Survey Links Wellness Participation to Job Satisfaction
A recent study showed that not only do wellness programs improve employees’ health, but participants are also more engaged at work. The Maritz firm, a customer satisfaction and loyalty research company, recently surveyed 2,379 full-time workers and found that employees who participated in a wellness program at least once per week took off less for sick time than those who had not participated in a program. Experts suggest that the reason behind the results is that employees involved in wellness programs perceive that their employers care about their well-being, which causes employees attitudes to reflect more positively on their work environment. The survey also found that to keep employees engaged and motivated in wellness programs, communication, education, leadership, and incentives to participate are critical. When a reward or incentive was offered to achieve certain health goals, 23% of employees participated in the program at least once a week, compared to when no incentive was offered, and participation dropped to 16%, the survey showed. SHRM – Aug. 21, 2008
Latest Ruling on Cash-Balance Plans
It was a unanimous decision on August 20, when the 9th U.S. Circuit Court of Appeals in San Francisco, along with four other appeals courts, ruled that the plans of the cash-balance pension do not discriminate against older workers. Plaintiffs argued that the pension plans are age discriminatory because the benefits earned by younger employees are worth more than those of older employees. However, the judge of the 9th Circuit Court ruled that the reason the younger employee’s benefits are worth more is due to time, not discrimination. More than 1,000 employers, including some of the nation’s largest companies, have converted to cash-balance pension plans from traditional plans, and the ruling on this issue is a major victory for employers, legal experts say. Workforce Management – Aug. 26, 2008
U.S. Service Industries Unexpectedly Grew in August
According to the Institute for Supply Management (ISM), the index of non-manufacturing businesses increased to 50.6 in August, up from 49.5 in July. A reading above 50 indicates growth in the sector. The increase was prompted by the biggest drop in prices in nearly two years. The service sector makes up almost 90% of the nation’s economic activity, including businesses such as banks, hotels, restaurants, and airlines. Economists predicted the index would remain unchanged at 49.5. Bloomberg.com – Sept. 4, 2008
Manufacturing Shrinks in August
The nation’s manufacturing index fell to 49.9 in August, down from 50 in July, according to the ISM. A reading below 50 indicates contraction in a sector. Construction spending also dropped to its lowest level in seven years, the ISM reported. The August reading met economists’ forecasts. High gas prices and uncertainty about the job market caused consumers to be cautious about their spending. The Associated Press – Sept. 2, 2008
Consumer Confidence Improves
The consumer confidence index rose to 56.9 in August, up from 51.9 in July, according to the Conference Board. The monthly consumer survey, based on 5,000 U.S. households, is a measure of consumers’ assessment of the nation’s economy. The present situation index, a measure of consumers’ opinions on current economic conditions, fell to 63.2 in August, down from 65.8 in July; however, the expectations index, a measure of consumers’ opinions on future economic conditions, increased to 52.8 from 42.7 in July. Experts say that the confidence readings suggest that the economy may be showing signs of improvement by early 2009. The Conference Board – Aug. 26, 2008
Private Sector Cuts Jobs
The private sector cut jobs by 33,000 in August, according to the ADP, an automatic data processing company. The decline in the manufacturing sector contributed to the high loss of jobs. Economists anticipated a loss of 30,000 jobs. The job loss rate is consistent with an economy that is growing slowly but has yet to fall into a recession, experts say. Employers who have 500 or more workers lost 28,000 jobs, and companies who employ 50 to 499 workers lost 25,000, while small businesses – employers with less than 50 employees – gained 20,000 workers in August, the ADP said. CNNMoney.com – Sept. 4, 2008
August 2008
The unemployment rate rose to 6.1% in August, up from 5.7% in July. Professional and businesses services and manufacturing saw the biggest decline in employment, while education and health services continued to add jobs. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 8,000
• Manufacturing: - 61,000
• Retail Trade: - 20,000
• Professional & Business Services: - 53,000
• Educational & Health Services: + 55,000
• Leisure & Hospitality: - 4,000
• Government: + 17,000
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Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2008.