Going where the jobs are

From MarketWatch | Sept 15, 2009

More people relocating for employment; tips for making a good move

CHICAGO (MarketWatch) -- Americans have been casting a wider geographic
net when looking for work in today's tough job market, and even as a
recovery materializes it's possible that more of them will consider
moving for a paycheck.

"Unemployment seems to be leveling off, but even if the economy has
moved out of recession -- which it may have -- we're likely to go into
a jobless recovery for the rest of 2009 and much of 2010, which means
unemployment is going to stay in the 9 to 10% range," says John
Challenger, CEO of Challenger, Gray and Christmas, an outplacement
consultancy.

"Job seekers are facing more competition and more people are chasing
fewer jobs," he adds, which is leading people to make "rational
decisions, saying if I can't find a job here ... I'm going to expand
that scope."

According to the outplacement firm, 18.2% of job seekers who found
employment in the second quarter relocated for the position, the
highest job-seeker relocation rate since the second quarter of 2006. In
the first quarter of this year, 14.3% relocated for a job and in the
second quarter of last year, 11.4% relocated for work.

"When unemployment is high, people need to go where the jobs are... to
make ends meet, to get on with their lives," Challenger says.

Think before moving

But don't move with the herd: Before deciding to relocate, career
counselors advise workers to make sure they fully understand the local
economy they're going to -- and what they'd do if the new job doesn't
work out as planned. Also, make sure you understand what kind of help,
if any, your new employer is prepared to give you for moving costs.

Companies typically have standard relocation packages. Often, companies
will provide lump-sum assistance to employees or help in selling a
home.

"Make sure you completely understand the policy," says Rich McClure,
president of UniGroup, parent company of United Van Lines and Mayflower
Transit. "It's important for [employees] to understand exactly what
they're getting."

Companies know jobs are scarce and aren't likely to deal on standard
relocation packages, says Russ Haynie, director of global consulting
for Prudential Relocation. Anecdotally, companies in industries with
high unemployment or those recruiting from regions where unemployment
is high haven't been enhancing relocation benefits lately, he adds.

"Our very recent experience has been that companies are less likely to
enhance offerings related to selling real estate, overcoming deficit
equity or loss on sale situations, or offsetting the cost of temporary
living/duplicate housing expenses as a means of capitalizing on this
trend," he says in an emailed statement.

Stay or go?

Before accepting a position in another location, make sure you do some
homework on your new home -- and know what you want out of the new job.

"People react and grab anything. ... I don't think it's bad to relocate
for a good opportunity, but understand what you're trying to do first,"
says Deb Bailey, a transition coach in New Jersey. Understand how this
move will advance your career, and also think about what you would do
in the worst-case scenario: You accept a job in another place, move,
and for whatever reason, the job doesn't work out, she says.

Bailey's advice: Ask yourself, are there other opportunities in the
area? Or would it be worth it to stay in your current town, perhaps
selling your home for a loss or living with a roommate and accepting a
lower-paying job until the local job market improves?

"You really have to be in a career management mode. If you're
unemployed and the opportunity is in Oshkosh, if it's a good
opportunity go to Oshkosh," says Dale Winston, CEO of Battalia Winston,
an executive search firm in New York. "Otherwise, you want to base
yourself in a center of opportunity."

And if it's only a home holding you back from a job that could move
your career forward, it might be time to cut your losses. "If you made
an error in judgment in terms of overleveraging yourself, get out of it
and move on. It's like credit card debt... pay it down and don't do it
again," Winston says.

Keeping costs down

When conducting a national job search, your willingness to move should
be made clear upfront, says Tim Johnson, managing editor for
Relocation.com. Today, that also may mean indicating that you'd make
the move with or without a relocation package.

To keep costs down, get at least three quotes before hiring a moving
company, and have each actually see the items you need moved, Johnson
says. "It's the only way to get a precise quote."

Also, try to cut the amount of items you're moving by 20%, Mr. Johnson
says. People "tend to move things that aren't worth that much," he
said. You may be attached to an old couch, but in reality it might not
be worth the cost of moving it, for example.

For the average cross-country move with full moving services, including
packing, loading, driving and unloading, the cost is roughly $6,000 to
$8,000, Johnson says.

"If you choose to do packing on your own, it'd cut the cost to roughly
$3,500 to $5,500," he says. In that example, the movers would load and
unload the truck, as well as drive it to the destination.

A self-service move would be roughly a third of the cost of full moving
services, or about $2,000 to $3,000, Johnson says. That would require
the individual to pack, load and unload items, leaving only the driving
to the movers.

Amy Hoak is a MarketWatch reporter based in Chicago.