Structural? Cyclical? Does it Really Matter?

The question of whether the changes in the labor market over the past three years are part of a permanent, structural change in the American economy, or whether they’re due to a cycle that’s soon to return to normal isn’t very important to someone looking for a job.
However, for employers, Fed Chairman Ben Bernanke’s testimony on March 26, 2012 leaves more than a little concern.
While the Fed boss had reassuring things to say about the causes of unemployment being  due to cyclical factors, the fact remains that many people are still out of work, many have given up looking for a job. Uncertainty about the economy is much more evident than any signs of real expansion.
For those of us in business, while things have improved over the last year or two, the good old days of 2007 remain a fond memory. Many employers have found themselves caught between the immediate demands of increased business and the nagging doubts about the economy and the numbers coming from Washington.
Remember BOLT exists to buffer you from uncertainty.  While people often think the cost of using an agency is simply too high, too often they overlook the costs of hiring on their own. Those costs remain even if you are perfect in your hiring decisions.  If the economy sours and you are forced into layoffs, you will literally watch your investment walk out your door.
With the latest two step coming out of the Beltway, it’s worth reiterating this article that we featured in December’s newsletter.
The truth is that if every one of your hiring decisions is winner you’re right, an agency will cost you more. However, if you bat less than 1.000, we can save you money. When you add that fact to the possibility that we are not yet out of the economic woods, if you’re thinking of adding staff you owe it to yourself to take a look at the December article and then call BOLT!


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