Job-rich future

Job-rich future

Ever since the financial crisis first broke, it has become fashionable to see the world economy as a two-speed affair; Western economies seemed to have sunk into a state of permanent decline, but emerging markets were surging ahead. 

In an apparent repeat of what happened in the eurozone, capital is fleeing any emerging market economy with a twin deficit problem – that poisonous combination of current account and fiscal weakness. 

It is perhaps just as well that the UK’s fiscal position is still heading in the right direction, for it scarcely needs saying that Britain is just as dependent on hot flows of foreign capital to fund its burgeoning current account deficit as many of the afflicted emerging markets. 

Investment first: despite optimism about growth, business investment remains firmly stuck in the doldrums. This is not just a British phenomenon. It is global. Companies prefer to cut costs and accumulate cash rather than investing in the future. 

This may be temporary, but for the moment it remains very much the prevailing mindset, and it tells a particularly disturbing story about the future. It says that the corporate world as a whole does not expect much in the way of demand growth any time soon. Regrettably, this does not appear to be merely a cyclical phenomenon that will in time heal itself. The nature of work is changing dramatically, undermining many of the old post-war assumptions about the inevitability of economic advancement. 

More western jobs have already been lost to the tech revolution than were lost in the entire offshoring phenomenon, and the pace is still accelerating. The march of the machines is also widening the income and wealth gap, hollowing out traditional middle-class sources of employment and income. 

Demand in such a bipolar economy, split between a relatively small number of high-earning skilled workers, and the great mass of menial unskilled, may become permanently impaired. 

To get demand growth, you need income growth. In the short to medium term, the productivity gain that the new technologies allow may get in the way of such growth. This is, of course, very much a temporary problem of dislocation. 

Eventually, the new technologies will find new applications that will create myriad new jobs in hitherto undreamt-of industries, but there may be a long and difficult period of transition. 

Ironically, the demand implications of today’s technological revolution may be a major reason why companies are not investing in the same employment-rich way as they did in the past. 

These technologies are also contributing to the widening wealth divide, creating vast fortunes on the one hand, but depressing incomes and employment lower down the scale on the other

We’ve been through such periods of rapid change before, and eventually found ways of sharing the spoils of innovation. But we have perhaps never before seen such an obvious mismatch between the relatively small number of jobs being created in the disruptive technologies and the numbers lost in those industries being disrupted. 




Indonesia trade expo chance for businessmen

Indonesia trade expo chance for businessmen

The Indonesian Embassy in collaboration with Indonesia Business Friendship Society and ASEAN Bahrain Council (ABC) is inviting Bahrain businessmen to participate in the Trade Expo Indonesia (TEI), in Jakarta, which is to be held from October 24 to 28. The 33rd Trade Expo Indonesia is one of the b

Imam murder main suspect ‘mentally fit’

Imam murder main suspect ‘mentally fit’

A mental evaluation confirmed that the suspected mosque imam murderer is responsible for his actions, while the High Criminal Court decided that it will issue its ruling on October 31, 2018. The 35-year-old Bangladeshi defendant admitted earlier to murdering Bahraini imam Abduljaleel Hamood befor

Pipeline bombers sentenced

Pipeline bombers sentenced

The High Criminal Court yesterday handed down tough sentences to seven members of a terror cell accused of bombing an oil pipeline in Buri. The court sentenced the first, second, third, fourth and fifth defendants to life in prison and fined them BD 200,000 each. It also sentenced the six

‘We won’t leave Manama, come what may’

‘We won’t leave Manama, come what may’

The labourers and ‘free-visa workers’ living in dilapidated buildings and congested labour accommodations in Manama and Salmaniya area are unwilling to move out of the place as they believe it would affect their livelihood. There has been a huge demand from the part of lawmake

Man steals money to buy dog

Man steals money to buy dog

A young Bahraini stole BD1,700 from his close friend and spent it on buying a dog, car accessories and a phone, the court heard. Being a good friend, the victim would often host the accused in his apartment, say, prosecutors. The accused allegedly stole the money from his friend’s apartment

VIVA primed for further digital transformation

VIVA primed for further digital transformation

VIVA’s way forward will be with a stronger focus on digital transformation and innovation while continuously adapting to the changing customer needs, according to its Chief Executive Officer. The changing times and landscape have called for a shift in focus at VIVA, with the company

When bullies rule schools

When bullies rule schools

A recent study has shockingly revealed that Bahrain has the second highest school bullying rates for elementary stage students globally, stressing that 43 percent of students were bullying victims. The study, conducted by Bahraini educationalist Dr. Mariam Al Qassab, showed that verbal bu

Indian Premier Modi tweets praises for Bahrain
Advertismentskip ad

Indian Premier Modi tweets praises for Bahrain

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister yesterday retweeted a remark made by Indian Prime Minister Narendra Modi describing Bahrain as the land of tolerance and peaceful coexistence. Mr. Modi had pos

Inspect labour camps

Inspect labour camps

The Cabinet chaired by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa yesterday gave directives to Labour and Social Development Ministry to cooperate with the Interior Ministry and Ministry of Works, Municipalities Affairs and Urban Planning to conduct frequent inspection


Imam murder main suspect ‘mentally fit’

Imam murder main suspect ‘mentally fit’

A mental evaluation confirmed that the suspected mosque imam murderer is responsible for his actions, while the High Criminal Court decided that it will issue its ruling on October 31, 2018. The 35-year-old Bangladeshi defendant admitted earlier to murdering Bahraini imam Abduljaleel Hamood befor

Pipeline bombers sentenced

Pipeline bombers sentenced

The High Criminal Court yesterday handed down tough sentences to seven members of a terror cell accused of bombing an oil pipeline in Buri. The court sentenced the first, second, third, fourth and fifth defendants to life in prison and fined them BD 200,000 each. It also sentenced the six

‘We won’t leave Manama, come what may’

‘We won’t leave Manama, come what may’

The labourers and ‘free-visa workers’ living in dilapidated buildings and congested labour accommodations in Manama and Salmaniya area are unwilling to move out of the place as they believe it would affect their livelihood. There has been a huge demand from the part of lawmake

Man steals money to buy dog

Man steals money to buy dog

A young Bahraini stole BD1,700 from his close friend and spent it on buying a dog, car accessories and a phone, the court heard. Being a good friend, the victim would often host the accused in his apartment, say, prosecutors. The accused allegedly stole the money from his friend’s apartment

VIVA primed for further digital transformation

VIVA primed for further digital transformation

VIVA’s way forward will be with a stronger focus on digital transformation and innovation while continuously adapting to the changing customer needs, according to its Chief Executive Officer. The changing times and landscape have called for a shift in focus at VIVA, with the company

When bullies rule schools

When bullies rule schools

A recent study has shockingly revealed that Bahrain has the second highest school bullying rates for elementary stage students globally, stressing that 43 percent of students were bullying victims. The study, conducted by Bahraini educationalist Dr. Mariam Al Qassab, showed that verbal bu

Indian Premier Modi tweets praises for Bahrain
Advertismentskip ad

Indian Premier Modi tweets praises for Bahrain

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister yesterday retweeted a remark made by Indian Prime Minister Narendra Modi describing Bahrain as the land of tolerance and peaceful coexistence. Mr. Modi had pos

Inspect labour camps

Inspect labour camps

The Cabinet chaired by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa yesterday gave directives to Labour and Social Development Ministry to cooperate with the Interior Ministry and Ministry of Works, Municipalities Affairs and Urban Planning to conduct frequent inspection

Kanye West back on Twitter with live rant

Kanye West back on Twitter with live rant

Rapper Kanye West is back on Twitter and posted a video about mind control to mark his return on the social media platform. West deleted his Twitter and Instagram accounts last week after he was criticised for a rant he gave to the &ld

Fairway enters Bahrain

Fairway enters Bahrain

Fairway Group, a Jersey-based trust, fund and pension services, has kick-started its international operations with the opening of its office in the Kingdom. The move into Bahrain comes on the back of the Fairway Group’s long and