Consumer Confidence Soars

This is great news. Despite the doom and gloom among economists and the media, the Conference Board today reported an unexpected surge in consumer confidence. In fact, the index reached its higher level since the collapse of Lehman Bros. in September that caused the credit market freeze.

For this month, the index reached 54.9, up from 40.8 in April. Expectations for the next six months rose to 72.3 from 51.0 in April. That's quite a leap.

While encouraging, the numbers are at odds with recent trends. Housing data in 20 major metropolitan areas declined in March by 18.7 percent, according to the Standard & Poor’s Case-Shiller Home Price Index that was released today. Earlier this month, the Commerce Department said retail sales fell 0.4 percent in April, following a 1.3 percent drop in March. Meanwhile the U.S. unemployment rate reached 8.6 percent in April.

Still, the Conference Board gave a rosy assessment of the state of the economy through the eyes of consumers:

"Consumers are considerably less pessimistic than they were earlier this year, and expectations are that business conditions, the labor market and incomes will improve in the coming months," Lynn Franco, Director of The Conference Board Consumer Research Center, said in a press release. "While confidence is still weak by historical standards, as far as consumers are concerned, the worst is now behind us."

Bold words. Let's hope she's right.

Tapping the Skilled Volunteer Pool

I've been trying to volunteer more. So far this year I've hacked away vines and bushes along a San Francisco sidewalk, planted native shrubs in the Palo Alto wetlands, and distributed food to needy families in Daly City. I've learned a lot about ways to serve the community, and the experiences have made me think about the way non-profits are run. I've seen some effective non-profits and some not-so-effective ones too.

Based on my experiences I have developed an idea. Given the state of our economy and number of people out of work, non-profits can improve their operations by tapping the pool of highly skilled workers who are unemployed. There are scores of marketers, salespeople, designers, financial planners, consultants, programmers and engineers are out there waiting by their phones, scanning job boards and wasting away watching Tivo. While finding a job should be their top priority, I think unemployed professionals would jump at the chance to help non-profits if opportunities were presented the right way. Here are some suggestions:

1. Make them easy to find
There are some great online resources for people to find volunteer opportunities. In the San Francisco Bay Area, organizations such as Hands On Bay Area and One Root have searchable databases that allow people to sign up for an event online. Other national organizations such as USA Service are pretty good too. Most of these events are focused on unskilled, but essential, work to help their cause. What if non-profits posted needs for professional services?

2. Offer projects
Demand for professional services should be packaged as projects rather than one-timers or open-ended engagements. Unemployed professionals are afraid to make long-term commitments, fearing time away from focusing on their job search, and one-timers would offer marginal benefit to non-profits. A specific engagement with a clear idea of time commitment and duration would help people balance their schedules and manage their resources better.

3. Build skills
Many unemployed professionals don't realize volunteering can build skills that make them more appealing to potential employers. Let's say a non-profit needs help in building out a fund raising plan. Highlighting the skills one could develop (strategy, negotiation, marketing) offers a clear motivation for volunteers.

4. Give recommendations
Once the project is over, offer to write them recommendations on their Linkedin profile. It's a fair value exchange. They offer skilled professional services for free, non-profits offer an added bonus to the volunteer's online resume.

What do you think? Do you have any ideas about how non-profits can take advantage of this skilled labor glut to help them improve their operations? Write a comment below.

Hi Mom, All Is Well at Laid Off Camp (Part 1)

Unemployment is like summer vacation. The first day of liberation feels like you've broken out of prison. But in a couple of weeks you find yourself in a trance from too much sleep, too much TV and feelings of guilt for not doing more with so much free time. That's why the idea of camp for the growing number of pink slipped professionals is such a brilliant idea. Pry people away from the TV and throw them in an urban playground to run around with adults in a similar situation.

On Tuesday, I attended Laid Off Camp, a hastily organized, ultra-casual, all-day event in San Francisco. Laid off Camp was started by Chris Hutchens, a former consultant and banker who was laid off in December, as a way to bring people together to share survival tips, network, and maybe find the right business partner to start a company. Modeled after Bar Camp, attendees sign up to present on any topic of choice, such as networking techniques, budgeting, health care, freelancing, creating your own start-up, time management, and personal branding. Most of the sessions were informal and centered on discussions. Some were given by sponsors and were blatant attempts to acquire new customers.

While I was staring at the schedule (a hand-drawn grid with session titles written on sticky notes), I bumped into my friend Jackie Gu, who was laid off the previous week. In the spirit of spontaneous collaboration, Jackie and I decided to join forces to divide and conquer the event. She wrote about her impressions and insights on her new blog, called Unemployment Muses. Here are the top 5 things Jackie learned from Laid Off Camp (I'm still working on my list, so stay tuned):

Jackie Gu's Laid Off Camp Musings:

1. Whatever you're struggling with, know that you are not alone.
There were hundreds of jobless people just like me at Laid Off Camp and as I mingled among them, I realized we all feel the same desperation, face the same struggles, and deal with the same interferences such as self criticism, doubt, and self-defeating behaviors that prevented us from doing our best in the job search process. And as long as we are aware of what these interferences are and are forgiving toward ourselves, we can conquer the mountain by moving forward with each small step.

2. Networking is not about "What can you do for me?" but "What can I do for you?"
The most useful workshop I went to was held by network guru Edith Yeung. She told us to be specific in who we'd like to meet when networking, asking ourselves the "what do I want" question first before someone else does and we're at a loss for words. Most importantly, it's necessary to ask your contact how you can help them instead of asking them for help right away. Always be willing to be able to provide a service or value to your network leads, and be real and genuine. That's the kind of impression you want to leave your contact and being helpful goes a long way!

3. Clean up your online reputation & delete the junk from your profiles.
This may be an obvious one, but how many of us still have public Facebook profiles with borderline indecent photos from last night posted and visible for all to see? Perhaps you're not even aware what your Google search results are, but it's time to look, and do a mass clean up. You betcha recruiters and hiring managers Google you to see who they are dealing with. An old friend of mine went to an interview and the hiring manager already knew his blog handle and content and even asked him about my own blog handle as I was a frequent commenter. Scary right? Whatever you put out there is public so let's make sure each of your profiles reflect the professional image you want to portray. A good tip is to make each profile content (Linkedin, Facebook, Twitter, Blogger, Livejournal, etc.) consistent and update with the same photo of you.

4. Utilize the power of communication.
Each of us are individuals with unique needs, interests and hobbies. So why not communicate who we are during our job search too? Start a blog or Website about your passions, hobbies, and be a topic expert. Start commenting in forums and discussions. Twitter industry and career relevant news that turn heads. In the same token, if you have nothing of value to communicate, it's better to be silent than to status update everyone on what you had for breakfast. Okay, so I need to work on that last one too. Just remember, the Internet is very public and once you click submit, it's out there so what do you want 'em to read that's associated with your name?

5. Don't get discouraged.
Focus on the journey not the destination. Okay this really isn't a sarcastic remark, yes, we will all get discouraged along the way, but overall, we need to have faith that being unemployed is only temporary. It too will pass just like most things in life, so let's try to "enjoy" it as much as we can. Schedule naps, fun activities, and workouts during the day to break up the job search tasks. Go to network events and join a support group. Take a class you always wanted. Go out on a limb and dare to do something a little different because you can, now is the time to try something else and be adventurous. A job will eventually come and then you wish you made the best with your time off - so go make the best of it now.

Five Bad Habits for Unemployment

Last week I blogged about the Five Principles for Surviving Unemployment. Thanks for all the feedback! This week, I'd like to take the opposite angle and explore the five things you shouldn't do when you're unemployed. Let's return to the mantra that a crisis is a terrible thing to waste. Unemployment is an opportunity for reinvention, albeit a painful one. Free time has been forced upon you, so you have a choice. You can make the most of it, or you can squander it.

Here are some ideas if you'd like to choose the latter route:

1. Live like you're still employed
Wake up. You're no longer a banker making bank. You're a yuppie without the "P". You and the gentleman sleeping outside Port Authority have something in common. That's ok. We've been living in an age where we've over-extended and lost our sense of smart, frugal living. It doesn't mean you have to eat beans every day, nor does it mean you have to sacrifice the things that make you happy. It's time to make tough decisions to prioritize your spending so every dollar gives you the most bang for its buck (pun intended).

Here's my tip. First consider what expenses are most valuable to you. Then test your habits by maintaining your employed lifestyle for another two weeks. Where's your money going? Does spending $150 a week at bars and clubs make sense? If you're single and prowling, spending your cash on booze may be a worthwhile investment. But in this environment, maintaining the important elements of your lifestyle requires sacrifices. Cut back on frivolous stuff and invest in what matters.

(Plug: Try using Mint.com. It's a service that helps you track your expenses and calculate your net worth. It's free and easy to use.)

2. Obsess over job boards
Some reasons why surfing job boards causes depression:

a) Every job posting makes you feel unqualified
b) Job search engines are labor intensive
c) Sifting through pages of job results leads to insanity
d) Posting resumes feels as effective as setting them on fire

In my previous entry "Five Principles for Surviving Unemployment," the first principle is to reignite your human network. Job boards are important and they do yield results. But I find one-on-one conversations more valuable because you get feedback and you can develop relationships that pay-off down the road. You should spend some time uploading your resume and writing cover letters. But spend more time developing face-to-face relationships with people who will help and encourage you.

3. Eat fast food
You're on a budget. Great. You're watching our expenses like a hawk. Smart. But your solution to cutting your food expenses by 50% is the McDonald's drive-thru? Hmmm. Sounds like a good idea until one night your date keeps complaining about that strange scent of McNugget. Oh, and that bike tire around your waist has become a radial. Look, you've got more time on your hands, so spend it on better habits such as cooking and buying healthier food. Saving money forces you to be creative, and there's nothing redeeming about munching on your fourth In-N-Out Double-Double in a week.

4. Succumb to your vices
I'm a sucker for video games. One Monday during my first month of unemployment I flipped on my dusty PS2 and popped in a video game I hadn't played in years. Time warp four days later and all I had to show that week was a body count of a couple hundred digital terrorists and a grouchy attitude from a lack of sleep.

With so much free time in your hands and the stress of unemployment, it's easy to turn bad habits into worse habits. Pay close attention to your vices. Sometimes they're necessary to blow off steam, but beware of the slippery slope.

5. Retreat into seclusion
Benjamin Franklin once drew a cartoon of a snake cut into pieces with the names of the colonies printed on them. The caption read, "UNITE or DIE." Franklin's wisdom rings true in these times, especially during these dark moments of unemployment, financial collapse, etc. The surest way to get whacked by this crisis is to believe you aren't good enough to emerge stronger. Being alone and at the mercy of your brain will keep you down.

We can learn a lot from Ben Franklin. He was a master at gathering people with similar interests. He started the first nation's library at the age of 27 by bringing his friends together to share their favorite books. If you have a lot of former colleagues in the same boat as you, get together with them over a meal or a beer. Earlier this week my roommate Alex kicked off a new series of boozing events called "Recession Doesn't Mean Depression Happy Hour." His tagline: "Yes we can!" I love that. Thumb your nose at the face of this crisis and celebrate for the sake of being alive.

Got some tips of your own? Feel free to comment below.

5 Principles for Surviving Unemployment

Take it from a guy who got whacked twice in 2008-- unemployment is scarier when you're employed. The threat of being let go, the insecurity of being below the cut-off line, the paranoia of every passing glance from your boss is paralyzing. But once the axe has fallen, the experience of unemployment can be liberating. It's pretty nice to wake up at 9:00 and blog in your sweats (ahem… cough).

Sure, unemployment can suck because the ego blow makes you feel like a schmuck. But this is no time to be a Debbie Downer. To quote our diminutive White House Chief of Staff Rahm Emanuel, "You never want a serious crisis to go to waste." Once you deal with the setbacks of unemployment, turn your attention to the opportunities because they're everywhere. Here's my list of the top 5 ways to make the most out of your unemployment.

1. Revive your human network
You've amassed a database of friends, acquaintances, business partners and former colleagues. Take some time to consolidate your phone lists, refresh your social networks and sift through your back-log of Facebook and Linkedin friend requests. Find any means to connect with the people you've been meaning to catch up with for years, but never had time. Then meet up over a meal or a beverage to to pick his or her brain for career guidance. Three things usually happen over a casual meal: 1) Your contact will chatter away because people love spreading career wisdom, 2) You get new ideas about your career, and 3) You get a free pity meal (especially if you talk about the experience of being unemployed).

2. Learn to manage your money
Throughout most of my career I thought budgeting was for those goodie-goodies who studied on Friday nights in college. Now I've become a number-crunching, Mint.com-obsessed nerd. After my first layoff, I poured my attention into learning the essentials of personal finance and disciplined budgeting. Keeping daily track of my spending opened up new and creative ways to save money and to prioritize the value of each dollar spent. It also revealed how much useless crap I was buying. Thanks to my change in behavior, I created a strong safety net to deal with my second layoff.

3. Feed your brain
A mind is a terrible thing to waste. Feed your brain new meals. After years of sitting in front of a computer for 10 hours a day stale offices, you'll fall in love with your brain's ability to absorb new information. Explore new ideas. Read books. Watch artsy films. Take a class in a topic that you wish you took in college to get your gears spinning.

4. Get fit
This is crucial. Stagnation is the greatest enemy of the unemployed. Yes, it's great to sleep 10 hours a day, but lunch shouldn't be your first meal. To keep your body moving you need to move it. If you're not an exerciser start with modest stretching and introduce a daily walk around the block. For me, exercise is a welcome hiatus to recalibrate and gain perspective on my day. My afternoon run helps remove clutter from my deluge of to-dos. You've got time on your hands, so you might as well improve your health before plugging into your next cubicle.

5. Serve others
There's no better way to gain unemployment enlightenment than pouring your energy into something selfless. It's an innate human quality to give without expecting something in return, and it brings perspective on what really matters in life. On a personal level, I volunteer at a homeless shelter a couple Saturdays a year (not much). Having a conversation with people who are down on their luck is humbling and I learn a lot from every conversation. Here are some good sites as a starting point: Hands On Bay Area, Volunteer Match, One Brick, USA Service.