The Recruiter's Role in Reaching Economic Equilibrium

The U.S. Dollar

In recent years, the U.S. Dollar has been losing value. For Americans, this means the U.S. dollar buys less especially in the UK and EU and vice versa. Historically, however, the pound has also been losing value as compared to the U.S. Dollar; even though the pound is still stronger, it has weakened as compared to the initial exchange rate as shown: http://www.measuringworth.org/datasets/exchangeglobal/result.php It seems to be moving consistently toward an economic equilibrium.

Equilibrium Defined

Scientifically, it is very easy to understand the concept of equilibrium. Take for example a tank. On one side of the tank, the water is filled to the top. The other side is half filled. The divider is removed. The water rises on one side and falls on the other side till both sides reach equilibrium.

Driving Forces Behind the Recruiter

The recruiter is driven by economic forces. India is a prime example. It is a country with a very high population density and a very favorable exchange rate.

Scientifically, it is only natural that the U.S., having a much lower population density, would see an osmotic immigration pattern coming from India. Economically and historically, the recruiter has acted as an accelerator. With a good exchange rate and salaries kept low due to a large talent pool in Inda, U.S. employers have outsourced many projects and sponsored many immigrants from India. Recruiting from India has been intense in the hope of securing large profit margins. Considering the huge profits rendered, shouldn't the U.S. be thriving? This is where equilibrium comes into play.

The U.S. Recession

When U.S employers heavily recruited sources outside of the U.S., many U.S. employees could not remain competitive. After all, U.S. rents and mortgages and other expenses remained high; gas even got higher late last year increasing energy costs. Unemployment increased, colliding with the mortgage crisis brought on by the selling of derivatives, variable rate mortgages, lack of regulation, devaluation and abandonment of real estate, poor screening/qualification of loan officers, and bad loans.

U.S. companies forgot that a large part of the customer base was at home in the U.S. and how even a small increase in unemployment would have a ripple effect on the U.S. economy. All of this made for an explosive recession.

The Recruiter's Role

It falls on the recruiter's shoulders to gracefully bring the message to the employer and employee--that this is a new economy, that Americans have to become more competitive globally when it comes to salary, real estate, energy, and products. Americans have to live and work more efficiently and greener. This includes everyone, even the CXO's. If this message is not delivered, equilibrium will not be kind.