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3 Things You Should Know From the January 2016 Jobs Report

February 5th, 2016 Comments off
3 Things You Should Know From the January 2016 Jobs Report

January was a bit cooler than expected — and we’re not talking about the weather. The latest BLS jobs report, which was released this morning, came in short of expectations following a strong close to 2015.

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. Slow start to 2016. U.S. payrolls increased by 151,000 in the first month of 2016, which came in well below the 190,000 or more jobs that economists were expecting. Also, compare that to the 262,000 jobs added in December. The unemployment rate dropped to a number we haven’t seen in eight years.

2. Will the “weak” jobs report have broader repercussions? Here are some initial reactions to today’s report from around the web.

According to USA Today:

Stocks were lower in morning trading Friday after the release of a weak January jobs report, a key data point that shows a downshift in the U.S. economy amid global economic turbulence and which adds further uncertainty to Federal Reserve interest rate policy.

According to Reuters:

The dollar rose against a basket of currencies on Friday along with Treasury yields, but global stocks fell after a key U.S. jobs report painted a mixed picture of the labor market and left investors with a muddled view on rate hike prospects.

According to CNBC:

The job market has been a pillar of strength for the U.S. economy and a key reason that the Federal Reserve was able to hike interest rates, so January’s employment report has become even more critical amid new signs the economy has hit a soft patch.

3. An update on wages. We’ve been talking about wages remaining stagnant for months, but the bright spot in the January jobs report was wages.

And as The New York Times pointed out:

The American economy’s jobs machine cooled in January, but still performed well enough to push unemployment to an eight-year low and deliver some much-needed wage gains for ordinary workers.

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 Things You Should Know From the December 2015 Jobs Report

January 8th, 2016 Comments off
3 Things You Should Know From the November 2015 Jobs Report

The new year kicked off on a positive note, keeping up the steady pace with today’s December jobs report release, which exceeded expectations and closed out the year strong.

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. Strong way to close out the year. As a headline from The Wall Street Journal points out: “The U.S. added 292,000 jobs in December, capping [the] second best year since 1999.” With the addition of 292,000 workers to the U.S. workforce in December — which exceeded the 200,000 that economists were predicting — 2015 ended on a solid note. Here’s an official tweet from the U.S. Department of Labor:

2. Previous months were revised up. October and November jobs report numbers were a bit better than we thought they were. 

3. Wages still aren’t where they need to be. Despite December’s — and the year’s — solid economic performance, wages is an area that continues to lag behind.

According to The New York Times:

Despite the improving job market, sluggish wage growth remains a persistent thorn. Wages remained flat in December.

What does that mean for 2016? We’ll just have to wait and see.

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.

Latest Job Forecast Points to Strong 2016

January 7th, 2016 Comments off
AnnualJobForecast

Strong Job Growth Expected to Continue in the New Year

Last year’s hiring forecast showed the strongest outlook since 2006. This year, the trend of strong growth and confidence will only continue. Employer confidence is widespread, with more than one-third of employers planning to add full-time, permanent staff this year, according to CareerBuilder’s 2016 job forecast.

It is becoming more apparent to employers that, as competition for in-demand workers tightens in various fields, they will need to adjust their recruitment efforts to keep up with labor market trends and the demands of a more in-control workforce.

In addition to showing positive signs in terms of growth for both permanent and temporary hiring, this year’s forecast brought to light five key employment trends that will emerge in 2016, several of which are tied to higher competition for talent, innovation in sourcing and developing high-skill workers, and a push for more diversity in leadership.

Full-time and temporary hiring all to increase

Thirty-six percent of employers plan to increase full-time, permanent staff in the coming year, on par with last year’s strong numbers. Looking at specific industries, financial services and information technology have already been experiencing accelerated growth, and are expected to outperform the national average – at 46 percent and 44 percent, respectively. Manufacturing (37 percent) and health care (36 percent) are expected to mirror the national average.

Temporary and contract employment is also projected to pick up in 2016, with 47 percent of employers planning to hire temporary or contract workers, up slightly from 46 percent last year and 42 percent in 2014. While temporary and contract employment enables employers to maintain flexibility in their workforce, it also enables them to fill in-demand roles on a short-term basis while they look for more suitable replacements.

Solving the skills gap at home

The skills gap continues to be a pain point for the majority of employers. Sixty-three percent are concerned about the growing disconnect between the skills they need for their organizations and the skills candidates possess. Meanwhile, nearly half (48 percent) say they have extended vacancies within their organizations. In an effort to address these challenges, many are taking matters into their own hands. One in 3 employers (33 percent) say they plan to hire low-skill workers and invest in training them for high-skill jobs at their organizations this year.

Positions tied to revenue growth, innovation and customer loyalty will also see a surge in full-time, permanent hiring in the New Year. Customer service (32 percent), information technology (29 percent), sales (27 percent), production (24 percent) and administrative (20 percent) jobs top the list of areas for which employers plan to recruit the most in 2016.

Salaries to increase for new, existing employees

It’s no secret that money is one of the most influential factors when it comes to attracting and retaining workers. So it should also come as no surprise that, given the higher competition for high-skill candidates, employers are planning to increase their compensation offerings this year. Eighty-three percent of employers plan to increase compensation for existing employees – on par with 82 percent last year – and 66 percent will offer higher starting salaries for new employees, up from 64 percent last year.

While wage growth has been slow since the end of the recession and continues to be gradual, our findings indicates that we may see an uptick soon, particularly as employers adjust their compensation strategies to compete for in-demand, highly skilled talent as well as entry-level positions. Workers are gaining leverage; however, the money employers invest in finding the right talent now will save them money in the long run, helping them avoid costs associated with bad hires, lost productivity and long-term vacancies.

Recruiting the next generation

For several years now, filling positions in STEM-related fields (science, technology, engineering and math) has been an ongoing challenge for employers. In many cases, the skills employers need are not being cultivated in the labor market today, which causes workers and companies alike to miss out on realizing their full potential.

In effort to encourage the next generation to pursue STEM-related fields and other in-demand areas, employers are building relationships with students at an early age. Twenty-five percent plan to hire high school students as interns over the next 12 months.

Recruiting beyond U.S. borders

Employers will continue to look at talent pools outside the U.S. to help fill labor deficits. Nearly 1 in 5 (19 percent) say they will hire workers with H-1B visas in 2016, which will enable them to employ temporarily foreign-born workers for specialized occupations.

There continues to be debate around whether the U.S. should be importing workers to fill high-skill jobs, or investing in educating the labor pool that already exists on our shores. An earlier survey we did showed that employers who support raising the cap on H-1B visas believe that doing so will help decrease the skills shortage in the country and increase progress in STEM-related fields, among other benefits encourage

Prioritizing diversity in leadership roles

Another trend to watch for in 2016 is the diversification of demographics in organizational leadership. Like the population as a whole, the U.S. workplace is becoming more diverse overall. At the same time, there remains a lack of diversity in executive and leadership positions. Diverse organizations are shown to be more innovative, more inclusive, and better positioned to capitalize on an ever-changing consumer marketplace. A diverse leadership team can only strengthen these factors, and our forecast indicates that more employers recognize this.

Fifty-five percent of employers plan to hire or promote more women for management roles, and 53 percent plan to do the same for diverse workers. Forty-seven percent of employers plan to promote workers under the age of 30 into management roles.

2016 and beyond

On average, the U.S. has added 200,000 jobs each month over the last two years, and we expect 2016 to produce similar results, if not better. After several years of frustratingly slow growth, the job market – now back to pre-recession numbers – is showing signs of strong, consistent growth. Employers and job seekers alike should feel optimistic about these findings and what they mean for opportunities moving forward.

Read the full 2016 U.S. job forecast now

3 Things You Should Know From the November 2015 Jobs Report

December 4th, 2015 Comments off
3 Things You Should Know From the November 2015 Jobs Report

Like NBC’s star-studded live musical “The Wiz Live” that aired last night to rave reviews, the November jobs report — which was released this morning — delivered a solid performance and beat expectations.

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. Another month of strong growth. The U.S. economy added 211,000 jobs in November, keeping the streak of “solid” and “stronger than expected” jobs reports alive.

Meanwhile, the unemployment rate held relatively steady at 5 percent. But take a look at how it has changed over time.

2. Will they or won’t they? We are of course referring to the Federal Reserve. If you’re wondering whether the outcome of today’s jobs report will lead the Fed to raise interest rates, you’re not alone and, while there isn’t a guarantee, signs appear to be pointing in that direction. According to The New York Times:

The American economy created 211,000 jobs in November, the government reported Friday, a robust showing that all but guarantees policy makers at the Federal Reserve will raise interest rates for the first time in nearly a decade when they meet this month.

According to Forbes:

The Bureau of Labor Statistics released a somewhat stronger than expected November jobs report Friday, with numbers more than solid enough to support a interest rate hike from Federal Reserve later this month.

According to Business Insider:

On Friday morning, the November jobs report paved the way for the Federal Reserve to raise its benchmark interest rate in two weeks.

According to Marketwatch:

The economy produced another sturdy gain in new jobs in November, all but guaranteeing the Federal Reserve will raise U.S. interest rates later this month in response to a tightening labor market.

3. Winners and losers. Some industries fared better than others in November.

And speaking of winners, job gains for both September and October were stronger than was previously reported. October’s jobs numbers were revised up by 27,000 (from +271,000 to +298,000), while September’s gains were revised up by 8,000 (from +137,000 to +145,000). That’s a combined total of 35,000 more jobs than previously stated.

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 AugustSeptember and October jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the October 2015 Jobs Report

November 6th, 2015 Comments off
3 Things You Should Know From the October 2015 Jobs Report

We may be headed into winter, but today’s jobs report indicates the U.S. economy is heating up. On the heels of a relatively lackluster September, job growth in October surprised almost everyone — including economists — with nearly 100,000 more jobs than initially forecast and is thus far the best month for job growth in 2015.

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. Everyone was pleasantly surprised by October’s strong job growth. U.S. employers added 271,000 jobs in October, basically crushing initial expectations of 182,000. According to Business Insider:

The October jobs report was a blowout. Data out Friday morning showed that the US economy added 271,000 jobs in October. It was the strongest pace of employment growth this year, and nearly 100,000 jobs more than the consensus forecast for 182,000.

Headlines from leading news outlets — “Stellar October Jobs Report Blows Expectations Away,” “Jobs Report Crushes Expectations” — had similar sentiments, as did people’s reactions on Twitter.

 

What does this mean for the Federal Reserve and possible interest rate hikes? That remains to be seen.

2. More good news. The unemployment rate dropped slightly from 5.1 percent to an even 5 percent, which can be considered a milestone. According to The New York Times:

At 5 percent, the unemployment rate is very close to what would normally be considered the threshold for full employment by the Fed and many private economists.

Meanwhile, the combined total of August and September revisions takes the previously reported numbers up by 12,000.

3. We’re finally moving the needle on wages. Is it monumental growth? Absolutely not. But is it improvement and are we headed in the right direction? Certainly. According to Business Insider:

Wages grew at the fastest pace since mid-2009, as average hourly earnings rose 0.4% month-on-month, better than forecast.

And according to Fortune:

Average hourly earnings surged 9 cents per hour, much faster than economists were expecting. Over the past year, average hourly earnings have risen 2.5%, keeping ahead of inflation.

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 JulyAugust and September jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

A Better Way to Tackle the Skills Gap

October 27th, 2015 Comments off
A better way to deal with the skills gap

The skills gap has been at the forefront of the HR debate, especially when dealing with some highly specialized positions. Skills formation starts with students choosing their field of study. To help close the skills gap, it would be useful for students to look at employers’ needs when choosing majors and certificates. But is that really what’s happening?

A number of research studies have investigated how students choose their majors. Here are their main findings:

  • Labor market prospects play a significant role in determining students’ major choice.
  • Students’ ranking of the labor market prospects of broad majors is broadly accurate. For example, this means students know that science majors tend to earn more than humanities majors.
  • Students tend to underestimate the labor market prospects of most majors.
  • More disadvantaged students underestimate the labor market prospects of degrees more often, and they make larger errors.

 

What does this suggest for HR recruiting strategies?

If you can afford to work for the long term, you should consider approaching students at local universities and colleges who may be interested in your field of recruitment. Perhaps you could organize information sessions. Because students often underestimate the monetary returns to particular majors, you can help them by informing them about typical entry-level salaries in your field. Furthermore, concentrating on more disadvantaged students may be especially helpful because they often have less access to information to start with. In order to choose which universities or colleges to target, data from EMSI College Analyst shows you the educational institutions that are the most likely to train for your field of interest.

Of course, informational campaigns with students can take some time to pan out, since students still need to take classes before they can graduate with a relevant degree. In the short run, if you have difficulties recruiting, you may consider increasing compensation. Indeed, my research based on CareerBuilder data shows that higher compensation attracts more and better applicants.

 

Locate your target talent with the click of a button with EMSI College Analyst. Find out more here.

The White House, EMSI, and the Economic Impact of Higher Ed

October 20th, 2015 Comments off
White House and EMSI on the Economic Impact of Higher Ed

Remember President Obama’s initiative to provide free community college to some students? Well, last month, the White House released an update on America’s College Promise, which proposes that at least two years of community college would be free to responsible students — and which puts them halfway toward earning a bachelor’s degree.

This proposal is in response to the estimation that by 2020, 35 percent of job openings will require a bachelor’s degree or higher, and another 30 percent will require at least some college or an associate degree. Community colleges, as an affordable education option, are uniquely situated to respond to the president’s call to action. The proposal calls for an all-hands-on-deck approach: Community colleges must strengthen their programs and increase the rate of students who graduate; states must invest more aggressively in higher education and training, and students must earn good grades and stay on track to graduate.

The update from the White House cited EMSI’s recent national economic impact study for community colleges to demonstrate the positive impact of a higher-educated workforce. EMSI’s study calculates that community college graduates make an average of $10,000 more a year than those with just a high school diploma, and those who earn a four-year degree earn an average of $27,000 more per year.

And it’s not just students who would benefit from America’s College Promise: As the study showed, community college graduates of 2012 alone contributed $806.4 billion in added income to the national economy — a return on investment of $25 for every $1 spent by federal, state, and local governments.

Not. Too. Shabby.

Read the full update on America’s College Promise and EMSI’s National Impact Study on EMSI’s blog,  For more details on EMSI’s national economic impact study for community colleges, access the full report.

3 Highlights From the September 2015 Jobs Report

October 2nd, 2015 Comments off
jobs report

Like Kanye West’s last-minute surprise show at New York Fashion Week, the September jobs report released this morning turned out to be lackluster. U.S. employers only added 142,000 jobs even as the unemployment rate remained at a steady 5.1 percent, prompting discussions of an economic slowdown.

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. Economists — and the economy — aren’t having a great day. If you want to increase the odds of winning the lottery, you might not want to take an economist’s advice. That’s because they were predicting there would be more than 200,000 new jobs added to the U.S. economy in September, but the actual number came in at just 142,000. (Womp, womp.)

Here are a few reactions to today’s report.

From the New York Times:

“There’s nothing good in this morning’s report. We had very low levels of job creation, wage growth isn’t budging, and the unemployment rate would have risen if the labor force participation rate hadn’t fallen.” – Carl Tannenbaum, chief economist at Northern Trust in Chicago

From CNN Money:

“It’s a very disappointing report across the board. The U.S. economy is really buckling under the pressure of a global economic slowdown.” – Sung Sohn, an economics professor at California State University, Channel Islands

From CBS News:

“Ugly, really ugly, it’s just hard to find anything good in the report. After last month we could all point to jobs, and say at least they are holding in there. The report is telling us the domestic economy is slowing.” – JJ Kinahan, chief strategist at TD Ameritrade

2. Is this going to have a domino effect? The question on everyone’s minds today is: What does this say about the global economy and will this impact interest rates? The easy answer is: No one knows … yet. But it is looking a little less likely that the Fed will start raising interest rates in the near future, as was previously anticipated. They may just decide to push it off until next year, according to this report. Either way, we’ll just have to wait and see.

3. Even more bad news (sorry). When it rains, it pours.The August jobs report numbers that were initially reported last month (173,000) turned out to be quite inflated; that number was revised down to just 136,000 jobs. And to add just a little more salt to the wound, July’s numbers were also revised down, though not as drastically.

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 June and July and August jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

19% of Workers Could Not Make Ends Meet Last Year

September 21st, 2015 Comments off
Talent Factor

The recession is over, but times are still tough. According to a new CareerBuilder survey of workers who currently have a minimum wage job or have held one in the past, 67 percent said they couldn’t make ends meet, and 49 percent said they had to work more than one job to make things work.

But it’s not just minimum wage workers who are struggling. Nearly 1 in 5 (19 percent) of all salary levels were not able to make ends meet last year.

On top of that:

  • 65 percent of all workers say they’re in debt.
  • 18 percent of employees have reduced their 401(k) contribution and/or personal savings in the last year.
  • 28 percent of workers didn’t set aside any savings.

 

What Can You Do To Help?

Studies show that workers who aren’t distracted by financial worries and have the opportunity to have quality time with their families are more productive at work — and tend to stick around longer. There are a number of ways you can help employees make ends meet, but to choose appropriate offerings you need to know what will benefit your employees most. Some suggestions:

1. Appropriate parental leave: Even as employees are increasingly tethered to their work, a workplace culture that doesn’t urge new parents to hurry back to their cubicles makes life a bit easier for mothers and fathers juggling the demands of work and parenthood.

2. Paid sick days: Many workers, worried they will have to take an unpaid day off work, feel unable to take the time they need to recover from an illness. Further, many parents are forced to choose between taking off work — losing much needed income and potentially threatening their jobs — and sending a sick child who should be home in bed to school.

3. Affordable child care: When parents can’t afford to pay the market rates of high-quality child care, they make alternate choices that might risk their careers. By assisting working parents in sourcing child care benefits, employers provide a benefit that not only increases workers’ productivity through reduction of stress — it also helps create happy, loyal employees.

4. Boosting medical and retirement benefits: You can’t always raise salaries and wages, so offering a well-designed, generous employee benefits package including medical and retirement benefits can help cut some costs for employees. Consider increasing your company’s contributions toward health insurance or contributing toward the cost of insuring dependents.

 

Your employees are the ones who set you apart from the competition, and they are the ones who will pull you through challenging times. We’ve offered a few suggestions, but what else do you think HR can do to help cash-strapped workers?

3 Highlights From the August 2015 Jobs Report

September 4th, 2015 Comments off
3 Highlights From the August 2015 Jobs Report

Like President Obama taking selfies and busting some new dance moves during his recent trip to Alaska, the August 2015 jobs report released this morning was unpredictable and got mixed reactions. The U.S. economy added 173,000 jobs in August, which was below expectations, but at the same time the unemployment rate dropped to a 7-year low.

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. Let’s celebrate the unemployment rate. No, seriously — the unemployment rate has been slowly but surely moving in the right direction lately, and we hit quite a milestone in August: It’s now sitting at a 7-year low.

2. August numbers were lower than expected and June/July numbers were higher than reported. August numbers — 173,000 — came in lower than the 220,000 that economists were expecting, but as The New York Times puts it:

Although hiring in August was well below the 220,000-job gain that economists had expected, the unemployment rate fell to 5.1 percent from 5.3 percent, the lowest since early 2008. At that level, joblessness is nearing the level that economists and the Fed consider close to full employment…

And as Forbes puts it:

Just 173,000 jobs were added to the U.S. economy in August, according to the latest release from the Bureau of Labor Statistics out Friday morning. That’s well below market expectations as well as the 12-month average. However, with the unemployment rate coming in at its lowest level since April 2008, seemingly for the right reasons, and solid revisions to prior months’ payroll count the situation may not be as lackluster as the August figure suggests.

Additionally, June and July numbers were revised up by a total of 44,000 more jobs than were initially reported.

3. Wages went up a little. U.S. hourly wages ticked up in August and showed overall year-over-year growth, which is a positive sign especially given how wages remained stagnant for awhile earlier in the year. According to Business Insider:

We … got some wage growth, with average hourly earnings rising 0.3% month-over-month and 2.5% year-on-year.

And even though there’s more to be desired on the wage front,

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 May and June and July jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

Do We Really Have a Skills Gap?

August 28th, 2015 Comments off
Why we really have a skills gap

Throughout the month of August, our resident talent advisors have been discussing issues around the biggest recruiting issues right now and getting you ready for CareerBuilder’s Empower 2015. Subscribe to Talent Advisor to stay on top of the latest blog posts and discussions, and find out more about Empower 2015 here.


 
I loved studying economics at college. It opened a door for me to a world I’d never once considered. Before, prices just existed, resources just happened — and how they came together was simply a beautiful consequence of this wonderful world that I was starting to explore. The introduction of the forces of supply and demand was like some Hogwartian magic.

The labour market is no different to any other type of market in that the powers of supply and demand exist. Unfortunately, our labour market is broken, and this is one of the biggest challenges that the field of human resources has to face over the next decade. Our obsession with looking inside and not out has meant that we’ve allowed the problem to become bigger than it needs to be.

The real “skills gap”

We talk about a “skills gap,” but that gap didn’t just suddenly happen. It is the product of our lack of care and attention, our inability to influence policy makers, and our disregard for our supply chain. Fingers point around, looking for someone to take the blame — when the reality is we should have been noticing this trend sometime back in the early ’90s.

Imagine two spinning plates. One is 10 times the size of the other, but the motor rotating them both is operating at the same speed. You’re standing on the edge of the larger plate and required to leap and land at a specific point on the smaller one. That’s our labour market, and that’s why we think we have a skills gap.

The larger wheel working in longer cycles is our education system. It’s pushing out resources based on extremely unresponsive policy making and a fixed idea of the end of the production line. The smaller wheel is our business needs, operating at increasingly faster speeds and with less predictable needs. Many of the skills we require today, we hadn’t even thought of five years ago.

And yet we expect the markets to predict that and deliver.

Stepping up to the (spinning) plate

Market economics predicts the pull of demand will inform supply, but the increasingly different speeds of the cycles makes this impossible. Supply will not re-correct, which means demand has to — and this is where our challenge lies.

The forces of the past will tell you there is a new war for talent and that you need to go into the trenches to defeat your competitors. I’m telling you that this is only solved by changing what you want and looking to build capability internally. The skills gap can only be solved by organisations recruiting differently and developing the skills we need ourselves. The ones that do will be able to innovate, create and grow, they’ll gain competitive advantage – through human resources.

 

New here? Subscribe to Talent Advisor to stay on top of the latest blog posts and discussions that will help you take your HR game to the next level.

How Data Can Drive the Next Generation of Employment

August 14th, 2015 Comments off
how big data can transform education and empower employment

The great economic crisis of our day, a crisis of theory as well as practice, is a crisis of information.”
 –George Gilder, “Knowledge and Power”

 

Every year, millions of kids graduate high school and pursue college, or a job — or both. And that’s when the sinking feeling hits.

What career do I want? What education do I need? Will pursuing my dreams leave me with tons of debt? Will I get stuck in a job I hate just so I can keep the lights on?”

We’ve grown numb to the problem because it seems inevitable: Choosing the right career and education is flat-out overwhelming and that’s just the way it is. But does it have to be? Since when did this land of opportunity have to be a giant ocean that drowns us?

Houston, we have an information gap

Here’s the actual problem. There is a serious lack of actionable information to help students make career and education decisions. You can pick up your phone and Google just about anything (Should I carry an umbrella today? Where’s the best local sushi? How do I get downtown?), yet Americans still struggle to find reliable information to help them determine (1) the good careers that suit their interests and (2) the education that will help them get there.

Before fixing anything, let’s make an important distinction. Everyone has heard of the skills gap: Workers can’t find work, employers can’t find qualified employees, and the problem seems to begin even before college, as students leave high school without the right knowledge, ambitions, or expectations.

But this so-called skills gap, more often than not, is really an information gap. There are plenty of jobs and there’s plenty of talent; the trouble is connecting the two. All the noise kicked up by our sprawling economy (where some metropolitan areas are larger than entire nations, economically speaking) creates a deafening arena where tuning into the career path that’s calling one’s name can be maddening. Jobs! Schools! Degrees! So many options! High schoolers can’t sort, filter or work with this labor market data in any reasonable way.

Data isn’t the enemy

But data doesn’t have to be dumbfounding. It should actually be empowering. Using it is a matter of organization and application. In fact, thousands of businesses, higher education institutions, and public sector workforce and economic development professionals have used labor market data to make crucial decisions for talent strategies, program planning and economic growth. The solution lies in turning data into helpful information that students can easily find, comprehend, and use to make better decisions.

What if we could tell the 17-year-old senior that there are 20 local career opportunities that match her personality and would let her use her talents? What if we could show her the colleges and universities offering the education and training she needs to pursue her dream career? What if we could turn all this noise into meaningful information to help young people understand the opportunities that actually interest them — before they commit to college?

What would that do to the economy?

This is the solution we at CareerBuilder are working on in Find Your Calling — a new initiative that takes advantage of the huge amount of labor market data to change the way young people find the education they need to prosper in the careers they love.

Watch the video to see more about how Find Your Calling works.

 

Throughout the month of August, our resident talent advisors are discussing issues around the biggest recruiting issues right now and getting you ready for CareerBuilder’s Empower 2015. Subscribe to Talent Advisor to stay on top of the latest blog posts and discussions, and get your ticket to see Rob and other thought leaders speak about the future of employment at Empower 2015.

 

3 Highlights From the July 2015 Jobs Report

August 7th, 2015 Comments off
July 2015 jobs report BLS data economy

Unlike some of the unique personalities battling it out in this presidential campaign (we won’t mention any names), the July 2015 jobs report released this morning was steady, void of drama and in line with expectations.

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 were solid, but some say “so-so.” U.S. employers added 215,000 jobs in July, which is a little lower than the 225,000 that economists were expecting but still a solid number. The unemployment rate held steady at a seven-year low of 5.3 percent.

Here’s what some experts on Twitter had to say:

Well, OK then.

2. Wage growth? Yes please! According to Business Insider:

Wages grew a bit in July after coming in flat in the prior period. Average hourly earnings grew 0.2% month-over-month (+0.2% expected) and 2.1% (+2.3% expected) year-over-year in July.

Granted the increase isn’t something to be jumping up and down about, but we’ll take any increase we can get.

3. These industries came out on top. There are no winners and losers in life… just kidding! As Forbes reported, here are some industries that are winning at adding more jobs than others:

The sectors that added the most jobs were: retail trade (36,000), health care (28,000) and professional and technical services (27,000). Mining was the only major industry to lose jobs, cutting 5,000.

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 April, May and June jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

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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