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LaSalle's Gimbel Seeing No Signs of Slowdown for Hiring (Audio) · Bloomberg Intelligence

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  Speaker 1: four tenths of one percent. I'm Charlie Pellett, and that's
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  Speaker 1: a Bloomberg business flash Bloomberg taking stock the FED in focus.
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  Speaker 1: There's certainly a large discussion about whether or not the
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  Speaker 1: set is going to try to hike rate again this year.
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  Speaker 1: We think the Fed by December will be ready to
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  Speaker 1: do another hike. That sounds like a big difference from
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  Speaker 1: the markets, but it's not that big a difference. I
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  Speaker 1: think at this point the set is going to remain
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  Speaker 1: on the sideline through and most likely the better part
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  Speaker 1: of seventeen. I think they have a huge communication problem
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  Speaker 1: for the public about what's driving their policy decisions. They
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  Speaker 1: basically have no strategy the Fed in focus on Bloomberg
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  Speaker 1: Radio that observe caping an eagle's eye on the job's
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  Speaker 1: report if there is another, very strong one. A lot
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  Speaker 1: of people on wall streets saying, hey, interest rate increase,
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  Speaker 1: maybe not in December, maybe even in September. So a
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  Speaker 1: lot writing on this right now. We want to take
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  Speaker 1: a look not from the top down, from the point
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  Speaker 1: of view of the big jobs report put out by
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  Speaker 1: the Labor Department on Friday, but from the ground up.
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  Speaker 1: Tom Gimble is founder of c and CEO of Lasal Network.
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  Speaker 1: It is a professional staffing and recruiting service firm based
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  Speaker 1: in Chicago's we want to find out what he's seeing
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  Speaker 1: out in the field, where the demand is for workers
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  Speaker 1: and where it isn't. Tom, welcome back to the show.
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  Speaker 1: No good to be with you. Thanks for having me on.
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  Speaker 1: You know, they one of the big picture trends that
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  Speaker 1: comes out of the ADP report and out of the
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  Speaker 1: government data as well. If you look August, you see
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  Speaker 1: the UH softness for goods producing jobs, manufacturing, service producing jobs,
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  Speaker 1: some of them high paid, you know, professional services business,
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  Speaker 1: some of them not so much. You know, restaurant workers,
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  Speaker 1: fast food. That's where you see practically all the gains.
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  Speaker 1: What are you seeing from your point of view in Chicago, Well,
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  Speaker 1: I think in the Midwest we have a national practice
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  Speaker 1: and we do we do temporary staffing as well as search,
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  Speaker 1: and we see all over the country and especially in
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  Speaker 1: the Midwest, is UH continued strong demand for UH skilled workers.
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  Speaker 1: I mean, the skills gap will always exist UM as
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  Speaker 1: long as technology keeps going at the pace that that
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  Speaker 1: it has been for the past twenty years. And I
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  Speaker 1: don't see that slowing down. So technology is big. Accounting
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  Speaker 1: and finance is big we're seeing still a big Russian
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  Speaker 1: marketing and data analytics. But you're you're you know, I
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  Speaker 1: always look at it and see that if hospitality and
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  Speaker 1: service worker demand and is on the increase, that that
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  Speaker 1: is a pretty good signal for the economy. And I'm
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  Speaker 1: pretty bullish on where things are right now. So you're
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  Speaker 1: saying that you're there, are there's demand for the high
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  Speaker 1: skilled workers. We've had reports from say from the National
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  Speaker 1: Federation of Independent Business Survey and others UH companies say
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  Speaker 1: we can't find the skilled workers we need. Is that
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  Speaker 1: changing or are their gaps still? No? There there's definitely
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  Speaker 1: a skills gap, and it tends to be in the
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  Speaker 1: technology side of thing is more than anything else, as
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  Speaker 1: well as data analytics is more and more companies want
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  Speaker 1: to play that um moneyball, if you will, an analogy
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  Speaker 1: type of business and big data metrics. But it's still
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  Speaker 1: there's no signs of a slowdown yet, you know, I
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  Speaker 1: think where things will be after December one, when the
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  Speaker 1: overtime legislation goes into effect for people making less than
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  Speaker 1: forty seven thousand dollars, and how that affects the average
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  Speaker 1: or average company in America. But right now, things seem
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  Speaker 1: to be holding very very strong. Let me ask let
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  Speaker 1: me ask you this. Are you saying things look good
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  Speaker 1: in your bullets they continue to grow at the same rate.
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  Speaker 1: Are you saying, no, Kathleen, over the last six months
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  Speaker 1: or have last twelve months, this is accelerated. I seem
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  Speaker 1: a growing demand for workers. Are just kind of the
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  Speaker 1: same steadiness. No, I've seen a bigger demand. I think
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  Speaker 1: companies are hiring right now. They're excited about you know,
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  Speaker 1: I think people are similar to what the Fed was right.
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  Speaker 1: They were looking and saying the Fed isn't raising interest
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  Speaker 1: rates so um, but they are thinking about doing it.
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  Speaker 1: And they're thinking about it because the economy is good.
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  Speaker 1: And the people on main street or who are running
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  Speaker 1: small and medium sized businesses call it mid cap stuff
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  Speaker 1: under a billion two billion dollars in revenue uh down
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  Speaker 1: to startups ten fifty million dollar companies are saying, let's
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  Speaker 1: hire people, let's take advantage of this economy while we can,
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  Speaker 1: and God only knows what will happen in November, and
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  Speaker 1: let's let's hire people right now and grow our revenues. Tom,
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  Speaker 1: do you think it would make any difference to the
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  Speaker 1: businesses who call you up to have you, you know,
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  Speaker 1: filled some positions for them Chicago, across the country. If
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  Speaker 1: the Friend to Reserve made a couple of interest rate
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  Speaker 1: increases this year, you know. I I thought, and and
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  Speaker 1: and and it happened obviously in December that last year
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  Speaker 1: there would be an increase. I was a little bit skeptical,
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  Speaker 1: skeptical of them doing a rate increase earlier in the year,
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  Speaker 1: and was glad that they didn't and they let the
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  Speaker 1: economy kind of absorb what happened at the end of fifteen.
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  Speaker 1: My guess is, um I would like to not see
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  Speaker 1: them do one. I think when I talked to CEOs,
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  Speaker 1: especially in the at Weston, we see it'd be nice
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  Speaker 1: to get through this election and have things to stay
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  Speaker 1: at the status quo and not have people worried about rate.
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  Speaker 1: Interesting you mentioned this this change in the Liberal laws
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  Speaker 1: where managers uh, this this out the the salary cap
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  Speaker 1: is gonna be lift lifted right, so that they can
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  Speaker 1: make more money and and still get over time. Where
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  Speaker 1: there's also a lot of states enacting minimum wage increases. Now,
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  Speaker 1: is this going to really hurt businesses to the extent
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  Speaker 1: they don't hire as many workers or are we at
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  Speaker 1: a point of enough strength in the economy that companies
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  Speaker 1: will just shrug it off because they really need the workers. Now,
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  Speaker 1: I think it's gonna be I think short term it doesn't.
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  Speaker 1: It's really in that neutral. I think long term it's
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  Speaker 1: in that negative. And the reason I feel that way
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  Speaker 1: is what we're gonna have is the effects coming in
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  Speaker 1: of the Affordable Care Act three years after legislation went
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  Speaker 1: into effect, which we just saw in Illinois that another
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  Speaker 1: couple insurance carriers um stop stop servicing the plans, right
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  Speaker 1: and then and we're seeing that across the country. And
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  Speaker 1: then secondly, we have the overtime or the minimum wage increasing,
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  Speaker 1: you know, it's at ten fifty and a lot of
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  Speaker 1: states now and going up to eleven eleven fifty twelve
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  Speaker 1: bucks up to fifteen over the next five to seven years.
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  Speaker 1: And then the last straw on that um or last
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  Speaker 1: needle on the hair or hay on the haystack, if
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  Speaker 1: you will, is being dumped on is the overtime exemption.
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  Speaker 1: So I think what we'll end up doing is is
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  Speaker 1: when we're gonna start feeling the effects of this legislation,
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  Speaker 1: it's not gonna be good. Alright. Tom Gimble, thank you
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  Speaker 1: so very much. Tom Gimble, founder and CEO of Lassall Network,
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  Speaker 1: based in Chicago, a national professional service recruitment placement firm.
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  Speaker 1: He says he's bullish the rate of increasy amount of
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  Speaker 1: workers being hired is doing better, but that might be
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  Speaker 1: a little slow on rate tax that they're listening to him.
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  Speaker 1: This is Bloomberg coming up on a taking stock more
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  Speaker 1: of our federal reserve in focus now with Mark Grant,
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  Speaker 1: taking stock