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January 2020 JOLTS Report

January 2020 JOLTS Report: 6.8 Million Job Openings

The BLS just released the numbers for the January 2020 JOLTS Report, job openings in November clocked in at 6.8 million, down 561,000 from the previous month. Throughout the month, hires and separations changed little with 5.8 million and 5.6 million, respectively. And although job openings are declining, the quit rate has remained at 2.3% for over three months. This a strong sign that Americans’ confidence in the labor market is holding steady. Let’s take a closer look at the latest JOLTS Report.

JOLTS Report breakdown:

  • Job openings: 6.8 million
  • Hires: 5.8 million
  • Separations: 5.6 million
    • Voluntary: 3.5 million
    • Involuntary: 1.7 million
  • Quits Rate: 2.3%
  • Net Employment Gain: 2.3 million

The labor market is still hot

Although the number of job openings declined by nearly half a million, the net employment gain continues to be impressive over the last 12 months.  Over the past year (ending in November 2019), hires totaled 69.8 million and separations totaled 67.5 million, resulting in a net employment gain of 2.3 million.

Moreover, in the month of November, there were more total job openings (6.8 million) than the number of hires (5.8 million). In other words, today’s market is still candidate-driven as there are over 1 million more job openings than hires. And when pairing that with today’s half-century low unemployment rate (3.5%), the market remains hot as we make our way into 2020.

Get a helping hand in today’s tight market

The labor market is hot and doesn’t look like it will be slowing down anytime soon. It can be challenging for hiring managers to secure the top talent they need to keep business running as usual. If you are in this same boat, reach out to one of our recruiters at Johnson Service Group. We have a dedicated team of professional recruiters that are ready to make an impact on your hiring efforts; we are ready to help you find the talent your team needs in 2020 and beyond!

December 2019 Jobs Report

December 2019 Jobs Report: U.S. Creates 145,000 Jobs

The numbers are in for the final Jobs Report of the decade, and the BLS reported job gains of 145,000 throughout the month of December. As a result, 2019 was the ninth straight year of annual employment gains surpassing 2 million. Despite missing economists’ estimates of 164,000 job gains, the unemployment rate has remained a steady 3.5 percent (a half-century low) over the last three months. In other words, the labor market is holding steady as we enter the new year.

December 2019 Jobs Report breakdown

December also marks the 111th month in a row of job gains. With the addition of 145,000 jobs last month, employment rose to 2.1 million throughout 2019. And although short of economists’ projections, Michael Pearce, senior U.S. economist at Capital Economics, labeled last month’s job growth as “solid” even though it missed estimates and said, “We expect solid gains in payrolls to extend through 2020.” And if that isn’t impressive enough for you, jobless claims fell for a 4th week in a row to 214,000, which is back near post-recession lows.

Over the previous two months, employment gains from the previous two months were slightly revised down by 14,000 jobs. Job gains in October were revised down by 4,000 (from +156,000 to +152,000) and gains from November decreased by 10,000 jobs (from +266,000 to +255,000). However, over the last three months, employment gains are averaging 184,000 per month. And over the last 12 months, the economy added an average of 176,000 jobs a month in 2019.

Average hourly earnings continued to rise with an increase of $0.03, for a total hourly rate of $28.32. Over the last 12 months, average hourly earnings have increased by 2.9 percent – the lowest annual pace since July 2018. Additionally, the labor force participation rate remained little changed at 63.2 percent. Overall, the labor market is primed for another big year as we enter a new decade.

Job gains by industry

Here is a break down of the nonfarm payroll job gains for the month of December:

  • Retail Trade: +41,000 jobs
    • Clothing and Accessories Stores: +33,000 jobs
    • Building Material & Garden Supply: +7,000
  • Leisure and Hospitality: +40,000 (+359,000 jobs over the last 12 months)
  • Healthcare: +28,000 (+399,000 over the last 12 months)
    • Ambulatory Healthcare Services: +23,000
    • Hospitals: +9,000
  • Construction: +20,000 (+151,000 jobs over the last 12 months)
  • Professional and Business Services: +10,000 (+397,000 jobs over the last 12 months)
  • Mining: -8,000 (-24,000 jobs over the last 12 months)
  • Transportation and Warehousing: -10,000 (+57,000 jobs over the last 12 months)
  • Manufacturing: -12,000 (+46,000 jobs over the last 12 months)

Get the talent acquisition assistance you need in 2020

All signs are indicating that 2020 will be another strong year of growth for the U.S. economy labor force. If you had struggles filling your critical roles and sourcing skilled candidates in 2019, you’ll likely face the same challenges in the new year. If you want to get a kickstart on your hiring efforts this year, partner with a recruiter. At JSG, we have a team of recruiters ready to partner with your organization to source the talent you need to have another successful year in 2020. Reach out to us today, and let’s get to work!

December 2019 JOLTS Report

December 2019 JOLTS Report

The Labor Department released the latest JOLTS Report this morning, and the labor market received a boost in October. Throughout the month, both job openings and the number of quits by Americans increased, which are two solid signs of a strong job market. On the last day of business in October, job openings total 7.3 million, up from 7.0 million in September. The quit rate also remained at 2.3 percent, showing the confidence of Americans to quit their jobs to pursue more lucrative career opportunities.

Here’s a breakdown of the latest JOLTS Report.

December JOLTS Report

  • Job Openings: 7.3 million (+235,000 from the last report)
  • Number of Hires: 5.8 million (3.8 percent hire rate)
  • Number of Separations: 5.6 million
    • Voluntary: 3.5 million
    • Involuntary: 1.8 million
  • Job Opening Rate: 4.6 percent

The 4th Quarter labor market is holding firm

In October, both the number of quits and job openings throughout the country ticked up. In other words, Americans are gaining confidence in our current labor market. This is an excellent sign that the labor market will hold firm as we enter the new year in just a few short weeks.

Furthermore, job openings (7.3 million) is still well above the number of American separations (5.6 million). Therefore, there are plenty of opportunities for those currently seeking new employment. The net employment change continues to look attractive. Over the last 12 months (ending in October), hires totaled 69.8 million and separations totaled 67.4 million, for a net employment gain of 2.4 million. And when comparing this with December’s impressive Jobs Report with a staggering 266,000 job gains, the outlook of our job market is looking more and more appealing.

It’s still a candidate-driven market

The unemployment rate is currently holding at a 50-year low of 3.5 percent. Additionally, there are more job openings than hires as of October 2019. Thus, employers are still struggling to fill their critical roles. If your team needs help navigating this tight market, let’s partner together. We can help you fill your critical positions, and position your team to start the new decade on a strong note. Partner with a recruiter from Johnson Service Group today, and let’s work together to source the talent you need.

November 2019 Jobs Report

November Jobs Report: 266,000 Job Gains

The latest Jobs Report released from the BLS revealed a stellar performance in November with nonfarm payrolls surging by 266,000, shattering economists’ expectations of 187,000 jobs. Economists also predicted the unemployment rate would remain constant at 3.6 percent; however, November’s unemployment rate ticked down to 3.5 percent, back to tying the lowest level ever recorded since 1969. To summarize, the labor market is still holding firm as we approach the end of the year. Let’s take a closer look at November’s Jobs Report.

A deep dive of November’s Jobs Report

November was the 110th month in a row of job gains. With 266,000 jobs added, this was the best month of job gains since January 2019’s 312,000. A significant chunk of last month’s gain was due to the conclusion of the lengthy strike of General Motors’ employees. Last month, the end of GM’s strike brought 41,300 people back to work, generating the majority of November’s total manufacturing job gains of 54,000. However, even if you remove the strike from consideration, nonfarm payroll gains completely smashed all expectations from Wall Street.

If that doesn’t impress you, the latest Jobs Report also positively reported revisions from the prior two months. In September, job gains increased by 13,000 for a total of 193,000 jobs, and for October, job gains also ticked up by an impressive 28,000 jobs to 156,000 for the month. After revisions, job gains have increased by 41,000 jobs over the past two months. These changes improved 2019’s average monthly job gains to 180,000.

Average hourly earnings continued to rise with an increase of $0.07, for a total hourly rate of $28.29. Over the last 12 months, average hourly earnings have increased by 3.1 percent. Economists were projecting a flat gain of 3.0 percent like it was last month. Additionally, the labor force participation rate remained little changed at 63.2 percent. All in all, these are all signs that the labor market looks to hold steady as we near 2020.

Job gains by industry

Below is a break down of nonfarm payroll job gains throughout the month:

  • Manufacturing: +54,000 jobs
    • +41,300 from GM workers returning from strike
  • Leisure and hospitality: +45,000 (+219,000 total gains over the last four months)
  • Healthcare: +45,000 jobs (+414,000 total gains over the last 12 months)
    • Ambulatory healthcare services: +34,000
    • Hospitals: +10,000
  • Employment in professional and technical services: +31,000 jobs (+278,000 total gains over the last 12 months)
  • Transportation and warehousing: +16,000
    • Warehousing and storage: +8,000
    • Couriers and messengers: +5,000
  • Financial activities: +13,000 (+116,000 total gains over the last 12 months)
    • Credit intermediation and related activities: +7,000
  • Retail trade: +2,000
    • General merchandise stores: +22,000
    • Motor vehicle and parts dealers: +8,000
    • Clothing accessories stores: -18,000
  • Mining: -7,000
    • Support activities for mining: -6,000

Need help navigating this tight market?

As you can see, the market remains tight and doesn’t look to slow down in the new year. With only one more month of 2019, it may be time to enlist some help to fill those critical roles by the end of the year. If you’re interested in partnering with a recruiter that specializes in your industry, reach out to us today, and let’s work together!

partnership with a recruiter

How To Make The Most Out Of Your Partnership With A Recruiter

If you’ve decided to partner with a recruiter to fill your critical needs, you may already be ahead of your competition. However, more and more companies are joining forces with recruiting powerhouses in order to compete in this candidate-driven market. So how can you ensure that you are getting the most out of your partnership with a recruiter? Follow these three steps, and you’ll be on your way to hiring top talent in no time!

Communicate Often

Open lines of communication are absolutely essential to maximizing a recruiter’s value to your team. At JSG, we hustle to get the best candidates in front of you as quickly as possible. Oftentimes, these candidates are juggling multiple interviews, with offers from several companies rolling in at once. So it’s vital that you let us know who you want to interview quickly and provide feedback immediately.

Likewise, if you have questions or find yourself wanting more from the candidates we submit, let us know! The more information we have about the position, your team dynamic, and company culture, the more accurate our search is for finding your next great hire.

Be Open To Advice

At Johnson Service Group, we have placed tens-of-thousands of candidates with hundreds of companies. Along the way, we’ve gathered some insights into hiring trends and processes. We do our best to ensure that you are able to hire the best candidates available. Thus, we’ll offer advice along the way! Maybe your salary is a bit too low for the skill set, or you’ll be able to get an out-of-this-world candidate if you offer relocation. Open yourselves to our feedback for a chance to secure the talent you need to take your team to the next level.

Streamline Your Hiring Process

Last, but certainly not least, you must streamline your hiring process as much as possible! In this candidate-driven market, competition for great candidates is hot, and they are not available for long. And while we try to submit our candidates exclusively to our clients, it may be out of our control if they are ready to make a move right now. Consider skipping multiple phone interviews and bring candidates on-site as soon as possible. Did you receive a candidate you absolutely loved? Don’t hesitate and continue interviewing “just because.” Let us know when you’re ready to extend an offer, and you’ll have a next-level employee in no time!

If you’re ready to start your partnership with a recruiter, reach out to us today and let’s work together.

hiring process

This Is Where Your Hiring Process Fails

Are you having a hard time hiring in today’s competitive market? Do you find yourself mulling over your hiring process, wondering where it all went wrong? While every situation is different, and occasionally some factors are  entirely out of your control, we can often pinpoint exactly what went wrong. Here are three basic reasons why your hiring process is failing.

It Takes Too Long

The number one reason candidates stray from your hiring process is because it takes too long! There is a saying in the recruiting world, “time kills all deals,” and it is truer than ever in this candidate-driven market. With multiple job offers on the table, candidates don’t have time to wait for a long, drawn-out hiring process. The longer your process, the more likely your candidates will pull out of contention.

You Require Too Many Interviews

To add another layer, requiring too many interviews can significantly affect the length of your hiring process. When the “interviewing stage” consists of phone interviews, video interviews, panel interviews, in-person interviews, informal team meet-and-greets, etc., your candidates will undoubtedly be turned off. Keep your interview process simple and only involve those who are on a “need-to-know” basis. If you can eliminate steps throughout your process, you will save valuable time and resources without spooking your candidates.

You’re Afraid to Commit

If you’ve interviewed a fantastic candidate, but are still hesitant to pull the trigger, you could be missing out on a great opportunity. Once you’ve found a strong candidate, stop scheduling more interviews! If you go all-in on a job prospect, they’re likely to return the favor.

If you find your hiring process lacking, it’s time to partner with JSG. We have helped thousands of clients discover qualified candidates, improve their hiring process, and achieve their growth goals. Contact us today to learn more!

November 2019 JOLTS Report

November 2019 JOLTS Report

The Job Openings and Labor Turnover Survey (JOLTS) is out, and the labor market is still as attractive as ever for job seekers. On the last business day of September 2019, there was little change from the month prior, with a total of 7.0 million job openings. Also, the number of total hires had a slight bump up to 5.9 million throughout the month. The quit rate held steady at 2.3 percent, which illustrates the confidence of job seekers to leave their jobs to find more fruitful opportunities.

Here is a breakdown of the latest November 2019 JOLTS Report.

November JOLTS Report

  • Job Openings: 7.0 million
  • Hires: 5.9 million
  • Separations: 5.8 million
    • Voluntary: 3.5 million
    • Involuntary: 2.0

The job market remains resilient

If you compare last month’s JOLTS Report to today’s, there are two important things to note:

  • The number of hires edged up
  • The number of separations bumped up

When looking at these two figures together, it’s clear that job seekers are becoming more and more confident in today’s labor market. More people are getting hired, yet more people are voluntarily leaving their jobs to seek out new opportunities. When pairing this with the current unemployment rate of 3.6 percent, the outlook for the labor market is strong as we head closer to 2020.

Furthermore, the number of job openings (7.0 million) is still well above the number of those seeking employment (5.8 million). The net change in employment continued to look attractive. Over the last 12 months (ending in September 2019), there was a total of 69.9 million hires and 67.4 million separations. That is an enticing net employment gain of 2.5 million. And with the BLS reporting last Friday a surprisingly strong revision in job additions from the prior two months (+95,000 jobs) than previously reported, the labor market is looking great for job seekers (and spooky for employers)!

How will you obtain the talent you need?

In this tight market, having an efficient hiring process is critical. If your process is too slow or has too many hoops to jump through, it may be time to make some changes to improve the process for your candidates. If your team is struggling to do so, have you thought about enlisting some help from a recruiter? At JSG, we have a dedicated team of recruiters with decades of industry experience. Let’s work together to source the talent your team needs to end the year on a strong note. Contact us today!

October Jobs Report

October Jobs Report: 43,000 More Jobs Than Expected

The numbers are in, and the Bureau of Labor Statistics reported a strong gain of 128,000 jobs, which is 43,000 more jobs than economists predicted. Moreover, the unemployment rate ticked up a tenth of a percent from a 50-year low to 3.6 percent. This small increase in unemployment is due to an even more substantial rise in the U.S. labor force (those Americans who are working and actively seeking employment). Overall, this month’s Jobs Report demonstrates that the economy is healthy and should ease fears of a looming recession.

Let’s take a more in-depth look at the October Jobs Report

October was officially the 109th month in a row of job gains despite a couple of factors. The six-week GM strike reduced employment by 42,000 jobs, according to the BLS. However, the strike is finally over, so we are likely to see a nice bump in November’s report as the striking workers head back to work. Additionally, the number of workers helping prepare for the 2020 census dropped by a whopping 20,000. Thus, if you take both of these numbers into consideration, the number of jobs added theoretically could be 62,000 higher.

Another factor that should boost all our confidence in the economy is the revised job gains over the previous two months. In August, job gains were revised up by 51,000 (219,000 jobs in total), and in September, job gains were revised up by 44,000 (a total of 180,000 jobs). With these revisions, job gains over the last two months equate to 95,000 more jobs than previously reported. After revisions, job gains have averaged an impressive 176,000 over the previous three months. And over the year, job gains have averaged 167,000.

Average earnings for all employees continued to rise with an increase of $0.06, for an average hourly wage of $28.18. Over the last 12 months, hourly wages have increased by 3 percent. The labor force participation rate was also little changed at 63.3 percent. These are both great signs that the labor market remains strong as we get closer to 2020.

Job gains by industry

The food services and drinking places industry added a staggering 48,000 jobs. Over the last three months, this industry has averaged 38,000 job gains.

The professional and business services group ticked up again in October (+22,000). The industry as a whole has averaged 33,000 gains over the year.

In October, employment in social assistance increased by 20,000 jobs and a total of 139,000 over the past year. Family services made up most of these gains, with 17,000 jobs added.

Financial activities rose by 16,000, with the majority of gains from real estate, rental, and leasing (+10,000). Financial activities have added a total of 108,000 jobs over the last 12 months.

Healthcare once again added jobs (+15,000) with total job gains of 402,000 over the last year.

Job declines by industry

Not surprisingly, manufacturing employment fell by 36,000 jobs in October, due to the 6-week strike from GM workers in the motor vehicles and parts realm (-42,000 jobs).

Moreover, employment in the federal government fell by 17,000 jobs in October due to the departure of 20,000 workers finishing up their work prepping for the 2020 Census.

Employment in other major industries–including mining, construction, wholesale trade, retail trade, transportation and warehousing, and information—showed little change over the month.

Let’s work together

With only two months left of the year, it’s essential to take care of your hiring needs to start the year off strong. If you need a helping hand to navigate today’s candidate-driven market, reach out to one of our stellar recruiting teams. We have decades of industry experience and can help source the candidates your team needs to start the new year on the right foot. Partner with a recruiter today!

Ghosted By Candidates

3 Reasons Why You’re Being Ghosted By Candidates

With an unemployment rate of 3.5 percent, almost every employer out there has been ghosted recently. Job seekers are optimistic about today’s job market and are taking risks when committing to job offers. So much so that 28 percent of candidates have backed out of a job offer after accepting it. And nearly half of those “ghosts” (44 percent) did so because they accepted a more lucrative opportunity. If you don’t want to join the 83 percent of employers that have been ghosted by candidates, here are three reasons why candidates are ghosting you.

The job market is scary good

With 7.1 million job openings throughout the country, there are literally millions of different opportunities out there. And with a 6.26 percent decrease in unemployment claims year-over-year, there isn’t an abundance of available workers. In other words, the labor market is a frightening place for employers. With so many job opportunities to pick from and a rapidly shrinking talent pool, job seekers have the luxury of being selective.

Your hiring process is driving candidates batty

If your process is too slow, you are more likely to be ghosted by your candidates. If it’s taking you weeks to reach out to candidates for a phone screening or an initial interview, you’re likely too late. Hiring managers are currently filling jobs in less than four weeks. So, if your process is taking much longer than that, you are probably going to miss out on candidates. Try to find bottlenecks in your process that are taking too long. Once you’ve identified hiccups, you can adjust your hiring process relatively painlessly to scare off the ghosts.

Your offer letters are full of cobwebs

In today’s market, you have to present candidates with a strong offer from the get-go. If you’re not competitive with your compensation or other benefits, you may be scaring job-seekers away. Many candidates are receiving multiple offers, so if you don’t provide a desirable offer quickly, they will join the 44 percent of job seekers that back out for more lucrative offers.

If your team is struggling to combat all of the job-seeking ghosts out there, reach out to a professional recruiting firm that specializes in your industry. We have all the tools your team needs to fight off the job seeking ghouls and goblins. Contact us today!

October 2019 JOLTS Report

October 2019 JOLTS Report

The numbers are in, and the latest JOLTS Report shows that the labor market is still holding strong. On the last business day of August 2019, there was little change from the previous month, with a total of 7.1 million job openings. Additionally, the number of hires throughout the month was consistent (5.8 million). However, the most impressive statistic was a quit rate of 2.3 percent, just short of last month’s record-breaking number. In other words, confidence in today’s job market is still strong. Here is a summary of the October 2019 JOLTS Report from the BLS.

October 2019 JOLTS Report:

  • Job Openings: 7.1 million
  • Hires: 5.8 million
  • Total number of people who left their jobs: 5.6 million
    • Voluntarily: 3.5 million
    • Involuntarily: 1.8 million

The job market is holding steady into the Fourth Quarter

As we head into the Fourth Quarter of 2019, there is no doubt that the labor market is stable. The unemployment rate just tied a 50-year low (3.5 percent), and throughout the year, monthly job gains have averaged 161,000 jobs. Additionally, the month of October is the most competitive month for hiring. In fact, 89 percent of hiring managers are filling their roles in less than four weeks.

However, hiring managers will continue to face challenges throughout their hiring process with a record low unemployment rate and a steady number of job openings. And with a consistent quit rate month-over-month, it shows that workers are not afraid to leave their careers to search for new opportunities. As a result, competition for top talent will continue to strengthen.

August was also another month where we saw a positive net change in employment. Over the last 12 months ending in August, there were 69.5 million hires and a total of 67.1 million separations. That equates to a total net employment gain of 2.4 million. If that’s not enough to convince you, the latest Jobs Report presented revised job gains over the previous two months (July and August). In July, job gains were revised from 159,000 to 166,000 jobs (+7,000 jobs) and from 130,000 gains in August to 168,000. That results in a positive revision of 45,000 job gains!

Find the talent you need in Q4

With hiring not slowing down as we make our way into the Fourth Quarter, it will continue to be challenging to find the talent you need in today’s candidate-driven market. Today’s market is so tight that you may need a helping hand to attract the talent your team needs to confidently head into 2020. Partner with a recruiter that specializes in your industry. At JSG, we are proud to help our clients achieve their hiring goals across North America. Reach out to us today, and let’s work together to fill your critical roles before the new year.