Web-Based Screening May Lead to Bias Suits
The number of employers using social networking sites to screen applicants has been increasing over the years. According to a recent survey by Vault.com, a media company focused on careers, 44% of 350 employers surveyed admitted to using social networking sites to inspect profiles of applicants, and 39% have looked up current employees’ profiles. While looking at an employee’s or applicant’s profile on the Internet is not illegal because the Internet is public property, employers may be liable when hiring and firing decisions are based on social networking site profiles. Experts warn that employers without policies in place to monitor who examines job applicants on popular sites, such as Myspace and Facebook, could be setting themselves up for employee discrimination charges and litigation. Though no legal precedents exist yet, experts suggest creating an Internet screening policy with the help of an employment law expert or attorney. Workforce Management – April 2008 [Back to Top]
Worker Confidence Sinks: How Secure is Your Retirement?
Worker confidence has fallen amid concerns of a slowing economy and the rising costs of healthcare. According to a survey of more than 1,300 people released by the Employee Benefit Research Institute (EBRI), only 18% are “extremely confident” they have enough money to retire, down from 27% in 2007. This is the biggest one-year drop the EBRI has seen since they started tracking workers’ attitudes toward retirement 18 years ago. Workers who say they are “very confident” they will be financially secure during retirement fell to 29% in 2008 from 41% in 2007. Employees who aren’t confident they have enough money to retire increased to 37% in 2008 from 29%. The survey also showed that 14% of workers plan to postpone their retirement, citing concerns about consumer debt and economic downturn. AARP – May 7, 2008 [Back to Top]
Risk of Major Downturn Diminished
Federal Reserve Chairman Ben Bernanke reported that the nation’s economic downturn has diminished over May and June 2008. According to Bernanke, interest rate cuts, the government’s $168 billion stimulus package, progress in repairing problems in the financial and credit markets, and solid demand for U.S. exports from abroad is expected to help the economy throughout 2008. The Associated Press – June 10, 2008
Services Sector Expanded at Slower Pace
The Institute for Supply Management’s index on non-manufacturing activity registered at 51.0 in May, down from 52.0 in April. This slight decrease suggests that service industries grew at a slower pace in May than in April. A reading above 50 indicates growth in the sector. The non-manufacturing businesses make up nearly 90% of the U.S. economy. Experts report that consumer spending, which makes up more than two-thirds of the economy, is slowing due to gasoline prices, falling house values, and a weakening job market. Bloomberg – June 4, 2008
Energy Department Sees Gas Prices Remaining High
The Energy Information Administration (EIA) says gasoline prices will stay around $4 a gallon through 2008, and that high oil prices will remain over $100 a barrel. The EIA expects gas prices to peak at $4.15 a gallon in August with not much relief after that. They forecast gasoline prices to average $3.92 a gallon in 2009, with oil prices declining to $86 a barrel by 2010. Guy Caruso, head of the EIA, said new auto fuel economy requirements and increased use of ethanol along with other alternative fuels will help reduce the consumption of oil and oil imports over the next two decades. The Associated Press – June 11, 2008
Consumer Confidence Declines
Consumer confidence continued to fall in May, registering at 57.2, down from 62.8 in April, the Conference Board reported. Due to a weakening economy and current job conditions, consumer optimism on the short-term future of the U.S. economy is declining, and this decrease caused the index to reach a 16-year low, said Lynn Franco, director of the Conference Board. The monthly consumer conference survey, based on 5,000 U.S. households, also showed a decline in the present situation index, which fell to 74.4 in May, down from 81.9 in April. The present situation index measures consumers’ opinions on the current economic conditions. The Conference Board – May 27, 2008 [Back to Top]
May 2008
The unemployment rate rose to 5.5% in May, up from 5.0% in April. Employment continued to fall in construction, manufacturing, and retail sectors, while healthcare added jobs. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 34,000
• Manufacturing: - 26,000
• Retail Trade: - 27,000
• Professional & Business Services: - 39,000
• Educational & Health Services: + 54,000
• Leisure & Hospitality: + 12,000
• Government: + 17,000
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Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2008.