What is the relationship between jobs, innovation, and regulatory policy? According to a recent memo released by Michael Mandel of the Progressive Policy Institute (PPI) titled, “The Coming Communications Boom? Jobs, Innovation and Countercyclical Regulatory Policy”, they are integrally connected.

With America attempting to pull itself out of the greatest economic downturn since the Great Depression, and with the national unemployment rate currently hovering just below 10%, one industry is stepping up to the plate and creating new American jobs – the communications industry. This memo released by PPI states, “Internet companies, along with firms engaged in wireless telecom and computer systems design, seem to be emerging as ‘job leaders’ in the next economic expansion.”

But what role will regulatory policy play in continuing this “job awakening” that we have seen in the communications industry? The answer depends on what types of regulatory policies are adopted moving forward. This memo by PPI calls for “countercyclical regulatory policy” to be applied to the telecommunications industry. Traditionally, this type of policy has been reserved for the financial industry. But Mandel argues that, “Countercyclical regulatory policy could bring enormous benefits. Investments would pour into the communications sector, and hiring would step up, as companies try to take advantage of the permissive regulatory period to build out their businesses.”

Read more of Mandel’s case here.

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The Georgetown Center for Business & Public Policy took to the Hill yesterday with a line-up of experts to discuss future job opportunities that will have the most impact on economic growth.   What are they you ask?

Green Jobs – As we transition to a greener economy, the increased demand for greater energy efficiency creates incredible potential for growth in the green jobs sector.  Mark Doms, a Chief Economist at the Department of Commerce, says that although the green economy is currently just 1-2% of the economy, with the right policies and investments, this could be an important area of growth.  Supporting this trend, fellow panelist Bob Nelson, President of CWG Midwest cited data from the growth of his e-waste recycling company, like the 20% increase in the recycling of cell phones.

Smart Jobs – Panelists were quick to note that often our job concerns focus on manufacturing, when the real opportunities for growth are in services and other “skilled, high wage” businesses.  Georgetown Business Professor J. Bradford Jensen says the smart business service sector is 25% of all jobs (vs. only 10% in manufacturing), suggesting this is where we need to focus.  Paul Delaney, a representative from FedEx Express concurred, even noting that IBM 20 years ago was about 80% manufacturing and 20% services now is 80% services and 20% manufacturing.

Broad(band) Jobs – Robert Shapiro, a Senior Policy Fellow at the Georgetown Center, brought to light the economic reality that job creation has now declined relative to economic growth, and therefore, we can no longer be complacent about job growth. He believes that broadband deployment will be key to new jobs, generating job growth in infrastructure, devices, and applications.  Fellow panelist Nicol Turner-Lee agreed noting that with increased digital literacy opportunities, minority and low-income communities could benefit from economic success.

Shapiro also noted that communities with broadband had more job growth than those without, demonstrating the increased labor value of those who work with these technologies.  He says we need policies that support investment in broadband and cautioned the Administration and Congress about policy changes that could weaken these investments.

Read more about broadband and jobs in this report from the Brookings Institute and this report from ITIF, and watch the video below for more from Robert Shapiro.

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