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CNN Live Sunday

Your Education Doesn't End At 22

Aired February 15, 2004 - 18:39   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KELLI ARENA, CNN ANCHOR: The White House got more negative press when the president's top economic adviser said that outsourcing jobs overseas is "just a new way of doing international trade." He eventually backtracked from that remark. Let's get some perspective on this issue of unemployment and the president's plan for bringing it down. John Challenger leads the Challenger, Gray & Christmas employment consulting firm in Chicago and Dr. Rajeev Dhawan is director of The Economic Forecasting Center at Georgia State University. Gentlemen, thank you for being with us.
RAJEEV DHAWAN, DIR, ECONOMIC FORECASTING CENTER, GEORGIA STATE UNIV: Nice to be here.

JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: Nice to it be here.

ARENA: All right, well let's start with this administration projection of 2.6 million new jobs created. Are you both in agreements that that is overstating things?

DHAWAN: I think those numbers are on the high range of the spectrum, and it's possible only if the big funds end up hiring people at a big pace in the springtime.

ARENA: Well, John you track such things. Do you see any indication that big firms are ready to start adding to the payrolls?

CHALLENGER: Well certainly the economy has been growing, 6 percent for the last six months, and if it continues that certainly lays the platform for more job creation. The key number is the productivity growth, it has been off the charts all last year, way higher than, really many would have ever have envisioned ten years ago. If it continues to come down, it did come down the last quarter that could create more room for job creation as employers start to add jobs.

ARENA: Doctor Dhawan could we be seeing what we've heard whispers of? A jobless recovery I mean is that possible and is that what we are indeed seeing?

DHAWAN: In a since we have seen a what you call a job loss in the recovery so far in the last two years we have lost close to like half a million jobs. And mostly because of the manufacturing sector which lost like a million and a half jobs. However, if you look at some other sectors like health and education, we gained around 840,000 jobs. But if we look at hospitality we gain jobs over there, so the trouble is when it comes to information sector, computers, technology, and manufacturing those high-paying jobs, they have gone away or are being lost still, and we are beginning back at some low paying jobs, so that is why the middle class is feeling a little bit uneasy, you know what's happening over here?

ARENA: Well, you know, outsourcing became a very hot button issue just this week. The whole concept of shipping jobs -- creating jobs but not here in the United States. Overseas and places like India. Let me ask you both, is this truly a bad thing for the economy, or did the Bush administration have a bit of a point in saying that it's not necessarily the worse thing that could happen?

CHALLENGER: I really don't think it is a bad thing for the economy, unless it goes too far. We have to be careful not to get caught up in this feeling that it's got to be countries overseas that are doing us harm. We're moving into the global economy, we've got find a balance where we help lift up those economies by creating trade relationships with them and recognize that some jobs are going to flow there.

The cheaper that we can get some of that basic technology, just like we got cheaper computers in the '90s the more growth we're going to see in this country.

ARENA: Dr. Dhawan does this argument play when you're not at full employment?

DHAWAN: Well globalization is a force we have to live with now but you know we have to look at why the companies that are outsourcing. And I like at -- I like to look at the revenues of the companies. Now, if you look at the revenues like big companies like GE or Cisco, they have been showing you great profits. But the revenues have been flat for the last three years.

Now if your revenues are flat and you need to show profits you've got cost. And what's the easiest thing to cut? Labor, and at that point, outsourcing, or even outsourcing management jobs becomes important and that's what we're seeing right now. Unfortunately, what we are gaining from trade, we can't prove it. We can only prove what we are loosing to out sourcing and that is why you have this uncertainty and fear among the middle class.

ARENA: John Challenger, one of your specialties what do workers need to be prepared for to get a job, if they're looking?

CHALLENGER: Well certainly today you have to think of your education as lifelong. You cannot end it at 22. So take advantage of the tuition reimbursement programs, the trading programs that your companies offer. But, also, today you have to constantly be engaged in more than just your company's activities, you have to be involved in industry associations, professional organizations, and community organizations. Because when the edible job changes come it is so people that you find your best new jobs, so create an alumni networks.

ARENA: All right, John Challenger, Dr. Rajeev Dhawan I thank you both for joining us.

DHAWAN: Thank you, thanks for having us.

CHALLENGER: Thanks Kelli.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired February 15, 2004 - 18:39   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLI ARENA, CNN ANCHOR: The White House got more negative press when the president's top economic adviser said that outsourcing jobs overseas is "just a new way of doing international trade." He eventually backtracked from that remark. Let's get some perspective on this issue of unemployment and the president's plan for bringing it down. John Challenger leads the Challenger, Gray & Christmas employment consulting firm in Chicago and Dr. Rajeev Dhawan is director of The Economic Forecasting Center at Georgia State University. Gentlemen, thank you for being with us.
RAJEEV DHAWAN, DIR, ECONOMIC FORECASTING CENTER, GEORGIA STATE UNIV: Nice to be here.

JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: Nice to it be here.

ARENA: All right, well let's start with this administration projection of 2.6 million new jobs created. Are you both in agreements that that is overstating things?

DHAWAN: I think those numbers are on the high range of the spectrum, and it's possible only if the big funds end up hiring people at a big pace in the springtime.

ARENA: Well, John you track such things. Do you see any indication that big firms are ready to start adding to the payrolls?

CHALLENGER: Well certainly the economy has been growing, 6 percent for the last six months, and if it continues that certainly lays the platform for more job creation. The key number is the productivity growth, it has been off the charts all last year, way higher than, really many would have ever have envisioned ten years ago. If it continues to come down, it did come down the last quarter that could create more room for job creation as employers start to add jobs.

ARENA: Doctor Dhawan could we be seeing what we've heard whispers of? A jobless recovery I mean is that possible and is that what we are indeed seeing?

DHAWAN: In a since we have seen a what you call a job loss in the recovery so far in the last two years we have lost close to like half a million jobs. And mostly because of the manufacturing sector which lost like a million and a half jobs. However, if you look at some other sectors like health and education, we gained around 840,000 jobs. But if we look at hospitality we gain jobs over there, so the trouble is when it comes to information sector, computers, technology, and manufacturing those high-paying jobs, they have gone away or are being lost still, and we are beginning back at some low paying jobs, so that is why the middle class is feeling a little bit uneasy, you know what's happening over here?

ARENA: Well, you know, outsourcing became a very hot button issue just this week. The whole concept of shipping jobs -- creating jobs but not here in the United States. Overseas and places like India. Let me ask you both, is this truly a bad thing for the economy, or did the Bush administration have a bit of a point in saying that it's not necessarily the worse thing that could happen?

CHALLENGER: I really don't think it is a bad thing for the economy, unless it goes too far. We have to be careful not to get caught up in this feeling that it's got to be countries overseas that are doing us harm. We're moving into the global economy, we've got find a balance where we help lift up those economies by creating trade relationships with them and recognize that some jobs are going to flow there.

The cheaper that we can get some of that basic technology, just like we got cheaper computers in the '90s the more growth we're going to see in this country.

ARENA: Dr. Dhawan does this argument play when you're not at full employment?

DHAWAN: Well globalization is a force we have to live with now but you know we have to look at why the companies that are outsourcing. And I like at -- I like to look at the revenues of the companies. Now, if you look at the revenues like big companies like GE or Cisco, they have been showing you great profits. But the revenues have been flat for the last three years.

Now if your revenues are flat and you need to show profits you've got cost. And what's the easiest thing to cut? Labor, and at that point, outsourcing, or even outsourcing management jobs becomes important and that's what we're seeing right now. Unfortunately, what we are gaining from trade, we can't prove it. We can only prove what we are loosing to out sourcing and that is why you have this uncertainty and fear among the middle class.

ARENA: John Challenger, one of your specialties what do workers need to be prepared for to get a job, if they're looking?

CHALLENGER: Well certainly today you have to think of your education as lifelong. You cannot end it at 22. So take advantage of the tuition reimbursement programs, the trading programs that your companies offer. But, also, today you have to constantly be engaged in more than just your company's activities, you have to be involved in industry associations, professional organizations, and community organizations. Because when the edible job changes come it is so people that you find your best new jobs, so create an alumni networks.

ARENA: All right, John Challenger, Dr. Rajeev Dhawan I thank you both for joining us.

DHAWAN: Thank you, thanks for having us.

CHALLENGER: Thanks Kelli.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com