July Overall Numbers Disappoint, but Tech Employment Strong
July hires recruited by Redfish Technology were predominantly in the Enterprise Software, Mobile and Social Technology Platforms, and New Advertising Technology sectors. The most frequent positions recruited for included Senior Product Manager, Product Manager, Quality Assurance Engineer, Software Engineer, and Web Services/Server Side Java Developer.
Technology professionals averaged 3.6% unemployment rate in Q2 of this year, less than half that of the 7.6% for the overall U.S. unemployment rate. According to Dice, the best job growth in over a year was in data processing, hosting and related services; cloud service providers also appeared to be more in demand, as the number of jobs posted on Dice containing the word “cloud” hit an all-time high in July making up 6% of total job postings.
Friday’s jobs report disappointed, coming lower than expected at 162,000 even though the unemployment rate also came in lower than expected. July expectations were for a 175,000 gain. Private payrolls increased 161,000 after rising 196,000 in June (originally 202,000). The July rise was led by retail trade (+47,000), food services/drinking places (+ 38,000), financial activities (+ 15,000), and wholesale trade (+ 14,000), goods-producing (+ 4,000), manufacturing (+ 6,000), mining (+ 5,000), government (+ 1,000).
The National Federation of Independent Business (NFIB) reported that small business optimism dropped in June after 2 months of increases; however the Conference Board’s Leading Economic Index remained steady in June after rising the previous month. “… the LEI’s six-month growth rate remains positive, suggesting the economy will continue expanding through the end of the year,” says Conference Board economist Ataman Ozyildirim. That said the Bloomberg Consumer Comfort Index hit the highest levels since January 2008 this week, with men, single adults and renters at similar long-term highs dating back to the early days of the Great Recession.
The economy is expected to continue to improve at a “modest to moderate pace” according to the Federal Reserve Board. The 12 federal reserve districts reported that overall economic activity expanded from late May through early July, bolstered mostly by the housing recovery, consumers, and more factory output. “All nine U.S. Census Bureau divisions recorded private sector job growth in June, with the South Atlantic, Pacific, and West South Central [regions] generating the most new jobs for the second consecutive month,” says Ahu Yildirmaz, lead economist and senior director of the ADP Research Institute.