June 4, 2012

Big Disappointment in the Jobs Numbers this Month.

Staffing & Employment News

Big Disappointment in the Jobs Numbers this Month.

At half of what was expected, the U.S. added only 69,000 jobs in May.

 

The pace of hiring slowed sharply, and the weakness was across the board. Some economists attribute this to employers taking the sideline in the midst of economic uncertainties in Europe and fears of a global slowdown.

 

March and April were both downwardly revised by about 50,000 jobs. Unemployment rate rose for the first time in almost a year, to 8.2 percent from 8.1 percent.

 

This month marks the third year since the Great Recession officially ended. And yet, we have a net of 5 million jobs less than we did in December 2007.

 

That said there are sectors that remain strong and optimistic.

 

Industries currently hiring include: transportation and warehousing, durable goods manufacturing, and the staffing industry. 2012 leading industries for executive job growth are predicted to be Healthcare, High Technology, Manufacturing, Business Services, and Energy/Utilities.

 

Over the last year, S&P 500 companies increased headcount at a rate of 4.2 percent according to Thomson Reuters data. S&P 500 technology companies showed the biggest boom, with a nine to one ratio for companies increasing job counts. Internet companies also made a strong showing. The Silicon Valley Bank Start-Up survey indicates that the software sector is booming as it moves into software-as-a-service, business intelligence, virtualization, cloud computing, and free and open software. According to the survey results, nine of 10 software startups plan to hire.

 

KPMG’s annual Technology Industry Business Outlook survey indicates next year will be a moderate growth phase for employment, revenue and spending. Technology executives surveyed pushed out their expectation for the U.S. economic recovery, more than two-thirds of them don’t see the economy recovering substantially until 2014 or later.

 

According to the NFIB, the Small Business Optimism Index gained 2 points in April to 94.5. This is the highest reading since December 2007, however it is at the same level as in February 2011, showing lack of momentum over the last year.

 

Another positive reading comes from the ExecuNet exclusive Recruiter Confidence Index, a proven leading economic indicator during upturns and downturns and reflects the relative optimism executive recruiters have in the future growth of the executive employment market. The index has been reading above 50% for the last several months.

 

Redfish Technology, High Tech and Clean Tech executive recruiters, publishes the Staffing & Employment News monthly following the Bureau of Labor Statistics’ Employment Report. You can subscribe to the feed or catch a monthly wrap up of stories related to high technology and renewable energy and clean technology, as well as hiring, recruiting, career management, talent acquisition by subscribing to our monthly newsletter.

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