Today’s November jobs report continues to show an upbeat picture of the labor market.
The U.S. Bureau of Labor Statistics (BLS) November 2015 report showed employment increased by 211,000 jobs, in line with the average monthly increase of 210,000 for all of 2015 and 218,000 in the past three months alone. The unemployment rate held steady at 5%, unchanged from the month prior and continuing to be its lowest level since 2008.
Average hourly earnings rose by 4 cents in November to $25.25, following a gain of 9 cents in October. Hourly earnings have risen by 2.3% over the past year, after a peak of 2.5% in the month prior.
The November jobs report showed signs of a healthy job market, making it a near-certainty that the Federal Reserve will raise interest rates later this month—the first time in nearly a decade. In efforts to help boost the economy after the financial crisis in 2008, interest rates have been anchored near zero. However, with another month of jobs gains and wage gains, the path has certainly been made clear for an interest rate hike.
Construction was the strongest sector for job growth in the month of November, adding 46,000 jobs—a slight increase from the month prior. Over the year, construction employment has increased by 259,000. Dion Trieb, Vice President of the Construction Division commented on the increase, “Growth in the construction industry is primarily located in the alternative energy sector, specifically solar. Commercial and local construction markets remain somewhat flat.”
Healthcare employment increased by 24,000 over the month, following a large gain of 51,000 jobs in October. Over the last year, healthcare employment has added 470,000 jobs. Kristin Carpenter, Director of Operations in San Diego, commented on Eastridge’s Healthcare Division, “In the last month we have seen a significant increase in direct hire positions compared to the rest of the year. With the market in healthcare continuing to tighten, the direct hire model provides a larger pool of qualified candidates for specialty positions. Clients should be creative when considering hiring options due to the rapidly changing market.”
Manufacturing & Distribution
The manufacturing sector contracted slightly by 1,000 in November—the first time in three years. Abraham Penuelas, Manager of Technical Search in the Manufacturing & Distribution Division, commented “Manufacturing has recovered under a new model of lean concepts and a real introduction of automation across industries. Organizations are merging two roles into one, and also eliminating manual labor through highly automated production lines. Nevertheless, manufacturing has been a consistent driver behind the growth the job market has experienced over the past four years.”
What Companies Need To Do
Judy Enns, Executive VP of the Human Resources Division, commented on crucial tactics needed to secure top talent amid the steady job gains. “Employers must be prepared to extend a job offer when top candidates are on site. A speedy hiring process, that includes making the offer, is crucial in today’s competitive labor market.” Help speed up the process with these tips:
- Capitalize on candidates’ energy and enthusiasm - Employers who engage with top candidates in person are more likely to receive a response in their favor than via email or phone.
- Employ a counter offer – Expect to employ counter offers to top candidates, who are currently employed and/or are entertaining other job offers. This will prove to be helpful in securing top candidates.
- Have a conversation – General questions on the offer are better answered face to face. Employers can also use this as an opportunity to make any adjustments to the offer to further secure candidates.
Stay Ahead With Eastridge
Eastridge Workforce Solutions created the Talent Acquisition Assessment to help organizations assess their current hiring processes and recruitment technology. See the results or contact us to take the steps necessary to find gaps in your hiring strategy, speed up your recruitment processes, and stay ahead of the competition for talent.