Staffing & Employment News
October Beat Expectations
October payrolls exceeded forecasts at 171,000 (private payrolls hit 184,000), and revised August and September numbers were up a net of 84,000. New job creation was led by professional and business services (51,000), health care (31,000), retail trade (36,000), leisure and hospitality (28,000), and construction (17,000). The Monster Index, measuring online job demand, increased by 2% in October.
The overall U.S. unemployment rate inched up slightly change from September, increasing 0.1% to 7.9% in October. According to the household survey, the rising unemployment rate reflects a bump up in the labor force of 578,000. Analysts say such an increase in the labor force is a sign of confidence in the labor market.
Staffing employment also increased by 7.7% over a year ago. “Staffing employment growth continues to outpace overall labor market growth as businesses look strategically for higher levels of work force flexibility,” says Richard Wahlquist, president and chief executive officer of the American Staffing Association. “Staffing firms report growth in demand across many sectors, led by increases in demand for higher-skilled talent.”
“Businesses have turned more cautious in recent months, but that has yet to impact their hiring and firing decisions,” says Mark Zandi, chief economist of Moody’s Analytics. Robert Half International Inc. reported revenues of $1.03 billion for the third quarter ended Sept. 30, a 5% increase over last year. Redfish Technology Inc. reported a third quarter 2012 increase of 58% over last year in permanent placement revenues.