Looking ahead, staying hopeful is important

Labor secretary stresses importance of perspective in rough job market

(Suzanne Kreiter/Globe staff)

Suzanne M. Bump has served as the state's secretary of Labor and Workforce Development since January 2007. Bump, 52, oversees a broad array of agencies, including those responsible for administering unemployment benefits and worker training programs. She recently spoke separately with Globe staffers Robert Gavin and Doug Most about labor market conditions here. The following is excerpts from the interviews.

What's the state of the Massachusetts labor market?

We have seen over the past three or four months that the gains made since Governor [Deval] Patrick took office are being eroded by the downturn in the national economy. We're beginning to experience job losses as other states have.

How bad might it get?

We use Moody's Economy.com as our primary method of predicting unemployment. We are anticipating that the rate could go a full percentage point higher in 2009, in the neighborhood of 6.5 percent.

What is the state doing to deal with layoffs?

One of the basic functions we've had to ramp up is unemployment claims taking. We haven't had enough people answering the phone. We started hiring additional staff, half of whom are bilingual, to take claims. We're extending the hours in the 37 career centers around the state. We're trying to strengthen the vocational school ties with community colleges so we have people getting trained for the jobs that are out there.

Have you ever seen a year like 2008?

It was actually worse for us back in the 1990-1991 time frame. We lost more jobs than we are projected to lose now.

Do you know anyone who's been laid off?

I do. My immediate reaction is to help them find a job. I want to assure them it's not their fault. People need that reassurance. I also tell them to immediately begin a job search. Do not wait to get over your emotional reaction.

Have you ever been laid off?

I got fired! I was a bank teller at a Shawmut branch in Norwell. I pulled out the packet from the money drawer that triggers the alarm for a robbery. I made the mistake of proclaiming I had set off the alarm. The next day they told me they didn't need my position anymore. I was 19 or 20. I was embarrassed and in tears.

On the flip side, have you ever laid someone off? Yes. It is a very difficult conversation. I was feeling very, very guilty. I had to check my own impulses to fix it even as I was delivering the bad news.

There's talk about a stimulus package in Congress, and some of that money going to states. What would you want to see in that package?

I'd love to see additional money for training. Even in this downturn, we know there are tens of thousands of jobs that employers can't fill because they can't find qualified workers.

Where are these jobs?

All around the state. We've been presenting information on a regional basis, including job vacancies in the area and skill levels required for those jobs. This information is readily accessed at career centers, so you no longer have to make career choices on the basis of information you pick up from your brother-in-law.

Any particular industries come to mind?

Healthcare, healthcare, healthcare. That is virtually the only sector that has thus far been insulated from the downturn.

Long-term, the workforce is a big issue here. Is the downturn having an impact on training, in terms of cuts in state revenues?

We've lost some training dollars, but the demand for higher-credentialed, higher-educated workers is increasing. Fifty percent of the jobs that employers were seeking to fill in June required an associate's degree or better. A year ago, that number was 43 percent.

Unemployment insurance rates are going up next year because unemployment is going up. But Massachusetts businesses say there needs to be long-term reform of the system because generous benefits and high costs put them at a competitive disadvantage.

I understand why business makes that point. But the 30 weeks we have as a maximum [compared to 26 in other states] isn't there for everyone. The average person only collects benefits for 17 weeks. So to some extent, the problem is overstated.

Any idea what the state can do to hold down unemployment insurance costs?

Improving the efficiency of the system is one. There are a lot of administrative changes in the works. We might end up looking at some policy changes, but we have a high sensitivity to the need to support families for what could be a long, rough period for our economy.

Any words of advice and encouragement for people facing this downturn?

This is a scary, scary time for people. They need to avoid their natural instinct, which is to curl up in a ball with a package of Oreos. They need to get out of there and start their job search immediately. Network everywhere; use the free services at the career centers. You never know what new ideas you can pick up. There are lots of compassionate people who want to help you get through this, so take advantage of everything we have.