House Passes Pay Discrimination Bills
The Ledbetter Fair Pay Act and the Paycheck Fairness Act were quickly passed on Jan. 9, 2009 by Democrats in the House of Representatives. The Ledbetter Fair Pay Act would reverse a U.S. Supreme Court decision made on May 29, 2007 that restricts the time to six months that workers have to file claims against employers for pay discrimination. The Paycheck Fairness Act would amend provisions of the Fair Labor Standards Act to revise remedies and make improvements on enforcement efforts to prevent wage discrimination based on an employee’s gender. The purpose of these bills is to eliminate discrimination in the workplace. According to members of the House of Representatives, women earn 78 cents to every dollar men earn, and passing these bills will give women the help they need to fight against biased pay scales. Society of Human Resource Management – Jan. 9, 2009
Companies Force Workers to Take Unpaid Vacation
According to information from the Bureau of Labor Statistics, nearly 12% of the 10.3 million unemployed workers in November were unemployed due to temporary layoffs. The last time the workforce saw 1% of its total unemployed workers temporarily laid off was in 1991. Some experts believe this forced time off without pay is better than the alternative of being laid off permanently. However, employees of companies who have decided to take this route to survive the recession may face at least a 2% loss to their annual salary. The Associated Press – Dec. 30, 2008
Companies Step Up Workforce Planning Activity
A recent survey released by Watson Wyatt Worldwide, a finance consultancy firm, reported that companies are increasing their workforce planning activity to combat the effects of the economic downturn. This survey was conducted in October 2008 and defines workforce planning as the process by which an organization aligns its workforce requirements to the business strategy using business analytics. According to the survey, 40% of 129 North America-based employers from all industries believe workforce planning is increasingly important to their organization’s business success, and 31% have already begun increasing activity around their planning. However, along with workforce planning challenges such as restructuring, layoffs, and hiring freezes, many employers expressed concern over the lack of critical talent. Experts warn that it’s important to consider the ramifications their actions will have on a company’s future workforce needs when under pressure to cut short-term costs.
CCH Management – Dec. 30, 2008
Consumer Confidence Index Falls
The consumer confidence index fell to 38 in December, down from 44.7 in November, 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. In addition to the decline in the consumer confidence index, the present situation index, a measure of consumers’ opinions on current economic conditions, also fell to 29.4, down from 42.3 in November. The Conference Board – Dec. 30, 2008
Retailers See Sales Decline
Retailers saw a 2.7% decrease in sales in December, twice as much as economists forecasted, according to the Commerce Department. This is the sixth straight month of declines in the retail sector and the longest number of drops since 1992. No retailer was immune; retail giants such as Wal-Mart, were affected by declining sales. Overall, sales fell 0.1% for all of 2008 compared to 2007. The report released by the Commerce Department showed declines in 11 of the 13 biggest categories followed by the government. Gas stations, grocery stores, and restaurants all saw a decline in sales while health and beauty stores saw increases in December. The index is based on same-store sales, or sales at stores opened at least one year. Bloomberg.com – Jan. 14, 2009
Pending Home Sales Fall
According to the National Association of Realtors (NAR), the index for pending sales of existing homes fell to a seven-year low in November to 82.3, down from 85.7 in October. The home sales index in November was 5.3% lower than one year ago at this time, NAR reported. However, economists are optimistic that the housing sector will improve later in 2009 due to President Barack Obama’s proposed spending plan along with the collaborated efforts of the Treasury and Federal Reserve to lower mortgage rates. This index measures current activity against sales activity in 2001, the year the index started. A reading of 100 demonstrates equal levels with that year. Reuters – Jan. 6, 2009
December 2008
The unemployment rate increased to 7.2% in December, up from 6.8% in November. Employment fell by 524,000 jobs in December and by 1.9 million in the last four months of 2008. Job loss was seen across most sectors of the economy, with only government, education and health services seeing an increase in job gains. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 101,000
• Manufacturing: - 149,000
• Retail Trade: - 67,000
• Professional & Business Services: - 113,000
• Educational & Health Services: + 45,000
• Leisure & Hospitality: - 22,000
• Government: + 7,000
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Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.