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U.S. Economic Growth Forecasts Grow Weaker
The Numbers:
- Over the next year, the outlook for U.S. economic growth looks weaker now than it did three months ago
- Real GDP is now expected to grow 1.7% this quarter, down from 2% originally forecasted
- The number of jobs added was slightly revised upward for job gains over the next two years
- Source: Federal Reserve Bank of Philadelphia
Imbalance on Pay Between New and Existing Workers Has Impacts
The Numbers:
- As a way to recruit new hires, many companies focused on increasing wages, which inadvertently increased the wages for younger workers as that age group is akin to new hires
- This has led to historic pay compression due to the imbalance between spending on new hires vs. existing workers
- The difference between wages of those in the 20-24 year old range and those in the 25-34 year old range narrowed to its smallest gap in 36 years
- Source: The Conference Board
Talent Acquisition and Retention Top 2020 Challenges
The Numbers:
- Talent acquisition and retention topped the list of challenges in 2020 followed by competitive pay, competition in general, and the ability to pay benefits
- 47% of employers plan to hire permanent staff, down from 54% in 2019
- 65% were hiring partly due to newly created jobs
- 83% were having to replace employees due to voluntary turnover
- Source: Employer Associations of America
Hiring College Grads in 2020 to Increase
The Numbers:
- In 2020, U.S. employers plan to hire 5.8% more college grads than in 2019
- This year’s hiring increase is down from 16.6% from a year ago
- Source: National Association of Colleges and Employers
Engineering Employment Decreases
The Numbers:
- Employment for Engineering decreased .18% in October compared to September
- Total employment has neared 2.7 million
- Engineering employment had increased by1.5% since October 2018
- Source: TechServe Alliance