Economy Grows at 3.6% from July to September
Washington, DC (Associated Press, December 5, 2013): The U.S. economy grew at a 3.6 percent annual rate from July through September, the fastest since early 2012. But nearly half the growth came from a buildup in business stockpiles, a trend that could reverse in the current quarter and hold back growth.
The Commerce Department's second estimate of third-quarter growth released Thursday was sharply higher than the initial 2.8 percent rate reported last month. And it was well above the 2.5 percent growth rate for the April-June quarter.
Almost the entire third-quarter revision was due to a big jump in stockpiles. Consumer spending, the lifeblood of the economy, was the weakest in nearly four years.
When excluding inventories, the economy grew at a 1.9 percent rate in the third quarter, down from 2.1 percent in the spring. That's in line with the same subpar rate that the economy has seen since the Great Recession ended four years ago. "There's no momentum here," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. He said overall economic growth could come in below 2 percent in the current October-December quarter.
Paul Ashworth, chief U.S. economist at Capital Economics, agreed that inventories will hold back growth in the current quarter. But he disagreed that the report suggested the economy was not strengthening. He noted that business sales increased markedly, corporate profits rose, income grew and Americans saved more. The report adds "to the evidence that the recovery is gaining momentum."
Companies Add 215,000 Jobs in November
Washington, DC (Manufacturing.Net, December 6, 3013): A private survey shows U.S. businesses last month added the most jobs in a year, powered by big gains in manufacturing and construction.
Payroll processor ADP said Wednesday that companies and small businesses added 215,000 jobs in November. And ADP said private employers added 184,000 jobs in October, much stronger than its initial estimate of 130,000.
The ADP numbers cover only private businesses and often diverge from the government's more comprehensive report. Last month, the Labor Department said private businesses added 212,000 jobs in October. The Labor Department will report on November job growth Friday.
Still, the figure suggests that hiring remained healthy in November after picking up in the prior three months. Manufacturing and construction firms each added 18,000 jobs. That was the biggest gain for manufacturers since early this year.
Mark Zandi, chief economist at Moody's Analytics, said the figures show that employers shook off the partial government shutdown in October and kept hiring, despite a drop in consumer confidence. Moody's helps compile the ADP data. "That's very encouraging as we make our way into next year," Zandi said.
Why Employers Should Treat Job Seekers Like Customers
New York, NY (New York Times, December 8, 2013): Companies that treat prospective employees like valuable customers—respecting their time and openly communicating with them—are poised to win the war for talent, while those that continue to regard recruiting as a cattle call will have fewer candidates from whom to choose.
Anyone who has applied for a job and gone through the interview process with a potential employer knows the experience is typically punctuated by excruciating periods of silence. You submit a resume electronically, and you wait. Maybe you hear from the company. More often you don't. If you find yourself in the enviable position of having a recruiter summon you for an interview, afterward you're likely to wait and wonder yet again, while the hiring team debates your qualifications and meets with other candidates. Considering that many employers require candidates to go through several rounds of interviews, the waiting and silence can carry on for weeks.
Job seekers' lack of visibility into an employer's recruiting process represents one of many pain points associated with a job search. Lack of feedback presents another. Some job seekers take multiple days off from work to interview with an employer, only to conclude from the employer's lack of follow-up that their effort failed to yield an offer—never mind any meaningful feedback from the employer as to why they were not selected.
Some employers have begun to recognize that the traditional, linear recruiting process—an organization posts a job, collects and screens resumes, conducts initial phone interviews followed by face-to-face interviews, and six months later offers a job to a candidate—is as dysfunctional and disadvantageous for them as it is for job seekers.
"The traditional model for recruiting doesn't allow employers to hire people as efficiently as they need them," says John Henry, a director with Deloitte Services LP. "This can be devastating for technology companies and corporate IT departments that compete on the basis of talent and speed to market. In the amount of time it can take a company to extend a job offer, a more nimble competitor can snap up the candidate."
In short, companies with onerous, protracted hiring practices that require batteries of tests, assessments, and interviews risk losing the war for talent, especially technology talent. They also risk alienating high-potential candidates.
10th Annual Youth Career Summit
Lancaster: The 10th Annual Youth Career Summit, presented by the Youth Council of the Lancaster County Workforce Investment Board, will be held on Thursday, January 23, 2014 at the Eden Resort, 222 Eden Road in Lancaster. (Snow date: Thursday, February 6, 2014).
This event brings educators, counselors, non-profits, community leaders and representatives of the private sector together for a morning of updated local labor market information and resource sharing. There is no cost for the Summit but registration is required. Please click here to register.
The Summit will begin at 7:30 am with a breakfast followed by a review of WIB-sponsored Youth Activities. Scott J. Sheely, Executive Director of the Lancaster County Workforce Investment Board, will present an Overview of the Local Labor Market. Sandi Thompson, Business Services Liaison with The Lancaster Chamber of Commerce and Industry, will demonstrate the newly upgraded and interactive website CareerConnect. A Business and Education Panel Discussion will follow with an opportunity for small group interaction and networking. The program concludes by 10:15 am.Act 48 recognition of attendance is pending.
Questions? Contact Hope Schmids by clicking here or 717.509.5613 x 233.
14th Annual Workforce Summit
Lancaster: Save the date for the 14th Annual Workforce Summit, entitled "Employment and Re-Entry" which will be held on Friday, December 20, 2013 at the Eden Resort Inn, 222 Eden Road in Lancaster. The Summit begins at 7:15 am with a breakfast followed by the Friends of Workforce Awards and the State of the Workforce Address by Scott J. Sheely, Executive Director of the Lancaster County Workforce Investment Board. Speakers on the featured topic follow. The program concludes by 9:30 am.
More than 200 people are expected to be the guest of the Board and its affiliate organization, the Lancaster County Re-Entry Management Organization (RMO), as they explores the important role that employment plays in keeping people who have been previously incarcerated out of prison. Michael Potteiger, Chair of the PA Board of Probabation and Parole, will be the guest speaker. Melanie Snyder, Director of the RMO, and Anna Ramos, Administrator of the PA CareerLink of Lancaster County, will describe the PA CareerLink-based process and introduce some returning citizens who have been through the program.
For more background on the subject, click here for an article on the subject.
Manufacturing Grows at Fastest Rate in Two Years
Washington, DC (Associated Press, December 2, 2013): U.S. manufacturing grew in November at the fastest pace in 2½ years as factories ramped up production, stepped up hiring and received orders at a healthy clip. The Institute for Supply Management said Monday that its index of manufacturing activity rose to 57.3. That was up from 56.4 in October and was the highest since April 2011. A reading above 50 signals growth.
One component of the index, a measure of hiring, rose to its highest level in nearly 18 months. And a gauge of export orders reached its highest level in nearly two years. Overseas demand is benefiting from modest recoveries in Europe, Japan and China.
Manufacturing activity has now expanded for six straight months after hitting a rough patch in the spring. The steady gains suggest that growth is remaining healthy in the current October-December quarter.
Still, the encouraging figures in the ISM's report conflict with weaker recent data on factory activity, making it difficult to discern a clear trend. The ISM is a trade group of purchasing managers. "We continue to believe that this indicator is overstating the health of the broader economy," said Joshua Shapiro, chief U.S. economist at MFR Inc.
Monster Look at Manufacturing
Madison, WI (Manufacturing.net, August 29, 2013): Not too long ago, Monster.com, the well-known online job marketplace, conducted a comprehensive survey (see infographic below) on the state of U.S. manufacturing jobs, and came to some compelling, if not worrying, results. In general, workers in U.S. manufacturing are largely unhappy with their current positions, for a variety of reasons, and are more likely to be actively searching for different work, be it at another plant, or another industry.
The survey found that close to one-half — 47 percent — of manufacturing workers expressed dissatisfaction with their current job. It's telling a story that many aren't talking about, the fact that despite a recovery in manufacturing productivity and corporate balance sheets, on the ground floor, things aren't necessarily looking rosy.
Joanie Ruge, employment industry expert and senior vice president at Monster Worldwide, says much of this dissatisfaction is intimately tied to the industry's overall poor performance as of late: "The manufacturing sector was one of the hardest-hit sectors during the recession. The number of jobs that were lost in this particular sector were, obviously, extremely high. Since the recovery, we really haven't seen enough of a jobs 'comeback' in manufacturing, which has been a concern."
On top of that, many U.S. manufacturing employees find themselves in a difficult position: having to do more work, or be more productive, with less. At many companies, benefits were cut back or slashed, which accumulated in more dissatisfaction. Ruge says, "During the recession, many employees were begin asked to do more work for less money, because through the cut-backs, many didn't get the annual merit or performance raise, or incentives or bonuses."
Unfortunately, only 34 percent of manufacturing workers expressed confidence that they would actually be able to secure a position elsewhere
Top 10 manufacturing job markets:
- Houston, TX
- New York, NY
- Los Angeles, CA
- Tulsa, OK
- Cleveland, OH
- Milwaukee, WI
- Chicago, IL
- Dallas, TX
- Phoenix, AZ
- Portland, OR
The report wasn't all bad news, however — it came with a number of surprising and hopeful trends that might not only outline a manufacturing recovery, but also sectors that workers might want to focus on if they're interested in a better future in manufacturing. Monster.com also surveyed, through a mix of internal and external data, the sectors within manufacturing that were hiring new employees at the greatest rate.