Adecco Staffing Workplace Economy - October 2012


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Making sense of what happens in the job market, for October, 2012.

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Adecco Staffing Workplace Economy - October 2012

  1. 1. The workplace economyOctober 2012September’s jobs report exceeds economists’expectations. 114,000 new jobs were added in SeptemberWith the upcoming presidential election quickly Thousandsapproaching, the BLS has just released one of themost encouraging jobs reports of President Barack 400Obama’s first term. 300According to “The Employment Situation — September 2002012,” the national unemployment rate droppedbelow eight percent for the first month since January 1002009, falling from 8.1 to 7.8 percent. Prior to the release 0of the report, a majority of economists had projected -100the rate would linger between 8.1 and 8.3 percent, asit had throughout 2012. After all, the rate had remained -200 Sep Dec Mar Jun Sep Dec Mar Jun Sepabove eight percent for a record-breaking 2010 2010 2011 2011 2011 2011 2012 2012 201243 consecutive months.For the first time since Obama was inaugurated, Source: Bureau of Labor Statisticsunemployment is declining on a regular basis.In fact, since September 2011, the rate has contractedby 1.2 percent — the largest annual decrease sinceFebruary 1995. Within the last two months alone, therate has deteriorated by 0.5 percent.Furthermore, the report found that employment rose by114,000 last month, matching economists’ expectationsthat 110,000 to 115,000 jobs would be generated. Theemployment increase led to a substantial drop in thetotal number of jobless Americans, from 12.5 million to12.1 million, the lowest monthly total since January 2009.As a further sign of economic progress, the BLS alsodiscovered that more jobs had been created in Julyand August than originally thought. July’s job creationfigures have recently been raised from 141,000 to181,000, while August’s data increased considerably,rising from 96,000 to 142,000.
  2. 2. The workplace economy October 2012Since January, the economy has added an averageof 142,000 jobs per month, a decrease of 7,000, incomparison to last year’s monthly job creation average. Sector changes observed in AugustHowever, private sector jobs have been generated for (Changes from August - September 2012)31 straight months — and there are 325,000 more jobsnow than there was when Obama was inaugurated Thousandson January 20, 2009. In all, 5.2 million private sectorjobs have been added to the economy since March 2010. Finance HealthcareIn addition, the civilian labor force augmented by Legal418,000 in September, rising to 155.1 million, whilethe employment-to-population ratio increased to Leisure & hospitality58.7 percent, its highest level since May 2010. Professional & business services Retail tradeIn September, the private sector added 104,000 newjobs to the national economy, nearly matching August’s Transportation & warehousingtotal job creation. Sectors showing growth include: 0 10 20 30 40 50• Finance: Hiring remained robust, as 13,000 new jobs were generated. As is often the case, a Source: Bureau of Labor Statistics majority of the hiring occurred in depository credit intermediation and commercial banking, which added 3,900 and 3,300 new jobs, respectively.• Healthcare: As expected, hiring rose within the sector yet again in September, as 43,500 new jobs were created. Ambulatory health care services and hospitals accounted for most of the hiring, adding 29,800 and 8,000 new jobs to the economy, respectively.• eisure and hospitality: Despite a decline in L accommodation hiring, sector employment increased by nearly 11,000, mainly due to a steady rise in food services and drinking places employment.• rofessional and business services: For the fourth P consecutive month, the sector reported a rise in employment, as 13,000 professionals were hired. Since January, the sector has created an average of roughly 42,000 new positions each month.• Retail trade: Employment continued to uptick in September, as 9,400 professionals were hired, an increase of 3,300, when compared to August’s figures. Hiring was especially noticeable in clothing stores, which added 9,500 jobs to the economy. For the full report, go to ©2012 Adecco