Labor Day.

Labor Day Weekend is a really good time for 157 million American workers and 16 million Canadian workers to enjoy a few extra hours of rest - or splashes in the pool - before the summer light fades. Many in the Rocky Mountains will be camping; some in Michigan will probably be boating; and up in Ontario, they will be sipping coffee on porches at their lake cottages. The $26 trillion U.S. economy and $2.1 trillion Canadian economy - combined, almost 30% of total world GNP - will be mostly quiet for a few days. An important pause from working hard and driving progress; human beings often need to slow down so that they can speed up. As our 32 million businesses and nearly 300,000 factories remain mostly idle for a few days to honor our labor history and achievements, the winds of change continue to reshape our futures.?As we enjoy our leisurely coffee break this weekend and fruits of our labor, we should also take a moment to consider that the success of our Constitutional Republic is 100% dependent on the success of our economy; and the success of our economy is 92% dependent on the strength and quality of our labor workforce. The U.S. economy is completely dependent on innovation and technology development, efficient capital formation and allocation, relatively easy access to natural resources and markets, reasonable energy costs, dynamic and integrated supply chains, and important labor participation, collaboration, and productivity gains. In simple terms, it is all about people, processes and performance. Do we see what is happening with labor inputs and outcomes? What if the so-called labor calculus in our economy is changing too fast?

What are North American workers up to these days? The world of work has changed more in the last 3 years than the last 100 years combined. The labor participation rate is at historic lows, 4 million people per month are quitting their jobs, many are dealing with burn-out (adrenal fatigue), record numbers of workers have downshifted and moved to a work-less/make-less/spend-less lifestyle, and far too many workers are supposedly “quietly quitting!?” In addition, a large group of workers have clearly made a different set of choices and shifted to remote-based work - and mostly enjoying a more leisurely pace during the workday. True story: The Labor Department is reporting the largest decreases in American workforce productivity over the last 24 months than any other time since it started collecting this data in 1948. Dropping productivity rates is not a good thing for businesses or society. According to Statistica (Feb 16, 2022), 17% of the workforce worked-mostly from home before the Plandemic; this grew to 44% during the Plandemic. By 2025, about 35% of the workforce will work primarily from home.

There are many measurable and intangible benefits for firms and workers to shift more work to remote. For example, less time commuting and chatting by the water cooler – and more time working and getting things accomplished.?Less time and expense driving to an office – and more flexibility to manage work and family responsibilities. Less challenge finding local talent – and more opportunity to find talent that is living in Downtown Los Angeles or on a lake in Montana. Aside from the dynamic changes with labor economics and fewer issues with geography-dependent requirements for many jobs now, fundamental shifts are also happening in the way we think and feel about work. The traditional Puritan concept of hard work and achievement are being replaced with a Minimalist Movement and Minimalistic Mindsets - and the attractiveness of a Universal Basic Income. Let’s face it; anyone who considers UBI a positive idea - are probably not your A Players who value hard work, contribution, driving energy and achievement, and shared-success. They probably have no education in economics or history, either. As the NFL-great-and-billionaire-investor, Roger Staubach, likes to say: "The extra mile is a lonely stretch of highway." Not everyone wants to work hard and achieve - the so-called 3% Rule is proven in nature - and the workforce. Also, Price's Law favors the smart companies and leaders that understand who, what and how things are truly accomplished. A growing number of people want to be YouTube and Tik Tok notables, or politicians, rather than doctors, engineers, builders, mechanics, plumbers, teachers or professional salespeople.?

What is our Brave New World of Work going to look like in the coming years? It was the ancient Phoenicians (2500 BC- 64 BC) who innovated and created the colony-and-trade-center blueprint that our modern business world - and banking system - works on still today. However, in 1602 the first corporations emerged onto the global scene and the world of work has been constantly changing ever since.?The British East India Company, and the Dutch East India Company, were the first large “corporations” to organize resources and labor to open up trade (and conquer, unfortunately) large parts of China, Indonesia and India. Their workforces were a combination of volunteers and non-volunteers. By the time the 13 American Colonies "found" independence from King George, many newly-formed companies were birthing and developing from Boston, to North Carolina and Georgia. With the 1st and 2nd Industrial Revolutions unfolding in the 1750s and 1870s, the 1880s were a period of remarkable American innovation and industrialization. The American Century was quickly emerging and the British Century was seeing a sunset appear on the horizon. The balance of power between the Industrialist and the Worker was beginning to change dramatically almost on a weekly basis. The famous and bloody battles and labor movements in both Pennsylvania and Colorado changed the game for all of us: The 1892 Homestead strike at a Pennsylvania steel plant, and the 1894 Cripple Creek strike at a Colorado gold mine. It got ugly and violent very quickly. Later in 1894, President Grover Cleveland signed a bill to make the first weekend in September an official Labor Day national holiday. By 1900, Standard Oil, U.S. Steel, and Armour & Company meatpacking were in constant, violent battles with their workers. Clashes between workers and company-owned militia-goons resulted in countless unnecessary deaths.

In 1905, Upton Sinclair published his world-famous book entitled, The Jungle. This classic novel told the story of a destitute and desperate Lithuanian immigrant who was working in the chaotic and insane meatpacking district in Chicago. (Honestly, you need a strong stomach to read the details. You may end up eating salads for the rest of your life.) Sinclair was a bold and original American investigative journalist (aka Muckraker) who spent several years documenting the terrible working conditions and incredibly-dirty sanitary environments of the largest meat processing district in the country.?The tremendous success of the book – and the resulting outrage of the American public – totally transformed the workforce, sparked the formation of unions, and ushered in a number of important new laws to protect workers and American consumers. Arguably, this novel sparked and created the Union Movement which would completely transform all industries in the American economy - and the structure and relationship of the American workforce with big business.?Upton Sinclair’s story is probably one of the most important and influential literary pieces after the U.S. Constitution or Bill of Rights.

What direction are we going? Where is the wind blowing us? What does the future of work look like for the North American worker? Artificial intelligence, advanced robotics, Machine Learning, Industry 4.0, IoT, and autonomous cars and transport trucks will quickly transform the foundations of our economy and workforce. A McKinsey Report (Sept, 2017) predicts 30% of American jobs will be disrupted or lost by 2030. That is almost 50 million workers impacted. How effectively will a Basic Universal Income help you pay for an Uber ride to the shopping mall? Or groceries? Or your child's college tuition bill? ?New technology and mindsets are reshaping our economy and the role of the American worker. Do we have the energy, engagement, and skills to meet the new demands? Do we have our ducks in a row, or are we simply hanging out on the steel beam one thousand feet above the ground - without a net? The future begins now. Something to think about when enjoying your coffee on the porch this weekend.