One of the biggest elephants in the room is that once hiring starts to pick up again, experts predict there is going to be massive turnover. There are several factors contributing to the turnover including employees who, despite holding on to their jobs during the recession, feeling that they were/are overworked, under paid and under appreciated.
From personal observation, what is striking to me is that many hiring managers, HR Directors and even presidents of companies do not yet seem to feel the urgency to deal with the pending turnover crisis NOW. To believe that your current employees will remain loyal because they kept their jobs is, well it's crazy to think that way because it's not true. You need to be taking immediate steps to put a retention plan in place that will help you hang on to your best employees as well as attract good employees from other companies once the "jumping" begins.
How do you take the first step in putting a solid retention plan in place? Call MITTONMedia at 281-242-4473. Or send me an email at jmitton@mittonmedia.com. We'll do the work. You'll get the credit.
Here is a great "thought-starter" article posted today by Stephen Balzac:
"It’s not enough to say that if you want to keep the best people when the economy improves, you just need to communicate more. It matters what you say and how and when you say it. Communication occurs in the context that you’ve created over time, and how your communications will be received will depend a great deal on that context. If you want to keep your best people, then you need to do your homework. (Or, conversely, if you want to recruit someone else’s key people, find companies that did not do the homework suggested in this article.)
Fortunately, it isn’t terribly difficult to communicate better. It does, however, require recognizing that emotion, not logic, is the driving force, and it requires starting now — not next week, next month, or next year. If you wait until people are leaving, it’s too late.
So how do you highlight someone’s contributions? I offer more, detailed suggestions in the Journal of Corporate Recruiting Leadership, but for now, I suggest the following in brief.
Take the opportunity to praise them in public. Note that this does not mean comparing them to others on the team; that only creates resentment and embarrassment for all concerned. Talk about the importance of the effort they’ve put in, and find small ways of demonstrating your appreciation. It doesn’t have to be fancy, especially in a time of tight budgets. Honest appreciation goes a long way.
The next step in keeping people is to make sure that their contributions are not just recognized, but are also important. Visible contributions that are not valued by the company are not going to be very compelling. Likewise, contributions that someone does not perceive as important will not serve to keep them at the company.
A cousin of mine worked for NASA in the early 1970s. He was part of the team designing the space shuttle. Due to security issues, he and his team had no idea what part of the shuttle they were working on; it was the quintessential “clean room” project, where they would be given instructions and specifications, but no context. When the day of the grand unveiling arrived, he found out that he had been designing the door lock. He walked out of the unveiling and out of NASA.
If you want to keep someone, make sure you frequently highlight how their work fits into the long-term vision of the company. Help them see that their work matters to the team and the company. Build a sense of partnership and status. They’re not a hired mercenary; they’re a trained professional providing valuable services. Again, demonstrate appreciation whenever possible. Find ways to reward people for their efforts, but don’t make the rewards the point of the work.
Make people feel competent and appreciated. No one likes being reminded of embarrassing incidents, of failures, of things that didn’t work out well. On the flip side, practically everyone loves to be reminded of successes. As the old saying goes: nothing succeeds like success. As the lesser-known corollary goes, nothing keeps people at your company from leaving like the feeling that they’re in an environment where they’ll be successful.
Although the corollary lacks the pithy ring of the original saying, it is nonetheless valid. Create an environment where people can see their own competence and measure their own success toward creating something larger than themselves, and you’ve gone a long way toward keeping them at your company. And, of course, providing opportunities for growth also helps build that feeling of competence and further increases the attractiveness of staying. An additional side effect is that the more competent people feel, the more secure they feel. The more secure they feel, the harder it is for someone else to pry them away.
So yes, in the end it really is all about communications, provided that you are communicating the right things.
Think about how you are communicating the following things:
• Your recognition of the contributions of your employees
• Your appreciation for their contributions and the personal sacrifices they are making
• Your own enthusiasm, excitement, and positive vision of the company and its future
• The goals of the company and how each employee fits into bringing those goals to life
• The common ground and ideals that will unify your team
• The information your employees need to work and grow most effectively
• The feedback that will make your employees feel successful
If you can address those seven points, odds are you’ll keep your top people as the economy improves."
________________________________________
Source: December 30, 2009 http://www.ere.net
Thursday, December 31, 2009
Friday, December 11, 2009
Monday, December 7, 2009
Just for Fun: A Test of Your "Morals"
You are driving down the road in your 2-seater sports car on a wild,
stormy night, when you pass by a bus stop and see three people waiting for the bus:
1. An old lady who looks as if she is about to die.
2. An old friend who once saved your life.
3. The perfect partner you have been dreaming about.
Which one would you choose to offer a ride to knowing that there could
only be one passenger in your car?
Think before you continue reading...
This is a moral/ethical dilemma that was once actually used as part of a
job application.
You could pick up the old lady, because she is going to die, and thus you
should save her first.
Or you could take the old friend because he once saved your life, and
this would be the perfect chance to pay him back.
However, you may never be able to find your perfect mate again.
YOU WON'T BELIEVE THIS....................
The candidate who was hired (out of 200 applicants) had no trouble coming
up with his answer.
He simply answered: 'I would give the car keys to my old friend and let him take the lady to the hospital. I would stay behind and wait for the bus with the partner of my dreams.'
Sometimes, we gain more if we are able to give up our stubborn thought
limitations.
Never forget to, "Think Outside of the Box."
stormy night, when you pass by a bus stop and see three people waiting for the bus:
1. An old lady who looks as if she is about to die.
2. An old friend who once saved your life.
3. The perfect partner you have been dreaming about.
Which one would you choose to offer a ride to knowing that there could
only be one passenger in your car?
Think before you continue reading...
This is a moral/ethical dilemma that was once actually used as part of a
job application.
You could pick up the old lady, because she is going to die, and thus you
should save her first.
Or you could take the old friend because he once saved your life, and
this would be the perfect chance to pay him back.
However, you may never be able to find your perfect mate again.
YOU WON'T BELIEVE THIS....................
The candidate who was hired (out of 200 applicants) had no trouble coming
up with his answer.
He simply answered: 'I would give the car keys to my old friend and let him take the lady to the hospital. I would stay behind and wait for the bus with the partner of my dreams.'
Sometimes, we gain more if we are able to give up our stubborn thought
limitations.
Never forget to, "Think Outside of the Box."
Thursday, December 3, 2009
Who Creates Jobs?
Who Creates Jobs?
By John Stossel, December 3, 2009
Today, the White House holds its “Jobs Summit” stunt. It’s typical Washington-think: Assemble interest groups and concoct special tax credits and handouts to the politically connected. What conceit. The political class think that economies revolve around them, that Washington makes things happen, that politicians are the most important players.
Today’s Washington Post [1] suggests that the way to create jobs is public spending by the federal government:
Obama's options are limited, as the administration already has signaled that it is unwilling to make any investments that would add significantly to the nation's ballooning deficit.
At least the Administration talks about the private sector:
"We want to make sure it is not just the public sector doing this in a vacuum," said Valerie Jarrett, a senior adviser to Obama. "It's important we engage the private sector as well." Administration officials, however, have excluded major trade associations from the summit... .
Some of those groups privately complain that their job creation ideas, including enactment of stalled free trade deals that they say would boost exports, are opposed by labor unions, which will be heavily represented at the forum.
The White House, which has clashed with some of the business groups over their opposition to health-care reform and other initiatives, says it has met repeatedly with those organizations and wants to hear fresh ideas.
Yes. I am sure those "fresh ideas" will come from the trade unions whom the White House just hasn't heard from much over the past year. At the summit they will also hear from environmental groups “Green for All” and “Coalition for the Green Bank.” I’m sure they’ll have great ideas for job creation.
Will at least some free-market economists get to speak? No. The White House will hear from Paul Krugman, Joe Stiglitz, and Jeffrey Sachs. "Fresh ideas" won’t be heard from these folks.
They and the political class can’t imagine a decentralized world where good things happen…without them. But in the real world, that’s exactly how good things happen, and how jobs are created.
When government sets simple rules that everyone understands and then gets out of the way, free people create jobs.
Hong Kong demonstrates this. Last century, Hong Kong was third world poor. 50 years ago, its citizens’ average income was under $700 [2] (in today’s dollars) per year. Today, it’s $43,800 [3]. Hong Kong got rich because Hong Kong’s rulers, stuffy British bureaucrats, practiced what I’ll call “benign neglect”: they enforced rule of law—kept people from stealing from each other, or killing each other--- but then sat around and drank tea. They left people alone, and free people, left alone, created prosperity.
America’s founders did the same thing. The Constitution announced that American would be a country of limited government. That provided the simple and understandable rules that allowed America to grow into the richest country ever.
Today’s political class thinks that they can improve on that, but they can’t. Their micromanagement kills jobs. When Washington threatens to drastically change the rules of the game with health care mandates, cap and trade, financial regulation, a second stimulus, and (of course) a "jobs bill", the private sector can't make investments with any confidence. At least the Post quoted one businessman who said Washington should stop fiddling:
Peter Y. Solmssen, interim U.S. chief executive of Siemens Corp., a German conglomerate, said fixed policies would help businesses, large and small. "We both need a certain amount of certainty, which gives us the opportunity and capability to plan."
(Editor's Note: What do you think? Who should create the jobs and how should they be created?)
By John Stossel, December 3, 2009
Today, the White House holds its “Jobs Summit” stunt. It’s typical Washington-think: Assemble interest groups and concoct special tax credits and handouts to the politically connected. What conceit. The political class think that economies revolve around them, that Washington makes things happen, that politicians are the most important players.
Today’s Washington Post [1] suggests that the way to create jobs is public spending by the federal government:
Obama's options are limited, as the administration already has signaled that it is unwilling to make any investments that would add significantly to the nation's ballooning deficit.
At least the Administration talks about the private sector:
"We want to make sure it is not just the public sector doing this in a vacuum," said Valerie Jarrett, a senior adviser to Obama. "It's important we engage the private sector as well." Administration officials, however, have excluded major trade associations from the summit... .
Some of those groups privately complain that their job creation ideas, including enactment of stalled free trade deals that they say would boost exports, are opposed by labor unions, which will be heavily represented at the forum.
The White House, which has clashed with some of the business groups over their opposition to health-care reform and other initiatives, says it has met repeatedly with those organizations and wants to hear fresh ideas.
Yes. I am sure those "fresh ideas" will come from the trade unions whom the White House just hasn't heard from much over the past year. At the summit they will also hear from environmental groups “Green for All” and “Coalition for the Green Bank.” I’m sure they’ll have great ideas for job creation.
Will at least some free-market economists get to speak? No. The White House will hear from Paul Krugman, Joe Stiglitz, and Jeffrey Sachs. "Fresh ideas" won’t be heard from these folks.
They and the political class can’t imagine a decentralized world where good things happen…without them. But in the real world, that’s exactly how good things happen, and how jobs are created.
When government sets simple rules that everyone understands and then gets out of the way, free people create jobs.
Hong Kong demonstrates this. Last century, Hong Kong was third world poor. 50 years ago, its citizens’ average income was under $700 [2] (in today’s dollars) per year. Today, it’s $43,800 [3]. Hong Kong got rich because Hong Kong’s rulers, stuffy British bureaucrats, practiced what I’ll call “benign neglect”: they enforced rule of law—kept people from stealing from each other, or killing each other--- but then sat around and drank tea. They left people alone, and free people, left alone, created prosperity.
America’s founders did the same thing. The Constitution announced that American would be a country of limited government. That provided the simple and understandable rules that allowed America to grow into the richest country ever.
Today’s political class thinks that they can improve on that, but they can’t. Their micromanagement kills jobs. When Washington threatens to drastically change the rules of the game with health care mandates, cap and trade, financial regulation, a second stimulus, and (of course) a "jobs bill", the private sector can't make investments with any confidence. At least the Post quoted one businessman who said Washington should stop fiddling:
Peter Y. Solmssen, interim U.S. chief executive of Siemens Corp., a German conglomerate, said fixed policies would help businesses, large and small. "We both need a certain amount of certainty, which gives us the opportunity and capability to plan."
(Editor's Note: What do you think? Who should create the jobs and how should they be created?)
WH Job Summit
How do you feel about a Job Summit with 130 CEOs, local politicians, and academics? Not one Small Business person in the group, yet Small Businesses create most of the jobs in this country.
What do you think?
What do you think?
Tuesday, November 24, 2009
What Job Seekers Can Expect in 2010
By LIZ WOLGEMUTH (U.S. News & World Report)
Posted: November 11, 2009
President Obama summed up the precarious nature of today's economy and job market in a recent interview with ABC's Jake Tapper. "Now that we've rescued the economy and the economy is growing," Obama said, "businesses aren't yet hiring." Indeed, it's strange to see a "rescued" economy in which nearly 16 million unemployed face a paltry 2.5 million openings each month. Employers have not stopped cutting jobs, and the unemployment rate soared to 10.2 percent last month.
With 2010 just around the corner, everyone is crossing their fingers for a better year. Here are a few things you can expect:
Washington will keep trying to create jobs:
The gross domestic product climbed 3.5 percent in the third quarter, while payrolls continued to fall. This is no doubt proof of the rule that employment is a lagging indicator. But some economists see it as particularly lagging at this point. The Conference Board's employment trends index, which takes into account eight labor market indicators, rose in October. It was the second consecutive month of growth. (September's rise had been the first since January 2008.) The index numbers suggest job losses would end by early next year, and "that's a very optimistic statement compared to the consensus at this point," says Gad Levanon, senior economist at the Conference Board.
When the private sector isn't creating jobs, government tends to step in by lowering taxes, creating incentives, or spending to spur hiring. President Obama signed a bill providing another federally funded unemployment extension Friday and said he would likely do more: "My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and businesses to make buildings more energy-efficient, additional tax cuts for businesses to create jobs, additional steps to increase the flow of credit to small businesses, and an aggressive agenda to promote exports and help American manufacturers sell their products around the world." The White House has stopped short of calling these tools "stimulus." On Capitol Hill, Senate Majority Leader Harry Reid told colleagues Tuesday that Senate Democrats would take up a bill aimed at job creation, but did not elaborate on its details, according to the Hill.
The deficit will begin to weigh on Washington's efforts to create jobs:
While the president laid out a lengthy menu of possible job-creation tools, he is receiving no small amount of pressure to begin tackling the deficit. Federal Reserve Chairman Ben Bernanke is the most powerful voice among many pushing Obama in that direction. The president says that he is beginning to look at the fiscal 2011 budget and that he understands the nation's long-term debt is a problem. While unemployment is clearly a nearer-term problem, deficit concerns will weigh on each decision. Countries that buy American debt could begin to demand higher returns. To pay higher yields on debt, the government would be forced to raise interest rates, a situation that could endanger the fledgling recovery.
Unemployment will peak next year:
By and large, economists do not believe the unemployment rate will tick downward in November or December. Instead, they expect a peak sometime next year. Even the Congressional Budget Office is anticipating an average unemployment rate of 10.2 percent in 2010 and about a percentage point lower in 2011.
Unemployment will likely fall by the end of next year—or even toward the middle of next year—but even the most bullish economists do not anticipate major drops in the unemployment rate. Brian Wesbury and Robert Stein of First Trust Advisors are expecting a drop of a full percentage point. The Conference Board's Levanon says he expects the unemployment rate to remain elevated over the next several years.
Productivity will, eventually, help boost employment:
Productivity grew at a 9.5 percent annual rate last quarter. Americans were working hard. Labor productivity is measured by dividing output by hours worked. In the third quarter, output rose by 4 percent while the number of hours worked fell by 5 percent. This can make people nervous, because employers are doing more with less and would seem to have no incentive to increase their payrolls. But productivity numbers during downturns "do all sorts of strange things," says Dean Baker, codirector of the Center for Economic and Policy Research. And they can look very good after employers cut payrolls.
A longer purview shows productivity to be a very positive thing for employment. Productivity allows more to be produced with less capital. "The increased productivity of capital raises the supply of other kinds of capital that contributes to a growth in the earnings of workers," says Gary Becker, an economist at the University of Chicago. "In the very short run, productivity improvements are associated with rising unemployment and reduced employment, but in the somewhat longer run it will raise the demand for workers and earnings."
(Editor's Note: Let us hear your opinion. Should we be dependent on the government creating jobs for people or should steps be taken that will allow the private sector to create the jobs?)
Posted: November 11, 2009
President Obama summed up the precarious nature of today's economy and job market in a recent interview with ABC's Jake Tapper. "Now that we've rescued the economy and the economy is growing," Obama said, "businesses aren't yet hiring." Indeed, it's strange to see a "rescued" economy in which nearly 16 million unemployed face a paltry 2.5 million openings each month. Employers have not stopped cutting jobs, and the unemployment rate soared to 10.2 percent last month.
With 2010 just around the corner, everyone is crossing their fingers for a better year. Here are a few things you can expect:
Washington will keep trying to create jobs:
The gross domestic product climbed 3.5 percent in the third quarter, while payrolls continued to fall. This is no doubt proof of the rule that employment is a lagging indicator. But some economists see it as particularly lagging at this point. The Conference Board's employment trends index, which takes into account eight labor market indicators, rose in October. It was the second consecutive month of growth. (September's rise had been the first since January 2008.) The index numbers suggest job losses would end by early next year, and "that's a very optimistic statement compared to the consensus at this point," says Gad Levanon, senior economist at the Conference Board.
When the private sector isn't creating jobs, government tends to step in by lowering taxes, creating incentives, or spending to spur hiring. President Obama signed a bill providing another federally funded unemployment extension Friday and said he would likely do more: "My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and businesses to make buildings more energy-efficient, additional tax cuts for businesses to create jobs, additional steps to increase the flow of credit to small businesses, and an aggressive agenda to promote exports and help American manufacturers sell their products around the world." The White House has stopped short of calling these tools "stimulus." On Capitol Hill, Senate Majority Leader Harry Reid told colleagues Tuesday that Senate Democrats would take up a bill aimed at job creation, but did not elaborate on its details, according to the Hill.
The deficit will begin to weigh on Washington's efforts to create jobs:
While the president laid out a lengthy menu of possible job-creation tools, he is receiving no small amount of pressure to begin tackling the deficit. Federal Reserve Chairman Ben Bernanke is the most powerful voice among many pushing Obama in that direction. The president says that he is beginning to look at the fiscal 2011 budget and that he understands the nation's long-term debt is a problem. While unemployment is clearly a nearer-term problem, deficit concerns will weigh on each decision. Countries that buy American debt could begin to demand higher returns. To pay higher yields on debt, the government would be forced to raise interest rates, a situation that could endanger the fledgling recovery.
Unemployment will peak next year:
By and large, economists do not believe the unemployment rate will tick downward in November or December. Instead, they expect a peak sometime next year. Even the Congressional Budget Office is anticipating an average unemployment rate of 10.2 percent in 2010 and about a percentage point lower in 2011.
Unemployment will likely fall by the end of next year—or even toward the middle of next year—but even the most bullish economists do not anticipate major drops in the unemployment rate. Brian Wesbury and Robert Stein of First Trust Advisors are expecting a drop of a full percentage point. The Conference Board's Levanon says he expects the unemployment rate to remain elevated over the next several years.
Productivity will, eventually, help boost employment:
Productivity grew at a 9.5 percent annual rate last quarter. Americans were working hard. Labor productivity is measured by dividing output by hours worked. In the third quarter, output rose by 4 percent while the number of hours worked fell by 5 percent. This can make people nervous, because employers are doing more with less and would seem to have no incentive to increase their payrolls. But productivity numbers during downturns "do all sorts of strange things," says Dean Baker, codirector of the Center for Economic and Policy Research. And they can look very good after employers cut payrolls.
A longer purview shows productivity to be a very positive thing for employment. Productivity allows more to be produced with less capital. "The increased productivity of capital raises the supply of other kinds of capital that contributes to a growth in the earnings of workers," says Gary Becker, an economist at the University of Chicago. "In the very short run, productivity improvements are associated with rising unemployment and reduced employment, but in the somewhat longer run it will raise the demand for workers and earnings."
(Editor's Note: Let us hear your opinion. Should we be dependent on the government creating jobs for people or should steps be taken that will allow the private sector to create the jobs?)
Saturday, November 21, 2009
California Was Among States With Record Unemployment
By Courtney Schlisserman, Nov. 20 (Bloomberg) --
California, Delaware, South Carolina and Florida registered record rates of unemployment in October as weakness in the labor market stretches from coast to coast and limits the economic recovery.
Joblessness rose in 29 U.S. states last month compared with 22 in September, the Labor Department said today in Washington. Michigan had the highest jobless rate at 15.1 percent, followed by Nevada at 13 percent and Rhode Island at 12.9 percent.
The national rate last month reached a 26-year high of 10.2 percent, weighing on consumer spending that accounts for about 70 percent of the economy. Federal Reserve Chairman Ben S. Bernanke said Nov. 17 that joblessness “likely will decline only slowly,” a reason policy makers will keep interest rates near zero to ensure growth is sustained.
“We’ve had a surprisingly sharp jump in the jobless rate,” said Richard DeKaser, president of Woodley Park Research in Washington. “Businesses have truly been doing an extraordinary job of wringing out productivity from the labor force.”
Stocks fell for a third day, with the Standard & Poor’s 500 Index declining 0.3 percent to 1,091.38 at 4:03 p.m. in New York. Dell Inc., the third-largest maker of personal computers, dropped 10 percent after reporting a 54 percent drop in profit.
Declines in 13 States
The unemployment rate fell in 13 states, including Massachusetts, where it declined to 8.9 percent from 9.3 percent; New Hampshire, with a drop to 6.8 percent from 7.2 percent; and West Virginia, which fell to 8.5 percent from 8.9 percent.
The number of states with at least 10 percent unemployment held at 14 last month, the Labor Department’s report showed. The states reporting a record jobless rate were California at 12.5 percent, South Carolina at 12.1 percent, Florida at 11.2 percent and Delaware at 8.7 percent. The District of Columbia also set a high with an 11.9 percent rate.
“Virtually every sector aside from the health-care sector is losing jobs,” said Sean Snaith, University of Central Florida economist in Orlando. “Housing has been central to Florida’s economic story throughout the entire cycle. Unfortunately, it has spread well beyond the sectors directly involved in the housing market.”
President Barack Obama on Nov. 6 signed into law a plan to extend jobless benefits, expand a tax credit for first-time homebuyers and provide tax refunds to money-losing companies. The measure gives jobless people as many as 20 additional weeks of unemployment assistance.
The president has also announced plans to convene a jobs summit at the White House next month.
State Payrolls
Payrolls declined last month in 21 states, today’s report showed. New York showed the biggest drop, with a loss of 15,300. Florida had 8,500 job losses, followed by Georgia with 7,500 and Virginia with 7,100.
“When you apply for a job, because there are so many other people looking for jobs, you have to be the absolute perfect candidate and lucky, or be someone’s brother-in-law, to get a job,” said Mary Kough of Tellico Plains, Tennessee. “In this economy there are very few jobs for which to even apply.”
Kough has been looking for work for four months, applying for as many as 25 positions. She’s been interviewed once. The 47-year-old said she has about 20 years of experience, including jobs as a customer service manager, supervisor and purchasing agent. Tennessee’s unemployment rate held at 10.5 percent in October, the Labor Department’s report showed.
Taking Comfort
“I try not to get discouraged,” Kough said. “I know that you will get a certain percentage of what you apply for, and since there are less jobs to apply for, I know it will just take a little longer. I take comfort in knowing that. I have faith.”
Applied Materials Inc. is among companies still planning to cut jobs. The world’s biggest maker of chip equipment, based in Santa Clara, California, said Nov. 11 it plans to eliminate as many as 1,500 positions within 18 months.
Over the last year, California showed the biggest loss of jobs, with payrolls falling by 687,700 workers, today’s report showed.
Nationally, payrolls fell by 190,000 in October, the Labor Department said Nov. 6. The U.S. has lost 7.3 million jobs since the start of the recession in December 2007, the most of any downturn since the Great Depression.
Other measures corroborate that while firms are firing fewer workers, it is harder for the unemployed to find work. The number of people getting extended payments jumped in the week ended Oct. 31 even as the number of Americans filing first-time claims for unemployment benefits held at a 10-month low last week, according to government data released yesterday.
California, Delaware, South Carolina and Florida registered record rates of unemployment in October as weakness in the labor market stretches from coast to coast and limits the economic recovery.
Joblessness rose in 29 U.S. states last month compared with 22 in September, the Labor Department said today in Washington. Michigan had the highest jobless rate at 15.1 percent, followed by Nevada at 13 percent and Rhode Island at 12.9 percent.
The national rate last month reached a 26-year high of 10.2 percent, weighing on consumer spending that accounts for about 70 percent of the economy. Federal Reserve Chairman Ben S. Bernanke said Nov. 17 that joblessness “likely will decline only slowly,” a reason policy makers will keep interest rates near zero to ensure growth is sustained.
“We’ve had a surprisingly sharp jump in the jobless rate,” said Richard DeKaser, president of Woodley Park Research in Washington. “Businesses have truly been doing an extraordinary job of wringing out productivity from the labor force.”
Stocks fell for a third day, with the Standard & Poor’s 500 Index declining 0.3 percent to 1,091.38 at 4:03 p.m. in New York. Dell Inc., the third-largest maker of personal computers, dropped 10 percent after reporting a 54 percent drop in profit.
Declines in 13 States
The unemployment rate fell in 13 states, including Massachusetts, where it declined to 8.9 percent from 9.3 percent; New Hampshire, with a drop to 6.8 percent from 7.2 percent; and West Virginia, which fell to 8.5 percent from 8.9 percent.
The number of states with at least 10 percent unemployment held at 14 last month, the Labor Department’s report showed. The states reporting a record jobless rate were California at 12.5 percent, South Carolina at 12.1 percent, Florida at 11.2 percent and Delaware at 8.7 percent. The District of Columbia also set a high with an 11.9 percent rate.
“Virtually every sector aside from the health-care sector is losing jobs,” said Sean Snaith, University of Central Florida economist in Orlando. “Housing has been central to Florida’s economic story throughout the entire cycle. Unfortunately, it has spread well beyond the sectors directly involved in the housing market.”
President Barack Obama on Nov. 6 signed into law a plan to extend jobless benefits, expand a tax credit for first-time homebuyers and provide tax refunds to money-losing companies. The measure gives jobless people as many as 20 additional weeks of unemployment assistance.
The president has also announced plans to convene a jobs summit at the White House next month.
State Payrolls
Payrolls declined last month in 21 states, today’s report showed. New York showed the biggest drop, with a loss of 15,300. Florida had 8,500 job losses, followed by Georgia with 7,500 and Virginia with 7,100.
“When you apply for a job, because there are so many other people looking for jobs, you have to be the absolute perfect candidate and lucky, or be someone’s brother-in-law, to get a job,” said Mary Kough of Tellico Plains, Tennessee. “In this economy there are very few jobs for which to even apply.”
Kough has been looking for work for four months, applying for as many as 25 positions. She’s been interviewed once. The 47-year-old said she has about 20 years of experience, including jobs as a customer service manager, supervisor and purchasing agent. Tennessee’s unemployment rate held at 10.5 percent in October, the Labor Department’s report showed.
Taking Comfort
“I try not to get discouraged,” Kough said. “I know that you will get a certain percentage of what you apply for, and since there are less jobs to apply for, I know it will just take a little longer. I take comfort in knowing that. I have faith.”
Applied Materials Inc. is among companies still planning to cut jobs. The world’s biggest maker of chip equipment, based in Santa Clara, California, said Nov. 11 it plans to eliminate as many as 1,500 positions within 18 months.
Over the last year, California showed the biggest loss of jobs, with payrolls falling by 687,700 workers, today’s report showed.
Nationally, payrolls fell by 190,000 in October, the Labor Department said Nov. 6. The U.S. has lost 7.3 million jobs since the start of the recession in December 2007, the most of any downturn since the Great Depression.
Other measures corroborate that while firms are firing fewer workers, it is harder for the unemployed to find work. The number of people getting extended payments jumped in the week ended Oct. 31 even as the number of Americans filing first-time claims for unemployment benefits held at a 10-month low last week, according to government data released yesterday.
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