New Cycle High in Temp Penetration, New Cycle Low in Unemployment
On Friday, May 5, the Department of Labor announced a strong employment report for April. The headline number for job gains was above expectations (net new 211,000 jobs, above expectations for about 190,000 jobs), the unemployment rate continued to trend down (4.4% in April, the lowest rate since May 2007), the growth rate in temporary staffing continued to improve (up 3.9% year-over-year in April, up from average growth of 1.8% over the prior year), and employment trends in professional job categories remained strong. In addition, the temp penetration reached a new cycle high of 2.06%.
For employers, today’s labor market presents a myriad of challenges, particularly in the higher skilled niches. To attract highly skilled technology professionals on either a contract or permanent basis, employers must address a number of challenges. First and foremost is the fact that, as a practical matter for many skill sets in technology, the unemployment number is well below the already low overall BLS number. In fact, it is not uncommon in many markets to have many more openings in certain skill sets (Java, cyber security) than there are candidates to fill them. For candidates, getting exposure to the opportunities that are aligned with their career goals is getting harder every day. So what are clients and candidates to do? There is no silver bullet. Smart clients are aligning process, compensation and opportunity to attract the best talent in a market where highly skilled candidates have choices. Whether candidate or client, partnering with Kforce gives you a much higher probability of attaining the right match.
About the Author, Michael Blackman
As Chief Corporate Development Officer at Kforce, Michael Blackman, a 25-year Kforce veteran, is the primary focal point for the Firm with the Wall Street and financial communities. He is regularly sought out by leading economists for his perspectives on the economy and labor markets, and he contributes to a number of key proprietary economic publications.