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Things are still uncertain. Is a Double Dip Recession on it’s way?

February 9, 2010

The last two years have been incredibly challenging. Not just the recession, but the media shift to Internet marketing, information distribution and Social Media. Most of us are optimistic about 2010, but we all have a lingering doubt. The biggest issue in my mind is the dreaded “Double Dip Recession” (I have included a description of a Double Dip Recession and two charts below). There are certainly signs that lead us to believe this is very likely to happen. I know things have been very hard, it has been hard for us here at Semper as well. Many of our internal employees have been laid off and had reduced hours. The last thing we want is to continue our belt tightening policies.

Like it or not, we must continue to think strategically. Strive to maximize output and contain costs with a surgeons precision. One way to accomplish that is with the use of Flexible (Temp) labor. Finding a quality staffing firm that understands your business (Like Semper) is a key step to uncovering related cost savings. Not all staffing firms are focused on quality and dare we say, using legal workers. So make sure you choose a solid firm and can PARTNER with them. A staffing firm should be viewed as part of the team.

Tread carefully in 2010. Be nimble and adaptive. Things like choosing the right staffing firm will be make or break decisions and should be made carefully.

What is a “Double DIp Recession”?

A W-shaped recession or “double dip” recession, occurs when the economy has a recession, emerges from the recession with a short period of growth, but quickly falls back into recession.
The Early 1980s recession in the United States is cited as an example of a W-shaped recession. The National Bureau of Economic Research considers two recessions to have occurred in the early 1980s.[4] The economy fell into recession from January 1980 to July 1980, shrinking at an 8 percent annual rate from April to June of 1980. The economy then entered a quick period of growth, and in the first three months of 1981 grew at an 8.4 percent annual rate. As the Federal Reserve under Paul Volcker raised interest rates to fight inflation, the economy dipped back into recession (hence, the “double dip”) from July 1981 to November 1982. The economy then entered a period of mostly robust growth for the rest of the decade.

Chart 1: Example of a Double Dip Recession

Chart 2: Current two year view of the Dow

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