The U.S. unemployment rate fell to 7.5 percent in April 2013, but it is still elevated when compared to historical levels of unemployment. This lower unemployment rate has an impact on customer service professionals, especially those who work in retail and in industries where unemployment has a major effect on sales. Whether you are a customer service representative or a manager, you must know how unemployment trends affect your industry.
Lower unemployment typically leads to increases in consumer confidence. These increases prompt additional spending and create more opportunities for customer service professionals. In May 2013, the Consumer Confidence Index was at its highest level since February 2008. This index measures how positive or negative consumers feel about economic prospects for the near future. Lower unemployment numbers prompted consumers to say they felt more positive about the labor market in May. Nearly 11 percent of the people surveyed said they felt jobs are plentiful. The number of people who felt jobs were hard to find decreased, which is a positive sign for the economy.
Customer service professionals must also pay attention to levels of consumer spending. When consumers are spending a lot of money, there are more opportunities for jobs in retail and other service-oriented fields. When consumers are doing more saving than spending, customer service jobs are less plentiful. As of June 22, 2013, the three-day rolling average for consumer spending was $82. The fourteen-day rolling average was $88 as of the same date. Although consumer confidence is higher than it has been in recent years, spending levels are not matching that level of confidence. This statistic, coupled with recent unemployment trends, has the potential to affect your job in the customer service field.
Where consumers are spending their money is just as important as how much money they are spending. Car sales increased 8 percent between May 2012 and May 2013, increasing the number of opportunities available to customer service representatives and salespeople at car dealerships. Cliff Edwards of Bloomberg reports that sales of video games and consoles fell by 25 percent in May, which likely affected unemployment levels for customer service professionals who work at electronics stores. Retail sales increased by 0.6 percent overall in May 2013, another positive sign for customer service professionals worried about how unemployment and other trends will affect their job prospects.
Customer service professionals must pay attention to economic indicators, as these numbers affect the number of jobs available. Negative trends also make it more likely that customer service professionals will have to work harder to satisfy customers. If you do not currently monitor unemployment trends, consumer confidence levels, and consumer spending levels, take some time to learn what these numbers mean. This information can help you understand how the industry is changing and make it easier to adjust your customer service approach to match these changes.
(Photo courtesy of jannoon028 / freedigitalphotos.net)
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