Posted by Dana Fink, Director of Staffing at Glenmont Group
As “lifer” in the recruitment I have lived through thousands of employment reports in an effort to console myself through slow hiring periods or convince myself that the best is yet to come. Conflicting reports most recently have me perplexed however. Last week’s dismal employment report sent the bankers on Wall Street running for the hills, gave political candidates more reason to attack their opponents, and left me with a sense of malaise.
The U.S. government reported that only 80,000 jobs were created in June, the third straight month of weak hiring.
The reluctance of U.S. employers to add jobs shows that the economy is still struggling three years after the recession officially ended. An average of just 75,000 jobs were created every month in the April-June quarter, far below the 226,000 created every month in the first three months of the year.
But in my inbox this morning I foundthe following news report to be more encouraging. The employment market has always been cyclical. It just stinks to be on the losing end of a slow economy. I can say first hand, from my own pool of clients, that business is improving slightly. Clients are calling us with multiple openings but hiring slowly. So I read these reports with a grain of salt, consult my crystal ball and keep plugging along with my positive attitude.
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- EMPLOYMENT OUTLOOK IMPROVING ACCORDING TO NEW STUDY While the jobs recovery continues to lag that of previous recessions, the outlook for the back half of 2012 shows continued improvement over 2011, according to CareerBuilder’s latest nationwide survey. Forty-four percent of private sector employers reported they are planning to hire full-time, permanent staff from July 1 through December 31, 2012, an increase of nine percentage points over the same period last year. In last year’s forecast, the number of companies planning to hire full-time, permanent employees (35 percent) increased seven percentage points over 2010. The nationwide survey, which was conducted by Harris Interactive from May 14, 2012 to June 4, 2012, included more than 2,000 hiring managers and human resource professionals across industries and company sizes. “The rate of job creation has been slower than what we would have expected at this point in the recovery, but the market is stable,” said Matt Ferguson, CEO of CareerBuilder. “Two years ago, the hiring activity in the U.S. was driven primarily by large employers recruiting in metropolitan areas for a handful of industries or job functions. Today, we see job listings in all industries, market sizes and company sizes.” One-third (34 percent) of employers added full-time, permanent headcount in the second quarter, up from 29 percent last year and 33 percent last quarter. Nine percent decreased headcount while 56 percent made no change to staff levels and 1 percent were unsure. Looking ahead, 30 percent of employers plan to hire full-time, permanent employees in the third quarter, up from 26 percent last year.