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July’s Job Numbers: The Sky Isn’t Falling! (But Don’t Put Away That Chicken Little Costume Yet)

August 5th, 2011 Amy Chulik Comments off

July's Job Numbers: The Sky Isn't FallingIf you were betting on job numbers, and you bet that 18,000 new jobs were created last month, thinking we’d have a repeat of June, you’d be wrong. But it’s probably a bet you’d be happy to lose, because in July, we added 117,000 jobs, according to the Bureau of Labor Statistics’ “The Employment Situation” summary for July 2011. This jump followed two months of very little growth (in May and June).

Despite this growth and landing above Wall Street expectations, we’re still below the number needed to really make a dent in the unemployment rate — but it’s an improvement. So, the sky isn’t falling — and let’s just say we’re cautiously optimistic, yes?

Other details from this month’s “The Employment Situation” summary:

  • Net growth explanation: 154,000 jobs were created in the private sector, but with a loss in government jobs of 37,000, we saw a net increase of 117,000.
  • May and June’s low growth numbers have also had positive net revisions of  56,000.
  • The labor force, at 152.3 million, did not change much in July.
  • The unemployment rate was little changed but we did see improvement, from 9.2 to 9.1 percent. It’s important to keep in mind, however, that this lower rate was due to more individuals dropping out of the employment search (labor force participation fell from 64.1 percent to 63.9 percent).
  • Average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents to $23.13. Over the past 12 months, average hourly earnings have increased by 2.3 percent.
  • Neither average weekly hours or the number of temporary employees rose; as The Economist points out, both are indicators of future labor demand.

Hiring by industry

We saw job gains in health care, retail trade, manufacturing, and mining. Specifically:

  • Health care employment grew by 31,000 in July. Ambulatory health care services and hospitals each added14,000 jobs over the month. Over the past 12 months, health care employment has grown by 299,000.
  • Retail trade added 26,000 jobs in July. Employment in health and personal care stores rose by 9,000 over the month with small increases distributed among several other retail industries.
  • Manufacturing employment increased by 24,000 in July; nearly all of the increase was in durable
    goods manufacturing. Within durable goods, the motor vehicles and parts industry had fewer seasonal
    layoffs than typical for July, contributing to a seasonally adjusted employment increase of 12,000 jobs.
  • Mining employment rose by 9,000; virtually all of the gain (+8,000) occurred in support activities for mining.
  • Professional and technical services continued to trend up in July, with a gain of 18,000 jobs.
  • Employment in construction, transportation and warehousing, information, leisure and hospitality, and financial activities changed little in July.
  • Government employment continued to trend down in July, with a loss of 37,000. Employment in state government decreased by 23,000, due almost entirely to a partial shutdown of the Minnesota state government.
  • Average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents in July to $23.13. Over the past 12 months, average hourly earnings have increased by 2.3 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 8 cents to $19.52.

See what CareerBuilder CEO Matt Ferguson had to say yesterday on CNBC’s Squawk Box program about job creation, the biggest skill shortage we’re facing right now, and more.

What do you think about July’s BLS job numbers?

Jobs in America: CareerBuilder CEO Talks Job Creation, the Biggest Skill Shortage and More

August 4th, 2011 Amy Chulik Comments off

On CNBC’s Squawk Box this morning, CareerBuilder CEO Matt Ferguson discussed job expectations versus job creation; the disconnect caused by the structural mismatch between available jobs and available skills; the industry with the biggest skill shortage right now; and the area hottest in wage growth.

Check out what else Ferguson has to say about the state of jobs in America:

Did We Expect Too Much? November’s Disappointing Job Numbers

December 3rd, 2010 Mary Lorenz Comments off

Anyone else feel like they were just handed a Jelly of the Month membership – a la Clark Griswold in Christmas Vacation – right about now?

I suppose we expected too much, what with last month’s BLS Employment Situation Report revealing better-than-anticipated job growth in October and setting our hopes high for a similar outcome in November. But apparently, triple-digit job growth two months in a row is too much to ask.

I’ll just say it: the findings from November’s employment situation report suck. Maybe not November 2008 suck (remember those numbers? Those numbers sucked…), but the economy definitely lost momentum in the past month. By a lot.

After adding a whopping 172,000 jobs in October, the economy only added a fraction of that number in November: 39,000 new jobs, to be exact.  Not only did this figure fall short of the 150,000 added jobs economists predicted, but it also fell short of the 120,000 jobs needed to keep the unemployment rate steady, which explains why it rose to 9.8 percent (up from 9.6 percent in October). 

Some more findings from the report: 

  • Private employers added 50,000 jobs, the smallest gain since January.
  • 15.1 million people were out of work in November.
  • The number of underemployed (people working part-time who would prefer full-time jobs and those who have given up looking for work) was 17 percent.
  • Job losses included retailers with 28,100 job cuts; factories with 13,000; financial firms with 9,000; and construction companies with 5,000. The public sector eliminated 11,000 positions, mostly reflecting cuts from local governments.

A Few Bright Spots
While this month’s report likely necessitates a new word for “disappointing,” there were some bright spots: health care industry added 19,000 jobs last month, and the mining sector added 6,000 jobs. Temporary jobs continue to show strong growth, with 40,000 added jobs in November and an overall increase since September of last year.

It’s also worth noting that the unemployment rate is a lagging indicator, and that job growth typically slows in November anyway. What’s more, consider the remarks from financial research firm Baird, in a statement released today: “The weight of evidence from the ADP report, initial jobless claims, both ISM reports, and the Beige Book (not to mention multiple contacts with recruiters) continues to point to an improvement in the macro economy and in employment,” and, “We think this report will be revised.” 

So that’s something…right? *Sigh* Oh, Cousin Eddie, if only your heart “that’s bigger than its brain” could help us through this one.

Till next month, readers…

BLS Employment Situation Report for July — Channeling “Groundhog Day”?

August 6th, 2010 Amy Chulik Comments off

July’s job numbers were just released by the U.S. Bureau of Labor Statistics, and they may give you flashes of Bill Murray a la Groundhog Day, as the unemployment rate remained at 9.5 percent in July and another month went by without significant improvement in our employment situation.  But as Bill Murray’s character, Phil Connors,  reminded us in the film, we can see see the groundhog signifying six more weeks of winter as  bleak and dark and bereft of hope,  or look at the positives of the situation and acknowledge where we’re improving. After all, we’ve gained 630,000 private sector jobs this year — and there’s still five months of 2010 that remains to be seen.

Additionally, we’re seeing moderate, sequential improvements across almost every job category on CareerBuilder itself. Entry-level jobs are up 100 percent year over year,  and in the skilled areas for both construction and manufacturing, we’re seeing jobs up 50 percent year over year, as CareerBuilder CEO Matt Ferguson pointed out on CNBC’s Squawk Box this morning. Ferguson explained July’s job numbers from his point of view, how things have changed since 2008, and the good and the bad of what’s going on now.

Watch the VIDEO:


Let’s take a closer look at BLS’s Employment Situation report for July:

  • Both the number of unemployed persons, at 14.6 million, and the unemployment rate, at 9.5 percent, were unchanged in July.
  • Total nonfarm payroll employment declined by 131,000 in July, but those losses were due to to 143,000 temporary workers hired for the decennial census completing their work.
  • So far this year, private sector employment has increased by 630,000, with about two-thirds of the gain occurring in March and April.
  • The average hourly wage rose slightly in July, from $22.55, to $22.59. Over the past 12 months, average hourly earnings have increased by 1.8 percent.
  • Private employers added 71,000 jobs in July, up from a downwardly revised 31,000 in June but below the consensus forecast of 90,000.
  • The number of persons employed part time for economic reasons (because either their hours had been cut back or they were unable to find a full-time job) was essentially unchanged over the month at 8.5 million but has declined by 623,000 since April.
  • The average workweek for all employees on private nonfarm payrolls increased from 34.1 hours to 34.2 hours — signaling employers are looking for more productivity from the same number of workers.

NOTE: June’s number was revised dramatically downward to a total loss of 221,000 jobs. The agency originally reported that the nation lost 125,000 jobs in June.

Industry-Specific Changes for July:

  • Manufacturing employment increased by 36,000 over the month. Manufacturing employment has expanded by 183,000 since December 2009.
  • Health care added 27,000 jobs in July. Over the past 12 months, health care employment has risen by 231,000.
  • Employment in professional and business services was little changed (13,000) in July.
  • The number of jobs in temporary help services showed little movement (-6,000) over the month.
  • Employment in financial activities continued to trend down in July, with a decline of 17,000. So far this year, monthly job losses in the industry have averaged 12,000, compared with an average monthly job loss of 29,000 for all of 2009.
  • Construction employment changed little (-11,000) in July; 10,000 construction workers were off payrolls due to strike activity.
  • Employment in other private-sector industries, including wholesale trade, retail trade, information, and leisure and hospitality showed little change in July.

What happens next?

Although we’ve pointed out positives when looking at 2010 as a whole, expectations are high, and many say job market improvements are not keeping up with the number of entrants to the job market. An article in The New York Times stresses that today’s unemployment report renewed pressure on lawmakers to consider the next steps they might take to bolster the economy. After more of the same with job numbers, employers are hoping to break the Phil Connors cycle and wake up next to Rita with “I’ve Got You Babe” playing on the radio — er, wake up with more jobs to be had and more people getting work. Time will tell as to what combination of factors will get us there — and stop us from stepping in that same puddle every morning.

Six in Ten Workers Laid Off in Last Year Have Found New Jobs, According to CareerBuilder Survey

February 3rd, 2010 Amy Chulik Comments off

Resilience is not only found among the Oceanic 815 survivors of “LOST” — who returned to TV last night after five seasons of battling hostile island dwellers, a mysterious smoke monster, and the bounds of space and time  — but in taking a look at CareerBuilder’s updated survey among more than U.S. workers, it’s also evident among many workers who have been laid off in the last 12 months.

Although Bureau of Labor Statistics job loss numbers could be in the negative range for January, unemployed Americans continue to be steadfast in their job searches, and, according to CareerBuilder survey results, many workers laid off in the last 12 months have found new employment.


The Results

1. New Employment

Your company may even be among those who have brought on laid off workers this past year, as over half (58 percent) of those laid off in the last twelve months have found new jobs. Fifty-one percent have found full-time positions (up from 48 percent in June 2009) and 7 percent have found part-time positions (up from 3 percent in June 2009).

“Despite one of the most competitive job markets in decades, nine-in-ten workers say they have not given up on their job searches, and the amount of workers who have found work is evidence that their drive and determination are paying off,” said Brent Rasmussen, President of CareerBuilder North America.  “The number of laid-off workers who have found new full-time and part-time jobs rose in the last six months.  Although this good news reflects a healing economy, it also shows that job seekers are exploring career options in new industries and locations.”

2. Higher Salaries
Of those workers who were laid off in the last 12 months and found new jobs, 61 percent reported they were able to negotiate comparable or higher pay for their new positions. Thirty-nine percent of workers took a pay cut.

3. Greener Grass
More than half (51 percent) of laid off workers who landed new jobs said they found work in a different field than where they were previously employed. One-third of workers said they really enjoy their new positions.

4. Movin’ Out
It appears from survey results that fewer unemployed workers would consider relocating for a job opportunity; on the other hand, the number of workers who actually took an out-of-area opportunity when it arose increased in comparison to June 2009 results.

  • Twenty-six percent of workers who were laid off in the last twelve months and found jobs relocated to a new city or state, up from 20 percent in June 2009.
  • Of those who are still looking for employment, 37 percent reported they would consider relocating for a job opportunity, down from 44 percent in June.

5. Entrepreneurship
Consistent with June 2009 survey results, many job seekers, unable to find jobs,  are considering creating their own job.  Twenty-nine percent of workers who have not found jobs are considering starting their own business.

6. Expanding the Search
How did workers who were laid off in the last 12 months have since gained employment find their jobs?

  • Personal referrals (22%)
  • Online job boards (21%)
  • Newspapers and other print classifieds (11%)
  • Recruiting/staffing firms (8%)
  • Career fairs (5%)
  • Social media sites such as Facebook, MySpace, and LinkedIn (4%)

You can read the full press release here.