Analysis of the BLS Employment Situation Report Employment Summary for March 2015
APRIL
|
2015
VOLUME 9
| ISSUE 4
While the unemployment rate remained stable for the month of March, and job growth was lower than expected, the U.S. continued to add jobs across a variety of sectors. Workforce grows as employment situation remains stable According to the Employment Situation released by the Bureau of Labor Statistics, the country's unemployment rate did not change during March, remaining at a steady 5.5 percent. The overall number of people in the workforce was 8.6 million, up 126,000 from February. Between March 2014 and March 2015 the number of employed people has increased by 1.8 million, contributing to a 1.1 percent drop in the unemployment rate. The report explained that the civilian labor force experienced little change this month, staying solid at 62.7 percent. Notably, this number has mostly stayed between 62.7 and 62.9 percent since April 2014. Healthcare, retail and business services expand hiring The 126,000 new positions were spread among a variety of fields. The industry that added the most workers this month was the professional and business services sector, which grew by 40,000. Within this general field some of the areas where hiring went up included engineering services, management and technical consulting services, and computer systems design and related services. Healthcare also saw a larger workforce in March, growing by 22,000 employees. Most of these jobs pertained to ambulatory care and hospitals. Within this sector, nursing care facilities shrank by 9,000 positions. The retail industry continued its growth, adding 26,000 jobs.
One of the fields that lost positions this month was mining, which shrank by 11,000 workers. This industry added 41,000 jobs last year, but so far has lost 30,000 jobs in 2015. Many other industries, including food service, manufacturing, construction, government, financial activities, transportation and warehousing, and wholesale trade changed very little throughout March. Wages on the rise The report indicated that hourly earnings increased for workers this month, going up by 7 cents to equal $24.86. This number has increased by 2.1 percent over the past 12 months. The average hourly earnings of private-sector production and nonsupervisory employees increased by 4 cents to rest at $20.86. Economists anticipated more growth While the report is stable, economists had predicted much larger growth, explained Nasdaq. Industry experts had anticipated that the nation would add 248,000 new jobs this month, while the actual number was significantly less. The source noted the Federal Reserve acknowledges that March's report fell flat in the face of economists' predictions, but it is not worried that the country's economy is declining. If numbers get back on track to improving at higher rates, the organization plans to increase interest rates.
Chart 1. Unemployment rate, seasonally adjusted, March 2013 – March 2015
Chart 2. Nonfarm payroll employment over-themonth change, seasonally adjusted, March 2013 – March 2015
Percent
Thousands 400
10.0
350 300
9.0
250 200
8.0
150 100
7.0
50 0
6.0
-50 -100
5.0 Mar-13
Jun-13 Sep-13 Dec-13
Mar-14
Jun-14
Sep -14
Dec-14
Mar-15
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep -14
Dec-14
Mar-15
FIRST FRIDAY REPORT What’s Your One Hiring Rule? Facebook CEO Mark Zuckerberg was recently quoted as saying "I will only hire someone to work directly for me if I would work for that person. I think this rule has served me pretty well ... Facebook is not a company for everyone in the world." This is apparently Zuckerberg's one absolute for hiring. Regardless of whether you agree with Zuckerberg, consider your one hiring rule, or even your top three, and how they have impacted the success of your business. Have these rules been constant or have they evolved over time? Most importantly, how effective have they been in shaping a unique company culture that attracts and retains top talent? Hiring rules are developed to help companies ensure they recruit candidates who are well-suited for their organization. Aside from degrees and certifications that may be state or federally mandated for specific roles, these guidelines have more to do with what companies attribute to successful hiring, as opposed to hard and fast hiring rules. No matter what businesses consider to be their hiring musts, every organization can benefit from periodically assessing whether their hiring rules are truly yielding the employees they seek, or if they are creating unnecessary hoops for candidates and interviewers.
PrincetonOne Blog: Employee Referral Program Best Practices
In terms of human resources initiatives, employee referral
programs (ERPs) result in the highest ROI, and, according to CareerBuilder data, they
“Right now, we are in a candidate driven marketplace. It is paramount that companies take the time to evaluate and strengthen our internal hiring process to compete for top talent.” - Mike Rocky, VP of Business Development
Google is a prime example of an organization that is revered as the ultimate dream company, yet saw the importance of reevaluating its hiring process. Up until a few years ago, prospective Google employees frequently were required to undergo more than 10 interviews. The lengthy hiring process created a time-intensive ordeal for hiring managers, causing the company to frequently lose top talent to its competitors. Google overhauled its process and limited each candidate to five interviews, recognizing that the longer candidates are on hold, the more time they have to get another job offer or accept a counteroffer. If a major technology force like Google saw the importance of revisiting how it hires, perhaps it is time for your organization to do the same. "I think a lot of us when we hire, hire to our comfort zone," says Mike Rocky, Vice President of Business Development for PrincetonOne. "It's critical in today's world for companies to evaluate the strengths of their employees and identify areas that need improvement. Understanding this can help bring the interviewing process into focus as well as sell top performing candidates on joining a new company. Right now, we are in a candidate driven marketplace. It is paramount that companies take the time to evaluate and strengthen their internal hiring process to compete for top talent." PrincetonOne provides the following tips for re-evaluating hiring rules:
make up over one fourth of
external hires. Even with the proven benefits, such as lower recruiting costs and reduced fill time, over 30
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Review the number of hires over the last five years and assess how many of those individuals have become significant contributors in their respective domains, or to the company's overall success. What characteristics do they have in common?
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Annually consider the organization's top hiring rules and whether they are still effective in recruiting quality talent that will fit seamlessly within the company culture.
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Review hiring situations that didn't work out, but don't obsess on the reasons these individuals were unsuccessful in their roles. Instead focus on the positive skills or experience that they possessed and see how these attributes could be beneficial to the department or the company overall.
percent of employers say they don’t have an ERP in place.
Whether your organization is thinking about starting
an ERP or revamping your current strategy, the best
practices listed below will help implement a successful plan of action. Prioritize
The first step in creating an effective ERP is to prioritize the jobs the program is being used to fill
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