BAD ECONOMY = BETTER JOB APPLICANTS

Mickey Donatello, a co-owner of two restaurants in Wilmington, Del., has noticed a "bizarre" phenomenon -- the job candidates he's been interviewing recently are actually qualified.

"Up until about four months ago, whenever we interviewed people it was like you were just replacing one standard employee with the next, but never stepping up, especially with skilled labor, like sous chefs or chefs," said Donatello, who owns Lucky's Coffee Shop and the Corner Bristo. "But now we're seeing guys that are qualified, almost over-qualified."

This is the positive side to a pretty grim jobs picture. With so many companies scaling back, or shutting their doors, there is a growing pool of talented people who are looking for work.

And entrepreneurs like Donatello are benefiting.

The unemployment rate has hovered at record levels lately, and that has naturally led to more people out there hitting the job-seeking pavement -- some pretty good people it turns out.

"Stronger candidates are now applying for retail positions due to the softening economy and increased layoffs," said business consultant Eric Herrenkohl.

However, he added that businesses "are closely watching their payroll expenses in this environment and are hesitant about making expensive hires."

His recommendation to business owners and managers is to build a strong funnel of job candidates. As they cut expenses, and poorly-performing current employees, they'll have room to selectively hire strong, talented people who will bring value to their companies.

That's just what Donatello is doing.

Right now, he's in the market for several cooks, but he's taking his time and being selective. While business is holding steady at his coffee shop, the bistro has seen a decline of about 10 percent. But he considers himself lucky given how other establishments are faring.

"I can sit back and be picky," he said about finding the best employees.

Recently, Donatello put an ad in the paper and one on Craigslist for a server. A guy showed up who had been a manager at a small chain of restaurants nearby.

"He can't go out and find a management job. It's just not out there," Donatello said.

The current environment is a far cry from last year when he held a job fair at Lucky's and got a pretty crummy showing of applicants.

"It was comical," he explained. "We were desperate to find people. None of the people we hired from that are even with us anymore. They were that bad."

Sometimes one man's feast is another man's famine.