Thursday, June 26, 2008

Layoffs In A Shrinking Job Market

"Honey, I Shrunk The Kids" was a comedy movie, but the reality of a shrinking job market is no laughing matter for those who have lost their jobs or fear they’re in jeopardy.

May 2008 marked the fifth month in a row that the economy has shed jobs. And more losses are forecast for the rest of the year.

According to the Labor Department, the unemployment rate surged to 5.5% in May, a 10% increase from April’s rate of 5%, making it the largest monthly spike in more than two decades.

Over 320,000 jobs disappeared during the first five months of this year. Considering that it takes 125,000 new jobs annually to keep up with population growth, the shortfall makes it that much harder for those in the job market.

Shrinking Job Market = Recession

As Jared Bernstein, senior economist at the Economic Policy Institute in Washington said, “We simply haven’t had five months of net job losses without being in a recession.” With all the pundits sparring over whether the country is in a recession technically, Bernstein implies that the job picture tells the true story.

So what should executives do to secure their careers in an environment where layoffs are occurring across the board, with job losses in industry after industry? Consider these three choices:

Think Growth

In spite of all the gloom and doom in the marketplace, healthcare remains a rare bright spot for most senior executives. In virtually every function, from IT and Finance to General Management and Human Resources, the demand for talent in the industry is at an all-time high and growth in the sector shows no sign of abating.

Think Green

Demand for solar power, wind turbines, biofuels, battery enhancement and a host of alternative energy sources are driving the growth of new businesses in this emergent industry. Some of these “green companies” will be tomorrow’s behemoths. And although many of these fledgling firms have a wealth of good ideas and more than adequate 1st and 2nd stage financing, they all need sophisticated leadership and quality management.

Think Small

While cutbacks are rampant at the larger financial, professional and business services companies – where banks, legal, accounting and management consulting firms exist – there is a demand for talent at the smaller, more nimble organizations in each of these disciplines. What the big boys throw away, the smaller guys always grab.

In a shrinking job market … smaller, greener and growing are your safe havens.

6 comments:

jeninct said...

Again excellent advice. You are giving hope in bad times. Thank you.

Anonymous said...

Where do I find these companies? I still have my job but who knows what will happen tomorrow.

ryan48 said...

T. Boone Pickens invested 2B in a wind turbine company. Google it.

NYer1969 said...

Read the headlines --- jobs are being vaporized. Its ugly out there.

Anonymous said...

Thank the wall street pukes for this mess

wallstreetpukevp said...

your welcome

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