The Obama bailout.
As President Obama takes office, there’s been lots of discourse around his proposed $300 billion bailout which is meant to help create jobs, increase consumer confidence and get spending back on track. While agreeing on the specific tactics may be a challenge for Congress, consensus is building around the need for government relief.
Impact on the workforce
Follow the news closely.
Regardless of what the specifics of the bailout look like, job creation will be a big portion of the spend. Follow this closely to see what areas the government will be investing in and identify how your skills and experience may make you a good fit for these positions as you look for your next job opportunity.
Impact on employers
Focus on stability.
The words “if” and “when” are still surrounding talks of a bailout, so employers need to keep their eye on the ball and focus on how they can run an efficient and stable business that can withstand the current situation and is prepared for what’s in store in coming months – good or bad.
Retail holiday sales confirms consumer confidence is low.
According to the National Retail Federation, holiday sales dropped 2.8 percent in 2008, far below the forecasted increase of 2.2 percent. Citing reasons such as the current recession, severe holiday weather and five fewer shopping days this holiday season, this is the first time the National Retail Federation recorded a year-over-year decrease in sales since its creation in 1995.
Impact on the workforce
Shopping for retail jobs tightens.
With 66,600 retail industry job losses reported in December, finding opportunities in this space will continue to be a challenge through 2009, particularly in areas like clothing retailers, furniture stores and car dealerships which have been the hardest hit by the downward trend in consumer spending.
Impact on employers
Tightening costs & pushing products.
As consumers are tightening their grips on their wallets, goods-producing employers will need to think of even more innovative and creative ways to move their products off shelves. Containing costs will become a bigger priority and utilizing an efficient workforce strategy will be essential to success as sales growth will likely not be at the same clip seen in previous years.
Gas prices: driving good news for consumers.
Gas prices certainly yo-yoed throughout 2008, but, despite an onslaught of negative economic news, the price of oil is certainly the silver lining right now for consumers. After hitting a peak of over $147 a barrel in July, the most recent government weekly supply report puts oil prices at $36 a barrel – a stark contrast and welcomed relief to drivers across the country.
Impact on the workforce
Increase your savings.
As your gas bills decrease, be sure not to squander the savings. Use the money to increase your savings and/or make up for rising prices in other areas. As companies tighten their belts around raises and bonuses, you can use this money to help keep your personal finances in check.
Impact on employers
Keep reducing commuting expenses.
When gas prices went up this past summer, many companies allowed for alternatives to commuting into the office. This is a good time to reassess the efficiency of these programs, but keep in mind the positive impact minimizing commuting for your workers has on their work/life balance as well as the economy.
