Plenty of qualified workers to pick from in 2002

JERICHO - In the late 1990s and in 2000, business leaders on Long Island called the shortage of qualified personnel the single biggest problem facing the region. They even pushed the issue through the middle of 2001, until it became clear that the economy was changing, and fast.

The staffing

The situation put staffing companies in a bad place, since they could do little to help anyone.

Permanent or "direct hire" placement was affected more than temporary staffing, firms said, as companies sought to fill gaps with ad -hoc hirings.

Dot-com difficulties meant lay-offs largely in New York City's Silicon Alley, but to a lesser extent on Long Island as well. The Island's tech operations, while not immune, are diverse, cushioning the area from impacts on any particular industry, firms noted.

Certain industries, though, especially those relying on travel, were hit hard. Restaurants and hotels saw demand drop and in turn retrenched on their hiring demands.

"The year prior to 9/11 was already pretty rocky in, the tri-state area," said Keith Kefgen, president of HVS firm Executive Search, a placement specializing in the hospitality industry based in Mineola. "Post 9/11, the hospitality industries have been some of the hardest hit."

Executive recruiting, however, even in the hospitality industry, wasn't severely hurt this year. "We've seen practically no change in the staffing levels at the senior level," Kefgen added.

While hiring slowed on Long Island, firms noted that their business in some parts of the country, such as the South, remained relatively strong.

The health care industry, despite its difficulties, also remained in hiring mode, if only because of a constant shortage of qualified staffers.

"There's a drought for available talent in that industry," said Keith Banks, executive vice president of Lloyd Staffing, Melville. "Anyone with health care related backgrounds. That's a growing industry."

After a tough 2001, placement firms on Long Island now say they see signs of recovery.

Temporary staffing has picked up in recent months, they say, but a real turnaround could be six months away as the economy trudges toward recovery.

"We've noticed a gradual pickup since then (Sept. 11)," said Traci Baumgartz, branch vice president in Jericho for AOC, an accounting and finance placement firm. "The forecast is good."

Melville-based Lloyd Staffing, which employs 200 people on Long Island, said the region has been relatively insulated from problems in New York City.

"The Long Island economy is still stable, and hasn't been so heavily impacted as the rest of the state over the past year," said Banks. "Everybody is cautiously optimistic."

But since Lloyd and other Long Island firms do placement in New York City, the city's problems also indirectly hurt them.

On Long Island, more than half of business owners said they found an adequate supply of staff this year, up from 29 percent in 2000, according to a survey by Hauppauge-based accounting firm Albrecht Viggiano Zureck & Co.

The survey found that 37 percent of business owners believe the Long Island work force is under qualified, down from 41 percent a year ago.

"We certainly have qualified people," Banks added. "The down side is there aren't as many available positions."

Consolidation - such as Citibank's purchase of EAB - played havoc with employment firms doing financial placement on Long Island.

Mergers and acquisitions are likely to continue in banking, accounting and many other industries, leading to more layoffs, staffing firms believe.

The current difficult atmosphere may be one reason the industry was particularly sensitive when the Long Island Association launched its own for-profit recruiting business, LIA Staffing, led by Scott Passeser. But by the end of the year, staffing firms were more concerned about the economy than competition from the LIA.

As to the future, many firms are waiting to see whether a federal financial stimulus package will emerge to jumpstart the economy.

And there's the concern that another disaster could set back the economy, and hiring, even further.

"Under the assumption that no other traumatic event happens similar to 9/11, my belief is things are going to start to bounce back," Kefgen said.

"Second, third, fourth quarter, you'll see significant improvements."