It’s Not About Jobs, It’s About Customers

The economic difficulties and associated social unrest experienced in many countries around the world highlight the importance of jobs. The availability of jobs is not only vital to the economy but also to the people, families and communities that make up our wider society.

The effects of globalisation and technology are blamed for a lack of jobs, as many posts have moved to cheaper locations overseas and are replaced at home by increasing levels of automation.

Both trends are likely to continue as individuals and businesses compete in what is now a truly global marketplace for people, products and customers.

In an attempt to address the issue, governments highlight the need to create jobs and develop policies and programmes to support entrepreneurs and businesses.

Similarly, governments introduce budget cuts, tax increases and spending restrictions that reduce the disposable income of people, which makes it more difficult for businesses to find and keep customers.

In such a perfect economic storm the default position for government is to try harder and introduce more initiatives in an effort to do something and make something happen.

Eventually, but not yet it seems, the realisation that this time the recession and recovery are structurally different will dawn and there will be an acceptance that new solutions are needed.

Finding new solutions is not easy but a starting point lies in the realisation that the issue is not about creating jobs but creating the conditions that create customers that, in turn, create jobs.

The difficulty for businesses is a lack of customers with sufficient disposable income to enable them to spend which brings us back to government policy in relation to budget cuts, tax increases and spending restrictions.

There is no doubt that such actions have to be taken but perhaps not to the extent that discourages people from being customers of the businesses government is trying to support.

The answer, ironically, is not for government to support job creation but for it to support policies that enable people to become customers; create customers and businesses will create jobs.

SO, the creation of jobs is and will remain government’s top priority but, ironically, as long as it does we are unlikely to see an increase in the number of jobs.

What about you?

Is it about jobs or customers?

Look forward to seeing your comments below.