The January jobs report shows unemployment dropping to the lowest rate in 8 years.
The U.S. Bureau of Labor Statistics (BLS) January 2016 report showed employment increased by 151,000 jobs, a decrease from December’s revised decrease of 262,000.
The unemployment rate dipped to 4.9% in January from 5% the prior month; January’s unemployment rate is the first time since February 2008 that the unemployment rate fell below 5%.
Average hourly earnings increased by 2 cents in January to $25.39, up 0.5% month-on-month and 2.5% the past year.
Healthcare added 37,000 jobs in January and has added 470,000 jobs over the year.
Kristin Carpenter, Director of Operations in San Diego, commented on the steady increase in the healthcare industry, "As we come out of the holiday months, candidates are seeking stability and are being contacted with multiple job offers, more frequently than ever before.
In the Healthcare industry, unemployed candidates that are qualified or have a specialty niche are becoming very difficult to find. Therefore, companies must avoid losing the best candidates in the market by moving quickly to give their top candidates a direct offer."
Manufacturing & Distribution
Manufacturing employment increased by 29,000 jobs in January; following the little employment change in 2015.
Laura LaManna, Area Manager of the Manufacturing & Distribution Division, commented, "Eastridge’s Manufacturing & Distribution Division is finding that temporary employees are not accepting minimum wage positions any longer.
Companies are providing 15-20% more than minimum wage to get top candidates to walk through their door.
It is imperative that companies learn to plan ahead and see what their budgets can accommodate when hiring in today’s competitive market."
Employment in financial activities added 19,000 jobs in January.
Evan Levine, Executive Recruiter of the Finance & Accounting Division, commented on the increase, "In Finance and Accounting, it’s all about supply and demand right now. As the statistics indicate, steady job growth in the industry continues while the unemployment rate remains, traditionally, very low, around 2.2 to 3.2 percent right now.
High demand and low supply means the candidates are the ones driving the current market. While organizations may know who they want to hire, we are continuing to see and encourage the evolution of how they hire. This is the only way to attract and retain the top talent they have in mind."
Professional & Business Services
Employment in professional and business services changed little in January, adding 9,000 jobs.
This largely reflects the decrease of 25,000 jobs in temporary workers following the holiday season. Tim Merri, Executive VP of Workforce Recruitment commented, "Although there was little change for employment in Professional and Business Services, we continue to see demand for talent outpace the available supply.
Employee engagement and productive recruitment practices will need to be a strategic focus for all companies in 2016. Keeping current staff and attracting top talent will remain a key indicator of success within all industries and in all stages of business."
Growth in Direct Hire Roles
Placements in Direct Hire roles continue to increase as companies approve budgets and fill the most positions during the beginning of the year.
Eastridge’s Administrative Division in particular, saw a large amount of growth in Direct Hire roles in January, hitting the highest number of placements in the first month of 2016 than any other month in 2015.
What Companies Need To Do
To remain competitive in today’s labor market, companies need to set a larger budget aside for external direct hire recruitment.
With today’s declining unemployment rate and shrinking talent pool, companies should begin to improve their recruitment performance through external support to help fill positions efficiently and effectively.