By Kevin M

I don’t normally write much on economics, largely because I think its one step above fortune telling—maybe. You look into the tea leaves (“economic data”), sift it around a bit and make predictions about what you think is happening and more particularly, about what you think WILL happen.. Hence the fortune telling analogy.

So why am I sticking my hand into this hornets nest of omniscience? Mostly because I write about personal finance, and I’m of the opinion that personal finance without some concept of economics is akin to taking off in an airplane without radar. How do you know what to prepare for if you have no concept of what it is you’re heading into?

Even though my crystal ball is still malfunctioning, I figure I’ll take a stab at what I think is happening in the economy and where I think we’re heading. Heck, even without it I doubt I can do a more laughable job than the people who do it professionally, also known as “economists”.

Warning: this won’t be light reading—and for some, it won’t be at all pleasant.

What I think is happening

We’ve had recessions in the past, many of them in fact, but I think most of us have an idea that there’s something different happening this time, something more ominous. My experience is that when the “little voice inside” is telling you something is wrong, it usually is. Here’s what I dare to think it is…

At the risk of sounding simplistic, we’re now experiencing the end of the Age of Bigness. Sounds goofy, I know, but please read through before dismissing it.

The end of the Age of Bigness is the flip side of the Industrial Revolution. When industrialization began, the apparatus for growing systems—let’s call them mega-systems—began to develop and spread throughout the industrialized world. Once started, they could leverage people, capital and resources in a way that enabled them to go on permanent growth trajectories. Consider the following.

Big Government. Up until 150 years ago, government was little more than a monarch of some sort, his ruling council and a small army that could grow only during war. Today we have all-encompassing government which not only makes laws and maintains national defense, but also provides cradle to grave benefits for the populace and is somehow involved in nearly every aspect of our lives right down to the most personal level.

Big Business. For thousands of years the economy of the world was based on cottage industry and family farms. Today we have conglomerates with operations in dozens of countries but loyal to none of them.

Big Education. Not even 100 years ago, one room school houses were the backbone of education, and career training was based on the apprentice system. Today we have statewide public school systems and university systems with multiple campuses and tens of thousands of students.

Big Media. Until radio came out in the early 1900s, the only trace of a media was the local independent newspaper. Before that it was gossip and the town crier. Today, not only do we have radio and TV, but most of it is joined in media conglomerates with global reach.

Big Healthcare. Long gone is the witch doctor or high priest, or even the country doctor. And increasingly, so is the local general practitioner. They’ve been replaced by expansive healthcare systems run as Big Business. The patient is sent from specialist to specialist, rarely having more than a few minutes with any.

These are just the most prominent examples of the modern age trend toward bigness, but there are others. Each provides certain benefits to the population, but the cost of maintaining the systems themselves is now exceeding those benefits. The de facto evidence is found in the perpetual rise in prices and the need to use debt to keep them afloat.

That system of bigness, I believe, is coming to an end and represents the source of the dislocations we’re now seeing and trying to deal with.

Evidence of mega-system failure at all levels is all around us. Consider the following:

• National governments are existing in a state of perpetual deficit—in the US alone, more than 40% of the federal budget is “funded” by borrowing

• Local governments have turned to police citations to fund operations

• Big healthcare runs almost entirely on government and private health insurance plans (as opposed to cash payments) which now carry premiums the size of house payments; tens of millions are going without them for lack of ability to pay

• Virtually the entire pension system in the US, both public and private, is facing a massive funding crisis

• The university system, which has exploded in size and scope, is funded largely by student debt that can leave the student with a six figure liability upon graduation

• The value of any system is in its simplicity, but mega-systems have become increasingly complex, often requiring thick manuals or the hiring of lawyers to navigate

• Most debate in regard to the various mega-systems centers not on improving them, but in keeping them afloat!

Far from being synergistic, maintaining The System is now both cumbersome and prohibitively expensive. Not only are the various sub-systems straining to keep themselves afloat, but the citizenry is struggling to comply with supporting them.

The Industrial Revolution-inspired model of increasingly large systems that facilitated growth for a century and a half is broken. “The System” can no longer fix itself and is an obstacle to progress. The System is now in survival mode.

Where I think this will lead

There might be a temptation to consider this as a bad news assessment, and while it is in the near term, I think it will ultimately lead to a better place.

We went from “smallness” to bigness during and since the Industrial Revolution, and now we’re likely to return back to smallness. Cottage industry, in the form of at-home self-employment will gradually replace big employment centers, as nearly anything done in a large organization can be done by a one man or woman shop from home and done at less cost.

The at home revolution will force more self-reliance and reliance on local community—where it had been for most of human history. Meanwhile, technology—the magic bullet many expect to solve our biggest problems within the scope of The System—far from fixing it, will hasten it’s end.

Consider what technology is doing and what we can reasonably expect it to do in the near future:

• Computers and the Internet—These technologies are already here and having a major impact moving into the world I’m describing. They have taken commerce out of the ivory tower and put it back in the home, launching a revolution in the modern equivalent of cottage industry.

• Electric cars—We’re not quite there yet, but we’re on our way. This has been talked about for 30 years but it’s finally hitting the scene for real. Current batteries for all-electric cars can’t sustain 100 mile charges now but they’re improving quickly. When a battery that can go 200+ miles between charges arrives for real it will break big oil and it’s monopoly on motor fuel, and empower the individual.

• Renewable energy—wind and solar—Again, we’re getting to the point where renewables will be cheap enough to compete with fossil fuels, and once that happens in earnest, utility monopolies will be broken and individuals will be empowered.

Consider the combination of electric cars with renewable energy generated from at-home solar panels or windmills serving as the power source; now combine this with the income generating capability that computers and the internet afford. All will enhance individual economic, political and personal freedom, but the decentralization will prove crippling to The System.

How things are likely to play out between now and then

It would be a massive advantage if we could jump from where we are now—with an anemic and declining economy—to the future I just described—but it won’t happen that way and that’s where things are likely to get a lot worse than they are now. Here is what we’re likely to see play out between now and the better future

1. System based debt structures are already unsustainable but will be even more so in a decentralized economy and will have to unravel; the meltdown since 2007 was probably the start of a process that’s likely to get much worse.

2. The System can be fully expected to dig in and resist its own destruction. Collectively, the majority will continue to look to The System for salvation—to their own peril.

3. Massive economic dislocation and disenfranchisement will occur as the unraveling of The System moves more quickly than the shift to individual reliance.

4. One man/one job will be coming to an end as income from traditional jobs continues to erode and workers are forced into involuntary self-employment and the pursuit of multiple income streams.

5. Contrary to popular belief and in spite of populist speeches by politicians, the state will resist—not facilitate change. Big systems are far easier to tax and to regulate than an economy based on tens of millions of self-employed individuals.

6. Government budget issues are likely to get worse, even much worse, as change moves through the economy.

7. Colleges and universities will be unable to provide educations relevant to a decentralized economy that runs on millions of unique businesses. Nor will they be able to compete with online training that will be only a fraction of the cost. Meanwhile The System has abandoned training or retraining. Self-study will become the preferred route to “higher education”.

Most of these aren’t even a stretch—we’re already seeing them play out to one degree or another. This is just a matter of projecting current trends out to their logical extremes.

Strategies

This is a time for neither blind optimism nor gloom and doom, but openness to change, flexibility, and a willingness to grow and take chances. Specific strategies are difficult to project since the situation is in a state of flux. But going forward, strategies that will attempt to work in this direction will make up much of the content on this website.

What do you think? Do you see any of this playing out? Do you see things going in a radically different direction? Or do you think that The System will ultimately cure itself and keep us on a more traditional path?

Can you offer any strategies to help us deal with these changes? If you’d like to write a post, either challenging my predictions, supporting them or proposing strategies, feel free to contact me at kevin (at) outofyourrut (dot) net and I’ll publish it.

If you’d like to start developing your own home business, check out my post, The Freelance Blog Writer Side Hustle. Even if you’ve never written professionally in the past, this post will help get show you how to convert your passions and interests into an income earning business that you can work in from the comfort of your own home.

Related Posts:

How Are You faring in the “Jobless Recovery”?

How Frugality Becomes Counterproductive

Buy a Business OR Build One From the Ground Up?

All Jobs are Temporary! (And What You Can Do About It)

A Successful Online Business Requires Realistic Expectations

Multiple Income Streams to replace One Man-One Job?

By Kevin M

A few weeks back a comment was placed on this site by a visitor who’s url address included the letters “tv”. Since I’m always on the lookout for new and interesting career and business ideas, I had to follow up on this profile. If he was involved in television in any way, that might be a career profile worth looking for a story in. But upon following up through his website, I found out he certainly does have a most interesting career, but one that has absolutely nothing to do with television.

His career? Day trading.

It never crossed my mind to consider day trading to be a career of any sort. I’ve mostly tended to think of it as an investment scheme of some type, and not one for the faint of heart. (That part is most definitely true—see the “Disclaimer” from his website below if you have any doubts.)

I emailed Chris Dunn through his website, The Blog of Chris Dunn, Chronicles of a Day Trader, then arranged a phone interview in which I received a detailed education on what day trading is and what it isn’t.

A different approach

I had certain reservations after reviewing his website since it isn’t my intent to write about investment programs on OutOfYourRut. But, what drew me immediately was Chris’s description of his life’s work as essentially a business. I have no experience as a day trader, and therefore I’m in no position to give a truly objective assessment on the realities of day trading. But like most of the human race, I have certain preconceived notions of what’s involved and I can say without reservation that I’d never associated day trading as a business.

Not only is Chris a regular day trader, but he also is involved in a training program for would-be traders. A typical day for him is split between trading for his own account, usually for 1 ½ to 2 hours in the morning, spending much of the rest of the day on the training side of his business.

We spoke for over an hour and what impressed me is the respect in his voice for the power and risk involved in the stock market. He’s a young man already earning a living from the market, and yet he has a deep appreciation for the damage that the financial markets can inflict, a concept’s that’s often lacking in the mainstream financial community.

Chris warns that 95% of people lose money day trading—how’s that for shameless promotion of his craft! He came into day trading during his brief tenure in the mortgage business, where a coworker made $2300 in less than 15 minutes. Chris tried to follow his lead, then promptly lost $5000—but it whet his appetite to go deeper. He began trading in 2002, but the money became more serious in 2007, ironically the year the markets turned.

For what it’s worth, Chris does not have a college degree, and learned day trading by doing it. He says you can day trade anywhere there’s a good internet connection, and he plans on doing some extended overseas travel in the not too distant future, laptop in tow of course.

The parameters

Chris seems to be as aware of the risks in day trading, as well as in the markets in general, as anyone I’ve ever spoken with. Part of what motivated him in approaching the market through day trading is what he calls the “buy and hope” mentality often associated with stock market investing. Ultimately there are so many variables involved in stock securities that hope often seems to be all there is on long term plays.

He fully expects to lose. His target however is a 60/40 win-loss ratio, in which inevitable losses are offset by more frequent gains. Much like sales (and every other business) then, the day trading business is also a numbers game.

Interestingly, Chris maintains that volatility is a plus when day trading. He made more money after the market began to slide in 2007 than he in earlier years when the markets were on an elevator ride up.

One way he minimizes risk is by not holding overnight positions. After all, you can’t know what’s happening while you’re asleep. He also recommends starting with a simulated account until you’re comfortable with what you’re doing, and showing a trend of successful trades.

Citing “slippage” as a risk with smaller, less liquid securities, he makes it a practice to trade in the larger, more liquid markets. You can trade in stocks, commodities, currencies and indexes. He favors trading the indexes for size and liquidity, since thinly traded securities can see substantial trading ranges in a matter of hours.

Day trading is not a business for someone tight on funds. The minimum to open a stock trading account is $25,000, however if you trade e-mini futures as Chris does, the minimum is $5000. There is great leverage (RISK) involved; $1000 controls $50,000 worth of investments, so the potential to lose more than your investment is very real.

”Simple, but not easy”

Chris characterizes day trading as “simple but not easy”. “It’s a work-a-day process, a discipline, and not a get rich quick scheme.”

“You have to master your emotions,” he advises, “You learn who you are when you trade—and money affects who you are. Discipline has to control emotions—emotions are where money is lost. You can’t get caught up in emotions by chasing the market.”

He claims you can earn money in both up and down markets, by going long or short. But you can also lose more than your investment so you need to know what your doing and how to prevent that. Trading in the larger, more stable and more liquid markets is a big key.

One other point he cautions on is that day trading is not for everyone! “The worst traders are successful business men who have big egos, but you have to check your ego at the door. Housewives actually tend to be better at it.”

The training program

Based on his experience, Chris strongly recommends that you don’t engage in day trading until you’ve had training. He offers a training program, complete with ongoing training even after the basic program is completed.

The basic program takes two to six weeks to effectively learn the program, which includes 40-50 hours of video. System and software are included, as well as interactive webinars.

You start with a simulated account until you can prove that it can be done, and only then do you start trading live.

The program also stresses exercises to develop self-discipline and trading psychology.

Even with his own training program, Chris cautions that “There’s no ‘holy grail’ in trading systems”.

If you’re well capitalized, and have some money to take chances with—money you can afford to lose—and you’re looking for a way actually work in and with the markets, this could be a way to do it.

You can get more information on Chris Dunn’s training program at Emini Academy.

Disclaimer

U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

By Kevin M

One of the driving purposes of OutOfYourRut.com is the identification of career and business opportunities, primarily for people engaged in one line of work but seeking entry into another.

In that vein, a noteworthy article appeared on Yahoo! Finance yesterday, 10 Jobs With High Pay and Minimal Schooling Required! written by Michael King. The article lists 10 careers that don’t require a bachelor’s degree for entry, but pay wages which are generally above average.

There are several articles with this same theme here on OutOfYourRut.com, either as full reprints or by excerpt, but in this time of career transition for so many people, it’s one worth revisiting often. The jobs appearing on each list tend to be at least somewhat different from one list to another, either because of the time of compilation, or the orientation of the source.

The List

Depending on your current education and career experience, one or more of these careers might be worth investigating further. As listed by the original article, the ten careers, including median incomes (for 2006 according to the Bureau of Labor Statistics) and general training requirements for entry include:

1. Air Traffic Controllers. Median income: $117,000; training: “Typically, two to four years of training are needed in order to become fully certified, although previous military experience can cut that time down significantly.” Bonus: air traffic controllers can retire after just 25 years of service at any age.

2. Industrial Production Managers. Median income: $77,670; training: “A college degree is preferred, but not necessarily mandatory.”

3. First-Line police and detective supervisors. Median income: $69,300; training: “Police officers can advance through the ranks to become supervisors by passing exams and achieving good performance reviews, and advanced training can help win promotions.”

4. Funeral Director. Median income: $49,620; training: “College programs in mortuary science usually last from two to four years. You typically must also serve a one-year apprenticeship, pass an exam and obtain a state license.”

5. Police and Sheriff Patrol Officers. Median income: $47,460; training: “Applicants usually must have at least a high school education, and some departments require a year or two of college or even a degree. Rookies are trained at police academies.”

6. Advertising Sales Agents. Median income: $42,750; training: “20% have a high school degree or less, and 10% have an Associate’s degree.”

7. Real Estate Brokers and Sales Agents. Median income: $39,760; training: “While advanced coursework is not necessarily required, new entrants must pass an exam and get a state license. Connections in the community and a willingness to work hard are what really count, but experience and a good housing market also help.”

8. Occupational Therapist Assistants. Median income: $42,060; training: “These workers usually need an associate degree or a certificate…(but)…Job prospects are good in the growing health care field, especially for those with some post-secondary education.”

9. Occupational Therapist Aides. Median income: $25,000; training: “These employees receive most training on the job…Competition for jobs is tougher for those with only a high school diploma.”

10. Physical Therapist Assistants. Median income: $41,360; training: “typically need an associate’s degree.”

(The list above is greatly excerpted from the original article, so it’s recommended that you visit the original for greater detail.)

Some Caveats…

While none of the careers on the list require a bachelors degree (or higher) for entry, it is clear that having one would be advantageous for many, especially for future promotion. If you already have a degree in an unrelated field, you may have an inside track.

There are some challenges on this list. Not everyone is emotionally cut out to be a funeral director, police officer or air traffic controller, so personality has to be factored into the mix. As well, advertising sales agents and real estate brokers and sales agents all involve SALES! If you have been successful in sales in the past, these fields may hold promise, but if you’ve never done anything similar, selling is a vastly different way to make a living than being on a steady paycheck. Consider also that sales are usually an uphill climb in recessions as consumers and businesses are more reluctant to make purchases. In particular, real estate sales are in an especially difficult period of time as has been well documented in the media.

Finally, industrial production managers may be a limited field, despite the high earnings potential. Jobs in the field are in manufacturing, a sector which has been hit harder than most by globalization and advancing technology. I’m no expert in the field, but competition for what positions are available is likely to be fierce against such a backdrop, and it must also be considered that much of the troubles in manufacturing have been happening for considerably longer than the recent recession.

But again, if you have parallel skills to any of the fields on the list, and have considered trying your hand at one in the past, now might be an outstanding time to take the plunge, especially if you’re unemployed or working in a dead end job. The key is to find a field that most closely matches the skill set you do have so that the jump won’t be so great.

Good luck!

Kevin M

With the job market tightening up in so many fields, and many jobs perhaps gone forever, the time has come to look into opportunities in skilled blue collar occupations.

An article appeared this morning on Yahoo HotJobs called America’s Best Paying Blue Collar Jobs discusses the highest paying jobs in the skilled trades.

Most of these jobs involve installing, servicing and repairing existing systems and technologies of the sort that are required by modern civilization, and are not likely to be eliminated through advancing technologies or even globalization. For that reason alone they merit investigation.

It’s doubtless that some of these occupations came to be precisely because of technology, since all complex systems need to be serviced and repaired on an ongoing basis. As well, the trend of young people, particularly from the middle class, to enter college norm occupations has reduced the number of applicants for these well paying jobs.

Some are very limited fields with only a small number of employees, like locomotive firers (970 employees in the entire field), while others, such as plumbers and electricians, employ several hundred thousand workers.

Certain fields have geographic restrictions. For example, oil and gas rotary drillers jobs will only be available in areas where oil and gas are produced, while aircraft mechanics and service technicians will be at airports, with the best opportunities in cities with larger airports.

Compensation
Herewith, the Top 20 from the article, including average annual salary (source: Forbes):

1) Elevator Installers & Repairers, $67,750

2) Powerhouse Substation & Relay Repairers, $60,700

3) Transportation Inspectors, $59,200

4) Commercial Divers (not DRivers), $54,940

5) Oil & Gas Rotary Drill Operators, $54,370

6) Power Line Installers & Repairers, $54,300

7) Locomotive Engineers, $53,470

8 Boilermakers, $53,100

9) Locomotive Firers, $52,950

10) Telecommunications Equipment Installers & Repairers, $52,650

11) Aircraft Mechanics & Service Technicians, $51,650

12) Pile Driver Operators, $51,640

13) Precision Instrument & Equipment Repairers, $50,400

14) Millwrights, $50,030

15) Electricians, $49,890

16) Railroad Brake, Signal & Switch Operators, $49,400

17) Subway & Street Car Operators, $49,330

18) Commercial & Industrial Electrical & Electronics Repairers, $49,260

19) Plumbers, Pipe Fitters & Steam Fitters, $49,200

20) Signal & Track Switch Repairers, $49,060

Compare the average annual salaries listed for each career with the national average of all salaries of $42,270, as quoted by the article. Also, though the article doesn’t mention this, benefit packages in skilled fields can be more lucrative than what is available in many white collar occupations. This is because either the jobs themselves are in high demand or because they’re concentrated in old line, union type organizations more representative of employer compensation packages of a few decades ago.

Qualifications

As the article states so brilliantly,

“A high school diploma and four or five years of training may sound like a lot, but remember, that’s usually on-the-job training, which can help keep a roof over your head while you work your way up — rather than get you tens of thousands of dollars in debt, as going to college does for so many.”

Earn while you learn; it’s a dated concept now, but it’s the way people learned their livelihoods for centuries prior to the post World War II era, and as the article states, it provides the employee with the ability to earn a real living while perfecting his craft.

For young people searching for a career idea, and for the over 30 crowd looking but not finding that next solid opportunity, the skilled trades may be place to concentrate the search.

STRATEGY #4 TO SURVIVE A DOWN ECONOMY

By Kevin M

When ever the economy turns sour, there’s a general tendency to stay on current jobs as long as possible, under the belief that it’s better to stay where we’re established than to go to another company where we’ll be the new/low man on the totem pole. In addition, an often reflexive response to the news of a job loss, or an impending one, is to immediately seek new employment at competing firms within the same industry.

On the surface, these strategies have merit. In the former, we hold on as long as possible, hoping that either we’ll keep our current situation as long as possible, or maybe we’ll even out last the downturn. It seems to make sense to stay in the same career and in the same industry—after all, that’s where our skills are concentrated, and where we have the greatest income potential. But do these represent the best strategies?

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #4:

Consider a career change. This is especially true if you’re in a declining industry. If the end is certain, take action sooner rather than later. Don’t hang on trying to be the last man standing. It’ll be painful no matter when you do it, but always try to operate on your own terms and in your own time, not on someone else’s.

The stay-or-go decision

A career change isn’t an endeavor to be taken lightly, especially during a recession. But most people are aware of a job loss, often months before it actually happens; the question is, do you ignore it and hope for the best, or do you use the time you have to some advantage? Research the trends in your industry in general, and at your company in particular, and be realistic about the prospects. Ask the following questions:

What are the dominant recent trends at my company and in my industry? Pay particular attention to industry changes. Are there trends affecting your entire industry? How is your company handling those trends? Is off-shoring or outsourcing functions and departments critical to industry or company survival? What does that mean for you?

What are the likely future prospects in my current industry? Is the industry growing or declining? If it’s declining, is it primarily because of the current state of the economy, or—very important—was the decline evident even before the recession? If it was in decline prior to the recession, it may be a more significant longer term trend that was exaggerated (but not caused) by the general economic troubles. In that case, circumstances may not improve much when the economy does.

How does my skill set match up with those prospects? If your industry is changing, evolving, how well positioned are YOU in the midst of those changes? Can you upgrade your skills to match the trend, or do you mostly see yourself hanging on until retirement or a severance package? Does the survival of your company depend largely on its ability to function with fewer employees? What does that mean for you?

What other industries might be a good fit for a person with my skill set? This is a central question to ask while you’re still employed. List and evaluate the skills you have—what other industries or careers might be a natural move for you? How difficult would it be to supplement your existing skills with new ones that will make you more employable. Discuss it with trusted friends or with people employed in careers you’d consider. A large part of the stay-or-go question will be answered by the career alternatives afforded by the transferability of the skills you already have.

The opportunity cost of staying where you are

Not many people think in terms of opportunity cost in connection with staying on their present job, especially during recessions. But in point of fact, there are opportunity costs involved even if you don’t recognize them.

During recessions, some companies and industries don’t survive. Others survive, but only barely, often collapsing after expansion in the general economy takes hold. That’s the part we know and can see. But there’s a flip side to this dynamic.

Bad economies have a way of leveling the playing field, of bringing down the established companies. In the process, opportunity arises for new companies—businesses who will come in and do the work of the declining ones, but do it cheaper, faster, better and maybe with additional benefits. This transition is often happening just below human sight; while most people in the industry are focused on keeping their jobs with established companies, these upstarts are entering the market and quietly displacing older companies.

In some cases, entire industries are being replaced by new ones—consider how the print media is rapidly being replaced by the internet. While industry replacements may be easier to see, they aren’t always so easy to play from an employment standpoint.

By staying on at older companies in the hope of preserving some sense of security, a very real opportunity cost develops when we fail to see that long term, the real employment opportunities may be at some companies that haven’t been around all that long. And while older, less competitive businesses are declining, strong upstart companies are coming to the marketplace who will dominate the future and be the source of better jobs. And it’s often during recessions that such companies are gearing up, hiring and grooming future leaders. This is generally the best time to get into these companies, while they’re growing and hungry for new talent.

Testing the waters first

If you’re unsure of a move to a new career or to a job outside your current industry, the best way to test the waters may be through a part time job. Emerging companies and industries may be more open to part time arrangements than the established ones, since their employment patterns may also be in a state of flux. Many times, organizations that wouldn’t consider hiring you for full time work, will be less hesitant in hiring you for part time. Once inside, you’ll have a chance to prove your worth, even if you don’t have all of the preferred qualifications.

A part time job will provide an opportunity to try out a career situation without risking your current job—as well as providing a ready place to work if you lose your full time job. Getting into a new career or industry and actually doing the job is the best way possible to make a pending change real. In addition it’s way to gain valuable new skills, or—just as important—to find out which skills you need. It’s also a chance to gain some valuable new contacts; many people shy away from changing industries or careers because they don’t know anyone in the field—problem solved!

Though there is always risk involved when changing careers, those risks can often be managed. It’s usually better to start managing change early on, when the handwriting is on the wall but the ax has not yet fallen. And sometimes, the greatest risk of all is to stay where you’re at and do nothing.

By Kevin M

Now might not seem like a good time to open up a discussion that might lead to quitting a job, but given that many employees are currently being squeezed by shrinking staffs and increased workloads, now is as good a time as any to blow off a little steam, would you agree?

The reality of the current economy is that even if you have no intention of leaving your job, your job could very well leave you! Am I advocating that you quit your job, in the middle of this economy? No, certainly not. However, bad news be damned, now is a good time to be intentional about preparing for something new, especially if you find yourself sitting in a job that’s wearing you out and taking the spark out of your life.

Talk with people who have recently lost their jobs, and next to the obvious anxiety they’re dealing with as a result of being unemployed, there’s also often an unexpected emotion—a sense of relief. Many people have been separated from jobs that were wearing them out, a pattern that continued for many years until it’s unhappy ending.

Many employers treat their employees well, but a disturbing number employ various methods of sucking the life’s blood out of their people, and often just below the point of visibility.

The Cheapest Form of Compensation

The cheapest form of compensation for an employer is a promise. It motivates you and costs the company nothing. You will work extra hard thinking you’ll be compensated with raises, bonuses and promotions, that often end up being either cosmetic (promotion in title & responsibility but no raise) or entirely non-existent–’Yes we know we ‘talked about’ a bonus, but we had a bad quarter and there’s no money in the budget, but next quarter…’

It’s happened to me and to others enough to establish that it’s become a pattern, a management style that’s at work in many businesses. Ask others who have been through the same thing and you can gain a wealth of perspective. An unfulfilled promise is one of the primary reasons for worker dissatisfaction.

The Non-reciprocal Co-worker Cover Game

Ever find yourself constantly covering for coworkers who are either bogged down or out sick more than occasionally? We should all expect to cover for our coworkers, as they should for us, but if the situation becomes a one way street, as well as a regular part of your job, you may have become a fall guy. Because firing employees has become a legal landmine, many employers carry deficient workers for months and even years. They work around this by dumping the slackers work on more productive members of the staff.

If you find yourself being one of those routinely asked to carrying the load, and you don’t mind doing it, fine. But just know this: it won’t change. You have been made a designated enabler in your employer’s unofficial policy for Defense Against Lawsuits From Disgruntled and Terminated Employees.

Should you decide you’re not going to carry the extra responsibilities any more, your employer may decide that you have an attitude problem or that you’re not a team player because of your sudden unwillingness to shoulder 150 or 200 per cent of your job. Only they won’t be hesitant to fire you or to force your resignation, because they know that productive workers don’t bring lawsuits; they quietly go on to the next job where they can be productive.

The Promotion Pass Over

You’ve been on your job for several years, you’ve been the eager beaver, doing all that you’ve been asked and more, you’ve accepted the broken compensation promises with a smile, and you’ve tirelessly played you’re part in the Non-reciprocal Co-worker Cover Game. A promotion opportunity develops that you’d be likely to get according to all objective factors. But…you don’t get it.

As much as we’d like to believe that promotion rests primarily on merit, if you’ve been in the workforce for at least a few years, you know that isn’t always the case; in fact, it may not even usually be the case!

For a variety of reasons, the person who gets the promotion often isn’t the one who’s the most qualified. One may be that workers often advance due to closer connections with higher management; some people are better at office politics than others. They’re good at getting close to the decision makers, and like it or not, that does figure into promotion decisions.

Another possibility is that someone else “fits the suit”, that is he or she may look, act or project “Management” as a matter of style. He or she may look the part management is seeking to project. None of us ever wants to believe that one person might be promoted over another because of appearance, but it is a factor.

Consider that one study after another confirms that tall men earn more money than short or average height men; the reality is that size conveys a certain element of power that isn’t overlooked when leadership qualities are sought. Consider also that some companies undergo “youth movements”, shake ups in which younger workers are brought in so that the organization can project a higher energy image.

Still another possibility is almost a paradox: you’re so good at what you do that management wants you right where you are because promoting you may leave a void which cannot be easily filled.

I Can’t Stay Another Day, But I Can’t Afford To Quit!

With many jobs, the situations described above never get better with time. Some companies just have a negative culture that doesn’t change even when the staff changes.

So what to do? If you’re dealing with some or all of the above should you just up and quit your job? Answer: for most people, given the state of the economy, you should not quit a job unless the job is jeopardizing your health or safety, causing you to do something which is illegal, or if you have a better opportunity elsewhere.

It’s that last point I want to zero in on, finding a better opportunity. Yes, the job market is tough right now, but there are opportunities out there, they’re just harder to find. Point is, don’t stop looking just because the headlines are flashing bad news or because you haven’t had any luck so far. Keep on looking! If you’re in a bad job situation, looking for the next opportunity may be the link to sanity—that hope for a better tomorrow—that you need to get you through today.

If not much is doing in your field right now, but you can manage the time, find a part time job, or start a sideline business, doing work you genuinely enjoy, and see what that leads to. Take courses in preparation for something new. Join network groups in the career of your choice to see what connections you can make. Do something!

The key is forward motion, to constantly advance yourself in the direction of a new job or a new career, if only a little at a time. The fact that you’re doing something gives you at least some sense of control over your own destiny.

Perhaps equally important is that as some point in the future, the job market will improve, either in the general economy, in your industry or location, or just for you personally—that better situation will come along. Bad job market or not, that’s the moment you can be preparing yourself for even now.

OK, this is a touchy subject, especially with the economy in a funk; but what are your thoughts? If you’re in a job you truly can’t stand, what can you do to help your situation, short of quitting with no place else to go?

By Kevin M

It’s no secret that careers related to information technology are one of the surest paths to success in the 21st Century economy. If you’re fresh out of college with a degree in information technology, or if you obtained your degree years ago and are now a seasoned professional, you’re probably looking at solid employment prospects, even with a weak economy. But what if you couldn’t afford college, or if you’re working in an unrelated field and wish you could get into IT—are you simply out of luck? Well, maybe not!

Tyson Woods is an IT contractor, well traveled, working for some of the biggest name firms in the country and—as the title of this essay reveals—he has no college degree. Not in IT, not in anything. His previous career experience: mall photo shop manager.

IT contracting is a broad field, and the term can mean different things to different people, and in different industries. Over the years he’s taken part in a wide variety of projects, working with a broad range of programs and software systems. What he does more specifically involves work with different components of IT, including process and workflow design, system support, training, system security, and web design and administration. More recently he’s been working as a Share Point Administrator, designing custom portals and managing rights and permissions.

It’s important to recognize that IT contracting is a fluid career, so what you’re doing does change frequently.

Before you get discouraged with the long list of technical sounding functions, Tyson advises, “Let me stop to tell you that I learned nearly all of these skills on the job—I don’t even have a college degree, certainly not in computer science! In fact, my career beginnings weren’t anything you’d normally associate with a future in IT. And I’m a young guy; if I can do it, you certainly can.”

So what raw skills do you need to bring to an IT career?

“Most of it’s pretty basic: a logical thought process, ability to understand workflows, ability to work with people in different capacities, willingness to do things differently, affinity for and the ability to embrace technology, and a large degree of creativity. It can be confusing if you’re looking to enter the field since IT is so diverse. What it really takes is mastering a niche, then building upon it, one niche at a time. There’s more to that niche thing than space permits here, but I can provide just about as much information on that topic as you can stand if you’re serious about pursuing a career in the field.”

There are a large number of reasons why he loves this career, why anyone would love it.

“For starters, there are always new opportunities, which include not only new technologies, but also new industries. Nearly all businesses need IT professionals, which means I have a chance to work in a virtually unlimited number of different businesses. It’s hard to get bored! “

“Something I like personally is being on the cutting edge in a technology driven world. As long as you learn and grow with the technology, there’s always a job for you somewhere.”

While we typically think of IT as being mostly a technology application, there’s also a strong element of creativity involved. If you have that creative streak in you, as Tyson does, IT is an excellent career field to work in. So much is new, or can be modified, that creative opportunities abound.

The money isn’t hard to take either! Incomes in excess of $100,000 are not uncommon with a decent amount of experience and a willingness to take on more challenging assignments. But even apart from earning six figures, the number of job- and business opportunities are so abundant that just making a living is more secure in IT than in most other fields.

The secret, according Tyson, is to continuously acquire more skills. No one can know all that is involved with computers—which is actually a big advantage to a new entrant to the field—but the more you know about more systems and components, the greater your value in the marketplace. As Tyson is quoted above, it all starts with a niche—one area of the big picture that you can focus on and build upon. Become an expert in that niche and you have the foundation of a new career. Where you go from there will be limited only by your willingness to learn and master more niches. Adding formal training along the way can only speed your progress.

Some of the qualities that make for a good IT person are less related to technology than you might think. An IT person must be able to work with a wide variety of people, making people skills a high priority. He needs to be able to understand workflows and be capable of integrating the various tools and systems. In addition, he needs a sense of functionality—that is the ability to make a system workable for non-computer types, and how to make it look good in the process. These are skills that are required in many jobs outside technology as well.

Tyson offers this bit of advice, which should be of great comfort to a new entrant in the field:

“Not many people in the field are real experts; they don’t know the flow, how to troubleshoot or how the end product should look.” That should give rookies plenty of reason to hope!

A detailed career program will be available in this space in the very near future. Stay tuned.