On the Job

The latest employment numbers were released by the Bureau of Labor Statistics today, and, as you might expect, the news is still grim. Unemployment rose to 5.7 percent from June's 5.5 percent and 51,000 jobs were lost. Since July 2007, 1.6 million people have lost their jobs, and job loss is beginning to spread to industries other than the usual suspects, construction and manufacturing. But there's hope for people recently laid off, says Tig Gilliam, CEO of Adecco GroupNorth America, a human-resources and staffing company. Gilliam spoke to NEWSWEEK's Ashley R. Harris about what the numbers mean for American workers, where the jobs are and what lessons can be learned from the report. Excerpts.

NEWSWEEK: The latest jobs numbers weren't as awful as some predicted, but they were still pretty bad. What's happening out there?
Tig Gilliam: Employers make their choices based on future prospects. You've got some industries that are doing well and are expected to continue to do well. Computer-related and information technology jobs increased by 7,000 last month, and are [expected to continue] to do so. Other industries feel that they have better prospects of survival by reducing labor, like construction and manufacturing, which lost 35,000 more jobs last month. Also, government is a significant part of the job growth, as well. We need to continue to watch as Congress finds solutions for this crisis.

Still, there are 8.8 million unemployed people in the country right now. How long will it take before the labor market shifts so that those folks can get back to work, and what kinds of jobs will be available to them?
There's some possibility we could get adjustment soon. First, it's important to remember that these numbers are seasonally adjusted. What will happen in the fall is that students will take themselves out of the employment pool by going back to school. But as long as we're losing 50,000 jobs a month in those categories, we're not going to see [new] jobs in those sectors. Many employers are replacing talent in professional services. Those will continue to be robust throughout this year. Clearly, there is a long-term move in the United States away from manufacturing and product-based jobs to services-based jobs.

What major message should the employed and unemployed take from this jobs report?
There are long-term lessons for families and people building their careers. The most important one being, you have to go to college. It's absolutely necessary now to have a college degree, and it will be from now on. Those with college degrees have a 2.5 percent unemployment rate compared to 8.5 percent of those with just a high-school diploma.

So, even though many Americans' budgets have tightened over the past year, taking continuing-education classes and even vocational-training classes is a good investment?
Yes. You have to think about formal education and then think about continuing education if you want to develop your economic prospects. We're advising our kids and our kids' kids to concentrate in areas that are not product-oriented like manufacturing, but service-oriented. Your opportunities will grow with the more training you have. It's about having a strong skill set and then broadening the market you're in or willing to work in, if that's feasible.

Health care has seen growth this past month with an additional 33,000 jobs—what other fields are on the horizon as emerging industries?
Finance, accounting, health care, medical, scientific, legal; any field with intellectual capital. Finance and accounting, for example, have candidates who have skills in those areas, and even if they've lost their jobs, they've got much sought-after skills. The point now is to begin to think beyond financial services and to think how those skill sets can translate in other areas: financial analysis for health-care companies, or consulting. There are possibilities for educated, skilled labor.

Are there benefits available to people recently laid off by their employers?
It varies dramatically by company. Many employers offer career-transition services for employees, but not all. Employers are seeing that it's more desirable than in the past; it's not as expensive as it used to be, and many employers understand the importance of having happy exit[ing] employees, because they will one day be customers, shareholders or stakeholders in the process. For former employees that do have access to these benefits, it's important to review the timetable you have to access those benefits, like job-placement services. The most important thing to remember is to begin preparing yourself now.

There are some companies looking to relocate manufacturing centers back to the States because of rising fuel costs. Will we see a resurgence of blue-collar workers in certain sectors?
There are segments of industries where there's always going to be good opportunity there. So whether it's General Motors or Honda, there are going to be jobs in automotives in the States. Are we going to lose more GM jobs? Yes. Automotive assembly and construction is down 10 percent in Detroit. And it's true whenever you're in an industry where the transportation costs exceed the actual product and tariff costs, you're going to rethink your shipping methods, but not in a way that will impact the American worker immediately.

© 2008