1 - GET A SEPARATE (job search only) E-MAIL ACCOUNT:
Use this e-mail address on your resumes and for corresponding with recruiters, contacts and prospective employers. Do not give this out to your friends and family or your favorite on-line shopping sites. The purpose of this career only account is to help you stay focused on your job search. By setting up an e-mail account for only career purposes you minimize the potential for distraction.
2 CHECK YOUR E-MAIL REGULARLY:
This means at a minimum three times a day (morning, afternoon and evening). It is highly recommended that you log on more often as recruiters often use this medium to inform you of potential leads and possibilities. Ignore this rule and you may find that your golden opportunity has passed you by.
3 - RESPOND PROMPTLY:
How would you feel if you left someone a phone message and he/she did not respond promptly? Offended because he/she did not take the time to respond back? Worried that maybe the message never made it to him/her? It’s no different with e-mail. The rules of common courtesy still apply. Whenever possible, reply within the same day. Make sure that you respond to all e-mail with-in 24 hours at the latest. Do this even if only to say that you received the original e-mail and will need more time to do what is requested.
4 - UTILIZE THE SUBJECT LINE:
The subject line is the first thing that a person sees when he/she checks his/her e-mail. Make it worthwhile. Best practice is to summarize the overall purpose/objective of the e-mail in the subject line. “ACME Brick position” will work. However, “Follow-Up: ACME Brick Fin Mgr Position” is better. Keep in mind that the person that you are e-mailing may receive dozens of e-mails each day. When short on time, he/she will scan the subject lines of his/her e-mails and answer the ones that seem most important first.
5 - SPELLING AND GRAMMAR RULES STILL APPLY:
Poor spelling and grammar can make you appear at best careless and at worst poorly educated. Neither characterization is appealing when worn by the job seeker. Read over and spell-check each e-mail before you send it. If you don’t have access to spell-check, then utilize the services of a friend or your trusty dictionary. The extra few seconds won’t break your schedule and might make all the difference in your job search.
6 – KEEP YOUR EMAIL SHORT AND SIMPLE:
Think back to all the English papers you wrote in high school. Now make sure that your e-mail correspondence does not look anything like that (except as mentioned in the previous point). E-mail is a casual and direct form of business correspondence. As a general rule, try and keep your e-mail under a page. Do not waste time with fancy words or flowery phrases. Make your point using the smallest amount of words reasonably possible. Remember that your target audience is often short on time. If they open up your e-mail and it looks like an essay, they may become frustrated and not bother to read it at all.
7 – DON’T BE INFORMAL
Never forget that you are looking for a job. Save the smiley faces, colored fonts, exclamation points, etc. for your friends and family. For the most part, they do not belong in your job-search e-mails. Also, e-mails may be informal business communication, but do not throw all rules of etiquette out the window. Always be courteous in your writing.
8 YOUR SIGN-OFF:
You should close each e-mail with a proper sign-off. It may be as simple as “Thanks-Jeff Smith”. Often times, it is useful to include contact information as well as any certifications in your sign-off. Many e-mail services (i.e., MS Outlook) have an auto signature function that allows you to set up a customized sign-off that can be inserted at the end of your e-mail.
CONCLUSION
E-mail is indeed a powerful tool for the job seeker, but keep in mind that the decision to use it or not may depend on your audience. While most employers have welcomed the technology age and happily accept e-communication, there are some who may not be as comfortable. With the latter, it is often a good idea to stick to the phone or postal mail for your correspondence. How to tell the difference? It’s often easiest to just ask. More often than not, they will be an e-mail aficionado.
Tuesday, June 28, 2011
Sunday, May 8, 2011
Thank You Letter - Writing Tips
It is proper business etiquette to send thank you letters, but many people overlook this matter of courtesy. A thank you letter can make you stand out from the other candidates competing for jobs, and it is wise to consider every tool which will give you an advantage.
To be effective, a thank you note should be sent before the hiring decision has been made, so it is best to email it right after the interview. When you send a thank you letter, you give the interviewer a chance to remember you (imagine having interviewed 10-15 candidates for a position, and then trying to distinguish each one after the interviews and trying to remember the specifics about each person). It is your opportunity to mention any important information you forgot to discuss during the interview.
In a thank you letter explain, restate, or clear up any potential misunderstandings during the actual interview. In addition, you can focus on something that you learned during the interview and re-emphasize your strengths, accomplishments, and skills. Sending a thank you letter shows the interviewer that you are a professional who is concerned about details. In the end, the thank you letter is your last chance to leave a good impression!
There are several situations that require a thank you letter:
• After an employment interview
• When someone provides you with job search assistance such as referring you to an employer, providing a network contact, or speaking on your behalf to a prospective employer
• After an informational interview, company visit, or other career exploration activity
Try to follow these hints when writing thank you letters:
• Keep your letters short and simple - usually one page is enough.
• Help the interviewer remember you by referring to specific points discussed in your interview: show that you were listening and mention something that will refresh the interviewer's memory of you
• Be sure your letters are professional, for example: typed, no errors, on quality paper, etc.
• Send your letter within one day - do not put it off!
• Emphasize your qualifications, especially those that are most relevant to the position
• Provide any information that was overlooked during the interview or that which was specifically requested by the interviewer
• Express your continued interest and enthusiasm for the position
• Remember, very few people bother to send thank you letters - this can be your edge!
Overall, include the following information in your thank you letters:
First paragraph:
Thank the interviewer for taking the time to meet with you (mention the date). Remind him/her of the position for which you interviewed.
Second paragraph:
Restate your interest in the position and the company/school/organization. Mention something you learned from the interview or comment on something of importance that you discussed. Again, emphasize your strengths, experiences, skills, accomplishments and slant them towards the points that the interviewer considered the most important for the position.
Third paragraph:
Once again, thank the interviewer for his/her time and consideration. If appropriate, close with a suggestion for further action (if a second interview is a possibility), or mention that you will follow up with a phone call in a few days. Provide your phone number and the hours you can best be reached.
________________________________________
THANK YOU LETTER - Example
989 Smith Street
Austin, TX 78200
May 8, 2011
Ms. Janet Jones
Director of Research and Development
ACME Computer Company
1234 Allen Avenue
Austin, TX 78778
Dear Ms. Smith:
I wanted to take this opportunity to thank you for interviewing me for the position of Senior Engineer in your Research and Development department. I enjoyed meeting with you, and I learned a great deal about the XPT Engineering Company.
This position sounds very interesting, and I am confident that my education and experience have provided me with the qualifications necessary to work effectively with your team. I am especially pleased to know that you use the Quadrini programming language, since I completed two courses in it, and I have used it extensively during my internship at IBM.
Once again, thank you for the opportunity to interview for a position with your company. I am excited about the prospect of working with such a dedicated team of professionals. If you request any additional information, please do not hesitate to contact me. Thank you for your time and consideration, and I look forward to hearing from you.
Sincerely,
Sign your name
Type your name
To be effective, a thank you note should be sent before the hiring decision has been made, so it is best to email it right after the interview. When you send a thank you letter, you give the interviewer a chance to remember you (imagine having interviewed 10-15 candidates for a position, and then trying to distinguish each one after the interviews and trying to remember the specifics about each person). It is your opportunity to mention any important information you forgot to discuss during the interview.
In a thank you letter explain, restate, or clear up any potential misunderstandings during the actual interview. In addition, you can focus on something that you learned during the interview and re-emphasize your strengths, accomplishments, and skills. Sending a thank you letter shows the interviewer that you are a professional who is concerned about details. In the end, the thank you letter is your last chance to leave a good impression!
There are several situations that require a thank you letter:
• After an employment interview
• When someone provides you with job search assistance such as referring you to an employer, providing a network contact, or speaking on your behalf to a prospective employer
• After an informational interview, company visit, or other career exploration activity
Try to follow these hints when writing thank you letters:
• Keep your letters short and simple - usually one page is enough.
• Help the interviewer remember you by referring to specific points discussed in your interview: show that you were listening and mention something that will refresh the interviewer's memory of you
• Be sure your letters are professional, for example: typed, no errors, on quality paper, etc.
• Send your letter within one day - do not put it off!
• Emphasize your qualifications, especially those that are most relevant to the position
• Provide any information that was overlooked during the interview or that which was specifically requested by the interviewer
• Express your continued interest and enthusiasm for the position
• Remember, very few people bother to send thank you letters - this can be your edge!
Overall, include the following information in your thank you letters:
First paragraph:
Thank the interviewer for taking the time to meet with you (mention the date). Remind him/her of the position for which you interviewed.
Second paragraph:
Restate your interest in the position and the company/school/organization. Mention something you learned from the interview or comment on something of importance that you discussed. Again, emphasize your strengths, experiences, skills, accomplishments and slant them towards the points that the interviewer considered the most important for the position.
Third paragraph:
Once again, thank the interviewer for his/her time and consideration. If appropriate, close with a suggestion for further action (if a second interview is a possibility), or mention that you will follow up with a phone call in a few days. Provide your phone number and the hours you can best be reached.
________________________________________
THANK YOU LETTER - Example
989 Smith Street
Austin, TX 78200
May 8, 2011
Ms. Janet Jones
Director of Research and Development
ACME Computer Company
1234 Allen Avenue
Austin, TX 78778
Dear Ms. Smith:
I wanted to take this opportunity to thank you for interviewing me for the position of Senior Engineer in your Research and Development department. I enjoyed meeting with you, and I learned a great deal about the XPT Engineering Company.
This position sounds very interesting, and I am confident that my education and experience have provided me with the qualifications necessary to work effectively with your team. I am especially pleased to know that you use the Quadrini programming language, since I completed two courses in it, and I have used it extensively during my internship at IBM.
Once again, thank you for the opportunity to interview for a position with your company. I am excited about the prospect of working with such a dedicated team of professionals. If you request any additional information, please do not hesitate to contact me. Thank you for your time and consideration, and I look forward to hearing from you.
Sincerely,
Sign your name
Type your name
Saturday, April 2, 2011
Negotiation Tips for Better Salary Package
Following are some important negotiating tips for the best possible deal when changing jobs, whether internally or with a new company.
Preparation is Important
The more information you have about your market value and the prospective employer, the greater your likelihood of success. This is the first commandment because it's the most important. There's a wealth of information available on the Internet, at the public library and through professional associations and networking groups. Time spent learning how to negotiate and preparing for negotiations may be the best investment you'll ever make.
Employment negotiations are different
When the negotiations are over, you'll have to work with the person with whom you're negotiating. Moreover, your future success may depend on that person. So, while you want to negotiate the best possible deal, you need to do so in a way that doesn't damage your image. At the same time, the employer's primary concern isn't negotiating the least expensive compensation package it can get away with. Rather, their focus will be on getting you to accept the job.
Know your needs and those of the employer
To be successful in this type of negotiation, you need to examine your priorities. What do you really want? Are you comfortable with a low salary and a large equity stake? Are you able to handle dramatic swings in income from year to year? Understanding your needs will also help you determine the type of company you want to work for. For example, a family-owned company may be able to offer a competitive salary and a large bonus based on results, but may not be willing to offer significant equity to a non-family member. A start-up company, on the other hand, may not be able to offer market salary, but will typically offer stock options. By recognizing what an employer can and can't do, you'll be able to determine what issues you should press.
Understand the dynamics of the particular negotiations
Sometimes you'll have skills that are in great demand. And sometimes, you may be one of several qualified candidates the company would be happy to hire. Sizing up the situation and understanding the relative position of each party will help you determine when to press your advantage and when to back off.
Never lie, but use the truth to your advantage
It's not only wrong to lie, but in employment negotiations, it's ineffective. If you lie during negotiations, sooner or later you're likely to be caught. Once you are, even if you don't lose the offer, you'll be at a tremendous disadvantage, and your credibility will always be suspect. On the other hand, total candor won't be rewarded. You're under no obligation to blurt out everything you know. You can determine what you want to say and how you want to say it, and try to put everything in its most positive light. One key element of your preparation should be to recognize areas of concern so you can rehearse how to handle them when they inevitably come up.
Understand the role fairness plays in the process
The guiding principle for most employers when negotiating is fairness. Within the constraints of their budget and organizational structure, employers usually will agree to anything that's fair and reasonable to hire someone they want. Appeals to fairness are your most powerful weapon. Thus, you should be able to justify every request you make in terms of fairness. For example, if other computer programmers in similar companies are being given sign-on bonuses, you should expect to be treated no differently. Your prospective employer will want you to accept its offer and feel that you've been treated fairly. Understanding the importance of fairness as a negotiating principle can make the difference between success and failure.
Use uncertainty to your advantage
The more information you convey to a potential employer about your bottom line, the more likely it will limit what you get. Before making an offer, a company typically tries to determine what it will take for you to accept the position. With that information, the prospective employer will be able to determine the minimum package it needs to offer. While they may not offer you as little as they can get away with, if you've divulged too much information, they likely won't offer you as much as they might have otherwise. By not disclosing exactly what your current compensation is or exactly what it would take to get you to leave your job, you'll force a potential employer to make its best offer.
Be creative
Consider the value of the total package. Look for different ways to achieve your objectives. Be willing to make tradeoffs to increase the total value of the deal. If you're creative, you can package what you want in ways that will be acceptable to the company. You'll also be able to find creative "trades" that allow you to withdraw requests that might be problematic to the company in return for improvements in areas where the company has more flexibility. That way, you can maximize the value of the package you negotiate.
Focus on your goals, not on winning
Too often in negotiations, the act of winning becomes more important than achieving your goals. And it's also important not to make your future boss feel as if he's lost in the negotiations. You'll have gained little by negotiating a good deal if you alienate your future boss in the process.
Know when to quit bargaining
The one sure way to lose everything you've obtained is to be greedy. There comes a point in every negotiation when you've achieved everything you could have reasonably expected to gain. While most companies will want to treat you fairly and make you happy, few companies want a to hire a prima donna. Being perceived as greedy or unreasonable may cause the deal to fall apart. Even if it doesn't, you'll have done immeasurable harm to your career.
Never forget that employment is an ongoing relationship
Job negotiations are the starting point for your career with a company. Get too little and you're disadvantaged throughout your career there; push too hard and you can sour the relationship before it begins.
Preparation is Important
The more information you have about your market value and the prospective employer, the greater your likelihood of success. This is the first commandment because it's the most important. There's a wealth of information available on the Internet, at the public library and through professional associations and networking groups. Time spent learning how to negotiate and preparing for negotiations may be the best investment you'll ever make.
Employment negotiations are different
When the negotiations are over, you'll have to work with the person with whom you're negotiating. Moreover, your future success may depend on that person. So, while you want to negotiate the best possible deal, you need to do so in a way that doesn't damage your image. At the same time, the employer's primary concern isn't negotiating the least expensive compensation package it can get away with. Rather, their focus will be on getting you to accept the job.
Know your needs and those of the employer
To be successful in this type of negotiation, you need to examine your priorities. What do you really want? Are you comfortable with a low salary and a large equity stake? Are you able to handle dramatic swings in income from year to year? Understanding your needs will also help you determine the type of company you want to work for. For example, a family-owned company may be able to offer a competitive salary and a large bonus based on results, but may not be willing to offer significant equity to a non-family member. A start-up company, on the other hand, may not be able to offer market salary, but will typically offer stock options. By recognizing what an employer can and can't do, you'll be able to determine what issues you should press.
Understand the dynamics of the particular negotiations
Sometimes you'll have skills that are in great demand. And sometimes, you may be one of several qualified candidates the company would be happy to hire. Sizing up the situation and understanding the relative position of each party will help you determine when to press your advantage and when to back off.
Never lie, but use the truth to your advantage
It's not only wrong to lie, but in employment negotiations, it's ineffective. If you lie during negotiations, sooner or later you're likely to be caught. Once you are, even if you don't lose the offer, you'll be at a tremendous disadvantage, and your credibility will always be suspect. On the other hand, total candor won't be rewarded. You're under no obligation to blurt out everything you know. You can determine what you want to say and how you want to say it, and try to put everything in its most positive light. One key element of your preparation should be to recognize areas of concern so you can rehearse how to handle them when they inevitably come up.
Understand the role fairness plays in the process
The guiding principle for most employers when negotiating is fairness. Within the constraints of their budget and organizational structure, employers usually will agree to anything that's fair and reasonable to hire someone they want. Appeals to fairness are your most powerful weapon. Thus, you should be able to justify every request you make in terms of fairness. For example, if other computer programmers in similar companies are being given sign-on bonuses, you should expect to be treated no differently. Your prospective employer will want you to accept its offer and feel that you've been treated fairly. Understanding the importance of fairness as a negotiating principle can make the difference between success and failure.
Use uncertainty to your advantage
The more information you convey to a potential employer about your bottom line, the more likely it will limit what you get. Before making an offer, a company typically tries to determine what it will take for you to accept the position. With that information, the prospective employer will be able to determine the minimum package it needs to offer. While they may not offer you as little as they can get away with, if you've divulged too much information, they likely won't offer you as much as they might have otherwise. By not disclosing exactly what your current compensation is or exactly what it would take to get you to leave your job, you'll force a potential employer to make its best offer.
Be creative
Consider the value of the total package. Look for different ways to achieve your objectives. Be willing to make tradeoffs to increase the total value of the deal. If you're creative, you can package what you want in ways that will be acceptable to the company. You'll also be able to find creative "trades" that allow you to withdraw requests that might be problematic to the company in return for improvements in areas where the company has more flexibility. That way, you can maximize the value of the package you negotiate.
Focus on your goals, not on winning
Too often in negotiations, the act of winning becomes more important than achieving your goals. And it's also important not to make your future boss feel as if he's lost in the negotiations. You'll have gained little by negotiating a good deal if you alienate your future boss in the process.
Know when to quit bargaining
The one sure way to lose everything you've obtained is to be greedy. There comes a point in every negotiation when you've achieved everything you could have reasonably expected to gain. While most companies will want to treat you fairly and make you happy, few companies want a to hire a prima donna. Being perceived as greedy or unreasonable may cause the deal to fall apart. Even if it doesn't, you'll have done immeasurable harm to your career.
Never forget that employment is an ongoing relationship
Job negotiations are the starting point for your career with a company. Get too little and you're disadvantaged throughout your career there; push too hard and you can sour the relationship before it begins.
Sunday, February 20, 2011
Tips On How To Prepare For The Telephone Interview
Telephone interviews are quite common in today’s job market. To successfully perform a phone interview, it is important to have a plan in place for the interview.
Following guidelines will prepare you for a successful phone interview call.
1. RESEARCH THE INTERVIEWER
Try to find out who will be interviewing you. Will there be multiple people on the call? If possible get their names and titles. Become familiar with these before the call and you will have one less thing to worry about during the call. Try and get some background on the interviewer. Any insight you can gain about him/her will allow you to better tailor your responses to make the best possible impression.
2. RESEARCH THE COMPANY
Before the telephone interview, find out everything you can about the company. You should know what products they sell, current market challenges, their major competitors, and their competitive advantage in the industry. Try to provide a link on how you can be an asset to the company.
3. ORGANIZE YOURSELF
It is critical that you create three lists. On the first list, put your accomplishments, goals and strengths, and on the second list, write out your weaknesses and what you are doing to overcome them. On the last sheet, write down why you are interested in the company. Think carefully about all of these items as they often come up in interviews.
4. PRACTICE, PRACTICE, PRACTICE
Please remember that telephone interview is still an interview. Take time to practice interview questions with friends or family. Ask them to provide honest feedback so you can improve your responses. Mock interview questions can easily be found on the internet or the bookstore. If you get stuck on a question, sample answers to these questions are often provided as well.
5. DO A SOUND CHECK
While performing practice interview, have your friend ask you questions both over the phone and in person. Make sure that he/she listens not only for content, but also tone, rate and clarity of your speech. If possible, record yourself speaking. Are you speaking slowly and clearly? Can you easily be heard? Is your voice portraying you as a confident and enthusiastic candidate? If not continue to practice until you are comfortable.
6. FIND A QUITE LOCATION FOR YOUR INTERVIEW
Stake out a quiet space to occupy during your interview. Ideally, there should be a comfortable place to sit as well as a table to lay out your papers. Try and find a low-traffic spot where members of the household are un-likely to disturb you.
7. ORGANIZE YOUR PAPERS
Have a copy of your resume and cover letter close at hand. Take out those lists you made while organizing your thoughts. In addition keep any notes related to the company that you feel may be helpful during the call. Spread these items out across your table so they are easy to access. Only keep what is truly necessary. Too much paper can be a distraction.
8. GATHER YOUR WRITING TOOLS
Place a notepad and several pens or pencils on the table. These will be helpful in writing down notes, questions and most importantly, your interviewer's names.
9. ELIMINATE DISTRACTIONS
As the appointed hour draws near, make sure that the television and the radio are turned off. Exit your email and turn off your computer screen. If possible, disable your call-waiting. Let your family or roommates know about the timing of the interview so they do not accidentally disturb you. Place a do not disturb sign on your door as a gentle reminder.
By following these simple steps, you will make a great impression and will be on your way to the onsite interview. Remember, the phone interview is very important and you should plan and prepare for it carefully.
ResumeCart.com
Find Jobs - Get Hired
Following guidelines will prepare you for a successful phone interview call.
1. RESEARCH THE INTERVIEWER
Try to find out who will be interviewing you. Will there be multiple people on the call? If possible get their names and titles. Become familiar with these before the call and you will have one less thing to worry about during the call. Try and get some background on the interviewer. Any insight you can gain about him/her will allow you to better tailor your responses to make the best possible impression.
2. RESEARCH THE COMPANY
Before the telephone interview, find out everything you can about the company. You should know what products they sell, current market challenges, their major competitors, and their competitive advantage in the industry. Try to provide a link on how you can be an asset to the company.
3. ORGANIZE YOURSELF
It is critical that you create three lists. On the first list, put your accomplishments, goals and strengths, and on the second list, write out your weaknesses and what you are doing to overcome them. On the last sheet, write down why you are interested in the company. Think carefully about all of these items as they often come up in interviews.
4. PRACTICE, PRACTICE, PRACTICE
Please remember that telephone interview is still an interview. Take time to practice interview questions with friends or family. Ask them to provide honest feedback so you can improve your responses. Mock interview questions can easily be found on the internet or the bookstore. If you get stuck on a question, sample answers to these questions are often provided as well.
5. DO A SOUND CHECK
While performing practice interview, have your friend ask you questions both over the phone and in person. Make sure that he/she listens not only for content, but also tone, rate and clarity of your speech. If possible, record yourself speaking. Are you speaking slowly and clearly? Can you easily be heard? Is your voice portraying you as a confident and enthusiastic candidate? If not continue to practice until you are comfortable.
6. FIND A QUITE LOCATION FOR YOUR INTERVIEW
Stake out a quiet space to occupy during your interview. Ideally, there should be a comfortable place to sit as well as a table to lay out your papers. Try and find a low-traffic spot where members of the household are un-likely to disturb you.
7. ORGANIZE YOUR PAPERS
Have a copy of your resume and cover letter close at hand. Take out those lists you made while organizing your thoughts. In addition keep any notes related to the company that you feel may be helpful during the call. Spread these items out across your table so they are easy to access. Only keep what is truly necessary. Too much paper can be a distraction.
8. GATHER YOUR WRITING TOOLS
Place a notepad and several pens or pencils on the table. These will be helpful in writing down notes, questions and most importantly, your interviewer's names.
9. ELIMINATE DISTRACTIONS
As the appointed hour draws near, make sure that the television and the radio are turned off. Exit your email and turn off your computer screen. If possible, disable your call-waiting. Let your family or roommates know about the timing of the interview so they do not accidentally disturb you. Place a do not disturb sign on your door as a gentle reminder.
By following these simple steps, you will make a great impression and will be on your way to the onsite interview. Remember, the phone interview is very important and you should plan and prepare for it carefully.
ResumeCart.com
Find Jobs - Get Hired
Sunday, January 9, 2011
Workers are less worried about losing their jobs!
Following article appeared on MSNBC by By PAUL WISEMAN Associated Press 1/9/2011:
WASHINGTON — A steady decline in layoffs is giving the vast majority of adults who have jobs the confidence to spend more freely and help energize the economy. They no longer worry so much about losing their jobs.
Their renewed confidence has boosted retail sales — just what's needed to spark what economists call a "virtuous cycle": Higher consumer spending raises company profits, which spurs hiring, which fuels more spending and growth.
Consumer spending is critical because it powers about 70 percent of the economy. It rose for five straight months through November, kicking off the strongest holiday shopping season since 2006. Many shoppers are showing enough confidence to splurge on new cars: Auto sales rebounded 11 percent in 2010, the first increase since 2005.
"The strongest showing for consumers since the peak years of the last expansion signals that the broader economy is near a threshold of self-sustaining growth," analysts at Citi Investment Research & Analysis wrote last week.
Federal Reserve Chairman Ben Bernanke echoed that point Friday. He told a Senate panel he sees evidence that a "self-sustaining" recovery is taking hold because consumers and businesses are spending more.
Morgan Stanley economists say 4 percent growth is "likely, perhaps even conservative" in 2011, up from an estimated 3.1 percent last year. Late this month, the government will estimate economic growth for the final quarter of 2010.
Consumer spending is rising because the vast majority of working-age Americans are now breathing easier, despite 9.4 percent unemployment. People who had jobs feared being laid off during the recession, which ended in June 2009, and for months after. Fewer worry now, because most companies have stopped cutting staff.
Workers who survived the job cuts of the past three years have begun to conclude: "If they haven't fired me by now, they're not going to," says Michael Koskuba, portfolio manager with Victory Capital Management.
By October 2010, layoffs and other dismissals had sunk to their lowest point since August 2006. In December, employers added just 103,000 jobs — too few even to keep up with population growth. But that was mainly because they're still reluctant to hire, not because they're still cutting jobs.
The number of people applying for unemployment benefits — a proxy for the pace of layoffs — has dropped in the past four months. And economists think employers will finally ramp up hiring this year.
"You've got 10 percent unemployment, and you add another 5 or 10 percent" for discouraged workers or those stuck in part-time positions, because they can't find full-time work, says Doug Hart, a retail specialist at the consulting firm BDO USA. But the remaining 80 percent, having survived the worst of the layoffs, "are feeling more secure about their jobs."
In 2009, consumers across all income groups froze up. The Labor Department's Bureau of Labor Statistics recorded the first annual drop in consumer spending in records dating to 1984.
Now, BDO's Hart says, "The fear factor has subsided."
That's evident among consumers like Monique Aguilar, 27, of Saugus, Mass. Aguilar put off a car purchase last year after the restaurant chain where she's a manager announced layoffs. But there she was Friday at a Chevrolet dealership in neighboring Lynn, Mass., shopping for a new Malibu.
What's changed? She doesn't worry so much about being let go. Her employer's sales have improved, and she's encouraged by reports of slowing layoffs and of companies starting to hire.
"In general, I feel like we're going in the right direction," Aguilar says. "That makes me comfortable in my purchase."
Many households also feel better able to spend because they've sharply reduced credit card and other debt they ran up during the mid-2000s.
Economists say consumers seem increasingly divided into "haves" and "have-nots." The haves are more secure in their jobs. Their finances are solid. So is their credit.
They dominate the highest-earning 20 percent of Americans, who contribute nearly 40 percent of consumer spending. Among managers and professionals, for instance, unemployment in December was just 4.6 percent — less than half the overall unemployment rate.
The have-nots are struggling with shaky finances and job security. Unemployment is running at 12 percent for transportation workers, for example. It exceeds 20 percent for construction workers.
A 20 percent run-up in the Dow Jones industrial average since July has also skewed the consumer rebound in favor of upper-income shoppers — and the luxury stores that serve them.
"It's a two-tier market," says Doug Roberts, chief investment strategist for Channel Capital Research. The affluent "are beginning to feel more confident because their (stock) portfolios are up."
During the holidays, high-end retailers like Nordstrom Inc. and Saks Inc. reported the strongest sales. Michael Niemira, chief economist at the International Council of Shopping Centers, says luxury sales rise and fall almost in lockstep with the stock market.
After hunkering down during the recession, for example, Jerrie McKennon of Burleson, Texas, last year splurged on a Lexus and two expensive vacations. The main reason was that most of her investment portfolio had recovered from its losses during the financial crisis.
http://today.msnbc.msn.com/id/40990619/ns/business-eye_on_the_economy/
WASHINGTON — A steady decline in layoffs is giving the vast majority of adults who have jobs the confidence to spend more freely and help energize the economy. They no longer worry so much about losing their jobs.
Their renewed confidence has boosted retail sales — just what's needed to spark what economists call a "virtuous cycle": Higher consumer spending raises company profits, which spurs hiring, which fuels more spending and growth.
Consumer spending is critical because it powers about 70 percent of the economy. It rose for five straight months through November, kicking off the strongest holiday shopping season since 2006. Many shoppers are showing enough confidence to splurge on new cars: Auto sales rebounded 11 percent in 2010, the first increase since 2005.
"The strongest showing for consumers since the peak years of the last expansion signals that the broader economy is near a threshold of self-sustaining growth," analysts at Citi Investment Research & Analysis wrote last week.
Federal Reserve Chairman Ben Bernanke echoed that point Friday. He told a Senate panel he sees evidence that a "self-sustaining" recovery is taking hold because consumers and businesses are spending more.
Morgan Stanley economists say 4 percent growth is "likely, perhaps even conservative" in 2011, up from an estimated 3.1 percent last year. Late this month, the government will estimate economic growth for the final quarter of 2010.
Consumer spending is rising because the vast majority of working-age Americans are now breathing easier, despite 9.4 percent unemployment. People who had jobs feared being laid off during the recession, which ended in June 2009, and for months after. Fewer worry now, because most companies have stopped cutting staff.
Workers who survived the job cuts of the past three years have begun to conclude: "If they haven't fired me by now, they're not going to," says Michael Koskuba, portfolio manager with Victory Capital Management.
By October 2010, layoffs and other dismissals had sunk to their lowest point since August 2006. In December, employers added just 103,000 jobs — too few even to keep up with population growth. But that was mainly because they're still reluctant to hire, not because they're still cutting jobs.
The number of people applying for unemployment benefits — a proxy for the pace of layoffs — has dropped in the past four months. And economists think employers will finally ramp up hiring this year.
"You've got 10 percent unemployment, and you add another 5 or 10 percent" for discouraged workers or those stuck in part-time positions, because they can't find full-time work, says Doug Hart, a retail specialist at the consulting firm BDO USA. But the remaining 80 percent, having survived the worst of the layoffs, "are feeling more secure about their jobs."
In 2009, consumers across all income groups froze up. The Labor Department's Bureau of Labor Statistics recorded the first annual drop in consumer spending in records dating to 1984.
Now, BDO's Hart says, "The fear factor has subsided."
That's evident among consumers like Monique Aguilar, 27, of Saugus, Mass. Aguilar put off a car purchase last year after the restaurant chain where she's a manager announced layoffs. But there she was Friday at a Chevrolet dealership in neighboring Lynn, Mass., shopping for a new Malibu.
What's changed? She doesn't worry so much about being let go. Her employer's sales have improved, and she's encouraged by reports of slowing layoffs and of companies starting to hire.
"In general, I feel like we're going in the right direction," Aguilar says. "That makes me comfortable in my purchase."
Many households also feel better able to spend because they've sharply reduced credit card and other debt they ran up during the mid-2000s.
Economists say consumers seem increasingly divided into "haves" and "have-nots." The haves are more secure in their jobs. Their finances are solid. So is their credit.
They dominate the highest-earning 20 percent of Americans, who contribute nearly 40 percent of consumer spending. Among managers and professionals, for instance, unemployment in December was just 4.6 percent — less than half the overall unemployment rate.
The have-nots are struggling with shaky finances and job security. Unemployment is running at 12 percent for transportation workers, for example. It exceeds 20 percent for construction workers.
A 20 percent run-up in the Dow Jones industrial average since July has also skewed the consumer rebound in favor of upper-income shoppers — and the luxury stores that serve them.
"It's a two-tier market," says Doug Roberts, chief investment strategist for Channel Capital Research. The affluent "are beginning to feel more confident because their (stock) portfolios are up."
During the holidays, high-end retailers like Nordstrom Inc. and Saks Inc. reported the strongest sales. Michael Niemira, chief economist at the International Council of Shopping Centers, says luxury sales rise and fall almost in lockstep with the stock market.
After hunkering down during the recession, for example, Jerrie McKennon of Burleson, Texas, last year splurged on a Lexus and two expensive vacations. The main reason was that most of her investment portfolio had recovered from its losses during the financial crisis.
http://today.msnbc.msn.com/id/40990619/ns/business-eye_on_the_economy/
Thursday, January 6, 2011
American Companies Hiring More Workers
Following article appeared on CNN.com by Chris Isidore:
"Hire more workers" appears to be a popular New Year's resolution for employers this year.
Economists are raising their forecasts for employment growth, as various job readings are suggesting that the long-awaited hiring boom may finally be here -- or at least near.
"It's about time," said economist Robert Brusca of FAO Economics.
All eyes will be on the monthly employment report from the Department of Labor, due out on Friday, which will show how many jobs were added to payrolls last month.
"There's a lot of reason to think we could get a big number for December," Brusca said.
Economists surveyed by CNNMoney are predicting a gain of 150,000 jobs, which would be a big jump from the 39,000 jobs added in November. The economists also expect that disappointing number to be revised higher, to just more than 60,000 new jobs.
Brusca, the most bullish of those surveyed, is forecasting a gain of 300,000 jobs for December.
Signs of life in the job market: The four-week moving average of those filing for first-time unemployment benefits fell to the lowest level in more than two years in the most recent reading. And Wednesday, a report showed that 297,000 private sector jobs were added in December, according to payroll services firm Automatic Data Processing. That's the largest gain since ADP began tracking jobs in 2000. The report is viewed as a bellwether of the government jobs reading that follows, leading some economists, including Brusca, to raise their forecasts for December's payroll reading.
In addition, job placement firm Challenger, Gray and Christmas reported only 32,004 job cuts announced in December, the lowest number since 2000.
Strength in the broader economy: Signs of better hiring ahead are also present in a variety of economic readings, from strong holiday sales figures to increased demand for autos.
December same-store sales increased 3.1%, marking a 15-month streak in the measure, and bringing holiday sales back above pre-recession levels. And U.S. auto sales rose 11% in December, capping the strongest quarter of sales since the fall of 2008 when the industry was roiled by the financial crisis. "We've seen a lot of the indicators come in better than expected," said Sam Bullard, senior economist with Wells Fargo Securities, which is forecasting a gain of 156,000 jobs in December, and November's gain to be revised up to 100,000. "It does seem that the acceleration in hiring is starting."
More hiring on main street: One key factor lifting expectations is that small businesses seem to have caught the hiring bug, Bullard said. About seven out of eight jobs added in the ADP report came from small and medium-sized companies.
And a December survey of more than 1,700 small business CEOs conducted by Vistage found 54% expect to increase staff in the next 12 months. It's the first time in more than three years that survey has shown more than half of those bosses planning to hire, said Rafael Pastor, CEO of the small business membership group. "This is a remarkable leap in confidence in both the overall economy and hiring," said Pastor. He attributes the hiring to the fact that 77% believe their revenue will increase in the next year and that they'll need more staff to capture those additional sales.
He said in the current environment, it is more risky not to add staff than it is to hire, a change from the uncertainty most small businesses faced only a few months ago. Still, unemployment is expected to stay high; CNNMoney's survey forecasts a 9.7% unemployment rate in December, down only slightly from the 9.8% reading in November. The improved labor market could keep that number relatively high even as hiring picks up, as long-term jobless not counted among the unemployed start seeking work once again. But the key number, according to economists, is the number of jobs being added, not the unemployment rate.
Some economists believe that snow storms in December in the East and Midwest could keep Friday's report in check. "At this time of the year, it is not uncommon for economic data releases to essentially be weather reports," said Joseph LaVorgna, chief U.S. economist for Deutsche Bank. But Deutsche Bank still raised its December payroll estimate to 150,000 on Wednesday from 100,000, in the wake of the positive news.
Even if December's payroll number is modest, many economists are forecasting much stronger hiring ahead. The average full-year forecast of the 27 economists is for 2.3 million jobs added in 2011, or just under 200,000 a month. That's more than double the pace of hiring forecast for all of last year.
http://money.cnn.com/2011/01/05/news/economy/jobs_outlook/index.htm
"Hire more workers" appears to be a popular New Year's resolution for employers this year.
Economists are raising their forecasts for employment growth, as various job readings are suggesting that the long-awaited hiring boom may finally be here -- or at least near.
"It's about time," said economist Robert Brusca of FAO Economics.
All eyes will be on the monthly employment report from the Department of Labor, due out on Friday, which will show how many jobs were added to payrolls last month.
"There's a lot of reason to think we could get a big number for December," Brusca said.
Economists surveyed by CNNMoney are predicting a gain of 150,000 jobs, which would be a big jump from the 39,000 jobs added in November. The economists also expect that disappointing number to be revised higher, to just more than 60,000 new jobs.
Brusca, the most bullish of those surveyed, is forecasting a gain of 300,000 jobs for December.
Signs of life in the job market: The four-week moving average of those filing for first-time unemployment benefits fell to the lowest level in more than two years in the most recent reading. And Wednesday, a report showed that 297,000 private sector jobs were added in December, according to payroll services firm Automatic Data Processing. That's the largest gain since ADP began tracking jobs in 2000. The report is viewed as a bellwether of the government jobs reading that follows, leading some economists, including Brusca, to raise their forecasts for December's payroll reading.
In addition, job placement firm Challenger, Gray and Christmas reported only 32,004 job cuts announced in December, the lowest number since 2000.
Strength in the broader economy: Signs of better hiring ahead are also present in a variety of economic readings, from strong holiday sales figures to increased demand for autos.
December same-store sales increased 3.1%, marking a 15-month streak in the measure, and bringing holiday sales back above pre-recession levels. And U.S. auto sales rose 11% in December, capping the strongest quarter of sales since the fall of 2008 when the industry was roiled by the financial crisis. "We've seen a lot of the indicators come in better than expected," said Sam Bullard, senior economist with Wells Fargo Securities, which is forecasting a gain of 156,000 jobs in December, and November's gain to be revised up to 100,000. "It does seem that the acceleration in hiring is starting."
More hiring on main street: One key factor lifting expectations is that small businesses seem to have caught the hiring bug, Bullard said. About seven out of eight jobs added in the ADP report came from small and medium-sized companies.
And a December survey of more than 1,700 small business CEOs conducted by Vistage found 54% expect to increase staff in the next 12 months. It's the first time in more than three years that survey has shown more than half of those bosses planning to hire, said Rafael Pastor, CEO of the small business membership group. "This is a remarkable leap in confidence in both the overall economy and hiring," said Pastor. He attributes the hiring to the fact that 77% believe their revenue will increase in the next year and that they'll need more staff to capture those additional sales.
He said in the current environment, it is more risky not to add staff than it is to hire, a change from the uncertainty most small businesses faced only a few months ago. Still, unemployment is expected to stay high; CNNMoney's survey forecasts a 9.7% unemployment rate in December, down only slightly from the 9.8% reading in November. The improved labor market could keep that number relatively high even as hiring picks up, as long-term jobless not counted among the unemployed start seeking work once again. But the key number, according to economists, is the number of jobs being added, not the unemployment rate.
Some economists believe that snow storms in December in the East and Midwest could keep Friday's report in check. "At this time of the year, it is not uncommon for economic data releases to essentially be weather reports," said Joseph LaVorgna, chief U.S. economist for Deutsche Bank. But Deutsche Bank still raised its December payroll estimate to 150,000 on Wednesday from 100,000, in the wake of the positive news.
Even if December's payroll number is modest, many economists are forecasting much stronger hiring ahead. The average full-year forecast of the 27 economists is for 2.3 million jobs added in 2011, or just under 200,000 a month. That's more than double the pace of hiring forecast for all of last year.
http://money.cnn.com/2011/01/05/news/economy/jobs_outlook/index.htm
Thursday, November 25, 2010
Larger Companies are Hiring - Smaller Companies Lagging
Recent Gallup poll shows that larger U.S. companies and U.S. Federal government are adding jobs while smaller firms are shedding jobs.
"Gallup finds that larger companies are hiring more workers while the smallest businesses are shedding jobs. More than 4 in 10 employees (42%) at workplaces with at least 1,000 employees reported during the week ending Nov. 14 that their company was hiring, while 22% said their employer was letting people go. At the other extreme, 9% of workers in businesses with fewer than 10 employees said their employer was hiring, and 16% said their employer was letting people go".
"Gallup finds that larger companies are hiring more workers while the smallest businesses are shedding jobs. More than 4 in 10 employees (42%) at workplaces with at least 1,000 employees reported during the week ending Nov. 14 that their company was hiring, while 22% said their employer was letting people go. At the other extreme, 9% of workers in businesses with fewer than 10 employees said their employer was hiring, and 16% said their employer was letting people go".
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