Employers Use Education for Engagement

Businesses are providing new learning opportunities to expand employee’s skills as a means of keeping workers engaged, according to a recent poll by Refresh Leadership. The poll results mirrored current research concerning the difference in the various generations in the workforce. According to a Pew Research Center report, one in five Millennials is a college graduate and an additional 26% are currently in school and plan to graduate in the next few years. As well as providing new learning opportunities, 15% of respondents said they were increasing Generation Y employees’ responsibilities, 13% said they were offering flextime, telecommuting, or customized scheduling, 12% are implementing pay-for-performance packages, and 8% have begun allowing some work time to be spent on community service projects.
Refresh Leadership - May 9, 2012

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Temp Jobs Rise in April after Decline in March

The staffing industry added 21,100 temporary employees in April, according to the U.S. Bureau of Labor Statistics. After falling by 9,400 in March, the amount of workers increased to approximately 2.49 million. The boost in hiring of contingent workers is an encouraging sign, because it can lead to permanent staffing. Year to date, April 2012 produced an increase of 199,800 workers over April 2011. The employment services sector was also up 27,800 jobs, totaling 3.16 million. This sector includes temporary help, as well as employment placement agencies, executive search services, and professional employer organizations.
StaffingIndustry.com - May 4, 2012

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Mortgage Rates Hit Record Lows

The average rates for 15- and 30-year fixed mortgages fell to an all-time low in April, according to a report released by Freddie Mac. The average 15-year rate was 3.07%, down from the already low 3.11% mortgage rate, and the average 30-year rate was 3.84%, down from its previous low set in February. “Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows,” said Freddie Mac’s chief economist, Frank Nothaft. The low rates, however, have not encouraged home sales. In fact, the Census Bureau reported that homeownership in the first quarter was at its lowest rate in 15 years. As the economy continues to improve, analysts expect mortgage rates to slowly start rising once again.
CNN - May 3, 2012

Small-Businesses More Optimistic in April

According to the National Federation of Independent Businesses (NFIB), the Index of Small Business Optimism increased in April. The index is based on ten business survey indicators, including plans to increase employment, plans to increase inventories, current job openings, earning trends, and expectation for economic improvement. Out of the ten indicators, all but two showed improvement from March to April. “While the Index remains historically weak, there was good news in the details of April’s report,” said NFIB Chief Economist Bill Dunkelberg. “Job creation plans, job openings and capital spending plans all increased. Hopefully, this performance will hold in the coming months.” Among other highlights of the report, owners reporting higher nominal sales increased 4%. Nearly 74% of owners kept a neutral employment status, neither hiring nor firing workers.
NFIB - May 8, 2012

U.S. Retail Sales Fall Short of Forecasts

In the first quarter of 2012, private equity firms either sold or made public 112 companies, generating nearly $21 billion, according to Pitchbook Data, a private equity research firm. This year's start is the best seen since 2007. "What you're seeing is the confluence of an improving economy, pretty strong debt markets, and a strong appetite among sellers and buyers," said Gordan Pan, managing director at Blaird Private Equity, an investment firm that manages $3 billion for its clients. Due to the stabilizing market, buyers and sellers are showing confidence in pricing deals, while banks are providing debt financing. Nearly 10% of private equity exits were IPOs, according to PitchBook data. "If the markets continue to be as stable as they've been so far, it's going to be a record year for exits," said Jorge Mora, head of financial sponsors at Macquarie, a global provider of banking, financial, advisory, investment and funds management services. One reason businesses are more willing to sell is concerns over rising taxes, which many expect after the 2012 presidential elections, according to Mora.
The New York Times - May 3, 2012

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Fed Officials at Odds on Jobs Outlook

Since setting record-low interest rates near zero in December 2008, U.S. Federal Reserve officials have had different ideas on growth possibilities under the current situation. Cleveland Fed President Sandra Pianalto supports the decision to keep the low rates through late 2014, stating “We need more growth in order for more jobs to be created and in order for the unemployment rate to come down to that 6% rate, which I view as maximum employment.” Pianalto expects an annual growth rate of 2.5%, which would take several years to get to maximum employment. Minneapolis Fed President Narayana Kocherlakota argues that a decline in unemployment and an increase in inflation this past year mean the Fed should soon tighten its policies. “I would say in six to nine months down the road we should begin to be thinking about initiating our exit strategy,” said Kocherlakota. “I don’t see a need for additional accommodation. He states that communicating how long the Fed plans to keep interest rates low and how quickly the rate rises is important to varying current monetary stimulus.
Reuters - May 9, 2012

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Employers Struggle to Control Wage-and-Hour Litigation

With the complexity of federal and state laws, employees are finding it easier to win class-action suits, which are leading to more litigation in recent years. According to the Department of Labor, there were 40,000 wage-and-hour complaints in 2010, up 15% from the previous year. Many claims are for the misclassification of workers as exempt and unpaid overtime. Due to the high cost of court, experts claim the best action to take is to settle. “If you asked me what was the headache that kept folks up at night five years ago when it comes to workplace-related lawsuits, I’d say employment discrimination lawsuits,” said Gerald L. Maatman Jr., a partner with law firm Seyfarth Shaw L.L.P. in Chicago. “Today, the headache that keeps people awake at night is wage-and-hour litigation.”
Workforce.com - April 2012

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April 2012

The national employment situation held steady in April. The unemployment rate was little changed at 8.1%. The private sector added 130,000 jobs, professional and business services seeing the largest surge in employment. Learn more from the recent employment report from the Bureau of Labor Statistics. View the unemployment rate in your state.

Major Industry Employment:

  • Construction: - 2,000
  • Manufacturing: + 16,000
  • Retail Trade: + 29,300
  • Professional & Business Services: + 62,000
  • Education & Health Services: + 23,000
  • Information: + 6,000
  • Transportation: - 16,600
  • Government: - 15,000

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Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2012.