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3 Highlights From the May 2015 Jobs Report

June 5th, 2015 Comments off
3 Highlights From the May 2015 Jobs Report

It’s as if the economy knew it was National Donut Day and wanted to join the celebrations by delivering a strong May jobs report this morning.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Jobs numbers FAR exceeded expectations. U.S. employers added 280,000 jobs in May, which is the biggest job gain since the end of 2014 and much higher than the 225,000 jobs economists were expecting.

That’s especially good news if you look back at some of the numbers from earlier this year.

2. The unemployment rate rose to 5.5 percent, but that’s not bad. Yes, the unemployment rate ticked up slightly from 5.4 percent in April, but there’s a good reason for it. As Reuters puts it:

While the unemployment rate rose to 5.5 percent from a near seven-year low of 5.4 percent in April that was because more people, likely new college graduates, entered the labor force, indicating confidence in the jobs market.

3. Where are we with wages? If you’ve been following our monthly jobs report recaps, you’ll know that we’ve been keeping an eye on wages, as they appeared to be stagnating for quite a while. But that may slowly but surely be changing. As Business Insider puts it:

The report … showed that wages rose faster than expected, with wages rising 0.3% over the prior month and 2.3% over the prior year.

And that’s not something to be taken lightly. After all, average hourly earnings have risen to its highest level since mid-2013 — and that’s certainly something to eat a donut about.

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the FebruaryMarch and April jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From The April 2015 Jobs Report

May 8th, 2015 Comments off
3 Highlights From The April 2015 Jobs Report

The U.S. economy, like the weather, has been somewhat unpredictable over the past few months. But just as Mother Nature shook off winter and spring finally emerged in many parts of the country, the U.S. economy rebounded after shaking off a disappointing month, according to the April jobs report released by the BLS this morning.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. The April jobs report numbers were pretty much in line with expectations. The April jobs report released this morning has been described as “pretty decent” and “boring,” which isn’t altogether a bad thing. After March’s disappointing numbers, we were hoping for a break — and got one. In fact, the unemployment rate fell from 5.5 percent to 5.4 percent, registering an almost seven-year low.

2. March numbers were revised wayyy down. While there typically are revisions, what stands out about March’s revisions is that it dropped from a slow 126,000 additional jobs to an even-more-dismal 85,000 jobs. Wage gains in March were also over-estimated — it has been revised down from a 0.3 percent increase to a 0.2 increase. All things considered, 2015 hasn’t been off to an ideal start. According to The New York Times:

Other recent reports have revealed a disappointing start to 2015, including new numbers out this week suggesting that the economy might have actually shrunk in the first quarter.

3. Wages are still not that impressive. Yes, we’ve made some strides in terms of wage growth over the past year, but the improvements are so slight that it’s nothing to write home about. According to Business Insider:

Solid wage growth is seen as one missing piece to creating a picture of full employment. This month’s wage growth was expected to be slightly higher than it has been over the past few months.

In the April jobs report, we saw average hourly earnings increase by 0.1 percent compared to March compared to the 0.2 percent economists were expecting. We also saw 2.2 percent annual growth in wages compared to the 2.3 percent that was expected.

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the JanuaryFebruary and March jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

Temping in the New Economy

May 5th, 2015 Comments off
office worker

It’s a common enough scenario—you have a candidate that’d be perfect for a temporary role you’re trying to fill, but the word “temporary” scares them off due to misconceptions about career security or compensation.

Now’s the time to change the reputation of temporary employment. Nearly 3 million people are employed in temporary jobs, and data from CareerBuilder and Economic Modeling Specialists Intl. shows that number will continue to rise in 2015 and the future. Temporary employment is expected to grow 13 percent (354,877 jobs) from 2014 to 2019, and was among the first industries to add jobs when the recession officially ended, growing 15 percent from 2009 to 2010 and 57 percent from 2009 to 2014.

Here’s the information that can help bring new talent to the temporary workforce.

High-paying, fast-growing temporary employment

Temping in the new economy can actually lead to more lucrative options that—contrary to common misconceptions—offer job security workers are looking for, as two in five U.S. employers expect to hire temporary or contract workers this year.

Fast-growing occupations for temporary employment from 2014 to 2019 that pay $15 or more per hour* include:

Occupation Temp Jobs (2014) Temp Jobs (2019) % Change (2014 – 2019) Median Hourly Earnings
Computer Systems Analysts 11,802 14,024 19% $39.15
Accountants and Auditors 11,130 12,654 14% $31.40
Management Analysts 10,923 12,418 14% $38.49
Computer User Support Specialists 19,597 22,276 14% $22.68
Software Developers, Applications 11,698 13,292 14% $44.95
Customer Service Representatives 88,610 100,642 14% $15.02
Heavy and Tractor-Trailer Truck Drivers 25,075 28,479 14% $18.67
Registered Nurses 46,052 52,296 14% $32.60
Maintenance and Repair Workers, General 23,806 27,027 14% $17.26
Machinists 21,493 24,391 13% $19.07
Construction Laborers 50,505 57,275 13% $15.61
Secretaries and Administrative Assistants, except Legal, Medical, and Executive 68,486 77,660 13% $15.89

 

New talent for temp positions

With such bright opportunities ahead in temporary employment, this can be an opportune moment to attract job candidates who are unfamiliar with temp work, but might be a good fit for the role.

For instance, workers who might be good candidates to consider offering temporary roles include those who identify as:

  • Underemployed (39 percent of respondents in a separate CareerBuilder survey said they felt underemployed and 31 percent of those who answered such are planning to change jobs in 2015)
  • Overlooked (23 percent feel overlooked for a promotion in their current job; 31 percent of these workers plan to change jobs in 2015)
  • Immobile (26 percent are dissatisfied with career advancement opportunities in their firm; 37 percent of these workers plan to change jobs in 2015)
  • Underpaid (41 percent didn’t receive a pay increase in 2014; 22 percent of these workers plan to change jobs in 2015)
  • Imbalanced (17 percent are dissatisfied with their work/life balance; 33 percent of these workers plan to change jobs in 2015).

Discussing career goals can often reveal pain points in a person’s job or past work that they’re interested in moving past now. And highlighting the new opportunities for growth, earning power and experience in an economy that’s embracing temporary workers is a smart way to bring smart talent to temporary roles.

*Median hourly earnings covers anyone working in that occupation whether they are temporary or full-time, permanent staff.

3 Highlights From the March 2015 Jobs Report

April 3rd, 2015 Comments off
3 Highlights From the March 2015 Jobs Report

Like a model accidentally giving away a $22,000 car on “The Price Is Right,” the March jobs report — released this morning — was an epic fail. The final count of jobs added in March didn’t come anywhere close to what economists were expecting.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Not-so-good jobs report on Good Friday. Headlines today are screaming everything from “ugly” to “abysmal” to describe the March jobs report — and with good reason. Economists were expecting 248,000 jobs to be added in March, but the dismal number we all woke up to was 126,000. That’s a difference of 122,000, in case you were wondering. That amounts to the weakest job gains number since December 2013. According to The New York Times:

Analysts blamed the plunge in oil prices as well as the punishing weather in the Northeast, a combination that put a crimp on investment in the energy patch and construction and retail sales more broadly. But many still expect the economy to regain at least some of its momentum later this year.

2. January and February numbers were revised down. Some revisions were made to previous jobs reports from what was initially reported. January’s employment gains were revised down from 239,000 to 201,000 — a drop of 38,000 — while February’s numbers were revised down from 295,000 to 264,000 — a drop of 31,000. Combined, that’s a difference of 69,000. 

3. Wages are the silver lining. There has been increased scrutiny on wages in recent jobs reports and, while we still have a ways to go, there is ever-so-slight progress being made. According to Forbes

In March average hourly earnings rose by 7 cents to $24.86. The 12-month wage growth rate ticked up to 2.1%.

And Business Insider:

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the DecemberJanuary and February jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the March 2015 Jobs Report

April 3rd, 2015 Comments off
3 Highlights From the March 2015 Jobs Report

Like a model accidentally giving away a $22,000 car on “The Price Is Right,” the March jobs report — released this morning — was an epic fail. The final count of jobs added in March didn’t come anywhere close to what economists were expecting.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Not-so-good jobs report on Good Friday. Headlines today are screaming everything from “ugly” to “abysmal” to describe the March jobs report — and with good reason. Economists were expecting 248,000 jobs to be added in March, but the dismal number we all woke up to was 126,000. That’s a difference of 122,000, in case you were wondering. That amounts to the weakest job gains number since December 2013. According to The New York Times:

Analysts blamed the plunge in oil prices as well as the punishing weather in the Northeast, a combination that put a crimp on investment in the energy patch and construction and retail sales more broadly. But many still expect the economy to regain at least some of its momentum later this year.

2. January and February numbers were revised down. Some revisions were made to previous jobs reports from what was initially reported. January’s employment gains were revised down from 239,000 to 201,000 — a drop of 38,000 — while February’s numbers were revised down from 295,000 to 264,000 — a drop of 31,000. Combined, that’s a difference of 69,000. 

3. Wages are the silver lining. There has been increased scrutiny on wages in recent jobs reports and, while we still have a ways to go, there is ever-so-slight progress being made. According to Forbes

In March average hourly earnings rose by 7 cents to $24.86. The 12-month wage growth rate ticked up to 2.1%.

And Business Insider:

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the DecemberJanuary and February jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the February 2015 Jobs Report

March 6th, 2015 Comments off
3 Highlights From the February 2015 Jobs Report

Americans may have been divided on what color the dress was, but we can all agree that the February 2015 jobs report — which was released this morning — was a win. The U.S. economy added a whopping 295,000 jobs in February, while the unemployment rate dipped from 5.7 percent in January to 5.5 percent.

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Overall the jobs report was pretty solid. U.S. employers added 295,000 new jobs in February, beating the 240,000 that economists were expecting. The unemployment rate also dropped to 5.5 percent (economists were expecting 5.6 percent) — and just so you know, that’s the lowest the unemployment rate has been in nearly seven years (since May 2008, when it was 5.4 percent).

2. We’re moving in the right direction. OK, so there are a lot of bumps along the way. In terms of revisions, December’s numbers remained unchanged at 329,000 while January was revised down 18,000 (257,000 to 239,000). No one’s saying the economy is anywhere close to perfect, but given recent trends we at least appear to be headed in the right direction, so let’s take a moment to savor a few facts:

Job gains have averaged 288,000 a month the past three months.

And…

February marks the 12th straight month of jobs gains over 200,000.

slow cap for jobs report

3. Wages still need some work. Remember how we said a few months ago that there would be increased scrutiny on wages in upcoming jobs reports? Well, there has been … and, unfortunately, it’s one of the areas that could use significant improvement. As Fortune puts it:

Hourly wages advanced 2%, falling short of the 2.2% gains logged in January. Those two months still fall short of the 3% annual wage growth seen prior to 2007. While employers have picked up their hiring, they’ve been less apt to boost pay. Economists and regulators have been anxiously waiting for wages to pickup, a key indicator for when the Federal Reserve may raise interest rates.

4. Bonus insight: Despite what the “evidence” says, the dress is without a shadow of a doubt white and gold.

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the NovemberDecember and January jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

Job Growth is Strong: Will you Have to Pay More?

February 19th, 2015 Comments off
Wage growth

According to the January jobs report, U.S. employers added 257,000 jobs, beating expectations. The report has also shown some increase in wages. The bad news within this good news is you may have to increase compensation.

In a recession, the increase in unemployment puts downward pressure on wages. In fact, a high level of unemployment can indicate that wages are too rigid and have not come down enough. It’s supply and demand: In a recession, demand for workers is low, so wages need to decrease to allow more workers to find and keep a job. Right now, we are (finally) out of a recession, so one can expect wages to come back up as job creation increases and unemployment decreases: But how quickly do these adjustments happen? What do we know about wages’ response to the business cycle?

If we look at all employed workers, we see that, in the U.S., a 1 percentage point decrease in unemployment is associated with a 1.2 percent increase in real wages (i.e. after accounting for inflation). So if the unemployment rate were to decline from its current 5.7 percent level to 4.7 percent by the end of the year, real wages would likely increase by about 1.2 percent. This number gives us an idea of how much the compensation of the average worker is likely to increase if the economic outlook continues to improve.

The impact on new hires

Recruiters, beware: For new hires, the impact of economic conditions is even stronger. If the unemployment rate were to decline from its current 5.7 percent level to 4.7 percent by the end of the year, real wages of new hires would likely increase by about 1.8 percent (Martins, Solon, Thomas, 2012). CareerBuilder’s Supply & Demand portal can help you stay ahead of the compensation trends and decide on a competitive compensation package for your vacancy. In a nutshell, recruiters should budget for increases in the compensation to stay competitive in the race for talent as the state of the economy improves.

Have you had to increase compensation for new hires? Tell us in the comments section.

 

 

STEM Jobs Drive 3 of the Top 5 Metros on Labor Market 150 Index

February 9th, 2015 Comments off
TalentFactor_THS-01

CareerBuilder and Economic Modeling Specialists Intl. have released the inaugural Labor Market 150 Index, a quarterly ranking of the labor markets of the largest 150 U.S. metropolitan areas. Using historical and leading indicators, the Labor Market 150 Index provides a detailed and comprehensive picture of local job markets.

The index makes it clear that STEM industries – those reliant on workers with science, technology, engineering and math skills – have the ability to put cities on the map – literally. Of the top 5 cities on the Index, 3 are home to industries reliant on STEM and knowledge jobs. This trend is evident throughout the list.

The following tech hubs all finished inside the top 20:

  • Austin, Texas (No. 6)
  • San Francisco-Oakland, California (No. 14)
  • San Jose-Sunnyvale, California (No. 15)
  • Seattle, Washington (No. 16)

What This Means for You

With this kind of impact on local job markets at large, the already aggressive competition over highly skilled technical workers isn’t likely to die down any time soon. To attract these sought-after candidates, employers need to acknowledge the increasing demand by offering competitive salaries and benefits packages. Another option is to reskill current employees, which can also have the benefit of quicker integration to your company’s dynamic, as well as increased loyalty and satisfaction from your employees.

Want to receive Talent Factor by email? Subscribe here and get a brand new recruiting industry statistic delivered to your inbox every Monday. Join the conversation on Twitter: #TalentFactor.

3 Highlights From the January 2015 Jobs Report

February 6th, 2015 Comments off
3 talking points from the January 2015 jobs report

U.S. employers came out swinging in the New Year with a strong January 2015 jobs report, which was released this morning. The U.S. economy added 257,000 jobs in January — more than economists had been expecting — and there were also a few other positive surprises sprinkled throughout the report.

Here are a few of today’s headlines so you can get a sense of the reaction to the report: “Jobs Report Crushes Expectations,” “This Is a Great Jobs Report Across the Board,” “Good Jobs Report Is Good News for Stocks” and “It’s Raining Jobs!

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Solid numbers all around — and labor force participation increased. U.S. employers added 257,000 jobs in January, beating expectations. And even though the unemployment rate ticked up slightly from 5.6 percent to 5.7 percent, it’s not necessarily bad news because in this case the labor force participation rate increased, which means a greater number of Americans entered the labor force. As The New York Times explained:

That uptick in the unemployment rate? It happened not because fewer people had jobs, but because the size of the labor force rose by a whopping 703,000 in January after annual population adjustments.

2. Everyone’s buzzing about November and December revisions. And you should, too. Both months posted massive gains compared to what was previously reported. The BLS revised November’s numbers up by a whopping 70,000 (from 353,000 to 423,000), while December’s numbers were revised up by 77,000 (from 252,000 to 329,000). That’s a total of 147,000 additional jobs. Significant? Yes. As The Wall Street Journal reported:

November’s overall job gain — 423,000, revised up from the prior 353,000 figure — was the biggest since May 2010, when the government was hiring Census workers. November private-sector hiring was the most since September 1997.

3. Wages are slowly picking up. Remember how we talked about the stagnation of wages last month? (Here’s last month’s recap, if you want to refresh your memory.) Average hourly earnings in January, however, took a slight turn for the better increasing by 12 cents to $24.75. That’s a 2.2 percent jump from last January. Will the upward trend continue in the months to come? With talk about wages heating up across the country, you can expect this topic to continue to be front and center for months to come.

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the OctoberNovember and December jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Talking Points From the December 2014 Jobs Report

January 9th, 2015 Comments off
highlights from the BLS report

While temperatures plunged and a deep freeze gripped much of the U.S., job creation thankfully continued to thaw. According to the December 2014 jobs report released this morning, U.S. employers added 252,000 jobs in December, which exceeded the 240,000 that economists were expecting, while the unemployment rate dropped to 5.6 percent (the lowest it’s been since June 2008). Also, if you look at the past year, more than 2.95 million jobs were created in 2014, which signals the strongest year of job growth in 15 years.

That’s great news, right? Absolutely — but let’s look at the whole picture.

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Job creation stays (relatively) strong … but there are caveats. U.S. employers added 252,000 jobs in December, beating the 240,000 that many economists were expecting. Meanwhile, the unemployment rate dropped to 5.6 percent, the lowest level since the recession. Numerous news outlets touted 2014 as the best year for job growth in 15 years (since 1999).

Hold the celebrations though because there’s still a lot of work to be done. For starters, consider the labor force participation rate that hasn’t been impressive and dropped 0.2 percent (to 62.7 percent) in December. Also, the number of long-term unemployed individuals, or those who have been out of work for more than 27 weeks, is nowhere near where it should be.

2. There were significant positive revisions. The already-glowing November jobs report — which the BLS had initially reported had added 321,000 jobs — was given even more of a boost when that number was revised up to 353,000. That’s a 32,000 difference, in case you were wondering. The BLS also revised up the October numbers from 243,000 to 261,000 (a difference of 18,000). For the two months, that amounts to a 50,000 increase than was previously estimated.

3. What’s up with wages? Possibly the most unsatisfactory part of today’s jobs report was the underwhelming average hourly earnings, which have remained relatively stagnant over the past five years. After some glimmering hope emerged when it increased by 0.4 percent in November, everyone was hoping the upward wage trend would continue. But nope. Hopes were dashed when it dropped 0.2 percent in December.

You may not have seen this wage stagnation dominating headlines in the past, but many experts say this piece is integral to a successful and sustained economic recovery moving forward. So watch for more of a focus on wages in upcoming labor market reports and analysis.

Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the SeptemberOctober and November jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

45% of Employers Expect to Raise the Minimum Wage in 2015

January 5th, 2015 Comments off
Talent Factor

As CareerBuilder CEO Matt Ferguson previously mentioned, the U.S. job market is turning a corner as caution gives way to confidence. More than one-third of employers expect to add full-time, permanent staff in 2015, the best hiring outlook from CareerBuilder’s U.S. Job Forecast since 2006.

And with that news comes news that nearly half (45 percent) of employers anticipate their organization will raise the minimum wage this year. Of these employers, more than half (53 percent) will raise it by $2 or more per hour, while one-third (32 percent) will raise it by $3 or more. Forty-seven percent will limit the increase to $1 or less.

To increase or not to increase

The issue of salary increases is one of the most hotly contested workplace issues as of late — and that’s not expected to change anytime soon. Of the 45 percent of employers who anticipate raising the minimum wage within their organizations this year, the largest percentage of them (21 percent) say they plan to pay minimum wage workers at their organization between $10 and $10.99 per hour. The next largest group (18 percent of employers) say they plan to pay $15 or more per hour.

Employer Wage Plans 2015

What this means for you

While salary isn’t always the No. 1 consideration for candidates (and your current employees), it’s a big one. As companies are still fighting the skills gap and as in-demand candidates for certain occupations are getting harder and harder to come by, organizations may want to consider raising the bar when it comes to compensation in order to stay competitive and retain the best people in 2015.

Get the full story: READ THE FULL 2015 U.S. JOB FORECAST NOW

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