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Recruiting Patterns to Hold Steady in 3Q, CareerBuilder Says
According to a recent survey conducted by CareerBuilder and USA Today, 68% of employers said they expect staff levels to remain the same in the third quarter. The survey questioned over 2,600 hiring managers and full-time HR professionals. Based on the findings, the number of layoffs is leveling off as well, a trend that is expected to continue in the second half of 2009. However, a majority of businesses reported they are likely to hold off on hiring and job creation in 2009, the CEO of CareerBuilder reported. Although 15% of employers surveyed reported they plan to add full-time employees in the third quarter, which is up from 14% who anticipated hiring increases in the second quarter of 2009, 10% plan to have a decrease in hiring. The report also showed that 64% reported no change in staff count in the second quarter. Eighteen percent of employers reported they increased their number of full-time employees in the second quarter, up from 13% in the first quarter, while 17% reported a reduction in staff, down from 26% reporting a reduction in the first quarter of 2009.
CareerBuilder.com – July 1, 2009
Small Businesses Retreat on Benefits Packages
A new survey reports that 62% of small U.S. businesses are having a tough time offering full benefits packages and are finding other alternatives to reduce their costs. The online survey, conducted by Aflac, a supplemental insurance provider, questioned 510 small business owners and decision makers with five to 99 employees. Of the businesses surveyed, 43% reported they plan to cut back on employee benefits, with 65% seeking alternatives to reduce costs.
Employee Benefit News – July 9, 2009
Higher Minimum Wage Set for July 24
The final step of a three-step process House Resolution 2206 instated on May 25, 2007 will go into effect on July 24 to increase the federal minimum wage to $7.25. The increase will affect 29 states. Seven states already have laws that mandate the $7.25 minimum wage, and 14 others, including Washington, D.C., have higher minimum wages than those required by the federal government. In those states, employers have to pay the higher of the two. The federal minimum wage increased to $5.85 per hour in July 2007 after staying stagnate at $5.15 per hour for years. Congress passed a bill in 2007 raising the minimum wage to $7.25 in three consecutive increases over three years.
CNNMoney.com – July 7, 2009
Service Sector Shrinks Less than Expected
The Institute for Supply Management’s index on non-manufacturing activity registered at 47.0 in June, up from 44.0 in May. Although a reading below 50 indicates contraction in the sector, the slight increase is the best showing since September 2008. However, analysts forecast that it could be years before the economic recovery becomes sustainable. Experts warn that although the U.S. should see growth in the next few months, it could be 2011 or 2012 before the economy is doing well enough to significantly boost wages.
The Associated Press – July 6, 2009
Consumer Confidence Decreased in June
The consumer confidence index, which increased for three consecutive months, fell to 49.3 in June, down from 54.8 in May, according to the Conference Board. The expectations index, which measures consumer outlook on future economic conditions, decreased to 65.5 in June, down from 71.5 in May. The present situation index, a measure of consumers’ opinions on current economic conditions, decreased to 24.8, down from 29.7 in May. Experts say these declines in the present situation and expectations index show the economy is still weak but not as weak as it was earlier in 2009. The monthly consumer confidence survey is based on 5,000 U.S. households.
The Conference Board – June 30, 2009
Retail Sales Top Forecasts
Retailers saw a 0.6% increase in sales in June, helped in part by a spur in auto sales and rising gas prices, according to the Commerce Department. Economists had expected only a 0.4% gain after the 0.5% increase in May. Without factoring in the sale of autos and parts, which reported a 2.3% increase, retail sales saw a modest 0.3% gain. The price of gasoline jumped to $2.68 in June, up from $2.32 in May, helping gas stations to record strong gains in sales.
Reuters.com – July 14, 2009
June 2009
The unemployment rate increased to 9.5% in June, up from 9.4% in May. Job loss was seen across all major industry sectors, with large declines seen in manufacturing, professional and business services, and construction. Learn more from the most recent employment report from the Bureau of Labor Statistics. View the unemployment rate in your state.
Major Industry Employment:
• Construction: - 79,000
• Manufacturing: - 136,000
• Retail Trade: - 21,000
• Professional & Business Services: - 118,000
• Educational & Health Services: + 34,000
• Leisure & Hospitality: - 18,000
• Government: - 52,000
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.