U.S. Adds 200,000 Jobs in Dec., Unemployment Drops to 8.5%
According to a report from the Bureau of Labor Statistics, private employers added 212,000 jobs, totaling 1.9 million private-sector jobs created in 2011. With the increase in full-time jobs, unemployment continues to decrease, dropping the nation’s average to 8.5%. Government jobs are continuing to trend down, cutting 12,000 jobs in December, making overall job growth for the year 1.6 million. “[The January 6] employment report provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression,” said Alan B. Krueger, chairman of the White House Council of Economic Advisers. “It is critical that we continue the economic policies that are helping us to dig our way out of the deep hole that was caused by the recession that began at the end of 2007.” Manufacturing has added 334,000 jobs since December 2009, marking the first sustained increase in that sector’s employment since 1997, according to the Bureau of Labor Statistics.
Washington Post – Jan. 6, 2012
Planned Layoffs Lowest in Six Months
Employers said they planned to cut 41,785 jobs, down 1.6% from 42,474 in November, according to consultants Challenger, Gray & Christmas, Inc., an outplacement consulting firm. The planned layoffs, announced in December, mark the lowest level since June, yet is 31% higher than the 32,004 cuts announced in December 2010. “Job cuts in 2011 were dominated by the government and financial sectors,” John Challenger, chief executive officer of CGC, said in a statement. “These two alone accounted for 41% of all job cuts announced last year.” The 183,064 government layoffs represented the highest for that sector since Challenger began tracking in 2002. Challenger said employers planned on hiring 14,074, up from 10,575 a year earlier. For the entire year, announced new jobs totaled 537,572, up from 402,638 in 2010.
Reuters – Jan. 5, 2012
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Hiring Trends Increasing for Administrative, Commercial Jobs: Express Survey
The hiring outlook for North America continues to remain steady for administrative and commercial jobs, according to a recent survey conducted by Express Employment Professionals. Hiring for the first quarter of 2012 is expected to be the strongest in the commercial and light industrial sector, with 30% planning new hires. As well, 27% plan to fill positions in “other” sectors, including healthcare, customer service, food service, general labor maintenance, medical/dental/nursing, and sales. Additionally, 15% plan to hire for accounting and finance, 12% expect to add marketing jobs, 11% will hire for engineering positions, and 8% plan to add information technology specialists. Express surveyed nearly 17,000 current and former clients across the United States and Canada. When considering new hires, employers who responded to the Hiring Trends survey are looking closely at work ethic, integrity, attitude, and credible work history.
Express – Dec. 27, 2011
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Retailers Report Solid Finale to Holidays
Retailers are reporting sales gains for December, ending the holiday season. “Sales were decent, but not great,” said Ken Perkins, president of RetailMetrics, “It was a highly promotional environment. There were clear winners and losers in the holiday season. It just tells you how difficult it was to drive traffic against a backdrop of a soft economy.” The high discounting accounted for decent sales, but not many stores met expectations in gains. Among those who did well, Limited Brands, Inc., Macys, Inc., and Nordstrom, Inc., posted strong revenue gains that surpassed analysts’ estimates. The most notable retail business that didn’t meet expectations was Target Corp., which posted a 1.6% gain. The heavy discounting has raised concern among analysts about what it will take to get shoppers to spend again in the coming months.
AP – Jan. 5, 2012
Slow 2012 Start for Retail
U.S. retailers are facing their biggest post-holiday depression since 2009 as consumers plan to cut back spending to pay off credit card bills accumulated last month. Experts say the downturn in spending will be deeper this year due to the large spending hikes in December. “The first and second quarters this year will see a deeper low than last year,” retail consultant Jan Kniffen said. “Sales in the week after Christmas were so strong that [they] took a bite from January.” Kniffen expects sales in apparel retail to be down 2 to 3% during the first half of the year. Comparable sales are expected to rise around 2.5%, while they rose around 4% last spring. According to Britt Beemer, chairman of America’s Research group, “January post-holiday sales are expected to plunge to some of the lowest levels in years, thanks to a surge in credit card spending over the Christmas season.”
Reuters – Jan. 9, 2012
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Economy Ended 2011 Strong: Fed
The end of the year was the economy’s strongest showing since an apparent spring-time recession seemed imminent, according to a survey released by the Federal Reserve. Consumer spending, factory production, and auto sales were all up from the first half of the year, with automakers reporting November and December as their two best months of the year. According to the Fed, all but one of its 12 banking districts experienced growth from late November through the end of December. The Fed pointed out that December might be the most economically strong month of the year, showing a bright forecast for 2012. With unemployment at its lowest rate in nearly three years, the economy and job market have picked up since the economy nearly slipped into another recession due to high food and gas prices and supply disruptions out of Japan that slowed manufacturing. Economists are predicting a 3% rise in the economy between October and December 2011, up from a 0.9% growth the first half of the year.
Washington Times – Jan. 11, 2012
Employers to Link Recognition and Engagement in 2012
Employers are reconsidering and possibly reintroducing recognition programs for employees in 2012. During the past few years, the recession has led to many employers cutting reward programs to save money in the harsh economic environment. Yet due to the upturn in the last six months of 2011, employers are trying to use these programs to improve employee retention and engagement. “Rewards programs have traditionally been viewed as a discretionary expense,” said Steve Gross, a senior partner with mercer Human Capital Consulting’s Philadelphia office. “Therefore, the programs have always been vulnerable to economic downturns.” As the economy continues to show signs of life, employers are reintroducing such programs to keep their best workers from leaving and finding employment at competitors. Joe Bohling, senior vice president for Aflac Inc., said companies that reward employees even in bad economic times have a better chance at engagement and retention. “Many businesses say that employees are their number one asset. However, the acid test for employers is how they treat employees during down economies,” Bohling explained.
SHRM – Dec. 22, 2011
December 2011
The national employment situation showed steady improvement in December. The unemployment rate dropped 0.1 percentage points to 8.5%. The unemployment rate has declined by 0.6% since August. The private sector added 212,000 jobs, education and health seeing the largest surge in employment, while government jobs continued to trend down by cutting 12,000 jobs. Learn more from the recent employment report from the Bureau of Labor Statistics. View the unemployment rate in your state.
Major Industry Employment:
- Construction: +17,000
- Manufacturing: +23,000
- Retail Trade: +27,900
- Professional & Business Services: +12,000
- Education & Health Services: + 29,000
- Information: +6,000
- Government: -12,000
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2012.