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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

Industry News

Firm Says Execs Got 17% Pay Hike Offers In 2014



Executive-stockimages-free

Executive search firm Salveson Stetson Group says the senior executives it placed last year received an average pay hike of nearly 16%, and, for the first, out-of-work candidates got offers matching those given to employed executives.

Manufacturers, however, made offers well above the Salveson Stetson average. Manufacturing executives got a 25% pay hike. Human resource executives also did well, seeing an increase of 20%.

Broad implications can’t be drawn from the firm’s data since only 20 executives participated in its annual survey. But it does provide texture to other reports of a resurgence in manufacturing and growing demand for HR professionals.

Industry News, Staffing

Forecast: Staffing Jobs to Grow By 135k This Quarter



Palmer 2015

Palmer 2015Industry consultant G.Palmer & Associates has a bold, and aggressive  forecast for the staffing industry: temp help in this first quarter will surge by 10.5%.

“Our forecast for the 2015 first quarter follows recent trends demonstrating growth and indicating another increase in demand for temporary workers, marking the 20th consecutive quarter of year-over-year increases,” said Greg Palmer, founder and managing director of of the staffing industry consultancy.

The predicted year-over-year growth is a big percentage, even for as fast a growing jobs sector as staffing. But it’s not the first big forecast the Newport Beach, Calif. firm has made. In 2010 Palmer predicted demand for temp workers would increase 20.9% in the last quarter of the year. The prediction was off, but only some. Temp growth that quarter grew 19.2%.

Industry News

Tech Firms Agree to Pay $415 Million In Anti-Poaching Case



Apple

AppleA $415 million settlement proposed by four tech giants could become one of the largest anti-poaching awards if a federal judge approves.

Apple, Google, Intel Corp and Adobe Systems agreed to the amount in a court filing yesterday. A previous offer of almost $325 million was rejected last summer by the judge in the class action case, which was filed in 2011.

Industry News

Fed Reserve Says Shortage of Skilled Workers Is Putting Pressure On Wages



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Fed reserve district mapAcross the country, employers and the agencies that help them fill jobs are feeling increasing pressure to raise pay for workers with special skills.

In the last several weeks, hiring nationally has generally continued to be good and, for most jobs, wages have been flat, said the Federal Reserve today in its period report on business conditions. It’s so called Beige Book summarizes reports from business and employment contacts in the 12 Fed districts to provide a ground level view of conditions.

In various parts of the country, reports from staffing firms and direct employers indicate growing wage pressure for jobs as varied as IT professionals, healthcare workers, skilled trades and truck drivers.

“Significant wage pressures continued to be limited largely to workers with particular technical skills,” the Fed’s Beige Book noted, with nearly ever Fed district reported a shortage of skilled workers.

Industry News

December Sees 252k New Jobs, Capping Strongest Job Growth In Years



Econ indices Dec 2014

Temp workers Dec 2014Capping the end of the strongest 12 months of job growth since well before the recession, employers added 252,000 jobs in December as the unemployment rate fell to 5.6%, its lowest level since June 2008.

Economists had expected a strong year end jobs report from the Labor Department, but were predicting growth closer to about 240,000 jobs and only slight change in November’s 5.8% unemployment rate.

“The economy has some momentum,” Robert Shapiro, chairman of Sonecon, an economic consultancy, told The New York Times before this morning’s report was released. “I think it’s kind of hit a stride with respect to job creation.”

Besides the strong December numbers, the Bureau of Labor Statistics, which compiles the data, adjusted up its previous counts for November and October, adding 50,000 more jobs than initially reported.

Industry News

Jobs Up 241,000 in December. Staffing Hits New Highs



ADP Dec 2014 jobs graphic

ADP Dec 2014 jobs graphicThe economy was on a roll in December, ending the year with 2.5 million more private sector jobs than it had when last January’s cold winds ushered in the year. ADP, the payroll and HR services firm, says private employers added 241,000 new jobs last month, the fourth consecutive month that ADP’s National Employment Report showed job growth over 200,000.

“The job market continues to power forward,” said Mark Zandi, chief economist of Moody’s Analytics which compiles ADP’s payroll data. “At the current pace of job growth, the economy will be back to full employment by this time next year.”

Industry News

More Employers to Add Temp, Perm In Year Ahead



CareerBuilder 2015 Job Forecast

CareerBuilder 2015 Job Forecast tempThe pace of hiring will quicken in 2015, as more employers plan to add staff — permanent and temp — than at any time since the start of the recession.

Surveys by a trio of organizations found employers generally optimistic about growth in the year ahead, with more of them than at any time in the past seven years planning to add workers.

Released just this morning, CareerBuilder’s annual job survey found 36% of employers expect to add permanent, full time staff this year. That’s a 50% increase over what employers said at the beginning of 2014.

Even more employers — 46% versus 42% last year — say they’ll bring on more temporary and contract workers in the year ahead; 56% plan to transition some temporary or contract workers into full-time, permanent roles.

Industry News

Staffing Index Reaches New High



Staffing Index 12.23.2014

Staffing Index 12.23.2014The American Staffing Association reported today that its measure of staffing employment is now at the highest level since June 2006, when the trade group first launched the Staffing Index.

For the week ending December 14 the index rose to 107.54. That was a 4.2% increase over the same week last year. The most recent report from the U.S. Bureau of Labor Statistics put the number of temporary workers employed by agencies in November at 2,975,200. A year ago, agency temps numbered 2,741,600.

Industry News

Candidates Getting Quicker to Reject Offers



MRI survey candidate driven 12.2014

MRI survey candidate driven 12.2014The candidate-driven market is here to stay and the pace at which candidates are rejecting offers is quickening.

MRINetwork’s most recent Recruiter Sentiment Study says 83% of the 333 responding recruiters describe the current employment market as candidate-driven. In three years, the percentage of recruiters who say candidates are in the driver’s seat has risen 29 points.

Industry News

Jobs Take Big Jump in November; Temp, Search Increase Numbers



Econ Index Nov 2014

Econ Index Nov 2014The U.S. economy delivered a powerful holiday surprise, adding 321,000 new jobs last month, the most in almost three years.

To add to the robust report, the Labor Department’s monthly employment report, out this morning, adjusted upward its initial numbers for September and October by 44,000 jobs. Together with November, the U.S. economy has averaged 241,000 new jobs each month this year. In 2013 the average for the 11 months was 204,000 and in 2012 it was 184,000.

The unemployment rate was unchanged at 5.8%. A year ago the rate was 7%.

All major sectors added jobs. Temp hiring, at 22,700 new jobs, accounted for 7.3% of the total created. Since January, agencies have averaged 18,500 new temp jobs a month. Last year, the average was 15,670.