Staffing & Employment News
Gloom and confidence, contradictory predictions on hiring and profits
Gloomy employment report numbers a surprise
The Employment Report for June has been called “moribund” and “abysmal”. On the eve of the report however, ADP predicted month-to-month strength in private payroll data, estimating a 157,000 gain. Other analysts also predicted better gains, projecting 125,000 in June. Instead, the BLS reported private payrolls at 75,000 and overall nonfarm payrolls at 18,000 due to declines in government sector employment (39,000 in June, 48,000 in May).
Confidence down despite projected rise in profits
The Conference Board measure of CEO Confidence dipped in the second quarter to 55, after rising in Q1 to 67. Lynn Franco, Director of The Conference Board Consumer Research Center said: “CEO confidence cooled considerably in the second quarter, a reflection of a sluggish U.S. economy. Looking ahead, expectations are that this slow pace of economic growth will continue. Regarding the outlook for profits over the next 12 months, the news was a bit more favorable, with about 70 % of CEOs anticipating profit increases.” (more…)