As Unemployment Rises, Some Sectors Thrive

Amid stark reports of a rising unemployment rate, some recruiters in Connecticut say companies are hiring for technology and finance jobs at a brisk pace.

The regulatory climate brought on by Wall Street's troubles has created a demand for accountants and other financial experts, and as the popularity of the Internet increases, so do the sizes of companies' IT departments.

Joyce Schiffer of Task Management, a 20-year-old Ridgefield firm and women-owned business placing contract workers and full-time employees, has seen tremendous growth over the past year.

"It's all looking good for the technology industry," Schiffer said. "It's absolutely booming."

"A lot of companies in the past few years have put off major investments in technology," she added. "Well, if they want to stay competitive, they need to move forward on those projects and keep themselves in the game."

Companies that do not hire information technology candidates over the phone or after the first interview often risk losing them and, as a result, salaries are going up, Schiffer said.

Jake Makmale is a recruiter with Elite Placement Group in Stamford, a firm placing people in accounting and finance positions. He also has not had a problem finding openings of late.

"At least in my world, the CPA types, the accountants, people of a more technical nature, at the end of the day, those types of people are always needed," Makmale said.

Stricter regulations in finance coming down the pike make these skills even more desirable, according to Makmale.

"We're looking at companies starting to hire that are having a tough time finding the right candidates," he said. "Companies are being more selective."

Internet searches by Patch show financial companies like J.P. Morgan, UBS and RBS are currently hiring. 

But Makmale stressed it's those with "specialized talents" who are sought after right now.

National forecasts for the job market have been gloomier overall. According to a recent Huffington Post story, layoffs are again on the rise. "Recently released government data suggest that layoffs exceeding weak hiring was the primary cause for rising unemployment in May and June," the article said.

'No Escaping the Overall Trend'

Steven Lanza, an economics professor at the University of Connecticut and executive editor of the magazine, The Connecticut Economy: The University of Connecticut Quarterly Review, said the state's unemployment rate of 9.1 percent (as of May) mirrors the nation's.

"All states' fortunes rise and fall on the success of the U.S. economy," he said Friday. "When the U.S. economy is in a slump, we're going to be in a slump. There's no escaping where we find ourselves now."

Connecticut's economy had been seeing rebounds in manufacturing, finance, professional and business services, and leisure and hospitality before a recent decline, according to Lanza.

"We really thought we were starting to work our way out of the recession and saw some positive job gains," he said.

Aside from the state ecomony's recent slide, Lanza said another fear is industries that had strong job growth all along, such as education and health care, are "showing signs of weakness."

Stephen Bull, Danbury Chamber of Commerce president, was critical of $2 billion in new taxes in Gov. Dannel P. Malloy's budget proposal, along with what he sees as an unfriendly business climate in Connecticut.

"I don't know of any government or state that has ever taxed itself out of a recession," Bull said. "We really have to understand why it is we are losing companies and having trouble attracting companies," he said of Connecticut.

Government's Role

Lanza and Bull both agree that the cloud of uncertainty from the budget drama playing out in Hartford has made many local companies hesitant to invest in capital and jobs.

Lanza said states and municipalities, which have not been able to borrow money like they used to, are forced to make unpopular decisions to balance their budgets including spending cuts and raising taxes.

in an effort to close Connecticut's $1.6 billion budget deficit.

Bull said, "Businesses want certainty and what we have in the economy is a lot of uncertainty. Companies may be sitting on a lot of money, but they are worried about more government regulation. They still don't understand what the new federal health care means to them as far as requirements. They're sitting on the sidelines."

"At least with taxes, businesses know what they have to pay," Lanza said, adding he believes the real problems are when government creates a regulatory environment with many "hoops to jump through" and inconsistencies and conflicts among agencies.

Lanza believes the federal government should spend more stimulus money to kick start the economy.

"The only way to goose the economy and get it moving is for the federal government to step in and invest money," he said. "We should invest in a public infrastructure we basically let go. Our economy would be all that more productive and efficient. Incomes would be higher. There was a real missed opportunity here."

Lanza said people visiting U.S. cities from other countries used to marvel at the world class bridges, mass transit systems and railroads, adding now it is the other way around.

"Americans don't seem to have the stomach for more involvement by the federal government," he said.

A Trickle Down?

Corporate profits are at a record high as companies are letting workers go and squeezing out production from those who stayed behind, Lanza said.

Though unemployment is listed at 9.1 percent, Lanza and Bull agree it is probably much higher than that, with discouraged workers whose unemployment benefits ran out and the under-employed working part-time being added to the mix.

"It's probably near 18 or 19 percent in the country," Bull said. "That's what I've heard."

"Right now the big question is the state budget," Lanza said of Connecticut. "Everything is unsettled and it seems like the economy is on hold until we pass this period."

But the resurgence in the IT field gives Joyce Schiffer reason for optimism.

"Honestly, people are investing because they have the confidence in the economy," she said. "It's exciting to see people changing jobs and companies hiring. And I would suspect this will trickle down to other industries and the economy will improve."