LIZ: CALL IT THE JANUARY
JAW-DROPPER JOBS NUMBER.
YES, DESPITE ALL THE
HAND-WRINGING OVER OMICRON AND
HOW IT WOULD AFFECT THAT NUMBER,
THE ECONOMY ACTUALLY BLEW AWAY
ESTIMATES OF 150,000 JOBS AND
CREATED INSTEAD 467,000 JOBS IN
THE MONTH OF JANUARY.
THAT BLEW OUT THE ESTIMATES
FOLLOWING UP WITH SUBSTANTIAL
UPWARD REVISIONS TO NOVEMBER AND
DECEMBER.
AND AVERAGE HOURLY EARNINGS ROSE
5.7% FROM A YEAR AGO.
NOW, HERE’S THE RUB: YOU PAIR
THAT WAGES HIKE WITH THE RECORD
NUMBER OF PEOPLE QUITTING THEIR
JOBS THESE DAYS, AND SOME
COMPANIES AND SECTORS WILL
REALLY HAVE TO UP THEIR GAME.
KELLY SERVICES KNOWS WHICH ONES.
THEY PROVIDE WORK FORCE
SOLUTIONS TO VARIOUS INDUSTRIES.
HERE IN A FOX BUSINESS
EXCLUSIVE, WE WELCOME THE CEO
AND PRESIDENT, PETER QUIGLEY, ON
WHICH AREAS ARE GRABBING
EMPLOYEES.
PETER, WORKERS ARE NOW IN THE
CAT BIRD SEAT.
THAT’S NOT NECESSARILY NEWS, BUT
NOW YOU SEE AN EVEN BIGGER JUMP
IN HOURLY WAGES, PLUS THE QUIT
RATE -- WHICH IS PRETTY STUNNING
WHAT, FOR EMPLOYERS?
>> WELL, IT’S GOOD TO BE WITH
YOU, LIZ.
AND AS YOU SAID, THE JANUARY
JOBS REPORT REALLY BLEW AWAY ANY
EXPECTATION.
THE HEADLINE IS ALSO IT COULD
HAVE BEEN A LOT BETTER.
OVER 2 MILLION WORKERS WHO
COULDN’T PARTICIPATE IN LABOR
FORCE BECAUSE OF OMICRON AND
TWICE AS MANY BUSINESSES HAD TO
SHUT DOWN AT SOME POINT DURING
JANUARY THAN THEY DID IN
DECEMBER.
SO WE CLEARLY ARE IN A VERY,
VERY TIGHT LABOR MARKET.
AND AS YOU SAID THAT’S GOING TO
RESULT IN SIGNIFICANT QUITS AS
WELL AS THE SIGNS OF WAGE
INFLATION THAT YOU MENTIONED.
LIZ: WELL, YEAH.
AND WE DO SEE THE CONSTRUCTION,
AS HILLARY VAUGHN JUST POINTED
OUT A COUPLE OF MONTHS AGO.
THEY WERE ONES THAT HAD SOME
CONTRACTION.
THEY LOST JOBS.
BUT THAT PART ASIDE, WHEN YOU
SEE THIS LIST OF HOW MANY JOBS
ARE BEING CREATED, IT’S PRETTY
STUNNING.
AND THEN YOU JUST MENTIONED THE
JOLTS, JOB OPENINGS AND LABOR
TURNOVER.
THAT QUIT RATE HIT THE HIGHEST
ON RECORD BACK IN NOVEMBER, 4.5
MILLION WORKERS QUIT THEIR JOBS.
THEY’RE NOT ALL JUST SITTING
BACK ON BEACH AND SAYING I’M
DONE WORKING.
THEY HAVE BETTER OPTIONS, DO
THEY NOT?
AND WHAT DOES THAT MEAN FOR
CERTAIN SECTORS THAT HAVE TO
INCREASE AND UP THEIR GAME?
>> YEAH, THERE’S NO DOUBT THAT
WORKERS ARE IN THE CATBIRD SEAT,
AS YOU MENTIONED.
I THINK WE’RE SEEING THE
GREATEST AMOUNT OF QUITS AND
WAGE INFLATION AMONG INDIVIDUALS
WITHOUT FOUR-YEAR DEGREE THAT
ARE IN THE LOWER WAGE ROLES.
SO WE SEE ELEVATED QUITS AND
STRONG WAGE INFLATION IN LEISURE
AND HOSPITALITY, ACCOMMODATIONS
AND FOOD SERVICE, MANUFACTURING
AND DISTRIBUTION.
AND FOR THE FIRST TIME IN A
WHILE, A LOT OF THESE BLUE
COLLAR WORKERS HAVE CHOICES.
THEY’RE TAKING ADVANTAGE OF THE
INCREASED POWER THEY HAVE TO
LOOK FOR WORK THAT IS MORE
ACCOMMODATING TO THE KIND OF
LIFE THAT THEY WANT TO LEAD.
LIZ: YOU STARTED TO SEE THIS AT
ACTUALLY THE HEIGHT OF THE
LOCKDOWNS WHERE AMAZON, WALMART
AND TARGET BEGAN DANGLING ALL
KINDS OF INCENTIVES IN FRONT OF
EMPLOYEES AND POTENTIAL
EMPLOYEES TO SAY WE NEED YOU,
AND WE ARE VALUING WHAT YOU DO.
MY QUESTION IS, AS THIS
SITUATION -- YOU JUST SAID BLUE
COLLAR WORKERS, BUT I WOULD
FIGURE SERVICES, PEOPLE WHO ARE
HOURLY EMPLOYEES WHO MAKE
MINIMUM WAGE OR JUST ABOVE IT
ALSO HAVE A LOT MORE CHOICES.
SO DOES THAT MEAN THAT NAMES,
AND, OF COURSE, WE’RE THINKING
STOCKS, EVERYBODY FROM
RESTAURANT COMPANIES AND CHAINS
TO AMAZON MAY HAVE TO START
DOING SOMETHING EVEN MORE, AND
WHAT DOES THAT MEAN FOR THEIR
BOTTOM LINE?
>> YEAH.
I THINK THAT ALL THE DISCUSSION
ABOUT THE GREAT RESIGNATION
WHILE IT’S A CLEVER TITLE, I
THINK IT’S A LITTLE BIT
SIMPLISTIC, AND EMPLOYERS NEED
TO RECOGNIZE THAT THERE IS BOTH
A GREAT RELUCTANCE AND A GREAT
RESET.
AND THE GREAT RELUCTANCE ARE
THOSE INDIVIDUALS THAT AREN’T
COMING BACK TO WORK BECAUSE OF
HEALTH CARE CONCERNS OR A
VACCINE OR MASK MANDATES OR THEY
HAVE CHILDCARE REQUIREMENTS OR
THEY’RE ENJOYING A BANK ACCOUNT
THAT THEY HAVEN’T HAD FOR A
WHILE.
GREAT RESET IS ALL OF THOSE
INDIVIDUALS THAT NOW HAVE THE
ABILITY TO QUESTION WHETHER THE
JOB THEY’RE IN IS THE RIGHT ONE
FOR THEM.
SO WHETHER IT’S INCREASED WAGES
OR FLEXIBLE WORK TIME OR A
DIFFERENT COMMUTE OR BETTER
CULTURE, WORKERS ARE CLEARLY
TAKING THE OPPORTUNITY TO
RECALIBRATE AT ALL LEVELS, BLUE
COLLAR ALL THE WAY TO HIGH-LEVEL
POSITIONS.
LIZ: OKAY.
WE DO HAVE SOME PEOPLE WHO ARE
IN A POSITION TO CHOOSE WHETHER
TO LEAVE THEIR CURRENT JOB.
WHICH AREAS ARE STEPPING UP
WAGES AND PAYING MORE MOW?
>> WELL WELL, AT THE LOWER END
CLEARLY THERE’S A LOT OF WAGE
PRESSURE TO ATTRACT PEOPLE, JUST
TO TO NOT ONLY COME TO WORK, BUT
STATE -- STAY AT WORK WITH
COMPETITION, INCREASING THE WAGE
BY AN HOUR, I MEAN, A DOLLAR,
DOLLAR AND A HALF PER HOUR WILL
GET PEOPLE TO MOVE DOWN THE
STREET.
SO THERE IS A GREAT DEAL OF WAGE
COMPETITION, BUT EMPLOYERS NEED
TO BE SMART TOO ABOUT THE OTHER
THINGS THAT THEY’RE SELLING TO
POTENTIAL EMPLOYEES, THINGS LIKE
FLEXIBLE TIME, TIME OFF WITH
KIDS IN SCOOT SCHOOL -- IN
SCHOOL, OTHER PERKS THAT HE CAN
OFFER.
ALL OF THOSE THINGS ARE
IMPORTANT TO THE EMPLOYEE VALUE
PROPOSITION.
LIZ: WELL, I AGREE.
AND IT’S INTERESTING TO SEE HOW
MUCH THIS PANDEMIC HAS CHANGED
WHAT USED TO BE A VERY STRICT
40-HOUR WORKWEEK IN THE OFFICE,
GOTTA BE HERE, A LOT OF THINGS
CHANGING.
PETER, THANK YOU VERY MUCH.