FEATURES – APRIL 2009

Attention! Roads Work Ahead

There's no denying it; times are tough and will very likely get worse before they get better.

By Ashley Schaefer

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There's no denying it; times are tough and will very likely get worse before they get better. Everywhere we look, we are reminded of the dire state of the economy. Many of us have lost jobs, homes, and worst of all, hope. But just when we think all is gone, we look to the Hampton Roads community for guidance, answers, and a wealth of encouragement.

For many of us, the shrill sound of an alarm clock is immediately followed by a heavy-handed smack and a lethargic groan indicating "I don't want to go to work today." In our sleepy-eyed stupor, we are too self-absorbed to pause and think about the alternative: what if I wasn't going to work today? What if I didn't have a job?

Mike Klefeker, a 45-year-old husband and father of five from Norfolk, only wishes he could start his mornings off to the sounds of an alarm. With a bachelor's degree in psychology and a master's degree in theater from Regent University, one would think Klefeker would be taking the economic hardships in stride. Unfortunately, his heavy credentials actually caused him to get laid off from his position at CBN Scenic. Once his boss left the company to work elsewhere, Klefeker's job description changed, and all of a sudden he was overqualified. He immediately began putting his feelers out for other options in his field and soon had two or three job possibilities. But all of them fell through by the time he was called into the CBN office and told that his services were no longer required. Life after layoff had just begun ...

THE STATISTICS

NATIONAL LEVEL
Klefeker's situation, while heartbreaking, is all too familiar to the 13,009,000 Americans who make up the unemployed portion of the civilian work force. Layoff victims, recent graduates unable to find a job, those going back in the workplace due to the downturn in the economy—all are being affected by this recession, now 16 months in the making.

Despite the most recent progress in the stock market, employment rates are staggeringly low throughout the nation. According to the Congressional Budget Office's The Budget and Economic Outlook: Fiscal Years 2009 to 2019, the United States is currently in "a recession that will probably be the longest and the deepest since World War II," with a slow recovery predicted in 2010. Their estimate, that the unemployment rate will rise to 9.2 percent early in 2010, is a rapidly growing possibility, with Virginia Workforce Connection's (VAWC) data displaying the current U.S. unemployment rate at 8.5 percent—and rising steadily.

DeeEllen Jennings, owner of Virginia Beach-based career placement agency HRPlacement 2000, agrees with this prediction, stating, "I think 2009 is going to be tough. I think it's going to be tough for companies, for individuals trying to get back to work. I don't see this trend really improving until 2010. I think in 2009 there may be some new jobs, but closer to the end of the year when the market is really going to start opening up in different industries."

William F. Mezger, chief economist for the Virginia Employment Commission (VEC) goes even further in the most recent Economic Overview released in March, arguing that 2010 will show unemployment at a peak of 9.5 percent, with rates staying above 8 percent until 2012.

STATE LEVEL
For the majority of 2008, the state of Virginia appeared to be at the forefront in terms of keeping the unemployment rate down, ranked in 11th place, according to the VEC's report released in February on the state's employment total for November 2008. Unfortunately, December 2008 showed a drastic downturn in Virginia, with many companies opting to lay off employees or permanently close up shop within the last few weeks of the year. In the latest Economic Overview, the VEC's employment projection for the state is most certainly dismal: a whopping loss of 23,000 net jobs for 2009. On the bright side, 2010 is expected to round up 28,000 net jobs, and to bring Virginia back to 2007 employment statistics.

The VEC also claims that "Virginia should have a less severe downturn than the nation because of ... the strong federal government presence and federal contracting, ... much professional and business services here, ... the large health care presence, [and] ... much employment in public and private higher education." Even with these few buffers, the situation does not appear to be improving any time soon, and the latest information from VAWC rated Virginia's unemployment at 6.4 percent.

LOCAL LEVEL
The statistics at the local level are even more mixed and time-sensitive, with the unemployment rate doubling between 2007 and January 2009. In the Third Quarter 2008 Virginia Economic Indicators review, the VEC noted that Hampton Roads added "the most average new jobs," but the latest overview reports that our region lost 6,800 jobs in 2008, the greatest job loss in the state. Of course, all things are relative, and our large population most definitely is a factor. Nonetheless, the exponentially increasing unemployment rate in our region is enough of an indicator, with rates currently at 6.4 percent, mirroring that of the state.

INDUSTRIES WE LOVE

There is cause to be optimistic, however, due mostly to the security blanket of our military and defense, which pull in a great number of individuals employed by the federal government. Military deployment also adds to the availability of jobs in the area.

Dr. Ned Carr, executive director of Peninsula Worklink (a group of one-stop career centers that serve the Peninsula), confirms that the situation is not hopeless. "Fortunately, we have some largeemployers that are still hiring," he states, mentioning big-name companies like Canon Virginia, Northrop Grumman and Continental, groups that often deal with government contractors and provide a cushion to the economy. Carr also points out that Hampton Roads currently has a positive job market in manufacturing.

Jennings of HRPlacement 2000 agrees with Carr's assessment, adding, "There's going to be a trend for more jobs and more needs in the medical industry and in information technology. I believe, going forward with our president's plan, there's going to be a lot of jobs in manufacturing. And in all of these industries there's going to be a need for human resource professionals and administrative support."

THOSE WHO CAN HELP

Getting the right industry information when it comes to job searching or choosing a career can be a direct result of your future employment success. Tidewater Community College goes to great lengths to stay up to date with the current trends in terms of workforce needs in the area. It relies on a team of "economic modeling specialists" to gather together the information, which they then use for creating classes and programs that reflect the needs of the community and the businesses within it. (See chart of Top Ten Workforce Needs in South Hampton Roads.) "All of our career and technical programs are placed within the strategic context of what the projected need is in basic industry settings," says Dr. Deborah DiCroce, president of TCC.

TCC, which has been experiencing a rapid growth in enrollment—more than 9 percent in this current spring semester—has recently begun offering a program called Modeling and Simulation, which it has received through a WIRED grant. This program, which was adapted into the curriculum in response to local demand, deals with creative design and illustration in conjunction with computer technology.

"Mod-Sim" found its way into the grasp of Klefeker, who learned about the program after visiting the VEC once he was laid off. The VEC recommended that he contact Opportunity Inc., a Southside service much like Peninsula Worklink that offers career centers with various resources for local job-seekers. Klefeker was able to enroll in TCC's program this past spring semester due to a $4,000 donation from Opportunity Inc., which covered the cost of his classes and text books.

Unfortunately, because of the large amount of individuals who have lost jobs in Hampton Roads, it is becoming increasingly difficult to fund students like Klefeker. Carr from Peninsula Worklink notes, "We're seeing about 47 percent more customers looking for work at this time of year as opposed to last year at this time." And with the call centers completely overwhelmed, they are anxiously awaiting stimulus checks to replenish the already diminished funds for 2009.

For those who aren't able to score outside funding but believe that going back to school is the best option, DiCroce says many individuals "turn to their local community college to begin again, to retrain, to pick up the pieces and start over." The community college appeal, specifically in terms of TCC, can be noted in their tuition cost, which is one-third the cost of a fouryear college. Their success rate is another undeniable factor, in addition to the programs that cater to students juggling a family and possibly another career.

Klefeker is thankful for these to-thepoint programs at TCC, some that allow students to complete their coursework in less than two years so they can immediately enter the workforce and begin to bring in an income again. He is also very hopeful that he will soon get a job upon completion of the program, backed up by the vast network of business connections TCC has acquired over the years.

For the rest of Attention! Roads Work Ahead, pickup our April 2009 issue wherever magazines are sold.

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