US Talent Market Monthly January 2014


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US Talent Market Monthly January 2014

  1. 1. January 10, 2014 U.S. EMPLOYERS HIRED A TOTAL OF 74,000 WORKERS IN DECEMBER AVERAGE HOURLY EARNINGS (ALL WORKERS) THE UNEMPLOYMENT RATE FELL TO $24.17 6.7% 1.8% ABOVE LAST YEAR 7.9% LAST DECEMBER LABOR MARKET DIPS TO END THE YEAR • Disappointing end to 2013 as payrolls only grew by 74,000 in December, the weakest monthly job gain since January 2011. • Unemployment fell significantly, reaching its lowest point in more than five years, but the decline was largely due to lower labor force participation. • Job creation did not accelerate as expected in 2013, suggesting that the U.S. economy and the labor market remain in a fragile state. After four consecutive months of strong employment gains, U.S. hiring trends plunged in December, possibly showing some effects of poor winter weather. Employers added just 74,000 workers to their payrolls, the lowest monthly job gain figure in nearly three years and well below consensus forecasts. With December’s figure, and despite a net 38,000 jobs added to prior months’ totals from revisions, employment creation averaged only 182,000 per month in 2013—roughly the same as 2012’s figure of 183,000 jobs created per month. (Continued)
  2. 2. Talent Market Monthly: January 10, 2014 The dismal labor market figures in December are both a disappointment and somewhat of a surprise. Experts were predicting a strong finish to 2013, as most indicators suggested that the economy was, at last, showing signs of strength. The year-end slump may be an anomaly—or it may mean that the U.S. economy and labor market are not quite as healthy as they seemed. 10.0 9.0 8.0 7.0 6.0 Total non-farm employment growth Unemployment rate EMPLOYMENT OVERVIEW JUL AUG SEP OCT NOV DEC Total non-farm employment growth 89K 238K 175K 200K 241K 74K Private sector employment growth 100K 207K 168K 217K 226K 87K Unemployment rate THE RISE OF ONLINE STAFFING Unemployment Rate (%) 350 300 250 200 150 100 50 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 The unemployment rate dropped from 7% in November to 6.7%, but unlike last month, this time it was mostly for the wrong reasons. Nearly 350,000 workers left the labor force in December and the participation rate retreated back to its historic low of 62.8%, erasing the gains that were made in November. U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE Employment (000s) Retail trade hiring led the way again in December, adding 55,000 jobs. Temporary help services also posted a strong monthly gain (+40,400). However, employment was down in the construction industry (-16,000) and in government (-13,000). Surprisingly, for the first time in more than ten years, the health care/ social assistance sector failed to create jobs in December (-1,000). 7.3% 7.2% 7.2% 7.2% 7.0% 6.7% Source: Bureau of Labor Statistics Just as online exchanges have revolutionized industries such as music and retail, online staffing—using virtual talent exchanges to match freelancers with potential employers—may have a transformative effect on the way organizations find and manage workers. According to Staffing Industry Analysts, online staffing is currently a $1.5 billion industry, with annual projected growth rates that could exceed 60% in the coming years as employers and workers alike continue to embrace more flexible and virtual work models. And like many emerging industries, the online staffing world is dynamic. The leading firms, oDesk and Elance, merged in December 2013, creating a large-scale platform that will greatly expand access to both freelance job opportunities and talent. The combined entity will offer a global community of more than 8 million freelancers and 2 million potential employers in more than 180 countries. Kelly Services recently announced a partnership with oDesk. Through the alliance, the first between a workforce solutions company and an online platform, oDesk will become a component of the talent supply chain for KellyOCG, the Outsourcing and Consulting Group of Kelly Services. “Integrating oDesk into our supplier network helps our clients access the rapidly growing online workforce, increasing their agility and access to key talent in their outsourced program,” said Teresa Carroll, SVP and General Manager, KellyOCG. An Equal Opportunity Employer ©2013 Kelly Services, Inc. W1093e. Kelly Services, Inc. makes no representation or warranty with respect to the material contained in this report. Sources: Press Releases, 12.12.13 and 12.18.13; Staffing Industry Analysts, 01.02.14