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CNN Live Saturday
2 Million Unemployed Will Lose Benefits
Aired February 07, 2004 - 14:38 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDERICKA WHITFIELD, CNN ANCHOR: Meanwhile two million workers will soon run out of unemployment benefits. Congress has decided against granting a 13-week extension as it did last year. So people who still need a job could need it more than ever. And employment agencies say despite the lagging jobs picture it could be a good time to be knocking on doors. In Chicago, Rick Cobb joins us. He is an executive vice president of a placement firm Challenger, Gray and Christmas. Thanks for being with us Rick.
RICK COBB, EXE. VICE PRESIDENT, CHALLENGER, GRAY & CHRISTMAS: Thanks for having me.
WHITFIELD: All right, well President Bush said today during his radio weekly address that, you know, the economy is looking up. Isn't the economy cinnanious (ph) with the job availability?
COBB: We have a unique situation here compared to previous turnarounds. We had a lot of the industry, both tech and non-tech that put in technology in preparation for continued growth. And when we had the collapse, the traditional environment took the technology and used that to replace people rather than hire people, they became more efficient. So the job growth is not matching the turnaround in the economy because companies are more careful about adding full-time staff.
WHITFIELD: And the labor department is touting its proud that 100,000 new jobs have been created. What kind of jobs are we talking about?
COBB: What we are looking at right now, we're seeing the first part of the turnaround coming in the human resources environment, the sole practitioner consulting environments, temporary services. Those are sort of the companies that lead out. And then the cutting edge of technology, those are the three areas, technology, temporary services, consulting services. Those are the places where you will see the growth first.
WHITFIELD: All right, well 100,000 new jobs, yet we still have another 2.3 million people who are out of work right now. Where do they need to be focusing their resources? How do you best advice someone who is out of work right now and certainly has to start considering another field of expertise?
COBB: Sure. What happens is there's a lot of things that distract people from what they can make a difference in the search. When you look at how to affect your search there are three things you can influence. You can control who you see, you can control how often you see people and you can control what you say when you get there. Sitting online and looking at the job board postings trying to carve the perfect cover letter, those are activities where you can stay busy but add no value to your search.
You need to put yourself in as front of many decision makers as you can in the shortest period of time. Sociologist will tell you that jobs are found still 80 to 85 percent of jobs come from that personal relationship, that face-to-face contact.
WHITFIELD: It's a dismal outlook when you are talking about unemployment benefits that will very shortly be running out for many of these unemployed workers. So consequently an awful lot of people are going to start relying on their credit cards because they don't have the cash to pay for bills and the bear necessities.
COBB: It's a difficult challenge because at the same time, if you change too much about the way you live your life, because you are your product when you are selling yourself, you change the product you are selling. So it's a balancing act.
WHITFIELD: So let alone impacting the individual, what does that do for the overall economy?
COBB: What we are looking at though, we track the announced layoff data on a monthly and quarterly basis. It's about a seven-month leading indicator. And what we said was back in May you that you would start to see some easing in the unemployment number. Right about now, towards the beginning of March.
But, what that means for the individual is that while there may not be actual opportunities now, this is, we feel, the beginning of the turn in terms of the unemployment numbers. So you need to put yourself in the market now because those opportunities will start to present themselves in the next 30 days.
WHITFIELD: And perhaps some of those employers are really looking further ahead in the year. So maybe now is a good time to really start exploring, because many corporations and small companies are planning.
COBB: Sure, they're planning and they don't talk about it. Most job growth in positive economies comes out of the 500 and under-sized companies. That is where the real growth is, but they can't make those bold announcements whether they are growing or shrinking. That will get the attention of the media, as a Fortune 1000 will. But that's really where the growth is. So and they are not going to announce it or they are not going to commit to hiring publicly because if they -- if the economy turns around, they are going to look bad.
WHITFIELD: All right, Rick Cobb of Challenger, Gray & Christmas from Chicago. Thanks very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 7, 2004 - 14:38 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDERICKA WHITFIELD, CNN ANCHOR: Meanwhile two million workers will soon run out of unemployment benefits. Congress has decided against granting a 13-week extension as it did last year. So people who still need a job could need it more than ever. And employment agencies say despite the lagging jobs picture it could be a good time to be knocking on doors. In Chicago, Rick Cobb joins us. He is an executive vice president of a placement firm Challenger, Gray and Christmas. Thanks for being with us Rick.
RICK COBB, EXE. VICE PRESIDENT, CHALLENGER, GRAY & CHRISTMAS: Thanks for having me.
WHITFIELD: All right, well President Bush said today during his radio weekly address that, you know, the economy is looking up. Isn't the economy cinnanious (ph) with the job availability?
COBB: We have a unique situation here compared to previous turnarounds. We had a lot of the industry, both tech and non-tech that put in technology in preparation for continued growth. And when we had the collapse, the traditional environment took the technology and used that to replace people rather than hire people, they became more efficient. So the job growth is not matching the turnaround in the economy because companies are more careful about adding full-time staff.
WHITFIELD: And the labor department is touting its proud that 100,000 new jobs have been created. What kind of jobs are we talking about?
COBB: What we are looking at right now, we're seeing the first part of the turnaround coming in the human resources environment, the sole practitioner consulting environments, temporary services. Those are sort of the companies that lead out. And then the cutting edge of technology, those are the three areas, technology, temporary services, consulting services. Those are the places where you will see the growth first.
WHITFIELD: All right, well 100,000 new jobs, yet we still have another 2.3 million people who are out of work right now. Where do they need to be focusing their resources? How do you best advice someone who is out of work right now and certainly has to start considering another field of expertise?
COBB: Sure. What happens is there's a lot of things that distract people from what they can make a difference in the search. When you look at how to affect your search there are three things you can influence. You can control who you see, you can control how often you see people and you can control what you say when you get there. Sitting online and looking at the job board postings trying to carve the perfect cover letter, those are activities where you can stay busy but add no value to your search.
You need to put yourself in as front of many decision makers as you can in the shortest period of time. Sociologist will tell you that jobs are found still 80 to 85 percent of jobs come from that personal relationship, that face-to-face contact.
WHITFIELD: It's a dismal outlook when you are talking about unemployment benefits that will very shortly be running out for many of these unemployed workers. So consequently an awful lot of people are going to start relying on their credit cards because they don't have the cash to pay for bills and the bear necessities.
COBB: It's a difficult challenge because at the same time, if you change too much about the way you live your life, because you are your product when you are selling yourself, you change the product you are selling. So it's a balancing act.
WHITFIELD: So let alone impacting the individual, what does that do for the overall economy?
COBB: What we are looking at though, we track the announced layoff data on a monthly and quarterly basis. It's about a seven-month leading indicator. And what we said was back in May you that you would start to see some easing in the unemployment number. Right about now, towards the beginning of March.
But, what that means for the individual is that while there may not be actual opportunities now, this is, we feel, the beginning of the turn in terms of the unemployment numbers. So you need to put yourself in the market now because those opportunities will start to present themselves in the next 30 days.
WHITFIELD: And perhaps some of those employers are really looking further ahead in the year. So maybe now is a good time to really start exploring, because many corporations and small companies are planning.
COBB: Sure, they're planning and they don't talk about it. Most job growth in positive economies comes out of the 500 and under-sized companies. That is where the real growth is, but they can't make those bold announcements whether they are growing or shrinking. That will get the attention of the media, as a Fortune 1000 will. But that's really where the growth is. So and they are not going to announce it or they are not going to commit to hiring publicly because if they -- if the economy turns around, they are going to look bad.
WHITFIELD: All right, Rick Cobb of Challenger, Gray & Christmas from Chicago. Thanks very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
