PROFESSIONAL STAFFING

ECONOMIC REPORT
July 2012

Jobs report summary for the professional and business services
industry. Based on the BLS report with June 2012 data.

On July 6th, the BLS released its latest “The Employment
Situation” report, which revealed that 80,000 new jobs
were added to the national economy in June, the third
consecutive month in which less than 100,000 new positions
were generated.
In addition, the national unemployment rate remained
unchanged in June, at 8.2 percent, just as most economists
had anticipated. However, a majority of economists were
still surprised by June’s employment statistics, as many
had predicted roughly 90,000 to 100,000 new jobs would
be created.
As has been the case throughout the last three years,
job growth was quite volatile during the first half of the
year. With the release of June’s figures, 75,000 new jobs,
on average, were created during the second quarter, the
lowest three month average since fall 2010. To compare,
an average of nearly 225,000 new jobs were generated
each month from January to March.
Despite the volatility, Alan Krueger, chairman of the Council
of Economic Advisers, and President Barack Obama remained
optimistic about the nation’s economic progress, shortly after
the release of June’s jobs report.
“The economy has now added private sector jobs for 28
straight months, for a total of 4.4 million payroll jobs during
that period,” said Krueger.
“That’s a step in the right direction,” said Obama. “[But]
we’ve got to grow the economy even faster, and put even
more people back to work.”

the national unemployment rate,
seasonally adjusted
june 2010-june 2012
PERCENT
11

10

9

8

7 JUN

2010

SEP
2010

DEC
2010

MAR
2011

JUN
2011

SEP
2011

DEC
2011

MAR
2012

JUN
2012

source: bureau of labor statistics

Although the nation’s employment-population ratio, at 58.6
percent, lingers at a near three-decade low and the national
unemployment rate has been measured above eight percent
for 41 straight months, the Obama administration has plenty
of reasons to remain optimistic as November’s election nears.
First, the total number of Americans who applied for first-time
unemployment benefits dropped during the last week of
June, to 374,000, a decrease of 14,000 and the lowest level
recorded in nearly two months. Since June 2011, first-time
unemployment benefit applications have declined by 12
percent, a sign that organizational layoffs are beginning to
recede.

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the sector recovered from the very slight loss seen last month. as private sector employment rose by 84. as 13. “It is critical that we continue the policies that build an economy that works for the middle class and makes us stronger and more secure. 3. source: bureau of labor statistics • M  anufacturing According to recently released statistics.” said Krueger. the largest increase since spring 2011. average hourly earnings rose by six cents last month.Professional Staffing economic report — july 2012 Second. A majority of the hiring occurred in outpatient care centers. • H  ealthcare Hiring within the industry continued to uptick on a month-to-month basis. according to recent statistics. 80. sector hiring was considerably lower during the second quarter than the first. that average dropped to about 10. reported employment increases: • Finance  Last month. JUNE 2012 JUNE 2011 JUNE 2012 numbers are seasonally adjusted. From healthcare to manufacturing. when compared to June 2011’s seasonally adjusted statistics. hospitals. to $23. among others. ajilon.000 new positions. an increase of roughly 57.000. There are no quick fixes to the problems we face. on average. Since April. hiring was widespread within most industries last month.000 jobs in June.” 80. • P  rofessional and Business Services With the addition of 47. more than 7. 41.100 new positions. From January to March.4 million job openings were documented in April. when compared to April 2011’s data.500 new jobs. a majority of the nation’s major industry groups reported hiring increases in June. • L  eisure and Hospitality Nearly 13.000 new jobs were added in June “Much more remains to be done. • T  emporary Help Services Hiring continued to rise within the sector in June. by generating 15. an increase of 13 percent. as 25.000. from April to June.000 jobs gained in June 2012 According to the BLS’ latest “The Employment Situation” report.000 positions. the sector has created 55.200 new jobs were added to the national economy. as the following sectors. And.000 new positions were added to the economy in June. were created on a monthly basis.50 per hour. as food services and drinking places accounted for a majority of the hiring.7 million professionals were employed within the industry.000 new jobs were added to the national economy last month.com . and residential care facilities.

65% of organizations report retaining key talent has become a major concern recently. But the good news is they’re reporting there are tactics and programs working to keep top employees on board — and the majorities don’t involve bumping up employees’ pay. a stat World at Work published in its new report Retention of Key Talent and the Role of Rewards for which the company surveyed 526 midto senior-level rewards professionals. an HR consultancy. • Increasing Medicare withholding for high earners in 2013. Read more: http://www. Although the law still faces a contentious political outlook. Read more: http://www. please visit ajilon. 2012.S.Professional Staffing economic report — july 2012 of interest: Most Haven’t Addressed Looming Health Reform Requirements SOURCE: SHRM Immediately following the U. But the rules going into effect in 2014 that are aimed at expanding access will have broader implications for many employers. Supreme Court’s June 2012 decision upholding most of the health care reform law. calculated on average number of covered lives. 10 Most Effective Employee Retention Methods Source: HR Morning Employers are not too proud to admit it: They have an employee retention problem.000 U.aspx ajilon. Thanks to improvements in the job market. employers. employers should stay on track in their efforts to comply with the law as enacted or else they may face penalties.com today. • Reporting the value of employer coverage with 2012 W-2 forms.shrm. another 16 percent said they will continue to wait until after the November 2012 elections. While 40 percent said they will begin taking action now that the court has ruled.com .  • Exchange Notices to be distributed by March 1. Perhaps even more troubling: Only 51% of respondents were confident their organization could retain key talent if the job market continued to improve. employee retention is rapidly becoming a hot button issue for employers. • P  aying Patient-Centered Outcomes Research Trust Fund fees. 2013. • Complying with new dollar limits on health care flexible spending accounts (FSAs) in 2013. The majority said they had been waiting for the court’s decision before developing a strategy to respond to the law’s provisions slated to go into effect in 2014 and beyond.hrmorning. 22. Mercer polled more than 4. such as: • P  roviding summaries of benefits and coverage (SBCs)to their employees for open enrollment periods starting after Sept.S. Employers must act quickly to implement new requirements for 2012 and 2013.com/10-most-effectiveemployee-retention-methods/ For more insights into the job market and the economy. advises Mercer.org/hrdisciplines/benefits/ Articles/Pages/2014Deadlines. generally due July 31. 2013. In fact.