The U.S economy stands to lose 2 million outbound telemarketing jobs, thanks to regulations going into effect on Oct. 1.
I’ve been mulling this in light of recently released labor statistics, which noted a drop in unemployment rates, from 6.2% in July to 6.1% in August. These are, we would have it, a sign of recovery.
Depending on which set of numbers one chooses to crunch, there is less to these figures than meets the eye. The number of non-farm payroll jobs has slipped. The percentage figure represents not so much job creation as people giving up looking for work.
Here are a few more numbers. In July, the Bureau of Labor statistics reported 129.9 million non-farm jobs, 22 million in goods and 107.9 million in services. In August, the total figure slipped to 129.8 million. The number of jobs related to goods stayed constant, while the service sector lost 100,000.
That’s a slow leak of jobs. Now jump ahead to October, when the leak will suddenly explode like a balloon having a too-intimate relationship with a knitting needle.
This assumes, of course, that all 2 million telemarketing jobs will be lost, which remains to be seen. I suspect the number of folks applying for unemployment benefits during the first week in October will not jump by 2 million, as employees may have other part-time income that prevents them from being eligible, and – hopefully – some will be repurposed into other call center functions.
But when October figures are released in early November, we’ll know the number for whom outbound telemarketing is a sole source of income.
Most of these jobs probably aren’t union positions. Had they been, both industry and labor might have banded together and lobbied for at least a reconsideration, if not elimination, of the revised rules. It could have been a rare instance of labor and management uniting for a common goal. We’ll never know.
Wouldn’t it have been amusing if the direct marketing community played the FCC’s actions, which will cost our industry these 2 million or so jobs, against the Department of Labor’s desire to keep Americans working? If nothing else, pointing out these inconsistencies to these two organizations and letting them spit at each other might produce some interesting pyrotechnics.
To respond to the opinions in this column, please contact rlevey@primediabusiness.com
