“Silicon valley” employment reform: reshape the invisible hand, job seekers do master

cloud network hunting note: threw hundreds of resumes are went over and over again at the interview doing tests have nothing to do with the job, the company has no human want to quit but afraid of becoming unemployed, I believe that most people have this experience, the bitterness and helpless. The same market, why can’t our labor market like other market quickly and efficiently? All problems in the instructions, the current labor market needs reform.

work is the lifeblood of the economy. Being self-employed or working in the company, workers need stable income to buy daily necessities and other consumer goods. When jobs are plentiful, the conflict between job seekers and employers will be reduced accordingly, salary is more stable in a timely manner.

famous economist Adam Smith proposed that in the capitalist market, has a pair of “invisible hand” regulation in the market. Each person can not be affected in pursuit of self-interest maximization principle to make a decision, the producers to provide goods and services, consumers to buy these goods and services, market between supply and demand, according to the natural fluctuations in the price, configuration guide resources to the most effective ways.

in the labor market, also has a pair of “invisible hand”. The ability of labor remuneration and job seekers, employers competing for jobs demand of talents. The advent of if as a talent, the company can create more profits, so in theory, companies need to pay more rewards for him, and to poach the talent.

but the above hypothesis only in theory. In fact, the Labour market is full of viscous friction and continuous plagued by human resource managers and job seekers. Even in the golden age of social economy, from start to look for a job to find ideal job stable, still need to spend a couple of weeks (which haven’t calculate on probation, of course, this period of time). In the period of economic recession slightly, a few weeks time may become months or even years, leading to one group of unemployed personnel unable to find a ideal job.

viscous friction in the labor market is a concept of what? To understand it, just as quick long hiring and simple shopping together on compare, especially compared to the latter, the facilitation of the former is implemented as early as a few years ago. Now only a few clicks the mouse can purchase an item on amazon, and goods delivery on time, after-sales service very considerate, no worries.

obviously compared to the commodity market, labor market seems to be stuck in the era of Adam Smith’s economic theory, walk not to come out. A few decades ago, we use the resume and cover letter to look for a job, remains so after a few decades. After throw the resume and interview, even though there have been data showed that the practice of these old and can not accurately evaluate a candidate’s ability. Frankly, the years, the largest of the entire job search process improvement is introduced machine screening of resume, but in addition to knock several descend a keyboard and other more pointless actions, these improvements to improve the efficiency of the hiring process without a substantial help.

in short, the Labour market in this “invisible hand” has been “disabled” for years, just we have not fully realized. The reason is that the Labour market is too sparse, Labour quantity is limited, employers are more limited. This in turn leads to the algorithm of market is particularly important. Startup thoroughly change the nature of the Labour market, long-standing people has also changed the view of the importance of employment and income security. In the process, entrepreneurial firms not only make our economy more efficient, and improve the living standards of the workers.

job security and intensive Labour market

in order to analyze the cause and effect of our labor market transition, to better understand the process of development, we will need to review some of the Labour market in the past history. Over the past few centuries, the land is that people live in resources. Since after the fall of the Roman empire, and almost every one European people’s life cannot leave the land – either directly work on land, or wait for land cultivation harvest the fruits of feudal lords, land is crucial.

at the time of the cases, job security and modern cognitive is two concepts completely. At that time, the income is harvest crops, changing weather patterns may brings harvest of crops can also lead to crop failures. Although there are some buffer to disaster, but most will eventually lead to serious condition facing the family of careful calculation and strict budgeting the severe economic crisis.

the rise of cities gradually changed the situation. For the first time, laborer is free to choose a career, work from faces upwards toward the loess back traditional cultivates. These emerging markets, however, is the foundation, development is very slow, almost no change for centuries until the early nineteenth century industrial age rapid rise caused a further shift. The next time, it is the familiar modern labor concept gradually formed steadily.

what are the characteristics of the modern concept of labor? First of all, a safe and stable working environment is one of the most important factor in the modern work environment, then rest also includes a variety of mechanisms, such as weekends and statutory holidays. But one of the most important for the development of modern labor market progress should be on fire protection workers. In term of law, anti-discrimination laws, human resources regulations, legal proceedings or other relevant agencies, to protect workers were fired without cause there is no doubt that is nearly two hundred years to being able to get the biggest rights and interests of the laborer for yourself.

I have previously mentioned, by the way the cause of the protection of rights and interests of workers fired. Because the Labour market is filled with friction, that is once lost his job is likely will affect the entire family’s financial situation. And find a new job usually need to take a few weeks or months, so the workers in the general case will be more inclined to keep the current job. Over the past few decades, the U.S. government shrinking employment protection, a lot of families rely on double income to maintain a general balance of the family. In short, in the current labor market, the so-called job security is to avoid changing jobs.

basically, the problem is the “density” of the market. So we can understand the intensity of the market, is in the same market, the number of buyers and sellers. When the number of consumers and producers are limited, the market price is difficult to define, so also is not easy to do. When a substantial increase in the number of people on both sides, the market information, so there are more efficient operation of the market, and reactions to prices more quickly. That is why buy clothes much easier than buying a house – high housing prices led to a lack of trading volume, there is not enough volume to provide market information also means that buyers and sellers can’t fully understand the market, can not successfully complete the transaction.

the same problem in the labor market is more acute. Only when employees in one of the few areas of science and technology has high liquidity, and in most enterprises, recruitment process is hard to say is very perfect. As a result, lead to the Labour market is very thin, only a few workers from job-hopping to another company, the company for the subsequent job applicants to provide information on current job. In these companies, whether the United States or anywhere in the world, we only have one goal, that is as far as possible to maintain employment stability, avoid turning to the Labour market. We have been constantly trying to change, but little results.

to have a intensive labor market, what situation we will face?

said there was no progress seems a bit too negative, but the fact is we make most of the efforts were useless. If you are curious about intensive Labour market will be what appearance, might as well consult service industry, such as food preparation and housing maintenance. Thank the people of innovation, such as joining chain, as well as increasing the independent contractor terms, these workers now no longer as before, there are all kinds of labor protection and increasingly more and more friction with the Labour market. But in fact it is not in the true sense of intensive labor market, it is just a little “intensive”.

in the labor market, employers have absolute advantage in the recruitment process, so that makes it difficult for job seekers to ask a considerable income and stable job arrangement. Staff working time of service industry can at any time, and so is every week, the work schedule and brought many problems to take care of the family. Despite the problems, however, given their own life has been pressed, the laborer is not to think about changing a job.

we can see that the inequality of employment statistics also clearly reflects the above a variety of trends, the media and academia in the past few years have also been attention to discuss such issues. Ever has a good job security and a decent income middle class work is gradually losing its status now, replaced by low-income and insecurity of the labor contract. Accumulating wealth in the hands of a few people, and the descendants of the middle class is slowly found have been hollowed out of the U.S. economy is to clear to the bottom of the economic system.

in the end the result is similar to “occupy Wall Street” type of mass movement, requiring companies to improve treatment of employees. Review of the sixties and seventies of the last century, the worsening working conditions aroused people thirst for the past good work environment, before that, the rights and interests of workers can get a great deal of security (women’s labor rights and interests, of course, also have a security). All sports for the purpose of this period is only one: they want from the vagaries of the market should have security, they hope in this economy everyone can get fair treatment.

this is a feasible method. But if draw lessons from the past and can not really solve the current problem? If we really set up an intensive labor market, and there are no viscous friction, and will be how a scene?

or service industry as an example, a service sector workers are reluctant to move easily because they need to pay the remuneration to guarantee the stability of their lives. May change at any moment, on the other hand, the work schedule make it hard for them to take time out to deal with all kinds of job interview.

but in the intensive labor market, otherwise don’t have time to interview the workers will soon be able to learn the latest recruitment information, to find better jobs, also need not worry about the problem of labor remuneration, because the market has enough information for each job seekers to provide reference to wages, and working time can also be clear. If our labor market is intense, laborer can even today to resign tomorrow to a new company. In silicon valley, for example, in the morning is a software engineer working for Google, in the afternoon, I became a member of the Facebook. Later, not only in silicon valley, any place, any job seekers, will have the ability to do this.

as a result, once in the service sector suffered unfair treatment of workers will eventually have the ability to say no to the employer, capricious once employers put forward unreasonable demands they can fire the boss immediately, abundant employment information to let them no worries couldn’t find a job. For employers, they have to face their advantage dwindling facts in the hiring process, and also need to provide reasonable protection and compensation for employees, otherwise, they can only be a polished rod commander.

then all of a sudden, job security is no longer avoid changing jobs, on the contrary the way that people are more welcome to change your job to find better and more suitable job. Than any security provided by the laws and regulations, there will always be a next job waiting for you to know, the more can alleviate the psychological pressure of the workers. But also for the future prospective mother can safely resting at home don’t have to worry about the baby after the birth of his has lost his job.

is not only a job security for promotion, work flexibility also had the very big enhancement. Intensive labor market also to people’s work schedule and work time has brought greater flexibility. Workers who want to rest on Wednesday now to rest, because the market of those “invisible hand” will soon be able to find another employee to fill. Similar to the one or two hours more workers can also in this period of time to find some part-time job to earn some extra income.

although all these assumptions that sounds very good, but a significant issue is: only when prices depends entirely on the market dynamic, market is the market effectively. Means, unless to achieve a balance, or remuneration will always fluctuate. So according to the theory of market price, you’ll find that when a large number of workers into an easy to find jobs of the service sector, was attractive remuneration will plummet.

this is a very obvious and important problems, but at the same time the above hypothesis has a serious flaw: all data from sparse labor market, rather than we assume that the intensive Labour markets. nullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnull