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The Fordyce Letter

Straight Talk for the Recruiting Profession

Articles tagged 'economy'

Industry News

Economists Optimistic Following Strong June Jobs Report From ADP

ADP job growth chart june 2014

ADP job growth chart june 2014With a private sector jobs report from ADP estimating that employers added 281,000 jobs in June — the most in almost two years — the expectation is that tomorrow’s official government report will also be a strong one.

Labor economists were taken by surprise by the strength of the ADP report. In advance of this morning’s release , surveys by Bloomberg News, Dow Jones and others put the average guesses of various analysts between 205,000 and 213,000.

Mark Zandi, chief economist for Moody’s Analytics, which compiles the numbers from ADP payroll processing records, was optimistic about the direction of the economy.

Industry News

Temp Jobs Help Push April to a 288,000 Two-Year High

Econ Index April 2014

Econ Index April 2014The unemployment rate plummeted in April to the lowest point in more than five years as the U.S. economy added an unexpectedly large 288,000 jobs during the month.

All but the most optimistic of economists expected the jobs numbers to be strong, but nowhere near 300k, with the consensus of surveys placing the increase in the range of 210,000 to 220,000. The unemployment rate was forecast to decline only by a tenth of a point from March’s 6.7 percent.

Industry News

U.S. Manufacturers Ready To Hire, But Face Skills Shortage

skills gap manufacturing

skills gap manufacturingWith growing confidence in the future of the economy, more American manufacturers plan on hiring in the next year than at any time in the last five. The 58% of industrial employers who say they expect to add workers is also the second highest percentage of the last 10 years.

The only thing standing in the way of some of the nation’s largest manufacturers from hiring the workers is finding those with the skills they need. Among the usual worries about taxes, government regulation, and foreign competition, one-in-five industrial manufacturers see the lack of qualified workers as a barrier to their growth.

What they need most, the manufacturers said in a survey by the accounting and business consulting giant PwC, are middle managers (said 70%) and skilled labor (67%). This need, and the expansion plans, will mean growth for search firms both in the manufacturing sector and those who recruit for specific occupations.

Industry News

December Sees 155k New Jobs; No Help From Temps

Econ Indices Dec 2012

Econ Indices Dec 2012The U.S. economy continued to chug along in December, much as economists were expecting, adding 155,000 jobs, while holding unemployment at 7.8 percent.

Labor economists, on average, forecasted a gain between 150,000 and 160,000, and no change in unemployment. The rate reported this morning by the U.S. Department of Labor was higher than the November rate initially reported; however, it and a few other months were changed slightly as part of an annual data revision.

The December numbers were substantially below the estimate offered yesterday by ADP and its data partner, Moody’s Analytics. Automatic Data Processing said 215,000 private sector jobs were created during the month. The Labor Department’s Bureau of Labor Statistics, which prepares the monthly government report, counted 168,000 new private sector positions.

The BLS also revised up November’s jobs increase from 146,000 to 161,000, while October’s jobs count dropped by 1,000 to 137,000.  For the year, job growth averaged 153,000 new non-farm jobs  a month, the same as in 2011.

“It’s not a home-run report by any stretch, but it’s constructive,” said John Ryding, chief economist at RDQ Economics. “It’s another month of fairly stable, solid, moderate job creation.”

Industry News

Employment Up; Unemployment Drops In Most States


The U.S. employment picture is looking decidedly brighter at the end of 2012 than it did a year ago. For its final report of the year, the Bureau of Labor Statistics says the unemployment rate dropped in 45 states in November; nowhere did it rise.

Industry News

Stocks Up On ADP Report Showing 158K New Jobs


A day before the official U.S. Labor Department jobs numbers get released, an ADP preview report is fueling speculation that the October report will become a November surprise.

The payroll processor and HR services firm, and its new partner, Moody’s Analytics, said this morning that 158,000 private sector jobs were created last month. That’s considerably better than the 138,000 the economists polled by Reuters expected, and is also ahead of the private sector job estimates economists expect to see in tomorrow’s government report.

Wall Street, which is still recovering from the hurricane that closed the markets Monday and Tuesday, reacted positively to the ADP report, adding almost 140 points to the Dow Jones Index by early afternoon. Helping to fuel the rally were two other reports:

Industry News

U.S. Job Count Revised Up By 386K

BLS logo

If you suspect it’s getting harder every month to recruit the talent you need, the government says you could be right. The Bureau of Labor Statistics revised up by almost 400,000 its count of the total jobs in the nation.

The private sector created 452,000 more jobs than was reported in the monthly counts announced by the U.S. Department of Labor.  Government payroll cuts reduced the total job gain to 386,000. The monthly report for September is scheduled to be released Oct. 5th.

Most of the industry sectors were revised up. On a percentage basis, the biggest increases were in  information services (a category that includes telecommunications, publishing, and IT among others), construction, and mining and logging (largely due to the petroleum industry hiring). Manufacturing lost 25,000 jobs and the professional and business services sector (which includes temporary hiring) dropped 14,000 jobs.


Fear + Doubt + Worry = Your Personal Slave Drivers

"If not now, when?" handwritten with white chalk on a blackboard

A while back I received an email with the same title from David Neagle, a wealth and mindset coach whose products and services I have invested in frequently. That title made me stop and read more.

David’s column was more on “manifesting” things in our lives. While I fully believe that when we focus on having things in our lives the way we want them we significantly increase the likelihood that we will get them, this is not what struck me about the article. What struck me big time was the title. Why?

Despite the incredibly strong recovery we have seen as an industry, many recruiting firm owners are still letting fear, doubt, and worry run their business. These slave drivers that we wake up with, take to our offices, and then take home again at night are three of the biggest reasons some owners haven’t yet “dove back into the pool” to grow their businesses. They think the pool is empty or still very shallow.

At some level this is understandable. Most recruiting firm owners never experienced business deterioration as deep and rapid as we did in 2008 and 2009. However, it is time to stop looking in the rear view mirror!

Industry News

Reports Suggest Hiring, Economy May Be Slowing


This morning’s jobs report from ADP is prompting worries that hiring may be slowing, damping hopes that the anemic recovery may be hitting a rough spot, if not stalling.

ADP, which processes payrolls for some 500,000 U.S. firms, said private employment grew by 133,000 jobs in May. The company, and its analytics partner, Macroeconomic Advisers, also adjusted down by 6,000 its initial 119,000 April job estimate.

Economists surveyed by Bloomberg News were expecting the May ADP report to show about 150,000 new jobs. Bloomberg also said the expectation is for the official Labor Department report to show 160,000 new jobs during the month. That report is scheduled to be released tomorrow morning.

Industry News

Jobs Report: U.S. Adds 243,000 Jobs, Unemployment Rate Drops Again


Strike up the band. Break out the confetti. The market’s going to love this. The U.S. unemployment rate dropped to 8.3 percent and non-farm jobs grew by 243,000 in January.

This morning’s monthly report from the U.S. Department of Labor blasted through even the most optimistic of expectations. The jobs gain would have been the largest since May 2010, except that the Labor Department’s data group adjusted 2011′s jobs numbers. Now, only March (+246,000) and April (+251,000) had stronger numbers.

January is the second consecutive month to beat estimates. Economists predicted anywhere from MarketWatch’s tepid 121,000 to the more optimistic 182,000 in the Bloomberg survey. None of the widely reported surveys saw a decline in the unemployment rate.

Indeed, the unemployment rate, which has been declining very slowly since hitting a peak of 10.1 percent in late 2009, is now at the lowest point since February 2009. The government report also put the number of unemployed at 12.8 million. A year ago it was at 13.9 million.

While governments continued to cut jobs — federal jobs were cut by 6,000 and local government cut 11,000 positions — the private sector added 257,000. This was more than 50 percent higher than the ADP estimate earlier in the week.