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Posts Tagged ‘Wells Fargo’

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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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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I was recently asked by a few colleagues to comment on the state of employment in Arizona.  Unfortunately, I  have not removed my pom-poms from storage as of yet.  That is not what people want to hear but it is a fact…We are going to be in slow growth employment for the foreseeable future.  Job growth openings for my firm are much improved BUT the climate is totally different from years past.  Employers are more cautious when making commitments and they want to see more candidates than ever before.  AND they only want to see the candidates that have industry specific skills.  If you are a ‘career changer’ you are pretty much out of luck.  Background issues can also derail your job search.  We are not talking about the guy/gal that pistol whipped grandma down at the liquor store they robbed but DUI’s and minor offenses.  There are just too many candidates with zero problems to focus on.   Displaced middle age people (like me) are even having a harder time because middle manager positions were just plain eliminated and are now not needed.  Bad news for retirement planning, keeping your home out of foreclosure and feeding your kids.  What is the solution?  Glad you asked.  Our peeps at the Legislature and Governor’s office must focus on attracting good companies to the area.  NOT spending time on fighting the Feds over trivial matters.   When you have this many fires to put out, you need to focus on the big ones…not the dumpster fire.   We are over paying the double dippers and higher city officials like we were running a casino, not a garage sale.  Going forward the only solutions they will come up with is taxing the smaller minority of people and businesses that are actually making money but that well is running dry also.  So jump on the internet and ask your Reps what the heck they are doing down there to get companies to move here or you can expect huge budget cuts and tax increases to compensate for the their continued foolishness.

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With the new year brings the opportunity to improve your staff or make some timely additions.  Before you run out thinking that Mr./Mrs. Fantastic is just sitting around waiting for your call…we better get a few things straight:

1- You will not find too many “gems” in the vast amount of unemployed people.  When you do..you better act fast.  I spoke to one prospect that sat on resumes for 3 weeks..guess what?  The good ones were gonzo!

2- Speaking of resumes.  Is that all you are using to screen applicants?  Most of these are just a poorly written commercial complete with BS, incomplete dates of employment and phony schooling.  You must actually talk to people to hire the good ones.  Yes…that means good old-fashioned in person interviews.

3- You cannot hire a person that is great at everything!  You must focus on the 3 areas you need to accomplish and hire for those first.  You will have to train the person on other tasks.

4- Training? Yes, you will actually need to spend time developing your team.  Don’t have the time.  Be prepared for a 20% increase in your salary target for that position.

5- Plan ahead.  Good candidates are cheaper now but as the economy improves, they will be harder to locate and you will be left bidding up your salary’s for the Bronze Medal Winner.  You can quote me on that!

How are businesses doing?  We work with over 85 different companies and it has been better so far.  The problem is lack of funding.  You know how I hate the banks, and they are still not helping with capital to small business.  Unless you have a ton of collateral for a loan, you are not going to get any help from them.  When they loosen up…business will get a lot better!

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I thought today would be a good day to pass along my 2011 predictions for the economy, employment and other stuff I find interesting.  Here we go:

1-Temp work will continue to grow as the economy improves.  But…this will be on the blue-collar and low-end of the wage scale.  50k plus jobs will be hard to find since we are not creating these jobs in the Valley.

2-Gas at 3 bucks a gallon will impact everything since that cost is passed on to the consumer or end-user.  Employment will be hit because your workers  will not be able to commute to low wage jobs across the Valley.  Recruiting for these jobs will be zip code specific.

3-Will banks lend more in 2011?  Only if the Government makes them or mitigates most of their risk.  They appear fat and happy right now.

4-Lawsuits will continue against big banks for their handling of the foreclosure crisis.  More States will sue, even more regulation will pass.  The only thing that changes behavior is ” a large pocketbook deduction” expect that to make our banking system less evil.

5-Obamacare is essentially toast.  Republicans will block funding and try to renegotiate the rules.  Expect this to be a big issue in the next election

6- President Obama wins reelection (yes that is 2012) but I’m calling my shot now.  Economy will be better and the nations mood less sour.  Mr. Obama is taking a play out of Mr. Clintons playbook…move to center.  Plus I don’t see viable candidates to run against him…Sarah Palin?  yea right.

7- Real Estate if you have cash is going to make the next Bill Gates.  Inflation is coming, so get some hard assets.  Forget about bank loans.

8-Hiring will be more difficult.  Enormous amounts of people out of work for years will require tons of money to retrain and get ready to be productive.  Less than 30% of the Hiring Managers actually have had training in interviewing people.  That is mine field of lawsuits waiting to happen.

9-Twitter, Linked-in and Face book will be used more and more as a recruiting tool for workers

10-The New Economy.  Less credit, more cash purchases and buyers looking for a deal.  Don’t have any? You are toast.  Companies will wait longer to buy equipment, hold back on inventories and hire only necessary workers.  Individuals will buy fewer cars, appliances, leisure trips etc until they replenish some of what they have lost over the last few years.  All in all a smarter consumer.

As always, I encourage your debate as well.  Coming up next week my blog review of last years predictions…successes and failures

 

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Call me an old fogie but I still like to read the newspapers every day.  One reason to read The Arizona Republic is the columns by Laurie Roberts.  Her column today deals with the foreclosure crisis and the dummies that make it worse for you and all taxpayers.  See the article at http://www.azcentral.com/members/Blog/LaurieRoberts/108454.   Because we bailed out these insolvent institutions they have no incentive to haggle over your unpaid mortgage.  The worst part is the Feds are using  your own tax dollars to screw you.  Just like a criminal that asks you for ammunition and uses your own gun to shoot you.  Her article points out that we are running people out of properties for far less money than it would take to keep them in the house…Sound dumb?  People complain about the regulation on Wall Street, and foreclosure theft is happening on a daily basis.  Notice that in her article that private investors are more than willing to make a profit off of this government stupidity…I’m annoyed I didn’t think of it first!

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Regardless of your political party, we all have been battered with advertising that is over-the-top and juvenile.  It is pretty much a given that the Republicans are going to win the House and I wanted to throw out some predictions on what that is going to mean for employment and the economy going forward.

1- If you run a business,  you will have at least 2 years of “Gridlock” to make proper plans.  No more bailouts, mandates on big items like health care, just good old-fashioned partisanship ( If you don’t think gridlock is good..see Reagan, Bush 1, and Clinton time periods for the benefits).

2- Heath-care plan will get gutted and rewritten.  Since it needs to be funded..expect a hold-out for changes..good for small business.

3- President Obama will fight to the death against the Republicans and vice versa….lots of muscle flexing and posturing.

4- Nothing will be done on the deficit..see reasons above.

5- Economy will recover more in the next 18 months than the prior year.

6-More hiring, but employers will be more particular on the applicants.  Have felonies, criminal DUI’S, sloppy work history, drug misdemeanors..Going to be rough for you.

7-If you live in Arizona, expect our economy to lag the national numbers and our continued focus on items that do not produce income,  jobs, or better infrastructure.

So lets recap..Gridlock Good, Economy better, and unfortunately only 1 more year til they start running those political ads again.

 

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