Staffing & Employment News
The BLS statistics were encouraging. Nonfarm payrolls were increased by 195,000 jobs in October. The private sector created 151,000 of these jobs, marking the 10th consecutive month of job growth. Almost 1/3 of these increases were in “professional and business services” specifically in professional and technical, computer systems design, management and technical consulting, administrative and waste services, and employment services. Employment in temporary help services also continued to increase in October. This month’s gain was 35,000; increasing 451,000 since September 2009 lows.
The problem with this growth is that we are behind by 11 million jobs as compared to the pre-recession unemployment rate of 5% in December 2007. To obtain this unemployment rate within the next 5 years, we need to see a net of approximately 300,000 jobs added every month.
Staffing job trends serve as an employment indicator, particularly when recovering from a recession. The American Staffing Association recently published an article entitled “American Staffing 2010: Turning Point” which discusses the ASA index and staffing as an indicator of economic growth. The ASA index bottomed out at the end of June 2009, but has grown almost continuously ever since.
Changes in staffing employment are likely to be reflected in overall nonfarm employment about six months later reportedly. Since July 2009, the ASA Staffing Index, which has been historically accurate, has increased nearly every week for over a year. The index peaked in late 2007 at 110 right after Thanksgiving, and the last time it hit 90 was in November 2008, following the onset of the financial crisis.
Let’s hope that the staffing bell weather rings in a growth rate that keeps the positive momentum going and meets our recovery expectations.
Current Employment Statistics Highlights October 2010, Bureau of Labor Statistics published November 5, 2010
“American Staffing 2010: Turning Point” Annual Economic Analysis Puzzles Through the Data and Explains the Trends By Steven P. Berchem
How America Can Create Jobs, By Andy Grove, of Intel & Lecturer in Management Stanford Graduate School of Business