December Jobs Report Has Silver Lining for Manufacturing
Posted January 10, 2014 & filed under Hiring Resources
According to the December jobs report released by the Bureau of Labor Statistics, hiring in the final month of 2013 was lower than expected. Originally, economists had expected the numbers to be a positive continuation of previous months. Most economists and federal analysts believed those numbers would be in the ballpark of 200,000. Imagine their surprise when the total was 74,000.
First let’s take a look at the positive.
Manufacturing Numbers
Overall, the manufacturing sector saw positive gains year over year. From December 2012 to December 2013, there was an increase of 7% across the entire manufacturing industry. The greatest gains were seen in food manufacturing (5.3% increase), fabricated metal products (5.0% increase), transportation equipment (3.8% increase), primary metals (3.5% increase), and plastic/rubber products (1.6% increase).
On a positive note, U.S. factory orders increased in November with a good portion of the upward trajectory being led by the demand for completed aircraft, components, and parts. Additionally, businesses spending was on the rise as manufacturers invested money in machinery, computer hardware and systems, and other long-lasting goods.
Overall Decrease
The month of December is not usually known to experience an outpouring of hiring but the drop from the November job report (which was adjusted in the December jobs report from 203,000 to 241,000) was unexpected. In future BLS job reports, the 74,000 may be tweaked for greater accuracy but economists don’t expect too large of an upward spike.
Additionally, the BLS reported that unemployment was down to 6.7% to 7.0% which is a pretty substantial drop. That can be attributed to new employees joining the workforce, unemployment benefits expiring, and people switching over from unemployment to disability. With the labor force participation rates also dropping from 62.8% to 63.0%, the unemployment numbers more than likely signify the latter two. On the plus side, that means that there will be decreased competition for job seekers in January and the coming months.
A Positive January Outlook
Even though the BLS December jobs report isn’t ideal, we can expect good tidings in the future. January and February are typically windfall months for hiring. That means, more job seekers will be actively looking for new positions and more employers will be looking to improve their team roster.
If you’re looking to improve your chances of landing a job or snagging a candidate in a competitive market, reach out to Omni One. With our access to great positions with amazing companies and a vast talent pool, we can provide you with the help you need to make a splash during 2014.
by James Walsh
