Manpower CEO, Jeff Joerres talks to the Financial Times about the crisis and the possibility of a new brain drain in the U.S. and Europe.
Mr Joerres says opportunities in the developing world could prompt a “brain-drain” from America and Europe that could exacerbate the talent shortage.
“It’s not just Irish going back to Ireland or Indians going back to India,” he says. “It’s Americans saying: ‘Mumbai is not so bad and when I go there I get a standard of living that’s acceptable to me’. You’ll see more of that.”
In a reluctant foray into politics, Mr Joerres says the U.S. is shooting itself in the foot by having too low a limit on the number of non-immigrant visas it issues, meaning that the work permits tend to run out by May every year. “That’s just wrong,” he says. “The growth of this country came from people who were not American but were classically American – who came here from another country with an idea, developed it and created employment. Two-thirds of Silicon Valley companies were started by people not born in the U.S.
“We were so arrogant about being able to capture the smartest people in the world because we were the best alternative. But there are a lot of other neat alternatives right now. Go to Shanghai, Dubai, Qatar, Abu Dhabi – that’s who the U.S. is competing against. We’re competing against the nightlife and the energy in Mumbai and Bangalore.
“This is a global labour market,” Mr Joerres adds. “If you see migration back to Mexico, India, China, some of the western countries could be really adversely impacted by a brain-drain that they didn’t quite anticipate.”
We know that economic crises are periods of accelerated innovation and creative destruction, but they can also radically reshape the global flow of talent. Europe’s economic difficulties and relative closure during the previous two major economic crashes – the Long Depression of the 1870s and the Great Depression of the 1930s – helped pave the way for the U.S. to achieve its global talent advantage. We may be seeing the beginnings of another shift today – less toward nations and more toward thriving mega-regions. One thing is for sure: The global competition for talent promises to get more heated as we move from crisis to recovery. The places that can attract the most capable and broadest array of talent will gain considerable long-run competitive advantage as that happens.
June 4th, 2009 at 9:27 am
I don’t see why you constantly call this “brain drain” a negative. This is one of the most positive developments in all of human history!
Seriously, the two most populous countries on earth have come out of their socialist slumber and are trying to become modern at a breakneck pace. They will achieve what took us 150 years to achieve in a decade or two.
If that means that Chinese nationals have more opportunity in China, or Indian nationals in India, well, that’s a good thing.
We need to embrace this competition, not fear it. It should motivate us to become more competitive, educated, harder working, productive, etc.
Alas, I fear that in the face of this competition, we will become less open. Rather than standing up to this competition, we will seek ways to avoid it (protectionism, perhaps, but also the abandonment of industries or professions that compete with China or India).
June 8th, 2009 at 9:56 am
Buzzcut,
I agree, the current administration is not going to be up for open competition. Not when you have a vested interest in keeping union voters employed, and (you the government) own 60% of a car compnay.