Payroll growth slowed in January 2016 as employers added only 151,000 jobs, according to the latest employment report by the Bureau of Labor Statistics (BLS). According to the some economists surveyed by Bloomberg, expectations were for 190,000 job gains. Yet some analysts expected employment growth to slow after a booming Q4-2015, where the economy added 279,000 jobs per month.
U.S. Unemployment Rate and Newly Employed
Source: Bureau of Labor Statistics & Forbes
The industries adding the most jobs in January 2016, include retail trade adding 58,000 jobs, food services and drinking places adding 47,000 jobs, healthcare with 37,000 new jobs, financial activities adding 18,000 jobs, and processional and business services with 9,000 jobs added. Manufacturing had its biggest increase of 29,000 new jobs in over a year. Due to layoffs, private educational services shed 39,000 jobs, while transportation and warehousing lost 20,000 jobs, and mining lost 7,000 jobs.
Meanwhile, the unemployment rate fell to 4.9 percent from 5 percent, the lowest rate since February 2008. Average hourly wages rose 12 cents to $25.39, up 2.5 percent from the previous year. Additionally, the average workweek edged up to 34.6 hours from 34.5 hours.
Slow Growth in 2016?
According to a recent survey by Deloitte, 29 percent of mid-market executives believe that the American economy will not grow over 2 percent in 2016. The survey pointed to rising health care costs as the top obstacle to growth. Additionally, mid-market executives identified hiring and training as their biggest investments for the year. Approximately 56 percent of companies reported that their workforces grew over the past 12 months, while nearly two-thirds said it was more difficult to find skilled talent to meet their business needs. According to D. Roger Nanney, vice chairman at Deloitte, the “tech crunch” is making technology a particularly hot sector for job seekers.
“Notably in this survey, 32% of these executives responded that they would be paying higher wages.” ~D. Roger Nanney, Vice Chairman at Deloitte
Full-time and Temporary Hiring to Increase
CareerBuilder’s 2016 job forecast indicates that more than one-third of employers plan to add full-time, permanent staff this year. Specific industries expected to see job growth include financial services and information technology. Temporary and contract employment is projected to also increase in 2016, with 47 percent of employers planning to hire temporary or contract workers, up from 46 percent in 2015 and 42 percent in 2014.
The CareerBuilder survey shows that the skills gap continues to be a major issue for employers, with 63 percent responding that they are concerned about the increasing disconnect between the skills they need in their organizations and the skills that candidates possess. One in three employers plan to hire low-skill workers and invest in training them for high-skill jobs this year.
The survey also found that positions tied to revenue growth, innovation and customer loyalty will see a growth in hiring. The top five jobs that employers plan to recruit for in 2016 include:
UK: The Fourth Biggest Economy in 2030
According to the Centre for Economics and Business Research (CEBR), the UK will overtake Germany and Japan over the next 20 years to become the fourth-largest economy in the world. The CEBR forecasts that the weak Japanese economy, which slid into recession for the fifth time in seven years, and the aging population in Germany will push both of these countries down in the world economic league table, while both the UK and India will rise.
“The UK’s strength is its cultural diversity and its strong position in software and IT applications. [The UK] is likely to overtake Germany and Japan during the 2030s.” ~CEBR
Other major predictions from the CEBR include:
China, currently the world’s second-largest economy, will not be able to surpass the US till 2029 due to it’s economic slowdown
By 2030, Italy and France will not make it to the top eight, while South Korea and Brazil Advance.
The fastest-growing region in the world over the next 15 years will be Central Asia, while the slowest-growing region will be western Europe
Central Asia’s share of the global economy is forecast to triple – from 2.8 percent in 2000 to 9.9 percent in 2030.
“Wage growth has shown momentum recently. Average hourly earnings increased 2.5% in January compared to a year ago. Until recently, wage growth has been the one factor missing from America’s recovery from the recession. As the unemployment rate remains low, many economists expect Americans to see paychecks go up.” ~ Patrick Gillespie, CNN Money