One part of the economic crisis that healthy U.S. companies have to be enjoying to some extent is America's cheap, abundant, and productive U.S. labor.
Record unemployment and rising U.S. worker productivity has created a goldmine for U.S. employers. You can hire people for less than before, who produce more than before:
“Companies are getting higher-productivity employees for the same or lower wage rate they were paying a marginal employee,” said James Paulsen, who helps oversee about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. “Not only are employees higher skilled, you have a better skill match. You have a more productive and more adaptive labor force.”
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While Wells Fargo & Co., the biggest U.S. home lender, has reduced the number of its financial advisers in the past year, the San Francisco-based company has added “high-quality, experienced” employees with productivity “more than twice that of the advisers we lost,” Senior Executive Vice President David Carroll said at a May 14 investor meeting.
“Very specific skill sets is what will get people hired these days,” said Gary Townsend, president of Hill-Townsend Capital LLC in Chevy Chase, Maryland, a hedge fund that specializes in financial firms. “Companies are able to slice off the weakest members of the team and find very highly qualified and motivated replacements. There is very little wage pressure.”
Unique skill sets are the name of the game. Note how they're still hiring specialized people even in the battered home lending business.
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