Bob Marshall’s May 2019 BLS Analysis for Recruiters; 6/12/19
The 14 May BLS Analysis Articles…
Big Data, Cybersecurity and AI Among Scarcest Tech Skills
Daily News, June 12, 2019
The technology skills shortage is at its highest level since 2008, according to the 2019 Harvey Nash/KPMG CIO Survey released today by IT staffing firm Harvey Nash Inc. And the 3 most-scarce tech skills include big data/analytics with 44% of CIOs citing it as most scarce; cybersecurity with 39% pointing to it; and artificial intelligence, cited by 39%.
“Companies are having the hardest time in more than a decade finding the technology talent they need,” said Sean Gilligan, president, technology recruitment, North America, Harvey Nash.
“One of the growing trends we are now seeing is the client requesting professionals who have more of a hybrid of skills — someone with expertise in multiple cloud platforms, a software engineer experienced in DevOps, or a front-end developer who can do mobile,” Gilligan said. “Having these blended capabilities is a major asset for companies of all sizes, but it is rare.”
Harvey Nash’s survey included responses from 3,645 CIOs and technology leaders in 108 countries. It was conducted between Dec. 13 and April 4.
Recruiting in Creative Fields Set to Intensify
Daily News, June 11, 2019
Recruiting in the creative and marketing fields is expected to intensify for the remainder of the year, according to The Creative Group, a division of Robert Half International Inc.
It found that 75% of advertising and marketing hiring decision-makers plan to expand their teams in the second half of the year, up from 60% in a similar survey six months ago. In addition, 62% plan to increase the number of freelancers they use.
However, 86% said it’s somewhat or very challenging to locate the creative talent they need, and 45% reported being understaffed.
The survey included more than 400 advertising and marketing hiring decision-makers who work full time at agencies with 20 or more employees or companies with 100 or more employees in the US.
Employers May Be Paying Too Much to Attract Talent
Daily News, June 11, 2019
US employers may be paying too much to attract new talent, according to a study by Gartner Inc. It said US companies are offering average salary increases of about 15% to new employees, while US employees expect approximately a 10% salary increase to switch employers.
The data comes from Gartner’s 1Q19 Global Talent Monitor report.
“Not only are US employers often paying too much to new workers, but once tenured employees discover discrepancies between their salaries and those of new colleagues, they may be more inclined to look for another position elsewhere,” said Brian Kropp, group VP in the Gartner HR practice.
Gartner’s report also found 25% of US employees were actively looking for another job compared to the global average of 27%.
To help attract employees, Gartner said companies should develop a strong “employee value proposition,” or EVP, that includes benefits and compensation, career and development opportunities, job-interest alignment, and work-life balance.
“When companies invest and deliver a strong EVP, engagement levels in their workforce will likely see a boost — not only in the ability to retain talent, but also in attracting sought-after talent,” Kropp said. “In this hypercompetitive US labor market, organizations with attractive EVPs can reduce the compensation premium needed to attract qualified candidates as well as potentially decrease annual employee turnover by just under 70%, all of which helps the company’s bottom line and brand reputation.”
Gartner’s report is based on a survey of more than 40,000 employees in 40 countries.
US Posts Highest Net Employment Outlook Since 2006: ManpowerGroup
Daily News, June 11, 2019
Hiring intentions in the US are the highest since 2006, according to ManpowerGroup Inc.’s Employment Outlook Survey for the third quarter.
The survey, which included more than 11,500 employers, asked “How do you anticipate total employment at your location to change in the three months to the end of September 2019 compared to the current quarter?”
According to the results, 27% said they planned to increase payrolls, 3% planned to decrease payrolls, 69% planned no changes and 1% said they didn’t know. That made for a net employment outlook of 24%; when seasonally adjusted, the outlook goes to 21%.
It’s that 21% seasonally adjusted net employment outlook that is the highest in 13 years.
ManpowerGroup’s report also broke down the results by 13 industry sectors, with “professional and business services” recording the highest seasonally adjusted net employment outlook at 28%. Next-highest was “leisure and hospitality” at 27%.
“Information” posted the lowest seasonally adjusted net employment outlook at 14%.
Of the 4 US geographic regions — the West, Midwest, Northeast and South — the highest seasonally adjusted net employment outlook was in the west at 22%. The reading was 21% in the Midwest, 20% in the South and 19% in the Northeast.
Among US metropolitan areas, the Charlotte, North Carolina, area had the highest net employment outlook in the survey at 37%. Next-highest was Grand Rapids, Michigan, at 36%.
“At a time of record-low unemployment and employer optimism at levels we haven’t seen since the mid-2000s, we need to do more to connect people to jobs if we’re going to sustain economic growth,” said Becky Frankiewicz, president of ManpowerGroup North America. “To find and retain top talent, the best companies are offering holistic benefits packages with accelerated training programs and opportunities to learn, earn more and move up so employees have the skills for jobs today and tomorrow.”
ManpowerGroup also surveyed companies globally, including 59,000 employers in 44 countries and territories around the world.
Canada had a seasonally adjusted net employment outlook of 12%; Mexico was at 10%.
The highest seasonally adjusted net employment outlook among countries was 25% in Japan, followed by 22% in Taiwan. In the UK, it was 4%.
Tech Unemployment Rate at 20-Year Low; CompTIA
Daily News, June 10, 2019
CompTIA reported the unemployment rate for technology occupations in the US fell to a 20-year low of 1.3% in May based on an analysis of the US Bureau of Labor Statistics’ Employment Situation report released last Friday.
However, the IT industry organization noted growth was modest compared to previous months.
“The data confirms what employers have been saying for months and even years – the demand for tech talent has reached historic levels,” said Tim Herbert, executive VP for research and market intelligence at CompTIA.
“There is now the very real prospect of tech worker shortages affecting industry growth,” Herbert said. “Firms seeking to expand into new areas such as the Internet of Things, robotic process automation or artificial intelligence may be inhibited by a lack of workers with these advanced skills, not to mention shortages in the complementary areas of technology infrastructure and cybersecurity.”
IT occupations across the US rose by an estimated 133,000 jobs. The fastest growth was in “technology services, custom software development and computer systems design” which added 8,400 new hires.
Majority of Accounting Leaders Optimistic About US Economy; Outlook Steady for Third Straight Quarter
Daily News, June 6, 2019
Among certified public accountants who hold leadership roles, 57% are optimistic about the US economy over the next 12 months, according to results from the Economic Outlook Survey released today by the Association of International Certified Professional Accountants. It was the third straight quarter optimism has held at that level. However, the percentage is lower than the 74% who said the same in the second quarter of 2018.
Respondents who said their companies have too few employees and are ready to hire immediately edged up slightly in the quarter to 28% from 26% in last quarter’s survey. Those who want to hire but are hesitant because of uncertainty also edged up to 16% from 15%.
Availability of skilled talent remains a top challenge, and employee/benefit costs and staff turnover were top challenges as well, according to the AICPA survey.
Respondents forecast a 2.7% increase in salary and benefit costs over the next 12 months, up 0.1% from last quarter’s forecast.
Overall, 86% expected to increase salary and wages in the next 12 months. Only 8% didn’t expect to raise wages.
The survey took place from May 7 to May 28 and included 785 qualified responses from certified public accountants who hold leadership positions.
Getting Candidates Interested in Job Among Most Difficult Aspects of Hiring Process
Daily News, May 29, 2019
What is the hardest part of the hiring process? A survey of more than 2,800 senior managers conducted by professional staffing firm Robert Half International Inc. found that 35% said “generating interest from qualified candidates” was the most difficult.
It was followed by “asking the right interview questions” at 20% and “developing compensation packages and negotiating salaries” at 19%.
Robert Half also asked about the most common reason candidates give for turning down a job offer. Cited by 30% of senior execs each, the two most-common reasons were compensation and benefits being lower than expected and that the candidate accepted another job offer or counteroffer. The next most-cited reason, at 13%, was limited opportunities for career growth or advancement.
Another question posed was “aside from poor performance, what’s most likely to lead to a failed hire?” The top answer, cited by 30%, was a mismatched skill set. Next was unclear performance expectations at 26% followed by personality conflicts at 23% and failure to fit into corporate culture at 21%.
More Than Half of Job Seekers Want Raise of Higher Than 10% to Stay with Current Firm; Only 10% of Employers willing to Offer it to ‘Star’ Workers
Daily News, May 24, 2019
A survey by Express Employment Professionals found that 57% of job seekers said they would require a raise of more than 10% to stay with their current employer rather than accept a new job offer. However, only 10% of employers surveyed said they would be willing to offer a raise of more than 10%, even to a ‘star’ employee.
“It has never been easier for workers to jump between jobs,” Express CEO Bill Stoller said. “And because workers are so mobile, there’s less fear about leaving a ‘good job’ for a pay increase.”
If a new job doesn’t work out, there are plenty of other employers ready to hire.
“Businesses have to keep their finger on the pulse of the local economy, or they risk losing the talent wars,” Stoller said.
The survey asked job seekers, “if offered a new job, how much of a pay increase would it take to stay with your current employer?” Here is how they responded:
Employers were also asked, “if a ‘star’ employee were offered a job with another company, how much of a pay increase over their current salary or wage would you offer to retain them?” Here is how they responded:
Nearly Half of Millennials Would Quit Their Current Job in 2 Years; 4 in 5 Would Freelance
Daily News, May 23, 2019
Nearly half of millennials, 49%, would quit their current job in the next 2 years if they had a choice, according to the 2019 Deloitte Millennial Survey released this week. That’s up from 38% in Deloitte’s 2017 report and the highest it has recorded.
Dissatisfaction with pay, cited by 43%, was a top reason millennials gave for wanting to leave. Not enough opportunities to advance was second with 35% saying this, and lack of learning and development opportunities was cited by 28%.
Millennials expecting to stay with their employers for 5 years or more represented 28% of survey responses, unchanged from last year. The survey found a strong correlation between millennials who plan to stay in their current jobs and those who said their companies deliver on diversity and inclusion.
The survey also found 4 in 5 millennials would do freelance or contract work, but only 6% said they have chosen to be part of the gig economy instead of working full time. Still, 61% said they would take a gig assignment to supplement existing employment.
Those who would join the gig economy cited the chance to earn more money, 58%; work the hours they want, 41%; or achieve better work/life balance, 37%, as reasons for considering it. The main reason for not considering the gig economy was its perceived uncertainty.
Deloitte’s survey questioned 13,416 millennials in 42 countries. Other findings included:
*Some 70% of millennials believe they have only some of, or few of, the skills required to succeed in industry.
*46% of millennials believe the changing nature of work will make it tougher to find or change jobs. But when it comes to training, millennials believe business is more responsible for training workers to meet evolving challenges.
*49% of millennials believe new technologies will augment their jobs.
Some Say Keep AI Out of Candidate Selection Virtual Job Interviews: Survey
Daily News, May 15, 2019
More than two-thirds of Americans don’t think artificial intelligence should have a role in certain hiring tasks, according to a survey of 2,029 adults by Yoh, a staffing provider that is part of Day & Zimmermann.
Those roles in which Americans don’t believe AI should have a role include:
*Selecting the candidate that is hired for a position, 42%
*Conducting virtual job interviews, 32%
*Assessing if a candidate is being truthful about their level of experience or qualifications during an interview, 30%
*Delivering job rejections to candidates not selected for a position, 26%
*Screening résumés, 22%
*Assisting with the onboarding process for new hires (for example, signing up for benefits, computer login setup and email registration), 19%
“Despite a majority of Americans’ skepticism of it, AI technology has been helping companies make better and more informed hiring decisions for years, both for the company and the candidates,” said Emmett McGrath, president of Yoh.
“However, AI technology should be used only to augment and enhance, not replace, the recruitment function,” McGrath continued. “In order for it to be fully effective, this technology must be used in conjunction with the experience, skill and intuition of human recruiters and hiring managers.”
IT Jobs Post First Monthly Gain So Far This Year, Albeit a Small One
Daily News, May 13, 2019
IT employment in the US posted its first monthly gain so far this year in April, but the gain is modest, the TechServe Alliance reported. The number of IT job rose 0.03% in April when compared to March resulting in total IT jobs of approximately 5,300,000, according to the trade association for the IT and engineering staffing and solution industry.
“After 3 consecutive months of decline, I welcome April’s gains — modest though they may be,” TechServe Alliance CEO Mark Roberts said. “While encouraged by the shift into positive territory, we believe that the ability to grow IT employment will continue to be under pressure given the significant talent shortage and ever more restrictive immigration policies for high-skilled foreign nationals.”
On a year-over-year basis, IT employment was up by 0.14%, representing the addition of just 7,300 IT workers.
Turning to engineering jobs, employment rose by 0.08% in April compared to March for a total of approximately 2,600,000 jobs. Year-over-year, engineering jobs rose by 2.28%, representing an increase of 59,000 engineering workers.
Economists Raise US Job Growth Forecast
Daily News, May 10, 2019
Economists raised their estimate for US job gains this year and in 2020, according to the first-quarter Survey of Professional Forecasters released today by the Federal Reserve Bank of Philadelphia.
The projections for the annual average level of nonfarm payroll employment now suggest job gains at a monthly rate of 200,100 in 2019, up from the previous estimate of 191,800. The forecast now calls for new jobs added monthly in 2020 to fall to 142,300, up from the previous estimate of 123,200.
The outlook for GDP growth in the US economy over the next four quarters is slightly weaker than that of the last survey. The forecasters predict real GDP will grow at an annual rate of 1.9% this quarter and 2.1% next quarter, down from the previous estimates of 2.4% and 2.2%, respectively. On an annual-average over annual-average basis, the panel predicts real GDP will grow between 1.9% and 2.6% from 2019 to 2022.
A lower path for the unemployment rate accompanies the outlook for growth. The forecasters predict the unemployment rate will average between 3.6% and 3.9% from 2019 to 2022. Notably, the projections for 2021 and 2022 are both 0.3 percentage point below those from the last survey.
The Survey of Professional Forecasters is based on a poll of 40 economists.
Filling Jobs Difficult for Majority of Firms, About Half Raise Wages to Boost Recruitment: ISM
Daily News, May 8, 2019
A majority of companies reported difficulty filling open positions in the past 6 months, and about half are raising wages to attract workers, according to the “Spring 2019 Semiannual Economic Forecast” released today by the Institute for Supply Management. However, manufacturing firms are reporting slightly more difficulty finding workers than nonmanufacturing firms and are slightly more apt to raise wages to recruit new hires.
In the report’s survey, 76.0% of manufacturing firms reported difficulty hiring workers to fill open positions in the past six months. In response to the tight market, 53.7% of manufacturing firms raised wages to recruit new hires.
Among nonmanufacturing firms, 70% said they had difficulty hiring workers to fill open positions in the past 6 months. However, less than half, 48.1%, raised wages to recruit new hires.
Offering additional training to new hires was not used as much as raising wages by both manufacturing and nonmanufacturing firms.
Among manufacturers, 44.4% said they offered additional training for new hires while 55.6% did not. It was a similar story for nonmanufacturing firms; 45.5% offered additional training to new hires in the past 6 months; 54.5% did not.
Still, both manufacturers and nonmanufacturing firms reported they planned to increase employment by the end of the year. Manufacturers expect employment to rise by a net 2.0% by the end of the year compared to the end of 2018. However, the forecast was down from the prediction of 2.4% in a similar survey in December.
Nonmanufacturing firms expect employment to increase by a net 1.3% at the end of 2019.compared to the end of 2018. That compares to a net 2.0% forecast in the December survey.
Overall, the report said US economic growth is expected to continue throughout 2019.
Flexible Schedule, Leaving Early on Fridays are Employees’ Best Summer Perks
Daily News, May 7, 2019
Employees say the best summer perks are flexible schedules and early departures from work, according to survey findings released by Accountemps, a division of Robert Half International Inc.
The survey found that 52% of employees think flexible schedules are the best summer perk, followed by 27% who cited leaving early on Fridays.
Only 11% of employees cited a “more relaxed dress code” and even fewer said the best summer perk was an activity such as a company picnic or potluck at 10%.
What summer perks do employers actually offer?
Accountemps said a separate portion of the survey that measured the response of management found that 54% offered flexible schedules, and 53% offered a more relaxed dress code. As far as leaving early on Fridays, 32% offered that. And although it ranked relatively low for employees, 48% offered an activity such as a picnic or potluck.
Only 10% of those in management said their company does not offer any of those summer perks.
The survey included responses from more than 2,800 workers in the US and more than 2,800 senior managers in the US at companies with 20 or more employees.