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Are the Increased Job Losses in Sept 09 an Anomaly or Trend?

According to the BLS, the height of job losses in 2009 peaked in January (741,000 job losses), with August accounting for the lowest rate of job losses this year (201,000).  Unfortunately, September job losses have taken a turn for the worse, increasing to 263,000 and refuting the trend that job losses are on a continuous downward trend that will eventually lead to positive job growth in the near future.

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So, the real question regarding the September data---are the job losses an anomaly or trend? Is the economy in a V or W? Will the rate of job losses increase in October, or will the rate of job losses experience a downward trend next month?

Although job losses dropped to 201,000 in August, September spiked back up again, leading us to believe the economy is still very unstable and could go either way.  If September is in fact an anomaly, not the trend, it is possible that we could see a downward trend of job losses throughout the remaining months of this 2009, with October-December accounting for monthly job losses in the low 200,000’s and high 100,000’s. 

Showing some insight into this trend, the Q2 2009 Beyond.com Career Trend Report indicated that job losses were far from over and the employment rate would continue to rise based on the poll results that over 65% of professionals said their company was continuing to cut staff. 

Although most industries experienced job losses in September 2009, many sectors of employment, such as Construction and Manufacturing, posted job losses at a slower than average rate when compared to the monthly job losses over the previous few months.

However, one of the most worrisome trends reported in the September 2009 BLS report was that Retail was continuing to bleed jobs a higher than average rate when compared to the previous few months.  Many economic experts have reported the service industry as one of the main sources of US employment, which is why it is such a negative sign that the Retail sector experienced 10,000 more job losses in September than the average job loss rate from April-September 2009.

Luckily, there is still hope! Healthcare is continuing to add jobs to the economy at a steady pace. Not only did the Healthcare sector create 19,000 jobs in September 2009, but the industry has continued to maintain its strength, adding jobs at a rate comparable to the average monthly gain during 2009. (22,000).

Also, based on Beyond.com’s Q2 data (we are still tabulating our Q3 report) small businesses continue to drive the majority of jobs openings today (over 50%), creating hope for new employment opportunities in the future.  Small businesses have the ability to react more quickly to economic trends than larger companies, allowing small businesses to lead the way out of the recession.

One thing is for sure, if job losses do not stabilize soon, it might be time to batten down the hatches because 2010 could get really ugly.

Forget Wall Street, Small Businesses Are Still Hiring

Beyond.com, Inc., the world’s largest network of niche career communities, today released its Second Quarter 2009 Career Trend Analysis and Industry Outlook Reports, which provide a unique insight into the overall employment market by leveraging Beyond.com’s network of top-tier industry, local and specialty web sites. Among other key findings, the report revealed small businesses with fewer than 50 employees accounted for more than 50 percent of hiring in Q2 2009.

According to Beyond.com, the top three industries for online job postings for small businesses in Q2 2009 included Information Technology (11.8 percent), Healthcare & Medical (9.5 percent) and Human Resources (6.7 percent). In addition, the report showed that nearly 75 percent of all job postings in Q2 were for candidates with zero to three years of experience. Some of the top job titles posted by small companies for candidates with less than three years of experience were Registered Nurse, Software Developer and Sales Manager. This trend is a welcome encouragement for new graduates and less experienced professionals who have been frustrated by few opportunities and stiff competition from more experienced professionals over the past several quarters.

Much of today’s daily financial news reports focus on how the economy has impacted corporate America, when in reality large corporations make up less than 50 percent of jobs in America, according to the Small Business Association. Traditionally, job seekers start their job search by identifying and targeting large employers in their area, but with more than 50 percent of job postings coming from companies with fewer than 50 employees in Q2, the small business sector may offer the best opportunity for employment.

“While many monster-sized companies in ‘corporate America’ are on the sidelines as far as hiring is concerned, small businesses are showing positive signs of growth and hiring due to their ability to react quickly to market trends,” said Rich Milgram, CEO of Beyond.com, Inc. “It is a terrific sign that the small and entrepreneurial businesses across the country are minimizing layoffs and beginning to hire again, although the true measure of the end of the recession will be when corporate America reengages in growth opportunities, starts creating new jobs and gains the confidence to take an opportunistic approach to their business.”

To view the complete Career Trend Analysis Report and Industry Outlook Reports, please visit http://www.beyond.com/Media/QuarterlyReports.asp.

More Than 65% of Professionals Indicate Their Company is Cutting Staff in This Economy

As the first half of 2009 came to an end, some say that the job market is starting to show some signs of improvement and that the economy is beginning to stabilize. According to Automatic Data Processing, a payroll-processing firm, private-sector employers cut 473,000 jobs in June, which was a 2.5% improvement from the revised 485,000 drop in May. However, the overall number of job losses continues to climb and the unemployment rate has reached 9.5%, the highest level in 26 years at the end of June. Many economists are predicting that the unemployment rate will continue to rise into next year and perhaps even top 10% before it begins to level off. Since the recession began in December 2007, the economy has lost over 6.5 million jobs, leaving numerous business professionals across industries looking for work, some after many years of being employed, and not knowing how to begin their job search process.

With a continued threat of sale and profit loss, many companies are faced with challenging economic conditions and remain somewhat reluctant to hire additional workers, making it harder for the unemployed to find work. We recently polled business professionals across our network, and over 65% indicated that their company is “cutting staff” in this economy. For some companies, cutting staff is the easiest and obvious first cost saving measure; however, additional trends such as reducing salaries, providing less office perks and benefits, and instituting furloughs or shorter work weeks, are becoming more prevalent in order to avoid cutting valuable personnel.

The good news is that there are employers that are still hiring. Most new employer registrations that we received across the Beyond.com Network in second quarter 2009 were represented by small businesses. Over 51% of all businesses hiring had 50 or less employees. Although it is common for many job seekers to look to larger corporations for employment, the small business sector should not be overlooked as many opportunities are available to be part of a growing company across many different industries, such as the healthcare and financial sectors.

Please click here to view the full Beyond.com Q2 2009 Career Trend Analysis Report.

Explore Alternative Career Paths: Work from Home!

There are many different types of jobs available out there and as you continue to explore your career choices, you owe it to yourself to explore all of your options.  It’s important to remain flexible, patient and open-minded as you determine which direction you plan to take. 

With the current state of the economy, many professionals are expanding their job search and the types of positions they are considering.  While many choose a more traditional path of office cubicles and long hours, several job seekers are beginning to take the path less traveled and pursue something they are truly passionate about. If you are looking to make a change in your career and want flexibility that most of us crave from the workplace, an alternative career might be just what you’re looking for.  Work from home positions, franchise opportunities, and consulting gigs all offer the autonomy you may be looking for in your next job with the flexibility that you desire. 

Find Out Which Alternative Career Fits Your Needs

• Work from home positions are perfect opportunities for self-starters and entrepreneurs that are looking for a job with the flexibility to set their own hours and eliminate their daily commute.  And thanks to significant advancements in technology, work from home positions have seen considerable growth, even transforming more traditional jobs into common work from home positions such as data entry operators and call center respondents. 

• Franchise opportunities are ideal for those individuals interested in becoming their own boss and running their own business but don’t want to start from the ground up.  Franchise owners benefit from immediate brand recognition, receive ongoing business support, and have a reduced risk of business ownership.  Some of the most popular franchise ideas are niche gyms, specialty apparel, and coffeehouses.

• Consulting jobs are great for those individuals that are considered to be experts in their fields and are willing to share their expertise as an advisor to either a company or an individual.  Like work from home positions, the consulting field is increasing in popularity due to advancements in technology and the growing need for companies to seek temporary assistance versus hiring full time employees for a given project or job.

These new career paths weren’t necessarily available in years prior, opening new doors to business professionals nationwide.  With so many avenues to choose from, you can easily obtain the flexibility and freedom to have a rewarding career doing what you enjoy.

Best of SHRM 2009

Another year…another SHRM conference.  This year’s show has been exciting, rewarding and did I mention exhausting! It’s hard to sum up everything from the last few days, but I thought it would only be appropriate to follow up on my list of the Top 10 Reasons to Attend SHRM 2009 with a list of the Top 10 Best observations at the show. 

1. Best Giveaway: SHRMWow by Benefit Focus.  When someone comes up with a creative idea like this, I have to give them kudos.  From the name to the actual give away, it is safe to say this was by far the giveaway that SHRM attendees went crazy for this year. 
2. Best Crowd Pleaser: Ultimate Software.  As the booth right next to Ultimate Software, we witnessed first hand just how excited the SHRM attendees were to participate in their demos to receive a chance to win one of 100 premium gifts. 
3. Best Kid-Friendly Giveaway: A stuffed monster from Monster.com.  Kids may be afraid of monsters under their bed, but this is one “monster” that I’m sure any kid would love.
4. Best Dressed: Black-tie attire at Beyond.com. As a company that offers “First-Class” recruitment, we thought it was only natural to dress the part in formal attire at the opening reception!
5. Best Booth: The Ladders.  Wow, it is truly impressive what The Ladders was able to do with their booth space.  They completely transformed an empty box into a beautiful and intricate street block, complete with foliage, a sidewalk through the middle, and excellent branding on screens throughout the space.
6. Best Presentation: OC Tanner. If you didn’t have a chance to sit down to watch the presentation by OC Tanner, then you really missed out!  Not only did participants have the opportunity to learn more about the company, but you could almost mistake OC Tanner employees for real life actors. Bravo!
7. Best Service: Snagajob.com.  Everyone knows that SHRM is exhausting, so what better way to relax and unwind than by stopping by the Snagajob booth to get a manicure and learn more about their company.
8. Best Branding: The Right Thing. From the enormous booth space to the branded lunch boxes, you couldn’t miss The Right Thing at SHRM this year. And the environmentally-friendly Smart Car giveaway made them stand out that much more.
9. Best Local Flavor: CareerBuilder.com. Everything that CareerBuilder did at their booth this year truly reflected the New Orleans flavor. Way to represent the city who hosted SHRM this year!
10. Best SHRM Party: Yahoo! HotJobs.  As always, Yahoo! HotJobs impressed us all with a fantastic party on Bourbon Street.  There was great food, lively music, fun dancing, and even some bead throwing off the largest balcony on Bourbon Street. 

Engineering Industry Makes a Come Back

Engineering jobs, although historically a stable career choice, were not nearly as appealing or “sexy” as Wall Street gigs over the past decade.  Although Wall Street jobs may have been one of the most highly sought after careers for the past few years, the economic recession has completely changed everything.  After witnessing first-hand how easily the financial industry can crumble in times of economic downturn, many students are becoming less concerned with making a “quick buck” and are more focused on choosing and industry that can provide stability and longevity throughout their entire career.

Is the Economy Causing an Increased Demand for Part-Time Workers?

In times of economic recession, not only does the unemployment rate increase dramatically, but the underemployment rate is drastically affected as well.  Unfortunately, there are many workers who would like the opportunity to work full-time, but settled for a part-time because they were unable to find a full-time job or their employer recently cut their hours. According to the Bureau of Labor Statistics, the number of involuntary part-time workers increased by 3.4 million over the past 12 months.

There is a large financial motivation for employers to hire part-time workers, which is likely the reason why there is an increasing demand for part-time workers.  By making the decision to hire more part-time employees or reducing full-time employees down to part-time, employers are not obligated to cover benefits, saving the company valuable money.

What industries are currently hiring part-time employees?

There are many industries and roles that are more likely to experience an increase in demand for part-time positions in an economic downturn.  Industries that typically hire on a consulting or outsourcing basis, such as IT, Accounting & Finance and Human Resources, will increase their part-time hiring strategy to reduce the risk associated with hiring full-time talent.

IT Hiring Trend: Temporary vs. Full-time Workers

Although the decision can vary widely by each employer, hiring temporary or contract workers has become a common practice in the IT industry. Employers often seek to engage consultants on a temporary basis in place of hiring full-time employees because their demand for specialized skills and expertise can change depending on each company project. 

Many times, the hourly compensation rate for a temporary worker or consultant can exceed that of a full-time employee; however the employer does not have to provide fringe benefits and can easily let the temporary worker go once the project is completed.  This gives employers a low-risk solution to adding new staff members to their business, especially in a down economy when most companies are hesitant to invest heavily in new talent.

Stable Demand for Sales Jobs Provides Hope for Sales Professionals and New College Graduates

The recent recession has caused a decline in jobs across many industries, creating a pool of highly qualified talent not seen in years. Many businesses are taking advantage of these candidates to fill sales positions that offer high-reward and low-risk to the company. This trend has allowed the sales sector to remain strong, experiencing a 9.63 percent increase in the number of sales jobs posted to SalesJobs.net, a Beyond.com career community, in January 2009 compared to December 2008.

According to SalesJobs.net, in Q4 2008 the top positions for sales jobs were Sales Manager (67.96 percent), Pharmaceutical Sales Representative (14.56 percent) and Cashier (5.44 percent), with the top cities for jobs ranked as Houston, New York and Chicago. Of the sales jobs posted in Q4 2008, 67.3 percent were looking for a candidate with less than one year of experience and 63.4 percent required at least a four-year degree, which provides hope to college graduates entering the work force in the next few months. 

With the increased quantity and quality of competition in the job market — SalesJobs.net reported a 27 percent increase in sales professionals looking for a job over the past year — listed below are a few steps from the Sales Survival Guide that professionals can take to stand out from other candidates to land their next job.

Jobs Experience Slight Rebound in January 2009

In January 2009, the job market experienced a slight rebound in the number of jobs posted compared to the previous month. Jobs for candidates with 1-5 years of experience, and 10-15 years of experience increased significantly in January. However, this is not necessarily an indication that the job market is improving, since many employers usually put their hiring efforts on hold during the holidays and typically resume their recruitment program in the New Year.

 

Of course, not all jobs felt an increase due to the affects of this hiring trend. The total number of jobs posted to Beyond.com in January 2009 declined slightly by 0.07% over the previous month, however this is still a vast improvement from the 18.79% decrease in jobs in December 2008.  Jobs for candidates with less than one year of experience and candidates with 15-20 years of experience, both reported a decline in the number of jobs posted in January 2009.