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The Fordyce Letter

Straight Talk for the Recruiting Profession


Industry News

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.

Industry News

All Signs Point to Best Year Ever For Search



Exec search firm employees 2014

All but counted out a few years ago, as the biggest employers started in-housing executive search, retained and contingent firms have come roaring back.

By most accounts, 2014 is going to end on a strong note. So strong in fact that it may be the industry’s best year ever.

Third quarter reports from the publicly held search firms and global numbers from the Association of Executive Search Consultants show both revenue and searches are up this year over last year.

Industry News

Private Employers Add 208,00 Jobs In November



ADP Nov infographic

ADP Nov infographicPrivate sector employers added 208,000 jobs in November, the seventh time this year job growth has topped 200,000.

The report from HR services and payroll process ADP, says every one of the broad industry groups it tracks added jobs, with small businesses growing the fastest. Businesses with fewer than 50 employees created 101,000 new jobs. Employers with more than 500 workers contributed 42,000 new jobs.

“November continued to show solid job growth above 200,000,” said Carlos Rodriguez, ADP president and CEO. “Small businesses continued to drive job gains adding almost half the total for the month.”

Business Development, Industry News

Jobs Follow Angel Investments



Venture capital investments

Venture capital investmentsSearch firms looking for growth markets might take a look at where angel investors are betting their money. In the first half of the year, over half the new investments went to three sectors: software, healthcare and retail.

Two of those three are among the most competitive when it comes to hiring. Especially for tech startups, the competition for talent is not just against other like-sized firms, but against giants like Apple and Microsoft and Google.

In a post more than two years ago discussing how to recruit for startups, Robert Woo said, “If a stellar developer even comes within the vicinity of the office, he/she will be snatched up faster than an intern can be stuffed in the server room to make space.”

According to the Center for Venture Research at the University of New Hampshire, software got the largest share of investments with 37% of total angel investments in the first half of this year. Healthcare services/medical devices and equipment and retail each got 10% of the total investment dollars. Biotech was close behind with 9% of the total. IT services and Industrial/Energy got 7% each to round out the Center’s list of the top 6 largest sectors. Smaller percentages went to a variety of other startups and young firms in other sectors.