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Flexibility Programs Gain Ground in Hard Times
According to a recent report by the Families and Work Institute, 81% of 400 employers surveyed continue to offer flexible work arrangements to their employees. Flexibility programs consist of telecommuting, compressed work weeks, and voluntary reduced hours. Of those surveyed, 13% increased their flexible programs while 6% eliminated their flexibility programs. Among employers with 1,000 or more employees, 25% increased their flexible work programs.
Workforce.com – July 23, 2009
Labor Costs Fall as Productivity Increases
Worker productivity – the amount of output per hour of work – increased at an annual rate of 6.4% in the second quarter of 2009, according to the U.S. Department of Labor. This is the biggest quarterly gain since a 9.7% increase in the third quarter of 2003. As worker productivity increased, unit labor costs fell by 5.8%, indicating employees are currently doing more work with less pay. Economists worry that instead of hiring more people, businesses are holding on to profits earned from increased productivity and lower labor costs. Experts warn that such aggressive cost-cutting could make a recovery unsustainable because the lack of wage growth and shortage of jobs could harm consumer spending, which accounts for nearly 70% of economic output.
TheNewYorkTimes.com – Aug. 11, 2009
Recession Eased in Second Quarter
The gross domestic product (GDP) fell at a lower pace than economists expected, according to a recent government report. The GDP fell by 1% in the second quarter of 2009 after falling at an annual rate of 6.4% in the first quarter, the Commerce Department reported. Key factors in bettering GDP performance included fewer spending cuts by businesses, increased spending by federal and local governments, and improved trade, the report showed. However, consumers still held back on spending due to rising unemployment, decreased retirement savings, and falling home values.
The Associated Press – July 31, 2009
Consumer Spending Rises Slightly
Consumer spending increased in June by 0.4%, following a 0.1% increase in May, according to the Commerce Department. The increase is most likely due to higher gasoline prices, economists reported. Nondurable goods rose by 1.7% in June, up from 0.1% in May. Consumer spending accounts for nearly 70% of economic activity in the United States.
Reuters.com – Aug. 4, 2009
Pending Home Sales Rise
According to the National Association of Realtors (NAR), the index for pending sales of existing homes rose by 3.6% in June to reach a reading of 94.6. This is the fifth straight month of increases, NAR reported. Economists attribute the increase in existing home sales to historically low mortgage interest rates, affordable home prices, and a larger than normal pool of available houses to choose from. 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 – Aug. 4, 2009
Consumer Confidence Decreased in July
The consumer confidence index fell for the second consecutive month in July to 46.6, down from 49.3 in June, according to the Conference Board. The expectations index, which measures consumer outlook on future economic conditions, decreased to 62.0 in July, down from 65.5 in June. The present situation index, a measure of consumers’ opinions on current economic conditions, decreased to 23.4, down from 25.0 in June. The decline in the past two months shows consumers are still pessimistic about the economy and the job market, according to experts. The monthly consumer confidence survey is based on 5,000 U.S. households.
The Conference Board – July 28, 2009
U.S. Factory Orders Increase
As oil prices and demand for metals and construction equipment increased, factory orders for June rose by 0.4%, up from a 1.1% increase in May, according to a report released by the Commerce Department. This is the third straight month for increases in factory orders. Economists expected factory orders to fall by 1%. Experts attribute the increase in orders to a federal “cash-for-clunkers” program in the auto sector, which has helped boost demand for cars. Increased business investment, leaner inventories, and demand from overseas are signs the factory slump and recession is nearing an end, experts report.
Bloomberg.com – Aug. 5, 2009
July 2009
The unemployment rate fell to 9.4% in July, down from 9.5% in June. This is the first decline in 15 months. Although employers eased on layoffs, cutting 247,000 jobs in July, job loss was still seen across all major industry sectors, with the largest declines seen in manufacturing 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: - 76,000
• Manufacturing: - 52,000
• Retail Trade: - 44,000
• Professional & Business Services: - 38,000
• Educational & Health Services: + 17,000
• Leisure & Hospitality: + 9,000
• Government: + 7,000
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.