Technically, the recession is over and the economy is improving.
The recession officially ended in June 2009, almost three years ago. It began in December 2007.
Economic indicators generally show optimism, including a drop in unemployment rates.
The Florida and Jacksonville area rates are below 10 percent and are at their lowest levels in three years.
Yet, employment levels aren’t back up to their peak. The number of people working and looking for work, whose collective number defines the size of the labor force, remains below the pre-recession peak statewide.
At the same time, nationally, numbers show that productivity is up.
The generalization would be that fewer employees are churning out more work.
Of course, some employers are adding jobs, opening new locations and replacing laid-off workers.
In addition, the hiring gains have not resulted in bigger paychecks for most people, national numbers show.
Four Jacksonville workforce professionals weigh in today on four questions:
• How far did businesses cut back their workforces during the recession?
• What percentage do you see continuing at that level?
• How are the employees coping?
• Which types of companies or industries are hiring at a faster rate than others?
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| The experts say... | How far did businesses cut back their workforces during the recession? | What percentage do you see continuing at that level? | How are the employees coping? | Which types of companies or industries hiring at a faster rate than others? |
Michael Kirwan
Partner, Foley & Lardner
President, Association for Corporate Growth North Florida | It varied from business to business. Workforce reductions of 10-20 percent were not unusual. Any company that did not cut back during the recession would be the rare exception. | Based solely upon my observation, I believe most businesses that reduced their workforces during the recession have continued to operate with a workforce below the pre-recession levels. However, some hiring has begun, so companies that may have seen a 10-20 percent reduction in their workforce might now be at an 8-15 percent reduction below their pre-recession levels. | The employees that retained their jobs have had to cope with worries about job security while picking up additional responsibilities of the former employees. A number of businesses have revamped their processes so that certain jobs are no longer necessary. | I believe the services and retail sectors appear to be hiring at a faster rate than other sectors. I also believe that larger companies are increasing their hiring in contrast to their smaller competitors. |
Jerry Mallot
President
JAXUSA Partnership | Fairly significantly, some by as much as 30-50 percent, depending upon the size and type of business. These cutbacks began seriously in late 2008 and continued into 2010. | Most companies have begun hiring again, especially medium- to larger-size companies. Many of these companies are doing very well but their hiring continues to reflect a more conservative approach. Smaller companies have been more cautious and in some cases have not resumed hiring because business has not returned at a fast enough pace. | With a reduced workforce but the same or increased workload, it has been difficult on many employees. Many companies have developed much higher levels of efficiency in handling their work while at the same time it increases the level of stress on people. After several years, I think many companies have begun hiring again, which reduces the stress level but the efficiencies have remained, meaning many companies may never staff at the same levels. | Manufacturing, information technology and financial services have been hiring at a rapid pace, followed by the health care industry. Health care maintained the greatest level of employment and growth during the recessionary years. |
Candace Moody
Vice President
WorkSource | In December 2007, our region had an unemployment rate of 4.3 percent. Total employment, which measures the number of jobs, was 636,900. By December 2008, we had shed 15,400 jobs and our unemployment rate had increased to 7.5 percent. By November 2010, we were at 11.7 percent unemployment and down 54,200 jobs to 582,700. Our February unemployment rate was 8.3 percent, but employment was only 591,000. We still see the effects of a significant employment loss. | Most of the lost jobs were in construction, finance and manufacturing. Construction is not expected to reach relatively normal employment levels until 2018. We think that manufacturing will recover, but gains in productivity and technology will mean that some jobs will never come back. The residential construction boom of the 1990s and early 2000s drove most of the growth in finance, and foreclosures have accounted for hiring recently. | Two groups are struggling: very young workers, who are having trouble competing with skilled workers and landing first jobs out of college or high school, and baby boomers, who are having trouble replacing their previous high-income jobs. I hope that we’ll see these skilled older workers choose self-employment and start an entrepreneurial boom. | Health care is coming back with strong hiring, as are logistics and transportation. Many industries are adding sales and information technology jobs, which is good news for workers considering changing careers or training as an option. |
Jackie Perry
Executive Director
Beaver Street Enterprise Center | Based on what I have observed among 25 companies we work with both directly and indirectly, about 50 percent of them had to cut back and some drastically, as much as 60 percent of staff in some cases. | The good news is that many of those employers are hiring or bringing people back, although not at the same levels. Companies are slowly bringing back employees. Our tracking shows that 10 companies were able to restore their staffing levels by about 40 percent. At the same time, companies are seeking productivity savings through technology and automation and are looking at alternate staffing sources as well. Some full-time staff has been replaced with temporary staff. | When employers or entrepreneurs fail to communicate with their employees, employees don’t fare well. Frustration and uncertainty creep in and these folks begin to look for new opportunities or become unproductive. Others tend to hold on, take on additional tasks and wait it out for better times based on good leadership and their specific needs. All in all, the sense I get from existing employees is one of optimism. They believe things are getting better. | Service jobs will continue to be in demand. Also, health care companies, technology-based firms, particularly those that support health care and financial service industries, and those that are operating in government contracting. I have noticed that my construction companies fare better when they focus on green-related projects or focus on energy-efficient products or services. New construction and energy-related jobs, especially for government activity, are strong right now. Another fast growing segment is with port logistics. |
