Each month here on the Blawg, we update all the latest employment indicators in the handy box to the right within nanoseconds of their release by the Bureau of Labor Statistics.
Here’s the latest (and what you can do about it) …
Employment Situation Up
According to the government’s official figures, total nonfarm payroll employment was up 200,000 jobs, exceeding most experts’ predictions. That’s now six straight months of adding 100,000+ jobs.
Over the past year, nonfarm payroll employment is up 1.6 million overall and 1.9 million in the private sector. The economy continues to inch closer and closer to the 200,000 per month that most economists say is needed to sustain growth.
Which Sectors Are Growing?
Here are the specific sector numbers:
- Transportation & Warehousing (+50,000) (mostly in couriers/messengers)
- Retail (+28,000)
- Leisure & Hospitality (+24,000) (mostly in food/drink)
- Manufacturing (+23,000, after 4 months of little change)
- Health care (+23,000, up 315,000 the past year)
- Mining (+7,000)
- Government (-24,000) (state/local trending down since mid-2008)
Other sectors had little or no change.
Unemployment Down
The unemployment rate continued to trend down, dropping to 8.5%. The rate has steadily declined from 9.1% in August.
The number of unemployed declined to 13.1 million. However, the number of long-term unemployed (defined as jobless for 27 weeks or longer) remained unchanged at 5.6 million.
Despite the improvement, unemployment continues to remain far above the 6% rate considered “full employment” by most economists.
Labor Force Participation Unchanged
Many economists feel that the unemployment rate is somewhat misleading due to what the data omits. Instead, some rely more on overall labor force participation and the employment population ratio.
Labor force participation stayed at 64.0% and the employment-population ratio held at 58.5%.
Another number examined by economists is “discouraged workers” (those not currently seeking employment because they believe no work is available). That number is 945,000 — down an encouraging 373,000 versus a year earlier.
Employment Outlook Up
As discussed previously here, the latest Manpower Employment Outlook Survey indicates that U.S. employers expect hiring to increase slightly in Q1 2012. The Net Employment Outlook for Q1 is +9%, up from +7% for Q4 2011 and stable compared to one year ago when the Outlook was +8%. This is the most promising hiring outlook since 2008.
What’s It All Mean?
“Stability in today’s economy should be considered positive,” said Jeff Joerres, ManpowerGroup Chairman and CEO. “The last year added more than 1.5 million (using revised numbers) U.S. jobs. This is the type of environment we are in, and we should expect a slow, but steady labor market. This is also further evidence of the talent mismatch. Companies are hiring only when they see real demand for their products and services, and they’re deferring hiring to be rewarded with cost savings. A perfect example of this is what we are seeing in the manufacturing sector, where there is some stability, yet employers remain cautious and reluctant to risk taking on permanent hires.”
What Can Employers Do?
ManpowerGroup is here to help.
In today’s Human Age, employers and individuals need to rethink their approaches to work. Through ManpowerGroup’s Success Profile and Employability Profile tools, candidates and employers can learn how to align skills development and job success.
Employers are encouraged to contemporize their hiring strategies with success mapping, which includes a skills development plan, while workers can use an employability profile to align their freshly acquired hard skills and competencies with an employer’s needs.
Read how to “Hire and Retain the Best With Success Mapping” here. And here is our latest report on the worldwide talent crisis (and what you can do about it right now).
(Sources: Bureau of Labor Statistics, ManpowerGroup)