Staffing & Employment News
Gaining Traction, Momentum Continues
We had good news on the hiring front last week as the Association of Executive Search Consultants proclaimed 2010 to be the “Year of Resurgence” and the Business Roundtable’s first quarter 2011 CEO Economic Outlook Survey anticipated higher sales, increased capital expenditures, and additional hiring over the next six months, as well as a predicted real GDP growth at nearly 3% in 2011.
The Jobs Report backed up this optimism last week; March’s payroll employment gained 216,000, higher than the 200,000 predicted. January & February revisions were also higher by 7,000. While this is below the approximately 300,000 jobs needed on a monthly basis for significant impact on the unemployment rate over the next 5 years, it does surpass the 150,000 needed to keep pace with population growth.
While we’ve been adding jobs for over a year, “at March’s job growth rate it would still take until around 2018 to get back to the prerecession unemployment rate” according to economist Heidi Shierholz of the Economic Policy Institute. She points out that, despite the gravity of this recession, corporate profits are above the levels prior to the Great Recession as companies cut costs faster than revenues declined. As corporate confidence in the demand for goods and services grows, hiring should continue to pick up – and we are seeing that confidence grow!
We are gaining momentum. Today by the Conference Board Employment Trends Index™ (ETI) which reported growth in March for the sixth month in a row. At 100.9, the index is 8 % higher than one year ago. “The Employment Trends Index started signaling acceleration in employment growth late last year, which we are now experiencing. In the last six months, employment excluding construction and state and local government has been growing faster than almost any other 6-month period in the past decade. We do not expect a turnaround in those sectors, which are still lagging, nor do we forecast acceleration in overall economic growth in the next several quarters” stated Gad Levanon, Associate Director, Macroeconomic Research at The Conference Board in a press release.