Effect of Unemployment

I read an article in the paper tonight that claimed the unemployment rate could approach 10% before employers begin hiring again. And that it could be 2010 before that happens.

All of this has been on my mind recently. A local employer, Qimonda/Infineon will be RIFing 1,300 people in January. Circuit City RIFed over 500 a month ago. I get calls/emails from friends who are in the market.

I began thinking about the impact of unemployment as it approaches 10%, primarily on IT. Just a few things off the top of my head:

• Perhaps people will move to where the jobs are, causing relocation and impact in the realestate market.
• People will move to jobs, perhaps just during the week, commuting home on the weekends, placing even more stress on the families.
  
• People with social & networking skills will have an advantage in competing for jobs.
• Industries that are positioned to make use of a new pool of manpower will be advantaged.
• Telework will become even more important.
• Placement & contractor firms will do very well, if they are smart.

I also began thinking about the opportunity of the unemployment. This will be a subject of a future post. But, just imagine if this is the seminal event that allows us to reshape the way we approach IT employment and work.

One closing thought. There is more demand for IT work in the USA than we have people to do the work. That is because IT is needed for every innovation and operational aspect of every company in the USA.