Editors Blog

Mike Murphy is Publisher. Email him at mikemurphy@achrnews.com.


Murphy's Law: Unemployment Silver Lining

February 16, 2009

Yes, we all have heard that times are tough. For anyone who has lost a job, or who has had to lay people off, I know how you feel. Been there, done both.

Now, it’s time to do something a little different. Take a look at this from a different perspective.

The silver lining? It’s an employer’s market. There are a lot of good people looking for work. The question you have to answer is: If someone can do a job better than you, why don’t you hire him or her?

That is how companies grow. (I liked that thought from Mark Swepston, Atlas Butler, Columbus, Ohio, so much that I stole it.)

Recently, the Bureau of Labor Statistics released the Job Openings and Labor Turnover (JOLTS) data for December of 2008. The data show that there were 2.7 million job openings in December, down 6 percent from November 2008 and down 32 percent from the start of the recession in December 2007.

While job openings are becoming more and more scarce, the ranks of the unemployed are growing dramatically - up by 47 percent in the first year of the recession - such that in December there were 11.1 million unemployed workers.

This means that there were 4.1 job seekers per available job.

Given the 508,000 increase in unemployment in January, if job openings experience the same decline in January that they experienced in December, that will translate into 4.6 unemployed workers per job opening in January.

Maybe this is a little weird, but while the economy is shrinking, you could be thinking about expanding your intellectual capital. Now is a good time to hire some good people.

Source: Economic Policy Institute

Silver Lining

Mikhail Solow
February 16, 2009 11:23 AM
It all looks good on paper. Plenty talent to go around. The only problem is how to get the business to pay for it. Unfortunately, a private contractor cannot raise taxes, fees, or print more money. Only government can do it. The technicians salaries and benefits are part of the unbalanced budget, subsidized by all taxpayers. And, that's my friend is very difficult to compete with.


Silver Lining

Murphy
February 16, 2009 1:51 PM
Ah, but here is the catch: "If someone can do a job better than you, why don't you hire him or her?" If you hire someone new, you only do so because you believe that person can add to your revenues, because they are doing something better than you might otherwise be able to do it. Hiring a better dispatcher, perhaps paying that person more money, all the benefits, etc., might be worth it if they contribute more to your top line. Just a thought! Murph


Silver Lining

Dk
February 19, 2009 5:34 PM
You are right there are more people looking for work, but what I'm seeing the people that are looking don't have much talent. I know if I were to lay someone off it would not be my good people, I think all of us contractors are so optimistic and know the value of good people we are doing what ever it takes to keep the cream of the crop.


Silver Lining

Mike Murphy
February 20, 2009 10:07 AM
DK, Good point. However, as the unemployment rolls grow, there are some excellent people on the streets. Maybe not yet in your locale, (and I hope it doesn't get any worse where you live)but keep an eye out for good people. Murph


Re: Silver lining

R.Gardooni
March 30, 2009 12:17 PM
Mike, you brought an intersting vision to this frightening situation. But somehow I should agree with M. Solow, and it is good on paper unless you bring a good plan for your company to stay in the market. please advice


Re: Silver lining

R.Gardooni
March 30, 2009 12:18 PM
Mike, you brought an intersting vision to this frightening situation. But somehow I should agree with M. Solow, and it is good on paper unless you bring a good plan for your company to stay in the market. please advice


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