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economy RSS feed Tag: economy

August’s 142,000 Jobs Is Weakest Growth This Year

by Sep 5, 2014, 9:42 am ET

Econ indicators Aug 2014 v2Even taking into account the usual summer hiring slowdown, this morning’s jobs report from the U.S. Labor Department can only be called surprising. The Department’s Bureau of Labor Statistics said 142,000 new jobs were created in August, a number far off the 220,000 to 230,000 economists forecast. Unemployment inched down to 6.1 percent from 6.2 percent.

It was the smallest increase yet this year, and follows six months of gains over 200,000 jobs each. Going into August, the monthly average gain in new jobs was 230,000.

Yesterday’s private sector jobs report from ADP and Moody Analytics foreshadowed a lower August job growth when it came in at 204,000, which was also below expectations. Few, though, expected so big a decline, which was also accompanied by a net downward revision of June and July’s numbers of 28,000.

The slight decline in the unemployment rate came from fewer working-age Americans participating in the labor force. The participation rate in August dropped back to 62.8 percent from 62.9 percent, hovering near historic lows. keep reading…

English Major Discovers There’s Plenty of Competition at $13 An Hour

by Aug 17, 2012, 12:33 am ET

If Garrison Keillor were to catch wind of what Eric Auld did, he’d have him drummed out of P.O.E.M.

The job seeking, 26-year-old Massachusetts part-time teacher phonied up a job ad to see what his competition was like. He posted it on Craigslist and sat back to await the responses.

As most of you reading this are recruiters, you can guess where this is going. However, try not to spoil it for the few others here, while I fill in some of the background.

Auld, like so many young people who failed to heed mom’s advice, majored in English instead of engineering, even got a Master’s in it. Now, three years out of college and saddled with $40,000 in debt, he was a discouraged job seeker applying, as he put it, “to dozens, maybe hundreds of jobs per week.” keep reading…

Signs Point to Slower Hiring, as May Numbers Disappoint

by May 31, 2012, 4:33 pm ET

This morning’s jobs report from ADP is prompting worries that hiring may be slowing, damping hopes that the anemic recovery may be hitting a rough spot, if not stalling.

ADP, which processes payrolls for some 500,000 U.S. firms, said private employment grew by 133,000 jobs in May. The company, and its analytics partner, Macroeconomic Advisers, also adjusted down by 6,000 its initial 119,000 April job estimate.

Economists surveyed by Bloomberg News were expecting the May ADP report to show about 150,000 new jobs. Bloomberg also said the expectation is for the official Labor Department report to show 160,000 new jobs during the month. That report is scheduled to be released tomorrow morning.

“While May’s increase was the 28th consecutive monthly advance, it nonetheless reflected a notable slowdown in the recent pace of hiring,” said Joel Prakken, chairman of Macroeconomic Advisers.

Nearly all the new jobs came from the service sector, with small and medium companies in the sector — those with fewer than 500 employees — creating all but 15,000. Manufacturing, which had been growing until April, when it lost 6,000 jobs, lost 2,000 more, according to the ADP report. keep reading…

Cost-Cutting (Free) Recruitment Practices!

by Feb 23, 2012, 3:44 pm ET

In this session, we will talk about all your recruitment & sourcing process and how you can cut costs without sacrificing the quality of the hire. Not everyone is able to afford the cost of every job board, along with Broadlook Diver, and a Linkedin Premium account. Sometimes being a staffing manager means creating magic out of very little or nothing at all.

We will discuss improvements to your recruitment process that include savings on the phone, savings in your search, savings with your recruitment message, savings in your branding, and savings in the sourcing tools that you use.

For more podcasts, webinars, and articles on recruiting be sure to check out!

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Obtaining Strategic Hiring Targets With a Limited Budget

by Nov 9, 2011, 5:05 pm ET

Most of you are no strangers to slashed budgets over the past few years. Yet just because budgets are reduced doesn’t mean your workload is. So how do you maintain quality of hire without the budget for your preferred tools and technology? Pacific Northwest National Laboratory did just that, by developing a carefully planned strategy and thinking outside the box. Join us as Rob Dromgoole explains how they make big hires on a small budget.

For more podcasts, webinars, and articles on recruiting be sure to check out!

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President Outlines $447 Billion Jobs and Tax Cut Plan

by Sep 8, 2011, 8:54 pm ET

In broad strokes, President Obama tonight outlined a $447 billion plan to bolster the economy and create new jobs.

Over half the cost comes from tax cuts for workers and small businesses. The balance is in spending on infrastructure repairs and improvements, especially to schools; at least 35,000 of them, the President said to a joint session of Congress. (The full text of his speech is here.)

He proposed a $4,000 tax credit for hiring long-term unemployed workers, and other credits for hiring veterans. He called for extending unemployment benefits and providing money to states to pay teachers, rather than lay them off. keep reading…

Obama Has Uphill Fight Even Before Jobs Plan Unveiled

by Sep 8, 2011, 4:03 pm ET

Whatever jobs plan President Obama unveils tonight (7 p.m. ET) when he addresses Congress and the nation, it will face a tough, uphill battle to be successful, and not just because of a skeptical, combative Republican House.

Not since Franklin Roosevelt has a presidential speech to a joint session of the House and Senate on the economy had any effect, regardless of the boldness of the plan or its details.

“It is impossible to trace any recovery to the presidential proposals in almost every case,” says 24/7 Wall St., a financial news and analysis site that conducted a review of presidential speeches to joint sessions since the end of the Great Depression. 24/7 found seven speeches dealing with business and economic issues and concluded “they had virtually no effect on the economy, despite the detailed proposals.”

That alone is bad mojo for a president who needs to hit a homerun. But as hints about what Obama’s plan will contain began to leak, economists were already expressing mixed opinions  about some of the proposals, especially the hiring tax credit. It’s not certain that will be part of the plan; presuming it will be, however, economists were divided about the effect tax credits or exemptions have in spurring hiring. keep reading…

More Workers Than Ever Pursue Dreams, Jobs As Free Agents

by Aug 24, 2011, 4:56 am ET

The number of  “free agent” workers has nearly exploded in the last three years, and now 44 percent of working Americans describe themselves that way.

A Kelly Services survey says  economic necessity, the desire for more freedom and flexibility, and age have driven up the number of workers not tied to a single company for their livelihood. It’s a dramatic change from 2008, when Kelly’s survey found 26 percent of workers describing themselves as free agents.

Also fueling the rise is the increasing reliance of American business on contingent and contract labor, say the authors of a whitepaper detailing the results. Companies, note Jocelyn Lincoln and Megan M. Raftery, “can scale up and down faster and easier by adopting more flexible workforce strategies.”

A significant driver is the economy. Respondents to the 2011 survey were twice as likely as their counterparts in 2008 to say they became free agents because they were laid off or couldn’t find another job.

That suggests, the authors say, that as recovery occurs, some of the newly minted free agents will return to a traditional employee role. However, “the trend toward more free agents is still very strong and is increasing worldwide. Accounting for differences in legislative frameworks and social and cultural norms, we estimate that the global free agent population is at
least 20 – 30% of the entire workforce, and growing.”

Recently, USA Today wrote about the phenomenon of well-established professionals abandoning comfortable jobs to pursue their own interests.  “Employees bid goodbye to corporate America” chronicled several workers, including two recruiters, who quit to follow their own path.

As the Kelly Services report makes clear, the move by knowledge workers to keep reading…

Doing More With Less – Cost Effective Recruiting

by May 5, 2011, 2:20 pm ET

In this informative webinar, Linda Brenner shows you how to recruit the best with limited resources.

For more podcasts, webinars, and articles on recruiting be sure to check out!

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Hiring Outlook Is Positive, But Modestly So

by Jun 8, 2010, 12:01 am ET

At least no one is saying “Prosperity is just around the corner.” After Friday’s dismal jobs report, anyone even hinting that might be so would be subject to the same scorn that was heaped upon Herbert Hoover, the president of “rugged individualism,” who probably never actually uttered that phrase, though he came mightily close.

Yet despite the disheartening jobs report, news from the field, from the people in the best position to know of hiring plans, continues to point toward recovery.

Monday, The Conference Board released its Employment Trends Index for May, which rose for the ninth month in a row. The Index stands at 95.7, up from April’s 95.2 and up nine percent over the last 12 months.

“The ongoing growth in the Employment Trends Index suggests that the disappointing uptick in payroll employment in May could just be a one-month blip, and that jobs will likely expand further in the next several months,” said Gad Levanon, associate director, Macroeconomic Research at The Conference Board. “However, as some of the components of the ETI have yet to signal robust gains, the pace of recovery in employment may remain moderate.”

Today, Manpower released the results of its quarterly hiring survey, which says 18 percent of the 18,000 employers polled plan on hiring in the third quarter of the year. It’s the third consecutive quarter of a positive hiring outlook.

Manpower crunches the results to come up with a Net Employment Outlook. For the upcoming quarter that seasonally adjusted outlook is +6 percent. (From the percent of employers saying they plan to hire more, Manpower subtracts the percent who expect a payroll decrease — 8 percent in the current report. The result is adjusted to smooth seasonal fluctuations.)

“Manpower’s survey results show a positive trend in employers’ hiring plans,” said Jonas Prising, Manpower president of the Americas. “Although we are still facing a difficult labor market, more employers indicate confidence about the direction of their businesses, and with that comes an intention to increase their workforces. We are in the early stages of the jobs recovery, and although we have a long way to go, the job market will continue to improve from here.” keep reading…

Jobs Growth Misses Target; Unemployment Rate Drops

by Jun 4, 2010, 9:37 am ET

Fewer jobs than expected — alas, many fewer private sector jobs — were created in May, suggesting that employers are still not ready to begin hiring in any numbers. So expect a bumpy day in the financial markets.

The U.S. Bureau of Labor Statistics reported this morning that 431,000 jobs were created last month. That would be a strong signal of a return to historic hiring were it not that 411,000 of those jobs are temporary positions for the U.S. Census.  “Private-sector employment changed little (+41,000),” the BLS blandly stated.

There was improvement in the unemployment rate, which fell to 9.7 percent from 9.9 percent; small consolation when economists were predicting job growth of over half a million, with at least 100,000 from the private sector.

Furthering tempering the jobs numbers was a revision to the March number, decreasing the initial 230,000 estimate to 208,000. April’s increase of 290,000 jobs added was unchanged. keep reading…

Wall Street Ho-Hums Over Jobs Reports

by Jun 3, 2010, 1:04 pm ET

Initial claims for jobless benefits dropped by 10,000 last week. The ADP National Employment Report said nonfarm private employment increased 55,000 in May. The report also upped the April numbers from the initial 32,000 jobs added to 65,000. The Monster Employment Index rose — only by a point — but it did rise. And the U.S. Census Bureau said new orders for manufactured goods rose again in April.

Heartening, if not full-speed-ahead news? That would seem a reasonable conclusion, except on Wall Street where traders behaved as if the news should have been better. On the initial enthusiasm, the Dow rose quickly, only to give back all the early gains and drop 57 points by lunchtime.

Nevertheless, tomorrow’s jobs numbers from the U.S. Bureau of Labor Statistics is the most anticipated of the monthly labor reports. Economists expect the report will show somewhere around 513,000 jobs were added in May. Most of the jobs — somewhat more than 300,000 is the estimate — are likely to be temporary workers hired by the Census Bureau. keep reading…

Optimism Growing in Anticipation of Strong Jobs Report

by Jun 2, 2010, 5:34 pm ET

Good news is expected from three employment reports out this week. The key report will come Friday, an hour before the New York Stock Exchange opens, but already optimism about the number of jobs created in May seems to be the rule on Wall Street.

No less than the President himself said the employment report from the U.S. Bureau of Labor Statistics would not only be positive, but strongly so. “We expect to see strong jobs growth in Friday’s report,” Obama said in a speech in Pittsburgh today. “This economy is getting stronger by the day.” keep reading…

Facing Tough Job Market, New Grads Accepting More Offers, Lower Salaries

by Jun 2, 2010, 2:55 pm ET

As the last strains of Pomp and Circumstance played out over college quads and athletic fields these last few weeks, more than a few of the new graduates had to be wondering: What next?

A survey of graduating seniors found only a quarter of those in the Class of 2010 who applied for a job had one waiting. Conducted by the National Association of Colleges and Employers, this year’s results, certainly discouraging if you’re one of the grads or a parent, are an improvement over 2009, when only 19.7 percent had jobs waiting.

The ever-so-slowly improving economy is one reason for the better numbers. Another is savvier job hunting. “A greater number of Class of 2010 graduates accepted the jobs they were offered,” says Marilyn Mackes, NACE executive director. Last year, 45 percent of the students offered jobs accepted them; this year the acceptance rate rose to 59 percent. keep reading…

Monthly Jobs Report Is a Mixed Bag; Just Like The Economy

by Feb 5, 2010, 12:44 pm ET

Economic Indices Jan 2010This morning’s monthly jobs report was a mixed bag offering something for both the bears and the bulls.The good news: Unemployment dropped from 10 percent to 9.7 percent. The bad news: The economy continued to lose jobs, shedding 20,000 in January when economists expected jobs to at least be flat, if not grow.

The U.S. Bureau of Labor Statistics also revised its reports for November and December. In November, the BLS now says the economy gained 64,000 jobs, up from its previous estimate of a 4,000 job gain.

That improvement was more than offset by the bureau’s revision to its December number. Instead of the 85,000 job loss it first reported, the BLS now says 150,000 jobs were actually lost. keep reading…

Numbers Point to a Long, Slow Recovery

by Oct 1, 2009, 3:07 pm ET

Economists expect that tomorrow’s jobs report from the U.S. Bureau of Labor Statistics will show 175,000 jobs were lost in September, the smallest since July 2008.

A Bloomberg survey also says economists expect the unemployment rate to rise to 9.8 percent, the highest since 1983. An ADP report released this morning foreshadows the lower, yet still continuing job loss. The ADP ADP Employment reportNational Employment Report says the U.S. lost 254,000 private, nonfarm jobs in September, a drop of 23,000 from the revised August jobs report. It’s the lowest drop that ADP has recorded since August 2008.

Government economic reports released today showed the tentativeness of the U.S. recovery. A Commerce Department report said consumer spending in August was up 1.3 points, the biggest rise in eight years, and the fourth increase in a row. But fueled as it was by the Cash for Clunkers program, economists warn not to expect anything similar when the September results are reported at the end of this month.

Monster EMployment IndexMeanwhile, the Monster Employment Index, also released this morning, was down two points from September, while yet another report, this one from the Labor Department today, said 551,000 first-time claims for unemployment were filed last week, 17,000 more than the previous week and 20,000 more than the consensus of the 41 economists polled by Bloomberg.

Then there is the report from Challenger, Gray & Christmas which says fewer layoffs were announced in September than in any month since March 2008. The 66,404 layoffs tallied in the report are 10,000 fewer than in August and 30 percent lower than in September last year.

Today’s reports prompted the New York Times to start its story this way: keep reading…

David Szary’s Green Shoots

by Sep 11, 2009, 11:28 am ET

David Szary says financial services companies are hiring — a lot. Here, he talks about hiring and retiring in the banking sector and in healthcare. keep reading…

Lowisz: Recruiting is Recovering

by Sep 10, 2009, 10:00 am ET

You’ve heard that employment is a proverbial “lagging indicator.” Companies wait to hire until they’re sure an economic recovery is underway. Actually, that’s not true, says Stephen Lowisz, founder and CEO of Qualigence. keep reading…

What Happens If the Recovery Is Very Slow?

by Jul 10, 2009, 6:05 am ET

Despite my optimistic view of the past few months, I’m considering the possibility that the recovery could be very long in coming and very slow in growing.

If so, it’s important that you start planning your recruiting activity and resource needs for this worst-case situation.

To take a stab at this complex issue, imagine you’re in the boardroom with your company’s senior executive team discussing the impact of the prolonged economic slowdown on your current business strategy and the current year’s annual operating plan.

Your input involves your employees’ morale and productivity, the company’s organization structure, all of the organizational development plans underway and proposed, and the overall hiring outlook.

The Big Picture: Impact on the Company

While I’m no expert at this, I suspect the initial discussions last year at the initial executive confab, right after black September 2008, focused on massive short-term expense control. Hopefully, you were part of this planning session to make your views known.

keep reading…

12 Ways to Keep Recruiters Busy

by Jun 5, 2009, 5:52 am ET

If you’re like some corporate recruiting leaders before the current downturn hit, you had your staff balanced with a solid mix of regular full-time staff, supplemented with contract staff to get you through the hiring peaks.

But maybe you weren’t quite as fortunate, and your crew was heavily loaded with regular staff recruiters, who were going full steam to keep up with the incredible hiring requisition load. Or maybe you have shed the contractors, but even your remaining staff is struggling to stay busy. Unfortunately, now that the economy has gone south, they’re running half the req loads they once did. Not only are they questioning their own job security, but you’re constantly fending off queries from your boss, the rest of HR, and maybe even the CFO as to just what the recruiters are doing, and why should you be maintaining the same staff you had when the current workload has shrunken so dramatically. Sounding familiar?

Hopefully, back in January of this year, you took Lou Adler’s sound advice that “hiring will start to recover in Q2, 2009, and now is the time to rebuild your recruiting team and massively upgrade your sourcing and hiring processes.” Perhaps you’ve done just that, and are now well positioned to address any coming business increase. Or possibly you didn’t get that opportunity, or your business still hasn’t begun to bounce back.

In any event, you do have alternatives — methods you can use to gainfully deploy your staff resources in ways that clearly, and measurably, demonstrate their ongoing value to the business. The challenges will be different, depending on the size of the company you’re in. In a small firm, you are likely to have more latitude in initiating change — but possibly fewer resources available. In a larger firm with more resources, you are likely to need to build a support coalition of colleagues, business partners, or executives to create the right atmosphere for change. But in either situation, it’s critical that you build the “business case” — show the ROI through well-tracked and supportable metrics.

In my more than 20 years of recruiting leadership, predominantly in hi-tech, I’ve had ample opportunity to face this challenge, given the cyclical nature of that business. And as you can imagine, I willingly responded to a blog posting earlier this year asking other recruiting veterans for their experiences in facing the same issue. 13 of us shared our stories, from a variety of industries and backgrounds. The following are a few snapshots of some of the proven practices and strategies that have been successfully implemented by others to preserve their key recruiting assets during previous business slowdowns.

Some of these are creative twists on previous themes, while others represent really out-of-the-box thinking. [NOTE: All of them are predicated on the assumption that you know your staff --- their skills, strengths/weaknesses, and backgrounds. If you're new in the role, you might want to begin with a resume review and light career discussion with each of them.]

I do hope you find some of the suggestions below fascinating, creative, and useful. I will be presenting a seminar/workshop on this very subject, and with a lot of additional detail on implementation, at the upcoming ERE Expo in Florida in September, and we’d love to see you there. keep reading…