SHRM’s monthly LINE survey results for November 2012 show the hiring rate is predicted to increase in manufacturing and services when compared to 2011. The BLS, recently came out with some data that supports this claim. From July-September in 2011 an average 127,000 jobs each month, were added to the job market by employers. In 2012, in the same time period, 145,000 jobs were added each month. It seems logical to assume (and hope) these numbers will continue to increase through November.
While the holidays are always expected to give hiring a boost, particularly in the service sector, the news that the hiring prognosis is good, is a breath of fresh air. Financial information company, Sageworks released a survey that said 74% of employers were less likely to hire due to the high national debt. In addition, the unemployment rate increased from 7.8% in Spetember to 7.9% in October.
“We’re adding enough jobs to tread water but not to make much progress in bringing down the slack that remains,” said Regions Financial Corp’s chief economist, Richard Moody, “The labor market is consistent with the middling growth we’ve seen in the overall economy.””
It’s been speculated that many employers may be putting off hiring until after the election in a few days. This could be due to the fact that many employers are nervous about the impending healthcare laws or perhaps concerns about taxes. Romney has promised to both repeal the Healthcare Act, and cut corporate taxes.
In a survey by Mercer, over a quarter if survey participants said that the health care acts requirement to offer coverage for all employees who work over 40 hours will be a “significant challenge” for their company.
“Employers with large part-time populations, such as retailers and health care organizations, are faced with the difficult choice of either increasing the number of employees eligible for coverage, or changing their workforce strategy so that employees work fewer hours,” said Mercer’s Health and Benefits business president, David Rahill, “With the average cost of health coverage now exceeding $10,000 per employee, a big jump in enrollment is not economically feasible for many employers.”
With election day, and Black Friday soon approaching, some decisions about hiring are likely in the process of being made. Today was the Labor Departments last job report before the election, and will no doubt make an impact on some voters. It showed the unemployment rate at a virtual standstill. An optimistic 171,000 jobs have been created, but the number of unemployed grew by 170,000. SHRM’s data is encouraging and optimistic at a time when we need it most. Hopefully leaders will be able to put aside their political affiliations and make decisions that help employees and the economy this holiday season.