Service sector recovery, +ve indicator
Reuters ran a positive story on the US service sector seen as leading US job recovery. This makes sense. Services have a lower fixed cost and barrier to entry. Manufacturing comes with attendant fixed costs and long lead times. With accumulation of inventory, any uptick in demand is bound to take a while to trickle down to the shop floor and kick-start production. Services, on the other hand, enjoy much shorter lead and lag times.
At Ikembu, we believe that the barriers to service sector recovery lie in the relatively inefficient and ineffective ways to connect opportunity seekers with providers. While manufacturing comes with its attendant specialization(s), making it easier to match workers with jobs; services have so many nuances that it becomes pretty noise pretty quickly when you try do find or fill a job. Isn't time that we prepared for a recovery by shedding some of the bulky burdensome systems and approaches that slow down the matching process?