That is the ratio of jobseekers for every advertised job opening in April of this year.  The data comes from the Bureau of Labor Statistics by way of the Career News newsletter (sorry, no link).

…there were 5.4 job hunters for every advertised opening in April. The Job Openings and Labor Turnover Survey said the April ratio was up from 4.8 in March, and up dramatically from 1.7 in December 2007, when the recession began.

That is one tough market for jobseekers.  You notice the reference to “advertised” openings?  At some point, maybe already, networking will become the highest priority for jobseekers in their search for job openings.  The fact that Gen Y is a driven, networking generation leads me to believe they will rely on networking for candidate sourcing before advertised job postings.

Nonetheless, the ratio is remarkable for today’s economy.  The fact that hiring is a trailing indicator means this ratio will likely increase over the next few months.

Comments(0)

The epitome of optimism – a headline from abcnews.com:

Has the Recession Finally Ended?

I guess you could characterize this as “talking up” the economy.  Here is one paragraph from the article that made me laugh (emphasis mine):

Today also brought some positive news from the much-battered retail sector. For the first time in three months, retail sales in May rose, by 0.5 percent, according to the Commerce Department. The sales were pushed higher by increased demand for new cars and sales at gas stations. It was the largest increase since sales rose 1.7 percent in January following six straight monthly declines. While this is good news, part of the jump can be attributed to a recent spike in gas prices which isn’t helping average consumers.

“Sales at gas stations” is clearly the spike in prices as the last sentence states.  That would actually be working against consumers and the economy.  A .5% increase could clearly be nothing more than a spike in gas prices, couldn’t it?

My discussions with candidates has been fairly consistent - the economy is brutal and another spike in gas prices like last year would be a tremendous blow.  Telecommuting jobs will be in even higher demand if a significant gas price increase occurs.

Comments(0)

Hiring, that is, and it appears that it is going to be an even rougher road over the back half of 2009.  If you are in the recruiting, hiring, assessing business you are aware of this fact.  9.4% unemployment is remarkable.  From abcnews.com:

The percentage of people without jobs in this country is now at the highest point in nearly 26 years. Every month since January 2008 we have seen jobs disappear.

So far the economy has shed 6 million jobs since the recession started push (sic) employers to start handing out pink slips.

I’m still looking for the report that lists the number of jobs “saved” by the stimulus package.  I suspect I will have to wait a bit longer for that information.  But fear not, the bleeding does seem to be slowing down:

The Labor Department this morning announced that another 345,000 Americans lost their jobs last month, pushing the unemployment rate up from 8.9 percent in April. Economists had expected a loss of 550,000 jobs and the news that significantly less were lost initially shot the stock market up.

Again, more economists with an inaccurate prediction.  I dare say the economy is too dynamic, too multi-faceted for any one person to accurately predict…much like the weather.  Yet, here is a development for which I was unaware (emphasis mine):

The (EEOC) commission received an unprecedented 95,402 complaints during a 12-month period ending in October. That’s up 15 percent from the prior year. Of those, 24,582 are charges of age discrimination, a massive 29 percent increase.

I think most of us know that companies often use down markets to purge employees whether deserving or not.  A recessionary economy provides cover for companies to layoff workers from a protected class with less liability.  I’m not condoning the practice, just being brutally honest.

This uptick in complaints seems to support this unwritten business practice.  I think an aspect that the reporter did not address is the overall aging of the workforce.  If the Boomers are the majority of the workforce, there stands to reason that there will be a continued increase in age discrimination charges simply based on the numbers.  That data would have provided a needed context to the article.

Comments(0)

Isn’t this an old marketing trick – include “surprising,” “stunned,” or “unexpected” in a headline?  It seems to me that every time an economic report comes out, we are presented with one of these words to describe the data.

The latest example comes from cnnmoney.com today:

U.S. construction spending unexpectedly posted its biggest increase in eight months in April, advancing for a second straight month as the private sector put money into both residential and nonresidential projects, according to a government report on Monday.

Oh to be able to surprise a sales manager with an unexpectedly lower sales forecast!  If the experts are consistently surprised, what credentials do they have for being experts?

Anyway, I am hopeful that the economy is turning, but I have to question if this is too early of a read.  The GM bankruptcy is going to have seismic repercussions on unemployment which is a lagging indicator to start.

Comments(0)

I have come across many articles recently that promote selling tips in this recession.  One common thread runs through all of them – chase smaller deals.  Here is an example from Inc.com - 5 Tips for Selling a Service Now:

“The big change for us in 2009 is that we are more flexible on minimum amount of an engagement that we’ll pursue,” says Gay Gaddis, the founder and CEO of T3, an Austin-based advertising and marketing agency that specializes in digital media. In years past, her firm only went after client engagements that were worth between $1.5 million and $2 million. Now, “some larger clients are breaking RFPs into smaller amounts,” Gaddis says, prompting T3 to pursue accounts in the $500,000-to-$1 million range. The company, which had $300 million in capitalized billings in 2008, is still selective, however: “We won’t take just any piece of business,” Gaddis says. “We really want to work with large and midsize companies that are making digital marketing really central to what they do.”

As a sales manager, this approach is counter-intuitive during booming economic times.  I could launch on RFP-based selling (really is quote writing), but I will refrain for the purpose of this post.

Right now we are seeing most companies pursue smaller deals as a means to survive the present economy.  It is a wise pursuit in that it will help keep people working, some cash flowing and new business developing.

However, the caveat in the pull quote is this – don’t pursue every piece of business.  Some deals, no matter how desperate, are not worth pursuing.  Many salespeople will chase a bad deal in a recession for the simple purpose of looking busy.  Forecasts are the means for monitoring effort and focus.  Each prospect should be discussed in detail to ensure that the salespeople are targeting the proper small deals.

Comments(0)

Here is an interesting story from abcnews.com - What Do iPhones and Designer Jeans Have in Common?  The answer is found in the subheading - They Keep Selling, Even in Recession.

Here is a list from the article in regards to hot-selling products during this recession:

The iPhone
Designer jeans
Wal-Mart and Costco
McDonald’s
Internet access
High-definition TV sets

An odd list, wouldn’t you say?  The low-price options are logical, the other ones not-so-much.  The explanation from the article:

“Even in down times,” said Michael Gartenberg, vice president for strategy and analysis at Interpret LLC, “people still have some discretionary income. What happens is that they spend it more carefully.”

So they look for things that will last for them — which means, for instance, that a television set will look more appealing than, say, a vacation. “They’ll get several years of use from the TV,” said Gartenberg, “but when the vacation is over, well, you have your memories, and that’s it.”

Now that makes sense…though I have young kids so the memories of those vacations are worth quite a bit to me.

Recently I have found functional upgrades to be better sales approaches than outright new purchases.  What I mean is that companies are still investing in their production capabilities if there is a defined return on that investment.  This approach occurs in any economy, but it is the strongest play in this economy.

I have seen companies tighten spending in “new” areas, but continue to budget for enhancements in existing areas.  One such company I encountered was in the midst of a slowdown like many other companies.  The production team decided this was an opportune time for some needed upgrades to their capital equipment that normally would be in use for 3 shifts.  The salesperson got the deal to upgrade it and the customer got a better price since it didn’t have to be completed over a weekend.

This approach is consistent with the article – companies still have some discretionary funds and they are looking for long-term improvements to their bottom line.  As a salesperson, this is the first place to start your approach with a prospect.

Comments(0)

From a CareerBuilder.com email regarding the pork stimulus plan:

By the fourth quarter of 2010, over 3,994,000 jobs are estimated to be created and/or saved due to the American Reinvestment and Recovery act according to Moody’s Economy.com.

I’m all for efforts to create jobs in this economy, but I have heard this question asked before and it bears repeating:

What tool measures “saved” jobs?

There isn’t one, it is simply marketing propaganda.  Granted, the qualifying word in the sentence is “estimated,” but the real issue is job creation.  I think it was Peter Drucker who said if you can’t measure it, you can’t manage it.  The focus this year and next should be on job creation instead of an indefinable saved jobs estimate.

Comments(0)

Here is a funny clue from the abcnews.com article:

To be direct: If Bruce Springsteen, Billy Joel or John Mellencamp has written a melancholy song about your city, it’s probably on this list.

Good line for a sad story.  I wonder how some of these towns are going to be affected by this present economy?  Here is the top 10 most downsized cities:

10. Providence, RI
  9. Lansing, MI
  8. Pittsburgh, PA
  7. Toledo, OH
  6. Buffalo, NY
  5. Dayton, OH
  4. Detroit, MI
  3. Cleveland, OH
  2. Flint, MI
  1. Youngstown, OH

It is almost shocking how close these cities are to each other and how they followed similar paths – reliance upon automotive and steel industries.  I’ve been to 7 of these cities and the economic trouble before the recession was startling.  I can only imagine what it is like today.

Comments(0)

Cuts, layoffs, workforce reductions…the stories are everywhere in the media today as this economy takes it’s toll on business.  Clearly it appears that more cuts are underway in March and will be reflected in the next labor statistics report.  This approach is needed during a recession so no company can be blamed for taking this drastic move.

But how far should companies cut?

There are no easy answers to that question, but I think there is a general principle companies should follow.  Reduce only enough to make your company agile in this marketplace while minimizing your gaps in performance.

Here is an excerpt from last week’s Herman Trend Alert (sorry, no link):

Recently the Human Capital Management Division of the IBM Institute for Business Value released a white paper with its recommendations for leaders coping with the global economic crisis. Implementing this advice, IBM believes that “organizations can use this downturn . . . to position themselves for future opportunities.”

First, they advise organizations should make informed resourcing decisions. Base those informed decisions on capabilities and gaps, including the costs of rebuilding resources, costs of lost productivity associated eliminating training, and even the opportunity to acquire entire divisions or companies.

Second, and this suggestion echoes our book “Lean & Meaningful”, focus on “core” versus “non-core” activities. Look for opportunities to outsource and in-source, concentrating on what the corporation does particularly well. These moves may, in fact, improve agility by creating a smaller organization that is better able to respond to changing market conditions.

Facing imminent layoffs, organizations are most vulnerable to lose their best performers—those in the highest demand in the labor marketplace. These are people the enterprise can not afford to lose at this critical time. A clearly defined performance management process, coupled with “stay interviews” will help tackle this issue.

I have seen some companies cut too deep in the wrong areas which left a tremendous gap in their business.  As you may expect, the company was not aware of this potential liability.  Cutting to improve agility is the best method for this economy.  This approach requires an objective view of your team and a manager with the understanding that there are no sacred cows.  An effective layoff may mean letting go of someone who would not be considered in any vein during a robust economy.

Comments(0)

CNNMoney.com provides this article regarding 2009 hiring.  As you may expect, hiring is down and it appears more cuts are coming soon:

Of the 31,800 employers surveyed, only 15% anticipate hiring more employees during the second quarter, down from 16% in the first quarter and 26% in the same period last year.

About 14% expect a decrease in their payrolls, up from 13% last quarter and just 9% one year ago. Another 4% said they were undecided about their hiring intentions.

The net employment outlook, or difference between employers who plan to add jobs and those who expect to cut them, was 1%, down from 3% in the previous quarter and 17% in the year-ago period. That’s the lowest net employment outlook since the recession of 1982.

But what of those 15% who anticipate hiring more employees?

Alternatively, employers in construction and leisure and hospitality anticipate increased hiring as compared to the first quarter, Manpower said.

Only employers in transportation and utilities said they plan to keep hiring levels relatively stable for the second quarter, according to the survey.

Those industries would be a good place for jobseekers to look right now.

Comments(0)