The State of the Economy and its Implications for Recruiters

and HR Professionals

Presented by: Dr. Patti Ippoliti

Today’s Agenda

• What the economic data is saying...• What the professionals are saying...• What this means for recruiting and HR

professionals…

Times are Tough

• US employers slashed jobs for the 3rd straight month in March• Net Loss of 80,000 jobs in March• Longest period of consecutive month

decline since early 2003

• Unemployment rate increased from 4.8% to 5.1%• Highest unemployment rate since

Hurricane Katrina (September 2005)

Employers shed 233,000 jobs in the first 3 months of 2008

What CEOs and Executives are Saying…

• For most, the initial recruiting impact is minimal

• Downturn is heavily concentrated in housing and financial sectors

• Too early to tell how widespread the impact will be

What Has Changed?

Employers still have the work and tighttime frames. But the rules may have

changed...• Some need to make do with the wrong

players• Others need to hire contractors vs.

permanent• While others have their new hire go to

another department

What the Search Firms are Saying…

• Busier than ever• Employers are more selective…the

selection process is much longer• Openings are being delayed

Are Job Seekers Willing to Relocate in This Market?

• Job seeker relocation sank along with home values from 16.4% in Q1 2006 to 11% in Q4 2007

• Relocation for job seekers with employed spouses/partners sank from 50.1% in Q1 2006 to 16% Q4 2007

How are 2008 College Grads Being Affected?

• 59% of the 654 companies in the MonsterTRAK survey plan to hire 2008 graduates (17% decrease)

• Average entry level compensation $39,500 (9.7% increase)

• Accounting and Healthcare more jobs• Other industries vary

What the Outplacement Professionals are Saying

• Planned job cuts fell by 26% in March• Job cuts in March 2008 were 9.4%

higher than 2007• Job cuts in 1st Q 2008 were 2.4%

higher than 1st Q 2007• Job cuts are hitting: Financial Services,

Retail, Manufacturing, Tech, Transportation...as well as Government and Not-for-profit

Median Length of Job Search in months

2nd Qtr 2007     3.03 3rd Qtr 2007      4.32 4th Qtr 2007      2.81 1st Qtr 2008      3.05

Median Length of Job Search in Months(clients 50 and older only)

2nd Qtr 2007     3.063rd Qtr 2007      5.16 4th Qtr 2007      4.23 1st Qtr 2008      3.35

Median Age

2nd Qtr 2007     47 3rd Qtr 2007      46 4th Qtr 2007      44 1st Qtr 2008      43

Median Salary in a Former Position

2nd Qtr 2007     $90,000 3rd Qtr 2007      $92,000 4th Qtr 2007      $82,3001st Qtr 2008       $71,500

Percentage of Job Seekers Winning Equivalent or Better Positions

To Summarize

• Slowing economy is clearly impacting the current job market

• Also influences employers' investment in future hiring

• Upcoming election exacerbates the situation

So, How Do you Dance With the Stars vs. Dancing with the Wolves?

There are three key strategies to being effective in these uncertain times…

Strategy #1

Communication: Keep lines of communication open withC-level executives and all relevant

stakeholders

Strategy #2

Real-time Alignment: Be flexible and agile. Deliver Excellence

Maintain aPositive

and Productive

Attitude!

Strategy #3

Questions?

Dr. Patti Ippolitipaippoliti@aol.com

Madeline Tarquiniomadeline@ere.net