Women wield increasing power

Pasadena Star News

By: Cynthia Kurtz

Posted: 3/19/2014 

March is Women’s History Month. It is a time to reflect on the contributions women have made as well as how women’s roles have changed over time. This is a good opportunity to review how women’s roles in business have changed.

In 1970, women comprised 38 percent of the U.S. labor force. That percentage slowly increased until 2000. Today, women make up 46.8 percent of the labor force. That share has remained unchanged since 2000. While more women are joining the labor force - close to 73 million women work today compared to 66 million in 2000 - the number of men entering the workforce is increasing at a similar rate.

The age of women in the workforce has changed over time reflecting the change in attitudes about working and raising families. In 1970 one in four women between the ages of 16 and 24 were in the workforce. Between the ages of 25 to 44, only 18 percent of women remained in the workforce - the decrease in women working can be attributed to women leaving to raise their families. After age 45 there was a slight uptick in the percentage of women working as empty nesters returned to the work place.

In 2012, only 14 percent of the women between the ages of 16 and 24 had joined the labor force. After age 24, however, the percentage jumped to over 20 percent and has remained relatively stable until women reach the age of 55 and start to retire. 

We hear a lot about unemployment rates and how education and age effect the likelihood of being unemployed. There are also differences based on gender. From 1970 through the early 1980’s, women had a significantly higher unemployment rate than men. Around 1982 women closed the gap and through the rest of the 80’s, 90’s and early 2000’s the unemployment rates for men and women remained within a few tenths of a percent of each other.

When the recession hit in 2008, it was men who experienced the larger negative impact. By 2010 the unemployment rate for women was 8.6 percent compared to 10.5 percent for men. It appears the gap is closing again - in 2012 the unemployment rate for women was 7.9 percent and for men 8.2 percent.

Women are picking different careers that they did 25 years ago. While 47 percent of the labor force is female, according to the Catalyst Pyramid on U.S. Women in Business, 51.4 percent of management and professional occupations are held by women.

Today women make up almost 54 percent of pharmacists compared to less than one-third in 1985. Fifty-three percent of financial managers are women - up from 35 percent in 1985. The biggest change is the number of women who are choosing the law. Over 50 percent of lawyers today are women compared to 18 percent in 1985.

Equity has not reached executive offices and board rooms - only 14.6 percent of executive positions, 4.6 percent of CEOs and 16.9 percent of board seats are occupied by women. While the numbers have increased, change has been slow. Women still have a long way to go to be equally represented at the highest corporate levels. 

There is an old Chinese Proverb, “Women hold up half the sky.” Everyday women are proving that they are willing, able and ready to hold up their half of the sky.

Learning plays vital role in work force

Pasadena Star News

By: Cynthia Kurtz

Posted: 3/05/2014 

The San Gabriel Valley recently had a great celebration prompted by two events - the return of Dr. Steve Morgan, former President of the University of La Verne, to the SGV as President of the University of the West and the successful opening of Pasadena City College's (PCC) satellite campus in Rosemead. 

But it wasn't just about celebrating these events. The master of ceremonies, former Assemblyman and current Los Angeles Community College Trustee, Mike Eng said it best - we were there to "stand up for education." 

No one would dispute that there is a direct link between education, employment and income. Recent data suggests that these relationships are becoming more important.

Even at the depths of the recession, the unemployment rate for people with college degrees never exceeded five percent. Those fortunate enough to have some college education had an unemployment rate of seven and a half percent. For high school graduates unemployment was around 10 percent. Anyone without a high school diploma faced a daunting unemployment rate of 15 percent - three times higher than someone with a college degree.

Education also effects earning power. According to the U.S. Bureau of Labor Statistics in 2012, someone with an associate degree could expect to make 85 percent more that someone without a high school diploma. 

But it isn't just about years of training and money. It is also important to match employment training to the requirements of the jobs being created.

History provides the perspective we need to understand the future. In 1960, 20 percent of the available jobs required a four-year degree, 20 percent required an associate degree or some technical training, and 60 percent were considered unskilled positions requiring no formal training or education. You simply learned on the job.

Recently, the Harvard Graduate School of Education studied the educational requirement for positions that will be available in 2018. They found radical shifts in what employers are looking for in their workforces. 

In 2018, 33 percent of jobs will require four-year college degrees, 66 percent will require technical skills, credentials or associate degrees. Unskilled labor - 1 percent.

The study reinforces what we already know. Employers are not seeking persons who do not possess skills. Everyone needs to bring something to a job - writing, computer skills, math, problem solving - every job requires a "skilled" employee. The world moves too quickly to learn it all "on the job."

2018 is just four years away. The recovery of our economy depends on educating the future work force. The future of the San Gabriel Valley depends on educating our future workforce.

Weather has impact on the economy

Pasadena Star News

By: Cynthia Kurtz

Posted 2/13/2014 

January’s new jobs numbers were disappointing. Just 113,000 of the 175,000 projected jobs actually materialized. That is a letdown, especially after the private sector job growth for 2013 averaged 191,000 new jobs per month. And it was well below what is needed to provide employment for even new entrees into the workforce, let alone reduce unemployment.

Especially hard hit were auto and light-truck sales. Ford, General Motors and Toyota all reported declining January sales with Ford suffering a 14 percent drop. Only Chrysler continued to see growth with January sales up 8 percent.

After a strong fourth quarter in 2013, manufacturing experienced a slowdown as well in fabricated metal, petroleum and coal, and plastic and rubber products.

Retail sales reports for January come out tomorrow, but market watchers are predicting a drop in sales. Why the slowdown? What happened to the enthusiasm we saw as 2014 began?\

There are lots of theories. Quantitative easing, Washington’s continued bickering over the debt ceiling and immigration reform. Even Obamacare.

But the one reason that keeps creeping into many reports is “bad weather.” Really? Granted, we have all been willing at times to make do rather than brave bad weather. Test driving a car in a storm doesn’t sound like a good idea. Still, I wondered if lots of individual decisions to keep feet dry could really add up to an economic slowdown. 

I went looking for empirical evidence. I found it in a surprising place - an analytical arm of a property and causality insurance company which studies risk - ISO. Their March 2010 study “How Weather Influences the Economy” by Cecilia Szeand and Paul Walsh concluded there is a very direct and significant relationship between weather and the economy. In fact, they believe as much as 30 percent of the gross domestic product is affected by weather.

But it isn’t as easy as identifying bad weather with slow growth. Location plays a big role as well. Snow in Big Bear, California and snow in Atlanta, Georgia prompt very different consumer responses. Hot weather in the San Gabriel Valley and hot weather in Seattle aren’t the same.

Consumer demand is not the only economic factor influenced by weather. Local weather can affect commodity supplies such as losing a citrus crop or having insufficient water for farming. Weather interrupts supply chains by slowing or shutting down transportation systems. Power outages from severe heat or ice storms can cause production impacts. 

Impacts from weather - are they reality or a scape goat? Over the long term it is difficult to say. Some economic activity is permanently lost, but some of the reduced consumer spending will shift to future nicer days. Even storm cleanup and new construction can create jobs and offset previous losses. 

But there is little doubt that January 2014’s record-breaking weather did have a negative impact on the pace of the economic recovery. Let’s hope for some precipitation in the west and warmer temperatures in the east to get us back on track.

You can turn adversity into advantage

Pasadena Star News

By: Cynthia Kurtz

Posted 2/05/2014

It happens to everyone. You are moving along and life throws a curveball at you. I am not talking about having too much work or a day when things keep going wrong. I am talking about the times when it feels like the bottom has fallen out of your world. 

It is frightening, it is stressful, and you probably think about giving up. Rather than beating you down, there is a lot of evidence that adversity offers opportunities for growth. Tackling tough problems can develop your leadership and life skills. 

Last week David Schechtman of Tru Progress Consulting told members of the San Gabriel Valley Economic Partnership why adversity can be your “new best friend.” David sites the work of the Center for Creative Leadership (CCL) as evidence. 

If you don’t know about CCL you might want to check them out. They are consistently ranked as one of the leaders in executive education and leadership development. Their work is based on extensive research and draws on the experiences of tens of thousands of leaders and organizations. 

When CCL asked accomplished leaders what was important in their own development, three answers stood out. Important relationships. That makes sense. Role models and mentors are important. Big assignments. Of course adding responsibilities builds confidence. But the most important experience cited by both men and women was facing hardships. 

Facing hardships isn’t automatic. Our instinct is to turn inward and hide. That response will not lead to growth. Instead, David counsels his clients to take charge, crack open that protective shell and leap into your heroic self. 

What does that mean to us mere mortals?

Taking charge doesn’t mean being in control of the situation or giving orders to others. It means taking charge of you. It means accepting that bad things happen, producing the self-determination you’re going to need to keep going, and not expecting someone to come to your rescue. 

Cracking your protective shell means embracing change and being open to learning. Situations are never going to be exactly the same. Make time to be reflective about what that means to you and to those you care about especially family, colleagues, employees and customers. 

Leaping into your heroic self means being willing to take risks – risk of change, risk of making mistakes, risk of failure.

Maybe you aren’t quite ready to make adversity your bff but clearly facing hardships offers lessons you can’t learn any other way.

I think now I understand why the Mandarin word for “crisis” means both “danger” and “opportunity.” We will face adversity in our personal and professional lives. It is our choice how we face it.

California, Norway face similar, tough issues

Pasadena Star News

By: Cynthia Kurtz

Posted 1/23/2014

Recently, I was one of a small band of Southern Californians who headed to lands north of the Arctic Circle in search of the northern lights. No matter how long you plan or how much cold you are willing to endure, there is no guarantee you will see the lights. We were fortunate. After four days of watching and waiting, the green curtain appeared and danced across the sky. It is a sight I will never forget.

Travel always includes so much more than you expected and Norway was no exception. This year the country that invented the cheese slicer is celebrating its 200th anniversary of their constitution. After years of rule by Sweden and Denmark, Norway became independent in the early 20th 

century.

Not having their own line of monarchs to call on, the Norwegians elected Prince Carl of Denmark as King. Even so, Norway has never really trusted the other European countries. Several votes to join the Euro zone have failed and Norway remains one of the two Nordic countries which have not joined the EU. The Krone is still the national currency.

The economy of Norway is an amazing story. It was a relatively poor country based on fishing and ship-building until the mid-1970. Then the discovery of off-shore oil and gas reserves transformed everything.  Wages went up, unemployment went down and the already extensive social welfare system was expanded. 

Today Norway remains one of the world's largest oil exporters. Twenty percent of the country's gross domestic product (GDP) is from oil and gas. Showing its independence again, Norway decided to stay out of OPEC and keep its energy prices in line with world markets.

A rapidly expanding economy creates challenges as well as benefits.   Norway is one of the most expensive countries in the world. While not a problem for the locals based on their salaries, a traveler may be shocked by a $30 hamburger. 

As I was learning Norway's story I was struck with two things that made me think about California and the SGV. First, because things have been so good in Norway, there has been little incentive in the last 40 years to develop new industries. Even though 42 percent of the oil reserves are still to be extracted, local and national governments realize this is not sustainable. They are beginning to look for other private sector growth that will replace the energy sector in the future.

We face similar issues with the loss of manufacturing, filming and other industry sectors that have historically been important to our economy. We want to do what we can to keep and grow them here. But it is really difficult to hold on to a declining or fleeing industry sector. Equally important is identifying where our future economic growth and jobs will be and putting in place the support systems they need to sustain our future.

Second, learning English is mandatory in Norway starting in kindergarten. Many people speak additional languages. They respect and retain their culture but give their youth the tools to participate in the global economy. I think we would all agree that our youth deserve the same opportunities.