RV PRO

January '18

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rv-pro.com January 2018 • RV PRO • 119 A favorable operating environment can provide the opportunity to strengthen internal controls. "When you foresee a year of steady economic growth, it's time to take the opportunity to look inside the walls of your organization and determine how you can improve your execution, your strategies and your financial systems," says Simson. "Make sure you understand your costs and are ready to react quickly to changes in the market. As for employees, go for the 'A Players' rather than settling for the 'C' ones." In all cases, says Simson, emphasize stronger internal operations. "Batten the hatches. Keep asking yourself, 'How can I strengthen my organization for the long term?'" Have We Reached Full Employment? The employment picture is improving in the United States, to the extent that by the end of 2017 some 95.6 percent of willing workers had obtained jobs, according to figures from Moody's Analytics, a research firm based in West Chester, Pa. Does that mean the nation has reached a condition economists refer to as "full employment?" The question is important because wages generally start to increase across the board when the number of available workers becomes scarce. And a general rise in wages usually translates into more spendable income, a healthier economy and more profitable businesses. Even so, a firm answer is elusive because several forces muddy the waters, according to Sophia Koropeckyj, managing director of industry economics at Moody's Analytics. First, Baby Boomers are retiring from the workforce. Because older workers tend to have a lower incidence of unemployment than younger ones, economists respond to this change in workforce demographics by lowering the employment rate they consider "full." Second, there also has been a large decline in labor force participation by younger workers since the Great Recession. Many prime-age workers have dropped out as well. People not actively participating in the labor force are not considered in the unemployment rate calculation. "But since there is a possibility of more entry of those on the sidelines as the expansion persists and since there are so many idle workers, we cannot say that we are truly at full employment now," Koropeckyj says. Also, the share of unemployed workers out of work longer than half a year remains higher than it was before the recession. "As the expansion persists more of these workers should find jobs," Koropeckyj says. "If the absorption of these workers to reach the pre-recession share is considered full employ- ment, then we are not at full employment now." Finally, economists differ on what they feel constitutes a "full-employment unemploy- ment rate," and have advanced figures that vary from 4.0 percent to 5.0 percent. – Phillip M. Perry Offer your customers Compass RV Service Contracts, Tire & Wheel Coverages, GAP, and Appearance Protection Products. AGWS provides great customer service, fast handling of claims, training workshops, reinsurance, and so much more. Let us help you grow your business! ® S U C C E S S for your business S E C U R I T Y for your customers • F&I Products • Service • Training • Technology • Claims Administration For more information, contact Kurt Harbeke at 800.579.2233 x4213 or kharbeke@agwsinc.com. Warrenville, IL 60555 | agwsinc.com CompassRVProHalfPageHorizontal.indd 1 12/1/17 5:01 PM

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