May 01, 2016

DCR National Temp Wage Index - May 2016

DCR National Temp Wage Index - May 2016

In March 2016, according to the latest employment report by the Bureau of Labor Statistics (BLS) total nonfarm payroll employment increased by 215,000, while the unemployment rate rose slightly to 5 percent, up from 4.9 percent in the month before. Industries seeing the biggest increases in employment included retail trade, construction, and healthcare. Meanwhile, manufacturing and mining both saw job losses. Over the past four months, the size of the United States’ labor force has increased by 1.92 million, the strongest since the boom of the early 2000s.

Average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents to $25.43 in March 2016. Over the past year, average hourly earnings have risen by 2.3 percent. 

Temporary help services employment increased 0.14 percent, adding 4,000 jobs in March 2016. The temporary penetration rate was relatively stable at 2.01 percent, having reached an all-time high of 2.06 percent in December 2015.

Non-Profit Employment

According to new insights from the Bureau of Labor Statistics (BLS), non-profit employment, total annual wages, and the number of establishments has been growing steadily each year from 2007 to 2012. During this period, non-profit employment increased 8.5 percent, from 10.5 million jobs to 11.4 million. Total annual wages increased from $421 billion in 2007 to  $532 billion in 2012, while the number of non-profit establishments increased 15 percent.

The majority of jobs in non-profit organizations were found in the healthcare and social assistance sector. The state with the greatest proportion of non-profit work in this industry was South Dakota with an 85 percent share. Meanwhile, the District of Columbia had the lowest share of nonprofit employment in the healthcare field at 31 percent. Overall, the state with the most non-profit employment was the District of Columbia, followed by New York, Rhode Island, Vermont, Massachusetts, Maine, and Pennsylvania. The state with the least percentage of jobs in the non-profit sector was Nevada, followed by Texas, Alabama, South Carolina, and Wyoming.

Total Non-Profit Private Sector Employment, 2012

Total Non-Profit Private Sector Employment, 2012

Source: BLS

Internal Recruitment a Challenge for Most Organizations

The Global Recruiting Trends 2016 study by LinkedIn Talent Solutions found that most organizations do not make internal hiring a priority. Of the approximately 4,000 talent acquisition decision-makers surveyed, only 12 percent said internal hiring and transfers are a priority in their company’s recruitment strategy. Additionally, only 36 percent of organizations had a well-defined internal recruitment program that included advancements or lateral opportunities for employees.

Senior Managers Finding New Jobs Faster

A recent poll of senior managers at 33 companies across 16 states by BPI found that senior managers are finding new jobs faster and are commanding higher wages. Workers earning between $150,000 and $250,000 in annual wages are now getting hired after a search averaging a little over five months. The poll found that 30 percent of the managers surveyed said that their compensation at their new job is roughly the same as in the old one, and 53 percent said they are earning more.

“We’ve also seen more executives with multiple job offers to consider. Demand is especially strong for ‘leaders with experience in change management, and who have the ability to build strong teams.” ~Patricia Siderius, Managing Director of Outplacement at BPI

According to the executives, networking, mentioned by 68 percent of respondents, was the most common path taken to find their new role. About 25 percent found jobs through recruiters, while only 3 percent found their new jobs online.

Job Hopping in 2016?

Jobvite’s recent 2016 Job Seeker Nation Study reveals that 74 percent of employees are open to a new job, though many of them are satisfied in their current position. According to the report, employees are generally optimistic in the long run that they’ll be able to find a job that is a fit for their skills and qualifications.

Additionally, a recent report by CareerBuilder finds that millennials are job-hoppers. Thirty percent of employees aged 18 to 34 expect to have a new job by the end of 2016, as compared to 23 percent last year. And 42 percent of millennials expect to change jobs at least every one to three years.

“Just because a person is satisfied with their job doesn’t necessarily mean they aren’t looking for new work. Because of this, it’s critical to keep up with your employees’ needs and continue to challenge them with work they feel is meaningful.” ~Rosemary Haefner, Chief Human Resources Officer at CareerBuilder

Dream Jobs for Today’s Kids

Millennials currently already make up more than a third of the workforce. By 2020, it will make up half. Countless surveys show that millennials want to work for companies that value employee welfare, offer flexible scheduling, and bestow a sense of purpose. A recent survey by the National Society of High School Scholars (NSHSS) of 18,000 high school students, college students and young professionals attempted to shed more light on the career choices, ideal employers, workplace environments, and educational goals of this growing segment of the workforce.

Respondents ranked their top three preferences from a group of more than 200 companies, and Google, St. Jude’s Children’s Research Hospital and Walt Disney Company led the selections overall. Health-related employers and technology companies ranked highly, mirroring preferred majors, which include in order: medical and health-related fields, sciences, engineering/technology, business, and psychology.

Other interesting insights include:

  • 43 percent of respondents expect to work while attending college
  • 79 percent of millennials’ parents and guardians are at least somewhat involved in career decisions
  • 78 percent of respondents expect to seek advanced education beyond college, such as attending medical school or business school
  • 77 percent of millennials are somewhat or very engaged in community activities
  • 50 percent or more of respondents are moderately interested in starting their own business or non-profit venture
  • 63 percent of respondents indicate an interest in learning more about career opportunities at government opportunities
  • 72 percent of millennials value the perception that an employer treats employees fairly
  • 70 percent of millennials want to work for employers that offer flexible work hours/schedules
  • 90 percent of respondents are looking for jobs that offer them opportunities to gain skills that will advance their careers
  • 68 percent of respondents are looking for positions that offer work/life balance
“Wage growth for nonsupervisory workers was consistent with the modest growth rate we've consistently seen for a few years now. The somewhat better figure for all workers indicates better wage growth for professional and managerial employees with higher education. But we do not yet see a clear breakout of wage growth that we would expect in a tightening labor market.” ~Harry Holzer, former Chief Economist of the U.S. Department of Labor