HireStrategy CEO Says Worst of the Recession Is Over
WASHINGTON, Aug. 17 /PRNewswire-USNewswire/ -- Paul Villella, President and CEO of HireStrategy, a Washington-area staffing firm, said on Monday that the worst of the recession is over, but he cautioned that the country is likely to experience a "challenging economic recovery."
"Unemployment has always been a 'lagging indicator,' meaning that its improvement tends to lag behind broader economic growth," Villella told Kojo Nnamdi, host of a noon-time news and public affairs show on WAMU-AM, the National Public Radio affiliate in Washington. "Hiring is expensive, and companies want to wait and make sure they are on solid footing before they start bringing in new employees."
"On a more positive note, recent data from various sources indicate that the economy is witnessing an upturn," Villella said. "The Federal Reserve said last week that the economy has halted the longest period of decline since World War II, and that economic activity is leveling out."
Villella told WAMU listeners that not everyone thinks that the recovery will be painful and slow. "We need to take into account the resilience of the American economy. We've almost always bounced back sharply from recessions, despite the strength of the downturn," Villella said. "This downturn could be followed by a robust recovery, as happened with the steep recession of 1981-82. Growth spurts can emerge, and it appears possible that the economy will grow at a solid pace in the second half of the year."
Villella said that the recession that began in November 2007 has left nearly 15 million Americans unemployed. "The July unemployment rate dipped slightly to 9.4 percent and that was hopeful, but may not get back to a 'normal' level of 5 percent unemployment until 2014."
Villella pointed out that the unemployment rate in the Washington area is much lower -- around 6.5-7.0 percent. "The best opportunities for job seekers in the Washington area are in healthcare, education and government services. "The Washington area is shielded from worst effects of the recession because of presence of federal government, our diverse economy and our educated work force."
Villella said he expects job growth to be modest over the next four years. "Many people are facing long-term unemployment and many people who lose their jobs will need to be retrained in a new vocation and return to school to become employable again."
About HireStrategy
HireStrategy (www.hirestrategy.com) provides consulting services and executive search solutions in the technology, finance and accounting, sales and marketing, human resources and administrative professions. HireStrategy, an Inc. 500 company, is ranked by The Washington Business Journal as the #1 regional staffing firm in the Washington area, and recognized by Washingtonian Magazine as one of Washington's "Great Places to Work." The company has offices in Reston, Virginia and downtown Washington, DC.
