanities if you have to, – those don’t matter, but these should never be skipped.

    They end up graduating a smart cookie, but that is exactly the same they were when they finished the school!

    Summarizing, I think somehow the entire stage of education has been lost in US: The stage of obtaining the ultimate familiarity with the latest knowledge about the world around us. Youth is directed to specialize instead, and this is what is wrong. You can always specialize, and many people will do that several times in their life as the demand changes. But you can never obtain that most voluminous chunk of knowledge again, because your mind will never be as receptive and idle ever again.

  • Carol August 26, 2013, 4:09 pm

    My son just started his senior year in college. He started college with 30 college credit hours that he got by testing out of college courses during his high school years (he was bored silly with high school). So when he entered college he had no real idea what he wanted to do. I studied and worked as a software engineer (programmer) for almost 30 years so I “guided” him to that vocation. He took a couple computer science classes and loved it (and is good with it).

    He just returned from his first summer internship he got with a large mutual fund company 3 hours from his home. He loved the work and the company (and his boss) loved him. Offered him a full-time permanent position when he graduates next spring. He is set for life now because of my “guidance”.

    If he had not been a studious, book-smart kind of guy I would have “guided” him into hands on trade jobs like plumbing, HVAC, car mechanic, etc. They can’t offshore those jobs nor can they replace with robotics!

    • Dave August 30, 2013, 4:12 am

      Carol, Did you work in government, civil service or multiple private employers? It’s great your son took to software programming but it’s hard to imagine he’ll be with the same large mutual fund company for his full career. Likely he’ll max out a certain salary grade and eventually, as companies do now, replace higher paid with people like your son, college grads at entry level salaries. And given so many are competing for jobs, they can bring them in at even lower starting salaries. Of course, mutual funds may be obsolete in the future when the BIG one happens.

      When you started your career, what programming languages did you start with, i.e. COBOL, PL/1, Fortran and how many newer ones did you need to learn to stay current? unless you were involved with legacy code. Looking back on my high tech career, having worked for many computer vendors, now all defunct or absorbed by larger companies, various tech careers involve constantly maintaining the latest skills to stay competitive, fun when young, less so in your 50s. Each company move I did was to one that was in a tech area that became hot at the time.

      I used to frown on civil service, gov’t workers but they retire with great health benefits and pensions while those today in many private industries don’t. My friend’s brother career was on a garbage truck for NYC sanitation and is doing far better in retirement than many who have worked in hi tech and other private companies that offer primarily self funded 401Ks.

      Having a career which is company independent would be a better option, like a doctor, lawyer, nurse, accountant or in a vocation that doesn’t fade, plumber, electrician, etc.. that won’t face obsolution. I would include auto mechanic but if Tesla and the like become the future, their days will be numbered.

    • Carol August 30, 2013, 3:09 pm

      Dave
      All true. When I said he was “set for life” I guess I was just “wishing”. I know everything you say is true, ie my son works (worked hes back home in school again now) with mostly Indians who we all there on work visas to “bring down employee cost” cause there is no way that company could find enough Merikans to do the work m- yea right!

      When I first entered the field I worked mostly for government contractors – Army, Navy, DoD, NASA, etc. Well what can you expect I lived outside the district of criminals (DC). Then I moved from that area (I grew up there) and started working ONLY for private companies mostly Banks, Utilities, etc. (just as bad in my book as I NOW hate banks with a passion). I agree with the constant having to stay up on the latest languages, OS, databases etc. It got old real old and as I got old I couldn’t/wouldn’t do it anymore which is why I don’t work in that arena any longer – I couldn’t keep my skills up – marketable. I have been out of work a number of years trying to find my next career (living off savings – what is that!!) anyhow, I am no closer to finding my calling than I was when I entered school. I guess I can now qualify to be a “greater” at wally world – lol.

      Oh btw the languages I started out with were – assembly, Fortran, and Pascal I guess I kinda dated myself huh?

  • mario cavolo August 26, 2013, 3:00 pm

    I think the idea that you need a degree from an expensive image college to get a good job is ludicrous….a state college degree, which can be had far cheaper, will easily land the right job for the right qualified candidate with the right personality who fits in…it ain’t that complicated from the HR point of view. And in fact, that person can be offered a lower salary…Cheers, Mario

  • Buster August 26, 2013, 1:33 pm

    The fundamental career choice is either to serve the victors or fight for your lives.

    When I began warning friends & family to start buying gold & silver in 2000/1, to much ridicule by the way, it was based on a probability that grew in certainty by observing subsequent expected events. It was such probability boiled down to the simple, yet limited, solution or eventuality/inevitability. Something similar is now occurring on a far grander level, and I’m not even referring to the start of WWIII in the middle east after reports of at least four nukes having now been used on Syria by Israel.

    For your contemplation…

    The equivalent to ‘Skynet’, the supercomputer of ‘The Terminator’ fame is due to go on-line this October:
    http://www.altheadlines.com/skynet-to-launch-october-2013-13249196/

    NASA document ‘Future Warfare [Circa 2025] reveals that we soon face either TOTAL anarchy or TOTAL control, but probably what will appear like both at times:www.stopthecrime.net/docs/nasa-thefutureof-war.pdf

    Neither the end of ‘choice’ or ‘destruction’ offer much of a future worth living in or working toward for humanity.
    By my calculations, the proven spiritual nature of life & the universe must soon show it’s hand, or else there will be no spirituality left to connect with it, no purpose for human existence, even for what can survive of it. We will soon see.

    Since I can only conclude that life is not mere chance, my best estimates based on what I can see are that by 2023 it’s probably all concluded. On balance, 2030 looks like a long shot due to how far progressed we already are on the timeline, but anything is possible. I must admit, I expect a SEVERE!! escalation of events in conclusion of the ingredients in our planetary ‘cake’.

    In the meantime endurance & watchfulness will remain my occupations of choice.

    Is it by chance we come to be, to be aware, alive
    …& conscious of this reality?
    Why do we arrogantly mock life as being just chance,
    yet with all our wisdom we cannot create even the simplest living thing?
    Why do we talk of peace with such deliberation,
    yet, by chance, practice war?
    By chance we’re adrift in this sea of eternity,
    yet even in the darkest moment
    …my heart does sing!
    …by chance?

  • gary leibowitz August 26, 2013, 7:23 am

    The hard choice is when your children don’t have a passion or strong goal in mind. For the ones that do I would let them follow their dream without my bias or prejudice to hinder them. For those that don’t yet have a calling but wish to pursue college I would let them. If money is an issue, and I suspect it is for most, I would look into the state or city colleges first. A good number of parents might want to keep up an image of the family success by picking a private prestigious college. I think that would be a mistake. Let your child’s development determine what becomes a necessity. If the child finds a path and needs a different school to best fit his/her dream, then I would consider transferring. Too many parents live thru their children and are defined by their choices. Too many parents feel they must keep up an image for others.

    The simple answer is to allow your child’s voice to be heard. If you know their choice is wrong or hard it matters not. Give your advise from learnt experience but do not force your will.

  • PhotoRadarScam August 26, 2013, 6:50 am

    I don’t think it matters too much what you do as long as you are really good at it. People who are good at what they do never seem to be lacking work. Despite the pressure from offshore work forces, you can’t go wrong with engineering. India may turn out engineers by the tens of thousands but almost all of them lack the passion and excellence of that most companies really need.

    • mario cavolo August 26, 2013, 2:57 pm

      Recently read an article that the engineering related companies have thousands of jobs available and the colleges aren’t churning out the graduates to fill them…the world needs to start paying attention to how the direction of developments/progress gives valuable guidance as to what choices to make…Cheers, Mario

    • BKL August 26, 2013, 6:08 pm

      I don’t know what to make of the market for engineers in the U.S. We keep hearing this constant narrative about the country not producing enough STEM graduates. Employers wail about how they have no choice but to bring in foreigners from third world countries on H21B visas(at half price).

      Meanwhile, I read reports from young grads that they are the only Americans on a team of 20 engineers. Indentured servants are cheaper than native born employees, apparently.

      John Jay’s advice is probably the best; try to get hands-on engineering experience. Not too sure about military training. There are thousands of vets who spent five or ten years perfecting how to blow up a certain type of bunker. They have real hands-on expertise….in how to blow up a certain type of bunker.

      Mario, if your kids can learn really good English, they will be royalty on the Chinese labor market. But their English has to be really good to stand out. They will get interesting jobs, too, with lots of travel and social status. Beats blowing up bunkers.(Say that three times real fast.)

    • PhotoRadarScam August 27, 2013, 8:58 am

      There should be no pity for the companies that claim they can’t find talented workers. Most of them laid off their work forces over the past decade. Where did those workers go? They are still out there. They just don’t work for 3rd world wages.
      These same companies then claim that those talented employees actually exist in 3rd world countries. Oh that’s right… all of those highly engineers with 10-20 years of experience from India’s prosperous and burgeoning aerospace industry.

    • Cam Fitzgerald August 27, 2013, 1:31 pm

      Of course, you are absolutely correct, Radar. There is not a real shortage of qualified people in most categories. That is just horse feathers and we know it is fluff by the numbers of graduates available who remain unemployed. Are we really to assume they all wasted 4 to 6 years of their time and learned nothing? What is actually in shortage are people with high level skills willing to work for lower wages and take it on the chin with a daily dose of happiness. No crying….no complaints. Those imports meanwhile will jump through damn hoops for the chance to start small at a good company and build up a resume with prestige year by year. If you were an employer who would you rather hire? A worker who is pissed from day one because the employment terms don’t meet their basic expectations or a foreign trained grad who will walk through fire and purgatory to please the boss at a fraction of the pay? Lets look at it another way. If you are a parent, who are you more partial too; the child who is angry and disrespectful or the one who puts his nose the grindstone without complaint and gives you confidence they will look after you in old age? Seems a no-brainer to me.

  • John Jay August 26, 2013, 6:41 am

    Rick,
    Your son learning the auto body trade is on the right track.
    Today’s plastic cars can produce a $3,000 repair bill from a very minor accident.

    HVAC with an eye to either start your own business or get a job with the government doing HVAC/plumbing for them.
    The Southwest offers year round HVAC work.
    My nephew passed all the certs for plumbing, works for a plumber and has lots of side jobs to boot.

    My niece went to CNC school instead of College and took to it so well she is making about 60k at an aerospace company planning precision part fabrication.

    If your son or daughter does not care to work with their hands I would advise them to learn computers/networking/programming inside out.
    Everything today is computer controlled, from factory robots, to automobiles, to aircraft.
    Airline pilot could be rewarding if you are good enough to get into a military training program.

    If your kids are undecided have them look through Monster, etc. and see where the high pay/demand is.

    My Uncle worked for 45 years at Remington Arms in the Ballistics Department and walked to work everyday.
    He and his wife raised their family and lived in the same house their whole lives.
    He got a pension from Dupont. and lived out his days before Inflation made his pension worthless.
    Needless to say, no one entering the workforce today is likely to have a job for 45 years with a major corporation and enjoy a carefree retirement.
    And walk to work!
    Those days are as long gone as 3 cent stamps, 20 cent gasoline, and 99 cent six-packs of Carling Black Label beer!
    Looooooooooong Gone!
    Thanks Oligarchs,
    Thanks DC!