Skilled Labor Blog

Construction and Manufacturing Payroll Report (October)

2009-11-20T16:46:19Z

Seasonally adjusted Regional and State Employment data released by the US Bureau of Labor Statistics this morning paralleled that of the Employment Situation report released Nov. 4 showing a slight overall improvement with pockets of growth sprinkled throughout.

Payrolls within the construction and manufacturing sectors continue to feel the heat of a long lagging recovery that is sure to be drawn out longer than other sectors of the economy.

In construction, payrolls grew month-over-month in 14 states. The largest increase occurred in Michigan (+5,400), followed by Indiana (+4,000), Wisconsin (+3,500), and New Jersey (+1,600). The largest decrease occurred in Texas (-9,400), followed by Florida (-7,600), and North Carolina (-6,600).

Manufacturing payrolls decreased overall in October, growing marginally in 12 states. Notable growth occurred in Missouri (+2,700) and Michigan (+2,500). The largest decreases occurred in California (-8,300) and Georgia (-6,200).

Overall regional employment remained extremely steady month-over-month as no division experienced a significant rate change from September.

Daily Jobs Video; Improved Alternative to Stimulate Job Growth?

2009-11-18T17:05:32Z

CNBC’s Michael Liesman weighed in on the current employment situation this morning. He reports that President Obama may be considering payroll tax breaks as an added measure to resuscitate job growth in the US. The president will hold a forum on jobs and economic growth December 3rd in which some of the best and brightest CEO’s, small business owners, and financial experts will discuss ideas for continuing to grow the economy and put Americans back to work.

See today’s Wall Street Journal for an opinion piece by Michael Boskin, economist and Stanford University professor, in which he evaluates the risks and benefits associated with such a plan (payroll tax break). An advocate, Boskin projects the impact in which a relief of 6 points would have had if instituted when the initial Stimulus plan went into effect. His findings are that the cut would add 3-4 million jobs at a fraction of the cost of the initial bill.

Tuesday’s JOLTS Report Optimistic

2009-11-12T14:26:22Z

On Tuesday the labor department’s survey on job openings and labor turnover showed an increase in job openings (for which companies are actively recruiting) and a decrease in job seekers available per job opening.

From the Wall Street Journal:

Manufacturing job openings grew for the second straight month while Construction, Transportation, and Trade openings did not. Regionally, openings grew in the Northeast and Midwest, more notably in the Midwest.

Here’s a link to the full report: www.bls.gov/news.release/pdf/jolts.pdf

Jolting the Housing Market

2009-11-09T14:55:23Z

The home buyer’s tax credit has been extended, but how much will that help the housing industry? Ron Peltier, CEO of HomeServices of America, shares his insight.

ISM Employment Index Spikes, Profiles International Emphasizes the Importance of Smart Hiring

2009-11-05T16:17:33Z

http://www.prweb.com/releases/2009/11/prweb3160374.htm

This is a great piece I picked up off the wire this morning regarding smart hiring – well worth the read. From the article:

“A strong staff and viable workforce is the greatest asset a company can have because it’s the biggest investment a company will ever make,” said Bud Haney, President and Co-Founder of Profiles International. “Poor hiring is a costly mistake that can compromise a company’s profitability. It is far better that companies view hiring as an investment. In so doing, they are more likely to consider which investments will reap the most return.”

Monday’s release of the Institute for Supply Management’s (ISM) October Employment Index reported an index of 53.1 compared to September’s index of 46.1. Companies are starting to become more comfortable with the stabilization of the economy and therefore making employment decisions that they perceive as being less risky.

Sysco Foods announced this week that it will once again begin hiring sales representatives after years of trimming. “We think it’s our turn to start exerting some pressure on our competitors and being more agressive,” Sysco President and COO Kenneth Spitler said Monday during the company’s earnings call.

As businesses begin to hire back it’s vital to the success of the growth (or re-growth) that the right people are targeted and hired into those roles.

Here is a link to the article in its entirety: http://www.prweb.com/releases/2009/11/prweb3160374.htm

Buffett is All-In on America’s Future

2009-11-04T14:18:37Z

“We wouldn’t be putting out the equivelant of $34 billion unless I felt there’s a lot of good years for America. America’s best years lie ahead. There’s no question about that.”

Those were the first words I heard this morning, faintly, as my daily CNBC tv wake up call pulled me away from my sleep. There was absolutely no need for a snooze button today. (You can watch the very same clip, above.)

Quoted is Warren Buffett who, for the first time, is seeing a bounce back (however, not very much) in his businesses. Buffett had repeatedly stated that although his businesses had “quit going down” they were yet showing “no bounce.” He made headlines this morning after agreeing to the biggest bet of his career, a purchase of Burlington Northern for $26.3 Billion. The railroad purchase reflects Buffett’s long-term optimism of the US economy.

Although Buffett is largely optimistic he states that he sees substantial growth in the coming years, not months.

http://www.cnbc.com/id/33603477/print/1/displaymode/1098/

Home Buyer Credit to be Extended?

2009-11-03T18:42:26Z

Last night Congress completed the first step of a process which may lead to the passage of a bill extending the first-time home buyer credit through April of 2010.

This particular bill would provide an $8,000 tax credit to first-time home buyers (by definition, buyers who haven’t owned a home in the past three years) as well as $6,500 credit for buyers who have lived in thier prior residences for at least 5 years.

If the bill is passed, expect housing figures and manufacturing indexes to continue to rise through the first quarter of 2010.

The extension and expansion of the credit will for certain add to the growth of the US economy but one has to ask, at what expense? Much of the spending that has contributed to the growth has come from borrowed money – many believe that this false sense of growth can have a negative impact down the road. Growing inventories and foreclosures at the same time can be dangerous should an improvement in employment lag longer than expected.

Stay tuned for the release of the October jobs report this Friday for more details regarding employment growth.

Stanley Tool Aquires Black & Decker

2009-11-03T14:32:41Z

Stanley Tool and Black & Decker have agreed to a $4.5 Billion all-stock deal combining the two tool makers. Stanley shareholders will hold 9 of the 15 board seats. Both companies have been hit hard by the housing slump as sales in both commercial and do-it-yourself tool categories have suffered.

Job cuts are likely on the horizon for the newly merged company which will be called Stanley Black & Decker, based at Stanley’s offices in New Britain, CT. Small to mid-sized businesses looking to aquire talented purchasers and warehouse workers should be on the lookout.

The third time proved to be the charm as this was the third instance since the 1980’s in which the two companies discussed joining forces.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Manufacturing Activty Grows

2009-11-02T17:48:33Z

The ISM reported a marked uptick in its manufacturing index for October. Activty rose to 55.7 (the highest level since April 2006) from 52.6 in September. Forecasters expected the index to be around 53.0 for October. Shrinking inventories and first-time home buyers completing purchases to take advantage of the home buyer tax credit contributed substantially to the large gain.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Tenneco Beats the Street

2009-10-29T18:14:30Z

Auto parts manufacturer posts better than expected earnings today thanks to cost cutting measures which helped offset lower vehicle production volumes. Tenneco stock (TEN) is up 400% year to date. CNBC interviewed Gregg Sherrill, Tenneco Chairman & CEO this afternoon.