Labor Market 2003

1
Labor Market 2003

• Phil Gardner
• Employment Research Institute
• Michigan State University

2
Hemorrhaging Stopped!
Vitals Stabilized!
3
Long, painful recovery expected
4
BURSTING
BUBBLES
5
The Mississippi Company
6
Todays Bubbles

• Technology Warren Buffets Mass
  Hallucination
  
• Utility Energy Policy Act of 1992
• Safety 9/11
• Housing ???????

7
Biggest of All!
Has Dilberts boss really won?
CEOs their Accountants and the
Loss of consumer confidence
8
"Sometimes, when I sleep at night, I think of
'Hop on Pop'"      George W. Bush, in a speech
about childhood education, AP, April 2, 2002

Source Satirewire.com
9
In 1990 the minimum wage was 3.80. What would
the minimum wage be today if it had risen at the
same rate as CEO pay?
10
Xerox
Signal Technology
Kroger
Enron
WorldCom
Merrill Lynch
Adelphia Communications
Haliburton
Tyco International
Sunbeam
Arthur Andersen KPMG Ernest
Young
Rite Aid
Sears
Save the World
AOL TimeWarner
Credit Suisse First Boston
El Paso Corp
Global Crossing
Qwest Communications
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Outlook

• UNEVEN
• ANEMIC
• JOBLESS
• Rob Norton, Fortune

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Todays Economy

• Uncertainty
• Technology War CEOs Lack of Dialogue
• Consumer Confidence
• Credit
• Retirement Delays
• State Finances
• Health Care Costs

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A Few Good Things

• Interest Rates
• Institutional Knowledge
• Immigrants
• Women
• Productivity

14
What is the fastest growing segment of the
U S Economy? Hint NAIC is in either business
support services or information services.
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So are there jobs?

• Overall
• -1 Bachelors no change
• Regions All in same boat
• Definite Hires 6
• Maybes -14
• New v Last Years 4 v -14

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Sectors

• Good
• Construction
• Transportation and Food Lodging
• Okay
• Manufacturing
• Information
• Ugly
• Finance
• Professional Services

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Consulting
Partner
Project Manager
Consultants
Associates
RELOCATED SHRINKAGE
OUTSOURCED
18
In a truly unbiased question, Clark Martire
Bartolomeo asked CEOs if they were underpaid,
overpaid, or fairly paid? What percentage repor
ted that they were overpaid?.
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Majors

• Good
• Business
• Sciences
• Okay
• Communication, Liberal Arts
• Ugly
• Engineering
• Computer Science

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Thank God for Little Companies

• Saved Again
• 301-1600 3
• 1600 -9
• BA 12, 17, -4, -5 (small to large)
• MBAs 25, -5, -17, -3 (small to large)

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Salaries

• Reported
• Last year averages came down slightly
• Up by inflation plus extra
• Realigned
• Readjusting internal wage structure from excesses
  of past 5 years

22
Through the 3rd quarter 2002, how much has been
defaulted by US companies? Bonus How much was
defaulted for all of 2001?
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Values, Skills, Competencies

• Ethics and Integrity Elusive and fragile
• English grammar, usage and spelling! I am
  continuously mortified by the lack of basic
  skills in communication graduates.
  
• Well spoken, people oriented, team player,
  disciplined, positive upbeat attitudes, detailed,
  computer literate, hard working goal oriented.

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Utilizing Skills
Skill Funnel
25
According to the SEC, the accounting failures
cost the US household (on average)how much in
lost market value?
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Recruiter Issues

• Selectivity
• Fairs
• International Hires
• Foreign Students
• Temporary Positions

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Senior Issues

• What About Me? Liberal Arts
• Who Am I? Millennials, Xers and Boomers
• Is Study Abroad Worth It?

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Motivated
Argumentative
Lazy
Team oriented
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The Rest of the Story

• Also Impatient, liberated, risk-taking, civic
  spirited, untrusting v trusting, ambitious
  
• Female recruiters liberated, optimistic,
  trustful, risk-taking
  
• Male recruiters impatient, materialistic

30
Which of the following companies has seen their
stock value rise by more than 20 since the first
of the year? Apollo Corinthian Career Educati
on All of above None of Above
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Adaptability
Cultural awareness
Independence
Setting priorities
Resourcefulness
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On the day that you were born
The angels got together And decided to create a d
ream come true -Karen Carpenter
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Job Strategies In a Tight Market

• Networks The Use of Information
• Research Thyself and the World
• Passion
• Experience what you do counts study abroad,
  service, research, work
  
• Be ready for the unexpected

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Realistic Expectations

• Not all assignments are exciting, challenging,
  pay well and start at 1000 am
  
• Entitlement
• Instant gratification
• Orientation JFK
• Theory v practice

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Economy Revisited

• Demographics
• Retirements Educational Distribution
• Regional (Midwest v Salt) Singleness
• Big Bigger Biggest
• Debt
• Knowledge Based
• Misdirected by Technology
• Sciences
• Changing shape of consulting