Expect Job Recovery to Be Gradual U-Shaped
Saturday, May 15, 2010 at 2:56PM
Job Search Market Update: By most accounts the economic experts feel the job market is returning, but slowly. Fed's Kocherlakota says there will not be a V-shaped recovery due to the increases in public debt, restricted bank lending, and the financial situation in Europe.
Most experts agree that this recession is primarily driven by structural unemployment. There are a variety of jobs that most likely will not return. This is due in part to the labor market "correcting" itself for a period of over expansion, a shift toward leaner staffing, and organizations that have created operational efficiency changes. The combination of all of this has resulted in the reduction of costs, increased efficiencies and increased revenues for organizations. Comapanies are relucant to increase expenses by expanding their labor force, unless absolutlely necessary.
The decrease in home equity coupled with the decrease in investment accounts, still have the consumer cautious, though they seem to be slowly coming out of their shells. The companies will continue to slowly add jobs and hire as their confidence also returns.
Job Search Tips: Economists predict 3 industries that they do not expect the jobs to return to pre-recession levels, retail, manufacturing and advertising segments. (Moody Analytics predicts as Americans buy less cars and houses, 1 million jobs in auto, steel, furniture and other manufacturing industries will not return). My tip for this week is avoid spending the bulk of your time looking for a job in these segments.
Job Search Action Item: Register now for this Monday May 17, 2010, 9am-10am Tele Class, "Professional Salary Negotiations Tips". Register through our mailing list opt in box, RSVP May 17, 2010 section.
Think about other industries that are aligned to your primary industry experience that you should consider contacting during your job search this coming week.
Job Search Mental Health Tip: Attempt a simple DIY project around the house, where you can visibly see the change of something you improved or fixed.
Have a great week! Good Luck!
Eleanor Anne Sweet
The Job Search Experts
Sources for today's blog: "Millions of Jobs that were cut wont' likely return" by Chirstopher Rugaber (AP), I am suggesting for those interested in some of the previous economic recessions history to read, "Has Structural Change Contributed to a Jobless Recovery?" by Erica Grosben and Simon Peter, Fed Reserve Bank of NY, Volume 9, Number 9 August 2003.