There is growing support from a wide range of government officials and economists for a tax credit to companies that hire new employees. The idea is gaining bipartisan support in Washington as the government looks for solutions to the highest unemployment figures in a generation.

Various proposals for job tax credits are currently being considered. One plan, by economists Timothy J. Bartik and John H. Bishop, would provide a first year tax credit equal to 15% of the cost of adding each new employee. In the second year, the tax credit would decline to 10%. The economists claim that this approach would generate 1 to 2 million new jobs in the first year.

The concept of offering tax breaks to companies that hire new employees is not new. The federal government offered a “New Jobs Tax Credit” from 1977 to 1978, in response to the recession that occurred in the 1970s. The program at its peak provided tax subsidies to 1.1 million businesses that added 2.1 million workers, at a cost of almost $4 billion (or a cost of $13 billion in today’s dollars). Or, put another way, it cost about $7,000 per additional worker added.

During the recent presidential campaign, then-candidate Barack Obama supported the concept of a tax break for companies that hired new employees. However, the Obama administration abandoned this concept in early 2009, as many Democrats suggested that a tax credit for jobs would be abused by businesses or that it would be difficult to administer, and the plan was dropped from the $787 billion economic stimulus bill. 

It remains to be seen whether the new jobs tax credit will be approved or not, and what effect if will have on the US employment landscape. In the mean time, the job market remains tough. Currently, unemployment is 9.8% - the highest it’s been since June of 1983. However, on a brighter note,  temporary help agencies report that they eliminated only 1,700 jobs in September, a decrease from the previous month. Economists see temporary jobs as a leading indicator, as employers are likely to hire temp workers before permanent ones.

In the latest ADP National Employment Report, US companies cut jobs by 254,000 between August and September 2009. However, this is considered a sign of improvement in the job market: it is the lowest number of jobs cut since July of 2008.

Automatic Data Processing (ADP), a private company, calculated these figures based on a subset of payroll data collected from about 400,000 of their customers, which reflects 23 million US workers. The company’s payroll services are used to pay 1 out of every 6 employees in the United States, so their findings are considered an accurate reflection of changes in US employment.

While the latest figures suggest that the labor market is slowly improving compared with earlier this year, it remains weak. According to the Wall Street Journal, economists expect the unemployment rate to hit 9.8% in September, up from 9.7% in August.

How long will it be until the trend reverses, and companies start hiring more people then they fire? No one knows. The Federal Reserve said last week that sluggish income growth and tight credit are curbing household spending and slowing the pace of the recovery. According to Rutgers University economists Jim Hughes and Joseph Seneca, it could take the United States more than 7 years to recover from the nation’s worst employment decline since the Great Depression. This means we will have to wait until 2017 before employment rates return to the levels of 2007.

Many job-seekers lack the basic skills needed for today’s tough job market. Some are fresh out of college or graduate school and have never looked for a job before. Others have not had to seek a job in many years. While many younger job-seekers are comfortable with the Internet and social networking sites, older workers may not understand how to use web 2.0 to their advantage. This situation has created a demand for training dedicated to the skills needed to compete for a job in today’s job marketplace.

In response to this need for training, many websites now focus on providing job-seekers with improved job-search skills. While not job boards, these sites are career-training marketplaces that offer convenient, video-based learning and/or live one-on-one career coaching over the Internet. These sites also generally provide a number of other support services, such as networking tips and other job resources to help individuals with career-related issues.

Examples of the types of services these sites provide include help with the following important job-seeking areas:

•   Resumes. This is a crucial tool for the job-hunter; however, many job-seekers have no idea how to bring out resumes' full potential as a selling tool. Many resumes are overly general or unfocused on the potential employer’s needs. A well-written resume will set you apart from the competition. Because of the specific skills needed to prepare a resume correctly, it provides a perfect opportunity for online training. For the job-seeker, an experienced online résumé coach can pass along invaluable tips via video and/or live coaching. It is also essential that people posting resumes online understand how to make their resume “stand out” from millions of online resumes. The answer to this challenge is training by experts who teach the tricks – such as key words or phrases – that make resumes highly visible to electronic searches by employers.

•   Interviewing. Because of technology offered on the Internet, people can now practice interviewing and get feedback from a professional coach via a webcam – without leaving home. This type of feedback can be invaluable for identifying the strengths and weaknesses of the job-seeker. An online coach can provide feedback on subtle defects in the job-seekers’ interview behavior, such as unusual or distracting body language or personal habits (eg, hair-twirling, failing to make eye contact, etc). An online video or live career coach can train the job-seeker to approach the all-important interview with professionalism and confidence, thereby increasing the chances of a good interview and a job offer.

•   Web 2.0. This refers to web-based communities and social-networking sites that allow users to interact with each other. While many younger workers are comfortable using social networking sites – such as Facebook– many older workers are not. And people of any age may not be fully aware how to use social networking sites effectively when searching for a job. This situation presents an excellent training opportunity for teaching the value of social networking sites for making professional contacts and identifying job opportunities.

A new survey from human resources company Hewitt Associates found that millions of Americans will receive the lowest pay increases in three decades, as companies continue to control overhead costs in response to the economic crisis. However, while salary increases are expected to continue to decline, companies remain focused on rewarding key employees by providing variable-pay and performance based rewards – which must be re-earned each year.

These conclusions are based on a survey of 640 large companies, which represent 13.5 million US workers. Specifically, they reported that salaried exempt employees will see an average salary increase of 2.5% in 2009; executive pay increases will be 2.2%, and salaried nonexempt workers will see pay increases of 2.6%.

As might be expected, the lowest pay increases were found in industries that had suffered the most economically. The auto industry had pay raises average 1.4% for salaried exempt and salaried nonexempt employees, and 1.3% for auto industry executives (down from 4% last year). Industries with above-average salary increases included construction/engineering (4.5%), research and development (4%), and pharmaceutical (3.9%).

So, what is the unemployment rate in the United States? According to the Bureau of Labor Statistics (BLS – part of the US Department of Labor), the official unemployment rate is 9.5%. This is a very high number. In fact, the cumulative loss of jobs over the past 6 months has been worse than for any similar period going back to World War II, and the current recession is the longest since the Great Depression. However, the BLS calculation does not count millions of people, including those who have given up looking for a job.

• The government estimate of those employed assumes many people are at work who probably are not.
• Employees who take unpaid leave are not counted as unemployed.
• As many as 2 million people who were looking for work were not counted, because they didn’t look for work in the 4-week period proceeding the BLS survey of employment.

In addition, it should be noted that the unemployment rate generated by the BLS is not an actual number, but an estimate based on a survey of 60,000 households. Using information from various sources, others have estimated that the actual unemployment figure may be 15.6%, 16.8%, or even 18.7%. Whichever number is correct, all of these figures indicates a large number of people who are competing against each other looking for work.

Today’s job-hunter has to watch out for a new danger – on-line job scams that target vulnerable job-seekers. Although this is a growing problem, you can reduce your risks of being the victim of a job scam by following some simple rules:

1. Don’t assume all jobs posted on the Internet – even on well-known job sites – are legitimate. While these sites are monitored for fraud, the large volume of jobs posted means that some fake jobs may avoid detection, at least temporarily.
2. Never give out personal bank account, PayPal account, or credit card numbers to a potential employer. By creating a fake job ad, scammers can trick job hunters into sending private financial information. This approach is called phishing.
3. Always enter web site addresses manually into your browser – rather than clicking on links from e-mails – to avoid another scam, called pharming, which involves redirecting a user from a legitimate company’s web site to a fake web site that will steal personal information for criminal purposes.
4. Do not agree to have funds or paychecks deposited to any on your personal accounts. Also, do not forward, transfer, or wire money for an employer. Transferring money for an employer may actually make you a victim of a payment-forwarding scam run by organized crime groups.
5. Unless you are applying for a job with the federal or state government, never e-mail your Social Security number to a supposed “employer” until you have confirmed that they are a legitimate company. Make sure you can reach them during regular business hours.
6. Beware of any employer that asks for money upfront for a job.
7. Never mail or fax scans of your driver’s license. One common scam is for a fake employer to respond to an on-line résumé by asking for your Social Security number or driver’s license so they can “do a background check” on you before they hire you. However, a real company will generally want to meet you first before checking your background.

If you want to file a complaint about a fraudulent job posted on an on-line job search web site, you can call the US Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357), or file a complaint on their web site, which is www.ftc.gov. Just click on “File a Complaint Online”.

Remember, if an offer seems “too good to be true” – it probably is! Trust your instincts and always be vigilant.

Back to Work: Information and Inspiration for People Returning to the Workforce

Like hundreds of thousands of people these days, you’ve lost your job. Now what?

Whether you saw it coming or it was a complete surprise, getting laid off is always a shock. There are many thoughts, fears, and emotions racing through your mind. But here are 3 simple steps to help you get a grip on your situation and face this challenge:

1. Cope with the emotions of losing your job
2. Develop a plan to get a new job
3. Implement a new job plan

1. Coping With The Emotions

The first step is to try to sort out your feelings. The sudden loss of your livelihood is likely to cause a flood of emotions – panic, shame, anger, self-blame, confusion. But try to relax and tell yourself that things will work out. You will get a new job – and it may be a better one! But you need to stay positive – there is no sense rehashing the negative feelings of job loss. The time to move on to a new future is today. Stay mentally and physically active. Consider some short-term therapy. Meet with your spiritual or religious advisors.

To help you cope with the sudden change in your status, Todd Bermont, author of 10 Insider Secrets to Job Hunting Success (available from ebookmail.com), suggests taking a short vacation before starting your job hunting process. This will help you relax, so you will be refreshed for future job-hunting activities and interviews. He also suggests helping others during this period – for example, consider a visit to a retirement home, animal shelter, or hospital – to put things in perspective.

However, while it good to take a short vacation to recharge your batteries, it is important to put a time limit on this, so you don’t stay unemployed! For many of us, it is easy to procrastinate and put off the challenging – but ultimately rewarding – task of finding a new job. So, give yourself a short break but set a deadline for getting back to the job search.

Before you move to the next stage – developing a job search plan – consider these steps:

1. Apply for unemployment benefits. You have paid into this fund and are entitled to these benefits, so do not hesitate to get them immediately. The amount of money you’ll receive is not enough to live on but it can help pay some bills until you get your new job. Also, many unemployment offices can give you career advice and new job leads.

2. Develop a budget. Now that you no longer have income coming in, you should look for areas where you can save on your expenses until you get your new job. But your goal should be to never touch your retirement funds!

3. Stay positive! Your new job is to market yourself – so you need to find a way to project an optimistic, energized persona. Get excited about the future! It helps to focus on the opportunity that this change represents and not the loss. Be prepared for disappointments, near misses, and other frustrations on your job-seeking “voyage”. Keep your final destination in mind.

2. Develop a Plan

Next, it is time to develop a plan for your new career. As Bermont says (link to article by Bermont), job-hunting a like taking a trip. Before you start, you need to pick your destination and figure the best way to get there This means, unless you have a very specific skill-set, you will probably want to review your options for your next job, to determine your final “destination.” So, a first step toward finding a new job is to figure out which new job you want. Try jotting down some random thoughts about your most recent jobs, including:

• In which areas did you excel?
• What did you like most about your previous job?
• What would you like to avoid in your next job?

You can also consider the characteristics of the company you want to work for – giant firm or small business, for example. Other important questions are: what salary would you like to receive? Are there any special requirements you have (telecommuting, day care services, etc)?

After you have completed this phase, review your notes and see which new job best suits you. Once you have identified your new job, you are ready to take the next step – developing a plan to get that job.

3. Implement a Plan to Find a New Job

Now that you are ready to start your search for a new job, the good news is that there are many tools available help you. Here are some tools you should consider using:

A Job Search Diary or Spreadsheet

To help you get organized with your job search, you should develop a record-keeping system to keep track of target jobs, resumés/letters sent, people spoken to, job interviews set up, job leads to be pursued, and other information. Your Job Search Diary can be a notebook or a spreadsheet, such as an Excel sheet. This will help you stay organized and focused, and show you areas that need more follow-up or attention. 

The Internet

The Internet is all about connections – so it is the perfect system for matching a job and a job seeker. You can use the Internet to find jobs at these sites:

• Company sites. Most companies and government agencies offer a page on their home pages called “Careers” or “Employment Opportunities” 
• Job sites. There are several excellent on-line job sites that allow applicants to search job openings and post/send resumes. These include: www.careerbuilder.com, www.monster.com, www.hotjobs.com, and www.career.com. 
• Social Networking sites. There are growing numbers of social network sites – such as www.Linkedin.com – where you can “network” with people in the career you are targeting. Try joining and exploring these sites.
• On-line job placement agencies (headhunters). There are also many job placement specialists with sites on the Internet, such as http://brilliantpeople.com.
• Local newspaper sites. Many local newspapers have web sites that provide a searchable list of local jobs. These sites may also allow you to post your résumé on-line, so that local employers can find you.
• Online advice on résumés, cover letters, and interviews. A growing trend are sites, such as www.GoSavant.com, which offer special training to help the job applicant improve his/her chances of landing a job. 

Your Social Network

Don’t underestimate the value of your personal contacts. These include various people in your life who have many contacts with others: physicians, accountants, freelancers – even family members. These are people who know you and who may be aware of job openings that are not posted on job boards. Don’t be shy about telling everyone you know that you are looking for a new job.

Summary

So, you have passed through the ordeal of being fired; you have taken a short break to recuperate, and have returned, refreshed, to the job-search effort. You have reflected on your career options and picked the perfect future job (or jobs), and have used your social network and job sites to search for a new job. Great work! You are now ready to contact potential employers, send out/post résumés, and go to job interviews. 

In future blog entries, I will discuss:
• Preparing the perfect résumé
• Preparing the perfect cover letter
• Having a great interview
• Managing multiple job offers

Bottom line: you are on your way to an exciting, new job! It requires a lot of hard work, clever planning, and creative thinking – but with persistence and a little luck, you will find that great new job that you are looking for, and that is looking for you!

Back to Work: Information and Inspiration for People Returning to the Workforce