Heartbeats of the Economy September 17, 2020

Through the Lens of Talent Acquisition

1.4 Million Jobs Gained in August; Unemployment Rate Falls to 8 Percent

The Numbers:

• Unemployment rate fell to 8.4 percent last month from 10.2 percent in July
• 1.7 million jobs were added in July, and 4.8 million in June
• Private-sector payroll growth was just 1 million jobs in August
• Private-sector employment is still 10.7 million below its pre-Covid February level
• So far 49.5% of the 21.2 million jobs lost at the start of the pandemic were recovered
• Permanent job losses in August rose by 534,000 to 3.4 million
• About 6 million workers remain on temporary layoff, down from 18 million in April
• Median duration of unemployment continued to rise to 16.2 weeks, up from 13.7 in July
• Retail Leads Job Gains – 249,000 jobs added – sector is still down by 2.5 million since February
• Professional business services increased by 197,000
• Source: SHRM

Employment trends index rises for the fourth month in August

The Numbers:

• Employment Trends Index rose to a reading of 52.55 in August
• Up from 51.37 in July but still down from a year-ago reading of 109.8.
• Source: Staffing Industry Analysts

Top HR Challenges in Retail

The Numbers:

• 45 percent of consumers said they would shop in stores less over the long term
• 47.2% of people in the U.S. expect to avoid shopping centers and malls after the pandemic lockdown
• 25,000 shops are expected to close in 2020 – Up from the 2019 record of 9,800
• Talent acquisition is still key as companies move forward, as well as training, culture and engagement
• Empathy and flexibility from HR is a must
• Source: SHRM

IT adds jobs for the first time in 10 months, ‘turns corner’ but still volatile

The Numbers:

• IT employment fell by 4.12% year over year in August, representing a loss of 220,400 IT workers on a net basis
• IT employment posted strong growth in August, turning up by 0.40% after a 10-month decline
• Source: Staffing Industry Analysts

U.S. adds 106,700 temp jobs in August, temp penetration rises; still below pre-pandemic levels

The Numbers:

• Temp jobs rose by 106,700 in August compared to July for a total of nearly 2.5 million
• Still, temp jobs remain down 16.1% year over year yet to make up for the loss of 840,500 temp jobs in April as Covid-19 hit
• U.S. added 1.37 million nonfarm jobs in August
• U.S. unemployment rate fell to 8.4% in August from 10.2% in July
• The college-level unemployment rate fell to 5.3% in August from 6.7% in July
• Average hourly earnings for all employees rose by 11 cents to $29.47
• 24.3% of employees teleworked in August because of the pandemic, down from 26.4% in July
• Source: Staffing Industry Analysts

Salary.com National 2020-2021 Salary Budget Survey Reveals a Measured Approach

The Numbers:

• 2021 median salary increase budgets expected to remain flat at 3.0% for the 10th consecutive year
• Average 2020 actual merit increase of 2.3%, however, fell from a 2.6% increase in 2019
• In 2020 the average variable pay as a percentage of base salary remained consistent with previous years
• Source: PRNewswire: Salary.com

What Really Prevents Companies from Thriving in a Recession

The Skinny:

• Only 9% of surviving companies “roar out of the recession” posting exemplary results
• 80% still struggle three years later
• Survival requires you change basic processes of resource allocation
• Leaders fear losing not just money, but also people and focus
• Individual business owners within an enterprise want to protect the top talent they have, rather than shift them to different areas or bring in new people
• Leaders can set the strategic frame for resource reallocation decisions
• Leaders can also break the mentality of entitlement by reforming the budgeting process.
• Source: Harvard Business Review

Virtualizing Workers And Globalizing The Talent Market Democratizes Employment

The Skinny:

• 42 percent of employees in the United States to work remotely
• Virtualizing the workforce offers new opportunities to transform talent pipelines
• The talent pool for many organizations will be exponentially larger as a result
• The associated benefits include higher-quality candidates who will be a better cultural fit
• Companies will need to re-examine their talent marketing strategies and how they recruit
• Developing a strong employer brand will be more important than ever for businesses
• Source: Forbes

The Service Economy Meltdown

The Skinny:

• 11.5 million jobs lost since February and jobs report is slowing a slowdown in hiring
• A lasting reduction in business travel will endanger the ecosystem of hotel and restaurant workers
• 37 percent of highly paid jobs (in fields like legal services, computer programming and financial services) can be done entirely from home
• Spending in high-income ZIP codes declined 8.4 percent, with the impact felt disproportionately by restaurants, hotels, entertainment and recreation services
• Source: The New York Times