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CNN Sunday Morning

Interview With John Challenger

Aired March 02, 2003 - 09:12   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.


HEIDI COLLINS, CNN ANCHOR: Some might remember it as the booming '90s, a decade when America bubbled over with prosperity. Relative peace blanketed the nation and jobs were plentiful. Things have changed dramatically. War could be imminent and millions of Americans are now out of work.
The fear most feel is not so much about whether the terror threat is orange or yellow. Instead, pink slips are causing many Americans to panic.

(BEGIN VIDEOTAPE)

COLLINS (voice over): As the world and Washington brace for possible war with Iraq millions of unemployed Americans are already fighting hard. Fighting to find work in a wounded economy that's bleeding jobs.

LAILA SCAFE, UNEMPLOYED 5 MONTHS: It's unbelievable. You know, war now, and war is here, war is at home. We don't have jobs. We can't survive. This is our war.

COLLINS: Economists point to several reasons for the sluggish economy. Among them, the September 11 terrorist attacks and talk of a possible war with Iraq. Job losses have been the biggest fallout.

Since March of 2001 the nation has lost more than 2 million jobs. December's unemployment rate of 6 percent was an eight-year high. That figure improved to 5.7 percent in January. But jobless Americans facing an emotional and financial crisis haven't seen much improvement.

DEE RUSHER, UNEMPLOYED 3 MONTHS: It's been horrible. I mean, it's been terrible. You feel like you get to point in your life, nobody wants me.

WINIFRED SAULTER, UNEMPLOYED 4 MONTHS: It's traumatizing. And also because I bought a new home last August. Now I'm at the point where I'll fry hamburgers for a living.

COLLINS: The president vows he's just as committed to improving the plight of the unemployed as to disarming Saddam Hussein.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Jobs are created when the economy grows. The economy grows when Americans have more money to spend and invest, and the best and fairest way to make sure Americans have that money is not to tax it away in the first place. COLLINS: While proposing a $600 billion tax cut, the president also wants to give the long-term unemployed up to $3,000 each. They could use that money to help find work or for job training. That's money people like Kurry Hixson and his family could desperately use.

Curry, along with his wife and five children, live in a homeless shelter in Porterdale (ph), Georgia, a rural town just outside Atlanta, that's been devastated by the economic downturn. Kurry hasn't worked since October. An army veteran who volunteered and served in the Gulf War, he's angered over talk of another war with Iraq.

KURRY HIXSON, UNEMPLOYED 5 MONTHS: We need to concentrate on what's going on here. Focus what's going on here in our country, really, because it's just, it's just -- it's not about us policing the world.

COLLINS: In Atlanta's affluent suburb of Alfaretta (ph), the face of unemployment is different, but the story is the same. Until recently, Tom Baker and his wife, Leslie, both earned six figure salaries working in the information technology industry. Now, both are out of work. Leslie, since June of 2001, Tom since last October.

TOM BAKER, UNEMPLOYED: You talk to people every week and someone you know is getting laid off somewhere.

LESLIE BAKER, UNEMPLOYED: This subdivision, most people in this subdivision are, you know, our age, one to three children, and the nickname for the sub division is Layoff Lane.

COLLINS: They've put their $300,000 home on the market.

T BAKER: You've have a house, you have two children, you have bills coming in. The market is as dry as it is, you try -- you try your best to try and make ends meet. So, you pretty much look for any type of opportunity to, you know, to bring in a couple dollars here and there, just to pay some of the bills. We've taken out a couple loans against 401(k)s and what have you. But it's been stressful.

(END VIDEOTAPE)

COLLINS: Joining us with tips that will help you stay afloat in these rough economic waters is John Challenger, the CEO of Challenger, Gray & Christmas, a consulting firm that helps people find work.

Good morning to you. Thanks for being with us.

JOHN CHALLENGER, CEO, CHALLENGER GRAY & CHRISTMAS: Good morning, Heidi.

COLLINS: I was reading something in "The New York Times" that says people are now worried about their jobs much more, all the way back down, since 1993. Is this a fair statement, you think? Is that what you're hearing?

CHALLENGER: Certainly seems to be just the case. There are almost 2 million people now, who have been unemployed for more than 27 weeks. That's when it gets really tough. Your severance is gone, you're eating into your savings, and you're beginning to worry whether or not there are any jobs out there.

COLLINS: In fact, there's a statistic on that, too; a reading that only about one person in 10 believe that jobs are even plentiful at this time.

CHALLENGER: And they're not plentiful. We're in this period of jobless recovery and increasingly, we're beginning to realize that that doesn't seem to be the case. The jobs aren't getting created. In fact, at this time in the last recession, the jobs started to turn, get created, and yet we lost 93,000 jobs in the last three months.

COLLINS: John, let's look at some of the tips that you offer. What exactly should you do to prepare for losing your job, if there's anything you can do?

CHALLENGER: One of the most important things is not to rely too heavily on the Internet. So many people today are getting on the net, looking for jobs and yet, there are 4,000 to 5,000 sites out there now offering that kind of help. People can spend all day long looking on the net, sending on it resumes, and just not getting the interviews they need.

COLLINS: They're just kind of backpedaling there. What about updating your resume?

CHALLENGER: Very important to keep it updated with the latest skills and accomplishments. If you're going back to school, perhaps at night, so you still have time to do your search, put that on there. Companies need to know that your skills are targeted at what they need.

COLLINS: We're also seeing some information here that says make contacts in your field of work. Known as networking, right?

CHALLENGER: Sure. But what many people do is get caught up in the search. They're looking for work and they hide. Yet, this is the time to get involved in professional organizations, in industrial societies that you might be likely to get into because of your profession. Outside groups of many kinds, that's how you meet people and those can then lead to interviews.

COLLINS: All right. We're also saying to make sure you save for about three to six months and go ahead and start looking now.

But also, there are some booming job industries. Talk to us a little bit about certain areas that people maybe should consider going into.

CHALLENGER: There are strong areas of the economy, even with all the bad news. Health care has been strong now for a number of years, running. We've got the baby boomer population aging so pharmaceutical companies and hospitals, medical practices, even biotechs. Those are all good places that are creating jobs. COLLINS: And unfortunately, I don't think -- we have to make sure we mention the ones hardest hit right now, too. We're hearing a lot about the computer industry, the airline industry. What should these people do? With respect to the airline industry, just as an example, these are people who are very specialized in their training. And it's a good example of other industries where they are very specialized in their training. They can't just walk into another job, especially one that pays the same salary. What should someone like that be looking to do?

CHALLENGER: Many people have skills that are transferable, portable from industry to industry. If you've been in the airline industry, many of those people have customer service skills that could be used in almost any industry.

So you don't need to think of yourself as so tightly tied to that kind of company you came from before. Look for ways that you can take your skills out and make it available for many people.

COLLINS: All right. John Challenger from Challenger, Gray and Christmas, we certainly appreciate your information this morning, coming to us from Chicago today. Thanks again.

CHALLENGER: Thank you, Heidi.

COLLINS: You bet.

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 March 2, 2003 - 09:12   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Some might remember it as the booming '90s, a decade when America bubbled over with prosperity. Relative peace blanketed the nation and jobs were plentiful. Things have changed dramatically. War could be imminent and millions of Americans are now out of work.
The fear most feel is not so much about whether the terror threat is orange or yellow. Instead, pink slips are causing many Americans to panic.

(BEGIN VIDEOTAPE)

COLLINS (voice over): As the world and Washington brace for possible war with Iraq millions of unemployed Americans are already fighting hard. Fighting to find work in a wounded economy that's bleeding jobs.

LAILA SCAFE, UNEMPLOYED 5 MONTHS: It's unbelievable. You know, war now, and war is here, war is at home. We don't have jobs. We can't survive. This is our war.

COLLINS: Economists point to several reasons for the sluggish economy. Among them, the September 11 terrorist attacks and talk of a possible war with Iraq. Job losses have been the biggest fallout.

Since March of 2001 the nation has lost more than 2 million jobs. December's unemployment rate of 6 percent was an eight-year high. That figure improved to 5.7 percent in January. But jobless Americans facing an emotional and financial crisis haven't seen much improvement.

DEE RUSHER, UNEMPLOYED 3 MONTHS: It's been horrible. I mean, it's been terrible. You feel like you get to point in your life, nobody wants me.

WINIFRED SAULTER, UNEMPLOYED 4 MONTHS: It's traumatizing. And also because I bought a new home last August. Now I'm at the point where I'll fry hamburgers for a living.

COLLINS: The president vows he's just as committed to improving the plight of the unemployed as to disarming Saddam Hussein.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Jobs are created when the economy grows. The economy grows when Americans have more money to spend and invest, and the best and fairest way to make sure Americans have that money is not to tax it away in the first place. COLLINS: While proposing a $600 billion tax cut, the president also wants to give the long-term unemployed up to $3,000 each. They could use that money to help find work or for job training. That's money people like Kurry Hixson and his family could desperately use.

Curry, along with his wife and five children, live in a homeless shelter in Porterdale (ph), Georgia, a rural town just outside Atlanta, that's been devastated by the economic downturn. Kurry hasn't worked since October. An army veteran who volunteered and served in the Gulf War, he's angered over talk of another war with Iraq.

KURRY HIXSON, UNEMPLOYED 5 MONTHS: We need to concentrate on what's going on here. Focus what's going on here in our country, really, because it's just, it's just -- it's not about us policing the world.

COLLINS: In Atlanta's affluent suburb of Alfaretta (ph), the face of unemployment is different, but the story is the same. Until recently, Tom Baker and his wife, Leslie, both earned six figure salaries working in the information technology industry. Now, both are out of work. Leslie, since June of 2001, Tom since last October.

TOM BAKER, UNEMPLOYED: You talk to people every week and someone you know is getting laid off somewhere.

LESLIE BAKER, UNEMPLOYED: This subdivision, most people in this subdivision are, you know, our age, one to three children, and the nickname for the sub division is Layoff Lane.

COLLINS: They've put their $300,000 home on the market.

T BAKER: You've have a house, you have two children, you have bills coming in. The market is as dry as it is, you try -- you try your best to try and make ends meet. So, you pretty much look for any type of opportunity to, you know, to bring in a couple dollars here and there, just to pay some of the bills. We've taken out a couple loans against 401(k)s and what have you. But it's been stressful.

(END VIDEOTAPE)

COLLINS: Joining us with tips that will help you stay afloat in these rough economic waters is John Challenger, the CEO of Challenger, Gray & Christmas, a consulting firm that helps people find work.

Good morning to you. Thanks for being with us.

JOHN CHALLENGER, CEO, CHALLENGER GRAY & CHRISTMAS: Good morning, Heidi.

COLLINS: I was reading something in "The New York Times" that says people are now worried about their jobs much more, all the way back down, since 1993. Is this a fair statement, you think? Is that what you're hearing?

CHALLENGER: Certainly seems to be just the case. There are almost 2 million people now, who have been unemployed for more than 27 weeks. That's when it gets really tough. Your severance is gone, you're eating into your savings, and you're beginning to worry whether or not there are any jobs out there.

COLLINS: In fact, there's a statistic on that, too; a reading that only about one person in 10 believe that jobs are even plentiful at this time.

CHALLENGER: And they're not plentiful. We're in this period of jobless recovery and increasingly, we're beginning to realize that that doesn't seem to be the case. The jobs aren't getting created. In fact, at this time in the last recession, the jobs started to turn, get created, and yet we lost 93,000 jobs in the last three months.

COLLINS: John, let's look at some of the tips that you offer. What exactly should you do to prepare for losing your job, if there's anything you can do?

CHALLENGER: One of the most important things is not to rely too heavily on the Internet. So many people today are getting on the net, looking for jobs and yet, there are 4,000 to 5,000 sites out there now offering that kind of help. People can spend all day long looking on the net, sending on it resumes, and just not getting the interviews they need.

COLLINS: They're just kind of backpedaling there. What about updating your resume?

CHALLENGER: Very important to keep it updated with the latest skills and accomplishments. If you're going back to school, perhaps at night, so you still have time to do your search, put that on there. Companies need to know that your skills are targeted at what they need.

COLLINS: We're also seeing some information here that says make contacts in your field of work. Known as networking, right?

CHALLENGER: Sure. But what many people do is get caught up in the search. They're looking for work and they hide. Yet, this is the time to get involved in professional organizations, in industrial societies that you might be likely to get into because of your profession. Outside groups of many kinds, that's how you meet people and those can then lead to interviews.

COLLINS: All right. We're also saying to make sure you save for about three to six months and go ahead and start looking now.

But also, there are some booming job industries. Talk to us a little bit about certain areas that people maybe should consider going into.

CHALLENGER: There are strong areas of the economy, even with all the bad news. Health care has been strong now for a number of years, running. We've got the baby boomer population aging so pharmaceutical companies and hospitals, medical practices, even biotechs. Those are all good places that are creating jobs. COLLINS: And unfortunately, I don't think -- we have to make sure we mention the ones hardest hit right now, too. We're hearing a lot about the computer industry, the airline industry. What should these people do? With respect to the airline industry, just as an example, these are people who are very specialized in their training. And it's a good example of other industries where they are very specialized in their training. They can't just walk into another job, especially one that pays the same salary. What should someone like that be looking to do?

CHALLENGER: Many people have skills that are transferable, portable from industry to industry. If you've been in the airline industry, many of those people have customer service skills that could be used in almost any industry.

So you don't need to think of yourself as so tightly tied to that kind of company you came from before. Look for ways that you can take your skills out and make it available for many people.

COLLINS: All right. John Challenger from Challenger, Gray and Christmas, we certainly appreciate your information this morning, coming to us from Chicago today. Thanks again.

CHALLENGER: Thank you, Heidi.

COLLINS: You bet.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com