Author Archives: TheTempConnection

U.S. Job Openings Rise, Outnumber the Unemployed by One Million

According to journalist, C. Rugaber, of Associated Press,  U.S. Companies posted nearly 7.6 million open jobs in January, signaling the continued need of employers to hire workers despite evidence that the economy has slowed. The Dept. of Labor reported one million more open jobs than unemployed workers.  Nearly 3.5 million people quit their jobs in January, a 2.9% increase from the month before.  The good news for employees is that the strong job market is pushing up wages more quickly, with hourly wages rising in February at the fastest pace in nine years. Pay increases are in order for employers to retain their workers-that’s the bottom line.

Hiring of Blue Collar Workers Increased in 2018 outpacing Hiring and Demand for White Collar Workers

Hiring of blue-collar workers in industries such as manufacturing, mining, and construction increased in 2018 with the help of the oil prices increase and housing market recovery according to economist, Kamins at Moody’s Analytics.
Jobs that require manual labor are in high demand nationwide, even more so than many higher-level jobs that require a college degree, reversing a longstanding tend according to the Conference Board. “Greater demand for—and shrinking supply of—blue-collar workers are leading to a reality where there are simply not enough people in the labor force willing to work in these jobs,” says Gad Levanon, chief economist of the Conference Board. This rings true for Southern Arizona as experienced by The Temp Connection and other staffing firms.
This trend is resulting in faster pay increases for blue-collar jobs and annual wage growth topped 3% in recent months compared with 2.5% for white-collar jobs according to the U.S. Dept. of Labor and the Conference Board as reported by Davidson of USA Today.

Job Openings Reached 7.1 Million, Exceeding Number of Unemployed Americans

When you look at the numbers, you can’t help but think everyone must be working and where are companies getting the new employees that they desperately need? U.S. employers posted the most jobs in two decades in August, and hiring also reached a record high as reported by Rugaber of The Associated Press. This means that companies are desperate to increase their payrolls in the midst of an unemployment rate of a nearly five-decade low of 3.7%. And yet, pay raises have still lagged behind. When will companies learn? What is holding companies back from increasing their starting pay of jobs they need to fill?

Average hourly earnings rose 2.8% in September compared with a year earlier. That’s higher than several years ago, but below the roughly 4% gain that is typical when unemployment is so low. Employers hired 5.78 million in August. About 5.71 million people lost or left their jobs, including 3.6 million who quit. The quits rate was unchanged at a 17-year high of 2.7% among private-sector employees according to Bartash of MarketWatch. The percentage of the workforce that found jobs in August ticked up to 3.9% from 3.8% in July. That matched an 11-year high first reached in May.

Job openings rose in August in professional and business services, which include mostly higher-paying positions in engineering, accounting and architecture as well as temporary help. Postings in that category jumped 27% from a year ago. Pay increases still need to happen here. Let’s move on to construction. Construction firms have been desperate for workers all year and currently the industry is posting 298,000 jobs. In Tucson, construction firms are having to hire 2 inexperienced workers for every opening that requires experienced workers since they can’t find them and then spend much of the time training.  Job openings also increased in government, financial services, and health care. Let’s finish with the trucking industry. Oh my, any drivers out there? At least this industry is paying more, some companies doubling the starting pay. Trucking fleets have added more than 33,000 jobs in the past 12 months according to the U.S. Bureau of Labor Statistics. Overall payrolls climbed to their highest level in more than a decade in September.

Anyway you look at it, if you want to work, there’s a job for you, maybe three or four jobs for you. Ask for an increase in starting pay and maybe you’ll get it. Something has to give.

How Will Employment Trends Affect the Staffing Business?

American Staffing Association researchers, Nadareishvili and Poole, analyzed the latest U.S. Bureau of Labor Statistics job growth projection and revealed the trends in job growth by sector and occupational group through 2026. The tight labor market, luke-warm economic growth and a rapidly aging population will continue to affect employment according to their observations and specifically job growth. How can staffing businesses respond? The top five sectors that are projected to be the best job growth potential are:

  • health care and social assistance–growth factors: aging population, longer life expectancies and growing rates of chronic conditions
  • professional and business services including employment services–growth factors: continued demand for information technology services and consulting as well as staffing services
  • state and local government–growth factors: enrollment rate increases in postsecondary education
  • leisure and hospitality–growth factors: increasing use of technology offset by growth in food services and drinking establishments (food and beverage industry)
  • retail trade–growth factors motor vehicle and parts dealer industry growth

Employment in the professional and business services sector is projected to grow from 20.1 million jobs in 2016 to nearly 22.3 million jobs in 2026. the expansion of jobs in this sector is being driven by four of the top 16 fastest growing industries overall: computer systems design and related services; management, scientific, and technical consulting; services to buildings and dwellings; employment services.

The employment services industry is the largest within the professional and business services sector accounting for nearly one-fifth of the sector’s labor forces with an annual rate of .5% from 2016 to  2026 with steady demand expected to continue. There will be an abundance of temporary, contract, and permanent employment opportunities for job seekers in the coming years, even with anticipated shifts in population demographics.

It’s a good time to be in the staffing business and we feel fortunate to be a part of this growing industry. By the way, we have jobs for job seekers. Just contact The Temp Connection. Referrals are appreciated. Do you know anyone looking for work? Are you looking for a job or a change in careers? With 25 years of industry experience, we’re here to help!


Employee of the Week

Jerry M.

It’s no surprise that Jerry was selected as our Employee of the Week. He has a wonderful accounting background and has done consulting as well as helped with complex bookkeeping/accounting work. He is flexible, responsible, and dependable…all of those things that clients appreciate plus he can do the job. Thank you, Jerry, for working with us. We appreciate you!

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Consumer Confidence Increased to Its Highest Level since 2000

The Conference Board Consumer Confidence Index increased in February and L.Franco, director of economic indicators said “Consumer confidence improved to its highest level since 2000 after a modest increase in January. Consumers assessment of current conditions was more favorable this month, with the labor force the main driver. Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects.”


Manufacturing and Labor Issues in Today’s Workplace

Constantly evolving technologies are helping to revamp the manufacturing industry, but to make growth a reality for the sector, firms must tackle the issue of labor. As many as 72.9% of manufacturing companies surveyed listed recruitment and retention of a workforce as their biggest business challenge, and more than 30% of respondents said a shrinking labor pool correlates to lost business opportunities. As for how they are handling these challenges, 66.6% want to work the existing workforce more, 65.4% want to create or expand internal training programs, 56.5% want to partner with educational institutions to create certification programs, and 55.4% want to use temporary staffing services. As reported in by R. Means.

Thinking About Career Choices in the 4th Industrial Revolution

A friend of mine sent me an article, knowing I’m in the staffing industry and that I routinely talk to job-seekers including young folk right out of college on career options as well as early retirees looking for a second career or a nice and interesting part-time job. After reading this article, I thought I’d share it giving food for thought on the future of work.

The article started out with the fall of Kodak (a household word), a large and profitable company with 170,000 employees in 1998 and selling 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they went bankrupt. What happened to Kodak will happen in a lot of industries in the next 5-10 years and most of us won’t see it coming as we capture the moment with our IPhones and digital cameras. At first digital cameras were a disappointment with only 10,000 pixels but as with all exponential technologies, the digital camera became way superior and became mainstream in only a few short years. It will now happen again and faster with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs. All in the Exponential Age.

Software will disrupt most traditional industries in the next 5-10 years. Uber is just a software tool, they don’t own any cars, and are now the biggest taxi company in the world. Airbnb is now the biggest hotel company in the world although they don’t own any beds nor any property. AI: Computers become exponentially better in understanding the world. This year, a computer beat the best Go-player in the world, 10 years earlier than expected. In the US, young lawyers may be hunting for jobs. Because of IBM’s Watson, you can get legal advice, mainly basic advice so far, within seconds, with 90% accuracy compared with 70% accuracy when done by humans. Watson already helps doctors diagnosing cancer and treatment options, and it’s 4 times more accurate than humans only. Facebook now has a pattern recognition software that can recognize faces better than humans. Will computers become more intelligent than humans by 2030? What do you think? To be continued……

Employee of the Week

Deana L.

Deana has been doing an outstanding job at a large engineering firm as a skilled administrative assistant and she is “doing it all.” The Client is pleased that Deana is a true go-getter and assisting in human resources, client services, customer service and other areas of operations. We are pleased to name Deana as our Employee of the Week. Thank you, Deana, for working with us and congratulations!