Staffing & Employment News
Executive-level employment this year continues to be positive in certain industries, those showing the highest demand are healthcare, clean energy, pharmaceutical and high-tech sectors at the most senior levels. Non-executive hiring is also reportedly increasing. Approximately half of corporations with a hiring freeze in effect last year have already lifted or planned on lifting these by the end of Q2. At Redfish we are certainly seeing more hiring and as importantly more job reqs being authorized. The July ADP figures have been released showing that US companies added more workers in July than forecast. A gain of 42,000 workerts followed a revised 19,000 increase the prior month, according to figures from ADP Employer Services published 8/4/2010.
Despite some less than rosy statements issued by Ben Bernanke recently on the average growth in private payrolls of 100,000 a month in 2010 being “insufficient to reduce the unemployment rate materially,” and it will probably take a “significant amount of time” to restore the almost 8.5 million jobs lost in 2008 and 2009. On the brighter side, Fed policy makers “expect continued moderate growth, a gradual decline in the unemployment rate and subdued inflation over the next several years.” Business investment in equipment and software “appears to have increased rapidly” in the first half, and “stronger exports” have aided U.S. manufacturing growth, according to Bernanke.
A Career Builder survey in July shows that nearly 1/3 of small businesses will be hiring in the second half of 2010, and more than ¼ of those folks laid off are considering starting their own business. The survey results are positive: Consider that small businesses employ half of the private sector workforce and are the principal engine for new jobs, and that the downturn has shed a lot of great talent that can become a new force for entrepreneurship.
A survey quoted by Mike Neidle, president of Optimal Management, Inc, noted that while only 14% of these firms added head count last year, 20% anticipated increasing staff this year. Mr. Neidle goes on to say that increased hiring will be seen in high tech, manufacturing, financial services, and sales. He notes that small companies, who have over the last couple of decades been the greatest source of new jobs, can be expected to remain sluggish in hiring.
Mr. Neidle wrote in his recent article “Navigating the Economic Landscape”: “We have lost well over seven million jobs from our high in December 2007. Many of those jobs will never return. The old concept of an interim layoff with the expectation of being hired when business improves is over, as many sectors have learned to do without. Those jobs that have seen the greatest impact here are those related to automation, computerization, off-shoring, construction, office services, retail and low skill assembly line workers. Some 40% of those unemployed have been so for over six months and will have to be retrained for other work.
Overall, employment is off 10% from its high in mid-2007 though the temp job sector is rising from the depths; however, it is still off 37% from its high in late 2006. We hit bottom during the first quarter of 2009 and have now fully recovered from that point, rising 15%. We are still off 26% from our high. Some of the sectors expected to see growth are IT, biotech, healthcare (but later on in the recovery), food services and education.”
Mike Neidle, president of Optimal Management, Inc., (www.optimal-mgt.com), 650-655-2190, started mentoring staffing owners and managers in 1994 to maximize sales, profits and company value. He was senior executive VP for two national staffing firms; CEO, CFO, Director of Planning/M&A and Marketing Director from startups to Fortune 500 Corporations. He has an MBA and a chemical engineering undergraduate degree. He sits on the Redfish Technology, Inc. Board of Directors.