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About Me


Paul Gabrail is an investor who prefers to focus on the realistic aspects of the economy. Paul is never hesitant to offer his oftentimes unique perspective on all matters related to the economy, real estate and personal finance.

He co-founded Select Investment Group, a real estate investment firm that owns and manages 800 rental unit properties and $60 million in assets. He's also a partner at MGO, a private wealth management firm with more than $400 million in managed assets.

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Monday
Sep192011

How Much of our Unemployment Rate is Self-Inflicted?

Readers, today I’m here to declare the unemployment crisis is over. There are so many jobs out there that people can apparently make any employment demands they want, and can leave perfectly good positions and employers hanging even after accepting an offer. Consider the treatment two individuals showed me recently.
We were looking for a new office manager and phone attendant at our growing property management company in Cleveland. We found two qualified candidates after many interviews and we extended the offers. They both accepted and stressed repeatedly how excited they were to start the job. A few days before the new office manager was to start, we received an email from him asking if he could work a four-day week because he wanted to spend one day with his grandkids. Keep in mind, he wrote this email two weeks after we offered him the job and he knew it was a five-day, 40-hour per week position.
After responding to his request with a “no, sorry, that’s not going to work,” he quickly apologized, said he would be there and he was 100 percent committed to working for us. Big surprise, three days later, he emailed us and said he wouldn't be taking the job because he wanted the one day off per week.  
That same week, we hired a phone attendant who actually wouldn't stop calling and following up for this job because of how much he claimed to have wanted it. He was so elated to be offered the job that he wanted to start right away, but we needed two weeks to get it set up. A week before he was to start, we called him and asked him to meet us at 9 a.m. on Thursday for a walk-through and orientation; he confirmed he’d be there.
That day, 9 a.m. came… and went. At 10 a.m., we called him. No answer. At 10:30, we called and texted.  No answer. No response for days. Finally, on Sunday afternoon we got a text from him saying he was sorry, but his brother had been in an accident on Thursday and he couldn't make our meeting because his phone was dead. Hmmm, wouldn’t you know that same Thursday afternoon he had called and emailed our payroll company to tell us he couldn’t make the meeting?  And his email didn't say "My brother was in an accident.” It merely said, "I can't make the meeting. Sorry."
Since our payroll company main contact, who also handles our hiring and firing, was out of town she wasn't able to send us the email until that Monday. But if something so tragic had happened, wouldn’t he have said something to that effect in the email? Especially if he wanted to keep the job? When we rescinded the offer, he didn't put up the least bit of a fight.
To hire two people and have them both flake out like that makes me wonder what percentage of our unemployment rate is “self-inflicted.” Business owners I’ve told this story to have laughed because many have been through the same thing. Our unemployment rate isn't 4% like it was 10 years ago, people. Jobs are scarce today. Those who are getting offers need to do everything possible to keep them and do well at them.
Tell me about your stories. Does this anecdote sound familiar to anyone?

Reader Comments (2)

Great post! I have always said that the base level for unemployment should be 4%. Don't think we can (or should) get lower than that. Could be scary in the workforce!

September 20, 2011 | Unregistered CommenterMandy

Thanks for the comment Mandy! I think 4% is too low. Full employment is considered 5.5% or so, and I think that's pretty healthy. Again, I don't want 3.9% again because as an employer it is too hard to find good work at those levels because pretty much anyone can get a job!

September 23, 2011 | Unregistered CommenterPaul Gabrail

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