Taking Risks and Reaping Rewards

Unemployment Q&A

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The following question was received from Carl Lavin, managing editor at Forbes: 

Recently, the U.S. Bureau of Labor Statistics reported a jump in the unemployment rate to 10.2%. Some economists think we could be looking at 10.5% by early next year. 

Given these grim forecasts, how do you counsel recent college graduates and others entering the job market for the first time in this employment climate? Is there any advice or strategies you find particularly useful?

My reply is as follows:

The question hits home as I currently am teaching two grad courses, one in Finance and one in Economics. As one can imagine, this is the hottest topic in class. I typically offer the following advice and counsel.

• Time is on your side. You are young, or at least younger than most, and so while it may take a bit more time to get that dream job than you hoped, time is most definitely on your side. Only the most bearish of cynics could feel that the economy will never get better. Having patience isn't easy for anyone, especially the young, but putting this period in perspective can alleviate some of the pressure and stress.
• Expect it to get worse before it gets better overall, but some areas will be better than others. The question notes that some economists think 10.5% unemployment is on the horizon. I think it will top 11% or more.
• But for the individual, broad numbers are almost irrelevant. What is the unemployment rate for your desired occupation and location? That's what's important to you. If you want to be a home builder in Las Vegas, times are going to be tough for quite a while. If you are finishing grad school in biochemistry and are willing to locate anywhere in the world, things are completely different. Thinking about your own situation, not the overall economy, requires using relevant information. Overall averages aren't individually relevant.

My favorite strategy to increase your chances of success is to be special. Why would an employer choose you over someone else? There is a plethora of consultants and pundits available to suggest ways to help you put your best foot forward, but that's just polish on the shoe. What's really important is what the foot has been doing. To separate yourself from others, stand out from the crowd in a good way, and give reason to those that would choose you over others, do things that are special. Here's a few ideas:

• Write a blog on your desired occupation. Include your unique perspective on events adding your personal style and personality. No one can be you, so use that to your advantage.
• Do research on your desired occupation and write it up. Research can be as simple as calling a dozen people in the field, asking them a few questions and tallying the results. When offering a perspective employer research on their industry, regardless of the complexity, they will likely notice.
• Interview people in your industry. Along the lines of a blog or research, another fairly easy way to become special is to interview people in your industry and get their thoughts on things. This can be both a research project and the start of a blog, not to mention great networking.
• Work for free. No, it won't pay the bills, but it will get you in the door. Start now, while in school. Give up the fun, add to your already busy life, and go do something useful. Doing things gets noticed more than talking about doing things.

With a little thought other ideas will come to mind and your individual strengths developed thus far can be employed to separate you from the crowd. Special people never have to look for work.