Background Screens Even More Crucial During Economic Slump
Experts say people are increasingly falsifying information on résumés due to the rising difficulty to secure employment in a struggling economy. J.J. Keller & Associates, Inc., a leading provider of risk and regulatory management solutions, reported that in one survey, 55% of all human resource professionals surveyed uncovered false information or outright lies on applications or résumés when conducting background checks. Experts say employers should conduct rigorous background checks as data falsification on résumés are expected to increase. SHRM.com – July 2008 [Back to Top]
Wage Freeze? Employers Say Not This Year
Despite concerns that a struggling economy would cause companies to cut back on their salary increases, employers are ramping up compensation to reward employees for performance and to stay competitive. According to a survey released by WorldatWork, a global human resources association, employers are increasing salary budgets by 3.9% in 2008 and plan to increase salaries by 3.9% in 2009. Their survey is made up of human resources, compensation, and benefits professionals. WorldatWork reports that employers are not only increasing compensation but are adding flexibility programs as well. Over the past year, there has been a 40% increase in the number of companies offering incentives to create a total benefits package to their employees, the survey showed. Workforce Management – Aug. 6, 2008
Fed Leaves Rates Unchanged
Policy makers at the central bank left the fed funds, a key short-term interest rate, unchanged at 2%, according to The Federal Reserve. The fed funds rate is a bank lending rate that is used as a point of reference for consumer loans and some business loans. The Federal Reserve reported they left the rate unchanged in efforts to balance the risks of a slowing economy with inflation pressures. The Federal Reserve usually cuts the fund rate to decrease the risk of an economic slowdown and raise it when there are concerns of inflation. The central bank is concerned about both inflation and economic slowdown. CNNMoney.com – Aug. 5, 2008
Consumer Confidence Index Holds Steady
The consumer confidence index increased to 51.9 in July, up from 51 in June, according to a monthly survey released by the Conference Board. This survey is based on 5,000 U.S. households and measures consumers’ assessment of the nation’s economy. In addition, the index that measures consumers outlook on future economic conditions increased to 43.0 in July, up from 41.4 in June, the survey showed. The Conference Board – July 29, 2008
Factory Orders Post Biggest Increase in Months
Factory orders rose by 1.7% in June, the highest increase since the 1.9% rise in December 2007, according to a report released by The Commerce Department. Experts attribute the June increase to a rise in petroleum prices and a heavy demand for military equipment. Primary metals, such as steel, rose by 5.2%; defense capital goods orders increased by 16.9%; durable goods orders rose by 0.8%; and orders for nondurable goods were up by 2.5%. The Associated Press – Aug. 4, 2008
June Pending Homes Sales Up
According to the National Association of Realtors, the Pending Homes Sales Index rose by 5.3% to 89.0 in June, up from 84.5 in May. This is the highest reading since October 2007 when the index stood at 89.8. The index is based on home sales contracts signed each month. Analysts believe the increase in the index is due to markdown prices on foreclosures. Home sales contracts rose 9.3% in the South, 4.6% in the West, 3.4% in the Northeast, and 1.3% in the Midwest. Reuters.com – Aug. 7, 2008 [Back to Top]
July 2008
The unemployment rate rose to 5.7% in July, up from 5.5% in June. Employment continued to fall in construction, manufacturing, and retail sectors, while healthcare and mining added jobs. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 22,000
• Manufacturing: - 35,000
• Retail Trade: - 17,000
• Professional & Business Services: - 24,000
• Educational & Health Services: + 39,000
• Leisure & Hospitality: + 1,000
• Government: + 25,000
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Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2008.