BLS numbers highlight the need for companies to be attractive to compete in today’s labor market.
The U.S. Bureau of Labor Statistics (BLS) July 2015 report showed employment increased by 215,000, compared with an average monthly gain of 246,000 jobs over the prior year. The unemployment rate remained unchanged at 5.3% in July, continuing to be the lowest level in more than seven years.
Wages grew slightly in July after remaining unchanged in the prior month. Average hourly earnings rose 0.2% over the prior month and 2.1% over the prior year. As the competition for attracting and retaining skilled talent remains strong, wages are increasingly becoming a topic of concern.
Healthcare Industry Remains Promising
Healthcare added 28,000 jobs in July and has added 426,000 jobs over the year, continuing to serve as a driving force that remains busy in today's marketplace.
Kristin Carpenter, Director of Operations in San Diego, commented on the notable increase in the healthcare market, "Private companies and private health plans have seen increased business since the launch of ACA and as a result, the healthcare industry has had a rapid need to hire Case Managers, and specialists in Insurance Eligibility, Clinical Services, Medical Billing and Data Entry. Due to the high demand in this niche specialty, clients are now considering direct hire placements in order to open their pool to employed candidates. As a direct result, we have had a drastic increase of 50% in direct hire positions in the Healthcare space."
Professional & Technical Services
Professional and technical services added 27,000 jobs in July, with gains of 9,000 in computer systems design and related services.
Brian Schultz, Director of Enterprise Accounts, comments on the recent increase in software developer openings in San Diego, “In the last 3 months, we have experienced at least 2x to 3x the amount of Software Developer openings. The supply for these candidates remains extremely low, and probably as close to 0% unemployment at the moment.” With this in mind, the following can help build talent on your team:
- Consider recruiting outside of your region. With supply so low, it will help to increase the pipeline of available candidates for these openings.
- Start your interview process with virtual interviews (Skype, WebEx, GoToMeeting, etc.) for out-of-area candidates to get the interview process moving. If all goes well, fly out candidates to further evaluate their candidacy.
- Ask candidates what’s important to them when recruiting out-of-area candidates. When you find what is most important to them, create the most competitive package.
- Create a junior development team and hire candidates who can learn and grow within the company.
Employment in manufacturing increased by 15,000 in July. Laura LaManna, Branch Manager of the Manufacturing & Distribution Division, commented, “The Manufacturing and Distribution division is seeing an increase in pay rates being offered to our contingent workforce as unemployment decreases. It is important that companies understand how their pay rates compare to those in their similar industry.”
Eastridge Workforce Solutions offers our clients regular service reviews to provide in-depth market information specific to their industry so they can be proactive and offer rates and incentives ahead of the market trend to attract and retain the best talent.
What Companies Need To Do
Judy Enns, Executive VP of our Human Resources Division, commented, “We are seeing far fewer responses than ever to all Internet job postings. Companies need to accelerate their referral bonuses for positions at all levels to be exceptionally attractive to current employees. Reward current employees handsomely because they are the best employment brand ambassadors to reach passive candidates seeking to join a great company.”
“Sourcing and recruiting require sales skills more than ever before. Train recruiters to start conversations with potential candidates before they recruit, stay in touch with them through company updates, intrigue them with the work that is being done, and with growth opportunities current employees are experiencing.”
Better Manage Your Internal Resources
Eastridge Workforce Solutions helps companies manage their internal resources more efficiently. Contact us to see how we can enable your company to win the competition for talent through our 9 specialty staffing divisions.