Economic Fires Seem Reduced to Embers

MRI Network - First Friday Preview
Volume 3, Issue 7, 6/30/2009
UNITED STATES >

Economic Fires Seem Reduced to Embers >

While the inevitable political witch-hunts that occur after anything of a disastrous scale can be taxing—the one relief they seem to give is the notion of an end to the event. >

With the hearings beginning on Capitol Hill, Bernie Madoff sitting behind bars and the unemployment insurance roll decreasing for the first time this year, consumers seem to be thinking that the worst is behind them. Official economic estimates from the International Monetary Fund project that the global economy won’t start to grow again until 2010, yet, with the U.S. typically leading the pack by six months, we could already be out of the woods. >

The Organisation for Economic Co-operation and Development in June went so far as to say the worst is over and that the recovery is expected to be stronger in the United States than the Euro area.>

“As an employer, my first concern now would be morale,” says Tony McKinnon, president of MRINetwork. “We are emerging from as bad of a recession as anyone working today can remember. While we might not be out of the woods yet, the demand for talent is heating up. After nearly a year of stress-filled offices, thin—or outright empty—bonus envelopes, and lots of long hours for fewer results, even once loyal employees won’t be so quick to brush off potential suitors. Coming out of a recession, keeping institutional knowledge on board has to be a top priority.” >

Coming in a very close second, notes Jack Mohan, president and CEO of the Boston Group, an MRINetwork affiliate, is “that you have got to have a plan ready to grow your staff again. After nine months of not actively courting candidates, most employers have at best highly outdated candidate pools.” >

Many employers, sitting on the sidelines and thinking about ramping up their hiring are looking at the job market, the constant phone calls from job hunters, or the flow of emailed resumes and are assuming that turning the switch back on again won’t be hard. >

“That’s the worst mindset to have coming out of a recession,” says Mohan, who has accelerated hiring for his five New England offices since the beginning of the year. “With the economy on the mend, passive candidates are likely more interested in switching positions now than they were in the past, but looking at the pool of active candidates is like reading a diner menu––a thousand items, but nothing to order.”>

According to The Conference Board, a New York-based business organization, the demand for many specialized fields actually still far outstrips the number of unemployed people in those fields. In four categories: architecture and engineering, physical sciences, computer and mathematical science and healthcare, advertised available positions out- paced unemployed workers in those fields by almost 2-to-1. >

“With national unemployment likely to surpass 10 percent, you’re not going to get much sympathy talking about a labor shortage. Yet, that is exactly what more than a few industries are experiencing right now,” says McKinnon. >

Provided by MRINetwork Edited by Sean Muir (212) 687-8999 smuir@KitchenPR.com

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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.