The Job Market Stays Flat: This Week in Employment
Employment-related news hasn’t been difficult to come by this week; the fevered speculation over the August jobs report made sure of that. As it turned out, the report was neither as good or as bad as feared: a loss of 54,000 jobs overall was offset by the fact that the private sector increased hiring by 67,000. And, with the overall rate climbing only slightly to 9.6 percent, the abiding concern now seems to be stagnation. Or to put it another way: employers aren’t laying off anymore, but they don’t seem to be hiring either.
That reality is reflected not only by the flat response to Vault’s job seeker sentiment poll, but also in the postings on the Employment Tracker this week. Sure, there’s news of a major restructuring at JAL—with the airline cutting 16,000 jobs–but that event stands out precisely because it’s no longer the norm.
A look at the hiring news on the tracker seems to confirm the thesis that hiring is stuck too. While there are some fifteen reports of firms seeking to add employees, collectively they will add less than 15,000 jobs to the economy—and that doesn’t factor in the fact that many of the positions are in international markets, or that the biggest U.S.-based announcement came from the government, which is seeking 1,700 cybersecurity pros.
If that isn’t indication enough of the kind of difficulty the economy is seeing, check out the following chart from The New York Times’ Economix blog. It compares this recession to previous ones in terms of percentage of jobs lost (left axis) over the duration of the recession (bottom axis). As you can see from the chart, we’re definitely in unfamiliar territory—and bottoming out to boot.
With all of that in mind, perhaps the most telling story of the week—and certainly the most unusual—has nothing to do with unemployment figures or projections of where the economy might go next. Rather, it’s the slightly absurd news that the Irish agency tasked with job promotion was forced to lay off staff as part of the government’s efforts to balance its budget.
All told, then: lots of talk about the unemployment number, but very little action.
–Phil Stott, Vault.com