As 2015 comes to a close, we pulled key data points to illustrate the state of our jobs market.
We found that:
- The BLS released its Occupational Outlook handbook which predicts that jobs in healthcare and social assistance, professional and business services, leisure and hospitality, and construction will see growth over the next several years, while jobs in manufacturing and federal government will decrease.
- Employers estimate wages will increase by an average of 3 percent in 2016, compared with the average annual increase of 2 percent that we’ve seen for the past five years, according to this Bloomberg article.
- Private-industry employers in New England spend an average of $37.64 per hour worked on employee compensation, compared to the national average of $31.53 per hour worked. Wages and salaries accounted for 70.5 percent of New England employers’ total compensation costs, while benefits accounted for 29.5 percent.
- Nearly half (49 percent) of U.S. employers continue to seek workers with skills in STEM (science, technology, engineering and math) and 55 percent said finding the right talent remains a challenge, according to a recent quarterly survey.
Despite the slow pace of economic growth in Massachusetts and the downturn in hiring we’ve experienced over the past few months, local experts – including PSG President Aaron Green – are optimistic that the economy will regain momentum soon. Read more about the economic indicators and experts’ predictions here.
More than half (54 percent) of employers surveyed recently by CareerBuilder.com and CareerRookie.com say they plan to hire recent college graduates. Last year 46 percent said they’d be hiring new college grads and in 2010 44 percent planned to hire new graduates.
The survey also asked employers which college majors they looked for and 39 percent responded that business degrees were most desirable. Computer and information sciences (24 percent) and engineering (23 percent) are also in demand.
The 2012 responses mark the first time since the Great Recession that a majority of employers plan to add recent college graduates to their staff. Read more about the survey here.
A recent survey by the National Association of Colleges and Employers (NACE) found that businesses expect to hire 9.5 percent more college graduates this year than last, broadening a recovery since 2009 when such hiring plummeted 22 percent.
The Collegiate Employment Research Institute (CERI) at Michigan State University also reported that it expects hiring of new college graduates to rise 7 percent, which is a moderate rate compared with last year’s. Based on the responses it received, CERI reports that “This year’s market appears to be broader and a little deeper and shows a more consistent pattern of growth across industry sectors as well as by company size. Uncertainty has lessened somewhat among these employers and is reflected in a higher intention to hire college students, approaching the optimism of the 2007-2008 college labor market. More confidence is leading more employers to increase their hiring targets. Still one-third have decided to cut their hiring goals for this year.”
According to CERI, nearly 40 percent of employers will be hiring candidates from all majors, seeking the best talent regardless of field of study. Computer science majors are still in strong demand in nearly every sector, and the supply of graduates will not be sufficient to fill all available positions. Accounting, most engineering disciplines, finance, and supply chain are expected to do well this year. Some of the strongest growth will be among marketing, advertising, and public relations; sales positions are increasing as well as related services to extend employer brands. Nursing, clinical laboratory scientists, human resources, chemistry, statistics, and mathematics are just some of the majors that will see more opportunities this year.
Unemployment among college graduates up to age 24 dropped from 9.8 percent in February 2011 to 8.1 percent last month, according to the U.S. Bureau of Labor Statistics. But that is well above the 4.6 percent rate in 2008. February’s unemployment rate for the same ages with just a high school diploma was 22.5 percent.
Yesterday the state Executive Office of Labor and Workforce Development announced that Massachusetts’ unemployment rate in January held steady at 6.9 percent (compared to 8.3 percent nationally) and that 6,600 jobs were added by Massachusetts employers. The state Department of Labor also reported revised jobs figures for 2011, including a dramatic revision to the overall number of jobs created last year. The revised data states that just over 9,000 jobs were created in Massachusetts during 2011, compared with initial estimates of nearly 41,000 jobs. Local economists are somewhat surprised by the change and believe the real number is somewhere between the two figures.
Read more here.
PSG President Aaron Green was a guest on last night’s NECN Business show. Aaron was invited to be interviewed about the release of PSG’s most recent Quarterly Human Resources Survey. He spoke about the Massachusetts employment environment with NECN Business anchor John Daly and highlighted an increase in hiring and recruiting locally. PSG’s quarterly human resources survey details Massachusetts employment trends based on client survey results. In the survey PSG asks clients for their responses to questions about hiring and staffing, salary and compensation, concern over retention and recruiting talent and budgets for HR spending.
To request a copy of PSG’s survey results please contact your PSG representative or call us (at 617-250-1000) or email email@example.com.