Staffing Employment Trends – July 2011
Staffing Industry Analysts presented the July 2011 Staffing Industry Report Webinar on July 13, 2011. The month of June overall was less optimistic than previous months. The GDP growth in the first quarter of the year was very low, coming in at 1.9%. This low growth is somewhat bad news for the staffing industry, due to its correlation with overall government. Total employment growth continued to stall for the second month in a row. Only 18,000 jobs were added in the month of June. Private sector employment fared better, adding 57,000 jobs, but was still much lower than needed in a post-recovery bounce back.
Overall unemployment rates changed little in June, coming in at 9.18%. According to the Bureau of Labor Statistics, the unemployment rate has risen 0.4% since March 2011. Trends in hours worked, as well as overtime hours worked, are flattening out to low levels.
Government, education and health care sectors all stalled in the month of June. The loss of these generally strong areas helped bring down overall job numbers. Education and hospitals were also unusually weak. The manufacturing sector is beginning to flatten out, but did experience a slight uptick on the manufacturing index. One area of growth was leisure and hospitality jobs, even when seasonally adjusted. Temporary help lost 12,000 jobs in June, continuing the weak trend of the last three months. One strong spot is direct hire staffing and most staffing firms are seeing month-to-month improvements.