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Posts Tagged ‘foreclosure’

Since buying my staffing company over 8 years ago, I have had a unique vantage point to observe our fractured job market.  I have had individuals turn down assignments because of what they were getting in Gov’t benefits, I have had the Department of Economic Security grant benefits to folks that clearly do not deserve them, and I have posted jobs that people simply do not make the effort to apply.  It is not a popular opinion but we must phase these benefits out and soon.  Our already horrible budget deficits and entitlement  programs are sinking our national boat.  This cannot continue or there will be some horrible consequences down the road.    Unfortunately, you will never hear this tough medicine from anyone in Washington or the current crop of candidates.   The gravy train is coming to an end and our children will be paying the bill.

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I am currently writing an e-book on the Kindle format about how to find a job in this economy.  I want to make the book especially for people who are currently unemployed and give them a guide that will produce 3-4 good tips in a 20 minute read.  No filler or BS.  I am covering the current job market, social media and the job search, pre, during and post interview tactics and humorous stories I have accumulated about the dumb things applicant do in my office.  I expect to have this done about the first of the year.  I am asking if there are any questions you may have that I could answer in the book.  Please feel free to comment on this page.  Thanks

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Well…that is a very good question.  So how about some bullet point answers:

1- The flooding, tornadoes, and other disasters are taking a big toll.  When you are digging out your house, you are not working and the companies/ businesses that produce are idle…problem

2- Federal debt has capital scared to deploy.  Long term fix requires harsh cuts in Medicare,  Social Security etc.  Who has the huevos to do it?  Not anyone I have seen!

3-You can’t get a loan without a major proctology exam along with a severe beating.  No loans, small biz can’t grow.  Simple math.

4-Our major industry..construction is in a depression.  What will take its place?  Better question..what 5 industries can take its place.

5- Healthcare plan on horizon.  Don’t like it?  Then get a waiver if you are big enough.  The rest of us just get the shaft.

6- Wage scales in AZ are on the low end and will continue that way until demand picks up for goods and services.  Can’t buy homes, cars, education, clothes, food and gas on poverty level wages..oh and these folks are not paying taxes.  Local AZ Government receipts are down and the food and sales tax increase is being used to help support the bloated salaries and benefits of top officials…not on your schools system.

Going forward we need more representatives that support the small business person…not necessarily the big biz people…they got their bailout.   Small business creates 75% of the job growth and we are wading through the mud of over regulation, lack of capital availability and a generally poor business realtionship with the folks in Washington D.C.

Muddle through people…we will make it!

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I have been working through our friendly neighborhood SBA loan program.  It could be the most degrading process ever invented.  Every step of the process is designed to be as painful as possible..quite like doing dentistry in the 18th century.  Not only do you have to provide about 7 inches of paperwork, you must endure idiotic questions from an underwriter that would have trouble running a 2 person convenience store.  Why this is so troubling is that our Federal Gov’t didn’t ask any of these questions of Goldman Sachs, Bank of America, or AIG  that were given billions.  Heck, their financials were prepared by the same person that bills out $700 toilet seats at the Pentagon.  Not only does the financial institution get a75% loan guarantee by the Feds (meaning you an me) they want additional collateral for the 25% that is not covered.  SO…they only want to make risk free loans.  Any business that needs a 100%  backing  should not be in business at all. This leads me to 2 conclusions:

1- 75% of new business growth comes from small business.

2- Small business can only apply for risk free loans.

Pity we don’t realize under these conditions the employment and economic picture will continue to be murky because we appreciate the 25% of the job market that eventually lead to the greatest economic boondoggle in 200 years.

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YES…we are getting job growth.  Is it the right kind that will sustain our local economy?  Not yet!…I wish they would include the wage ranges of these created jobs, only then would you be able to compare relevant job growth, to merely  minimum wage job growth.  A big difference since we need someone to pay taxes, buy things and create  new opportunities for business growth.  An interesting article in the New York Times yesterday(http://bit.ly/i6Wy0Q)  goes a long way to illustrate this point.  It basically says, a single person needs an income of about $30k a year in order to survive.  That does not include a Bahamas vacation and a new car every 3 years.  Just the basics and some room for savings growth.  Do you know what the Feds have as the poverty level for the same person?  $10,830.  That is a Grand Canyon size gap in actual cash people need to survive.  From my chair,  I see low wage growth in the $10-15/hr jobs, not $35,00 and above.   It is the higher wage job growth we need to fill in for the construction industry implosion that took thousands of higher paying jobs from the State.   Replacement of these ‘lost jobs’ are the key to improving our local economy, and making our State a better place to live.

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Let’s lay out some facts:

1- Gas prices are going through the roof

2-Transportation costs for goods are increasing, capacity to move goods has shrunk

3- Small business creates 75% of new job growth

4-Raw materials, insurance, workers comp claims, Government regulation has increased

Take these increased costs out of an already strained budget and you have less money to hire people.  In Arizona, we have a car based economy.  Everything you purchase is moved by a vehicle.  When fuel prices go up, who pays the increased cost?  Some magic fairy?  No,  business and the consumer.  The transportation industry has been taking it in the shorts for years, so they decreased their fleets (less trucks) and now we will all compete for a smaller logistics system to move goods…meaning you will pay more.

It will take time for business and consumers to adjust to the new increases in cost.  Only after this happens, will we be able to move the job market forward…for me its looking like next fall.

 

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JOBS THAT IS!

Another week of Birther Rights bills and the new Arizona State official firearm.  Don’t confuse me with the tree huggers, I support gun rights but an official State Gun?  No wonder we only are paying below 40k a year for these people…its 30k too much! The State needs job growth not  ridiculous time wasting endeavors…but now to my point. Last week in the Arizona Republic,  Paul Blue, Phoenix’s Community and Economic Director, wrote an article on the City’s support for business is paying off with new jobs.  The problem was, a lot of these companies are bringing in temp, poverty level positions that are meant to be transition jobs, not career opportunities.  Why is this bad?  It’s not,  but these jobs will not produce an economic gain our State needs,  just the the title of ‘Low Wage Capital of the U.S..”  It is good to see Intel and some others expanding do to the higher wages these companies pay..crow about that, not temp positions.  Below is a copy of the email I sent to Mr. Blue and did not get a response . (holding my breath)

Dear Mr. Blue,

I marvel at how City officials like yourself continue to brag about bringing in employers, such as Amazon.com and pretending this is helping our economic growth.  I am a lifelong resident and owner of a staffing company here in Phoenix.   Most of the employers you mention are temp jobs, that pay below poverty level, have no benefits and add nothing to the tax base of the State.  Traditionally these jobs have been for new workers, college kids or people between jobs.  They are now a main source of jobs for people that have nowhere else to turn,  that is why it is ridiculous to cheer that you are helping the economic engine in Phoenix.  I would argue that these job actually cost us more because of the tax breaks offered and the employees still tied to some type of state aid..like Food stamps, WIC or the health system.  Here are the facts from the ground level:

-Amazon uses a temp service to hire these worker for the season…Xmas, Valentine’s day, Mothers day etc.

-At the end of the assignment, hundreds are let go and come to staffing companies like mine

-These folks tell me the Staffing Co. said the will be hired on but it never happens.

-The people taking these job are making about $11.50/hr..Do the math on a 40 hr week.  Poverty level!

-People in these jobs are the displaced 40-50 year olds that can’t find another job.  This type of employment is not designed for that.

I have nothing against these jobs, I do these types myself..but I am not out telling people I am helping economic growth because that is not accurate.  If you want to see what economic grow is see the New York Times article today http://www.nytimes.com/2011/02/19/business/19hyundai.html .   Hyundai’s Growth helps Alabama Economy, $20 an hour jobs, suppliers and new businesses entering the market area…That is something to brag about.

Sincerely,

ME

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