The Economists have been predicting a recession in the U.S. to begin in the first quarter of 2023. However, in a recent survey by the National Association of Business Economics, 58% of the respondents expect a recession to hit later in the year – only a quarter expect the recession to start next quarter. The shift comes on the heels of a hot January, in which the unemployment rate hit 3.4% – a 54-year low with more than half a million jobs added.
Jason Stephens, Managing Partner at LEAD Tampa Bay, cautions businesses. “January’s economy was good news, but you have to look closer – continued high inflation is causing the Fed to keep increasing interest rates and businesses need to be prepared for economic contraction,” says Jason, who has extensive experience in staffing businesses with quality skilled tradesmen in the best and the worst of economies.
Jason explains there are several factors that cause an economic contraction, or a loss in confidence that slows demand. Among them are increased real wages and production costs, tighter monetary policy and global economic downturn.
What is the difference between economic contraction and a recession? According to The Economic Lowdown Podcast Series – The Business Cycle episode, economic contractions often become recessions. A recession is a significant decline in general economic activity extending over a period of time. A general rule of thumb is that two consecutive quarters of economic contraction constitute a recession.
Whether we hit a recession or not, LEAD Tampa Bay is the staffing company you want in your corner when businesses have to work through their fixed and variable costs. “Working with the LEAD team is a cost-effective option to managing your staffing challenges. Our priority is to match your project needs to the best skilled trade workers available in the industrial and construction industries,” says Jason.
As contractors are preparing for the potential recession, LEAD Tampa Bay is ready to help client companies staff up to meet their manpower needs to ensure projects are completed with efficiency and on time. “Preparing for a recession is like preparing for a hurricane. Companies have to be adaptable, flexible and innovative when the economy (or the weather) is so uncertain – especially when it comes to staffing. It is tough to keep a full staff during an economic downturn,” says Jason.
The LEAD Tampa Bay team has an excellent reputation of helping partner companies control costs with a quality skilled workforce. “Our rigorous onboarding process and trusted reliability is where companies find great value when partnering with LEAD Tampa Bay. Our long-term partnerships trust us to place the right, experienced candidate to optimize their success – no matter the economic environment,” says Jason.
Whether you are a company considering downsizing your staff in order to stay afloat or a company in need of extra skilled hands to meet a project deadline, your needs are our highest priority,” says Jason.
And, skilled workers in construction and industrial displaced by companies who have had to adjust their workforce due to the uncertain economy, LEAD Tampa Bay can help you find work fast. Call Jason Stephens today!