With the sheer size of the U.S. labor market, there really isn’t an easy way to talk about it other than by the numbers. Four-hundred and seventy-three thousand unemployment claims last week, 14.6 million people unemployed in the United States, 46 million workers with bachelor’s degrees in the country. The use of these figures makes workers sound like commodities, easily comparable and easily interchangeable pieces.

Nearly one in ten people who want to work don’t have a job. It would seem that hiring a great candidate would take no more than putting up a help wanted shingle for an afternoon. You might even believe that, unless you’ve tried to hire someone in the last year.

“Regardless of the state of the economy, there is nothing easy about identifying great candidates,” says Mark Angott, president of Angott Search Group. “Trying to find that impact player who you begin every search looking for, is like trying to find a popular toy on Christmas Eve. You can go to a big toy store with a thousand different options, but that doesn’t make your search any easier.”

The Bureau of Labor Statistics obviously can’t give figures about the quality of workers. They can, however, report on one of the most basic indicators of quality: education. Workers who have completed a bachelor’s degree have an unemployment rate of 4.5 percent, less than half the national average and down .3 percent from just three months ago.

“Employers look at how many applicants there are for every job and assume they’ll be able to have their pick of quality people,” says Angott. “What once would have been interviews of a few highly qualified candidates can turn into cattle calls as employers cast wider nets. With so many candidates, more stages are added to the interview process. People who truly are the top candidates aren’t given the personalized attention that would encourage them to take a position. Employers don’t always know how to tango.”

With a 2.2 percent job-opening rate, there are currently nearly four unemployed people for every position. In 2006, when the unemployment rate was 4.4 percent, the job opening rate was 3.3 percent, almost a one to one ratio.

“The truth is that the top candidate you want coming out of a recession is the person who has been battle tested, so by definition, these candidates are usually employed, and they are elusive,” notes Angott. “They are often risking the job they already have just by talking to you, and if they don’t feel like they are being personally sought out, their motivation to participate can evaporate and the candidates you are left with aren’t the best you could have had.”

Employee confidence in the job market continues to teeter with shifting news. The recent bounce back of the quit rate from 1.3 to 1.5 percent seems to be remaining stable, though well below its rate from a few years ago. After a .1 percent fall in consumer spending in June helped fuel talk of potential deflation, spending rose .4 percent in July, beating expectations.

“Estimates now say unemployment won’t significantly decrease until mid-2011, but before that happens employers are obviously going to have to ramp-up hiring,” says Angott. “The attitude employers take when approaching candidates after such a long downturn is going to be as important as any other factor in the recruiting cycle.”

Unemployment Rate of Bachelor’s Degree Holders

Source: Labor Department

The second quarter of 2010 revealed the highest quarterly rise in executive search industry revenues since the low point in the recession 15 months ago, according to a report released by the Association of Executive Search Consultants (AESC). Building upon already strong quarters in the second half of 2009 and early 2010, the study shows a quarter-on-quarter 12 percent growth rate in net headhunting revenue worldwide and substantial year over year growth in the number of search mandates started across most industries and regions. Highlights include a 42 percent rise in industry-wide revenues and a 38 percent increase in the number of new executive searches started globally. Executive searches within the financial services industry witnessed the greatest growth in Q2 2010, rising 50 percent from Q2 2009. This growth was closely followed by increased search activity within the technology industry, up 43.5 percent, and then industrial (+39 percent) and consumer (+37 percent). “The critical issue now is whether the next two quarters will hold up in the face of continuing uncertainty about a double dip recession,” said Peter Felix, AESC president.

The full report can be seen here: http://www.bls.gov/news.release/empsit.htm.

Total employment in the United State fell by 131,000 positions in July as the unemployment rate remained at 9.5 percent, according to new figures released from the Labor Department. The most significant losses were seen in the government as 202,000 jobs were shed. The end of 143,000 temporary census jobs made up the bulk of losses, however, cash strapped state and local governments also trimmed 48,000 positions. Total private sector employment increased for the seventh month in a row, adding 71,000 positions.

Helped by many automakers and part suppliers skipping their normal summer slowdown, manufacturing added 36,000 positions during the month. Manufacturing has added 183,000 jobs since December 2009. The professional, management and related occupation unemployment rate in July was 5 percent, down from 5.5 percent a year ago. The unemployment rate for college educated workers, those with a bachelor’s degree or higher stood at 4.5 percent, down from 4.7 percent a year ago.

The average duration of unemployment in July fell from 35.2 to 34.2 weeks, marking its most substantial decrease since November 2008, when average unemployment was 18.7 weeks. The percent of unemployed people out of work for over 27 weeks decreased for the second month in a row falling to 44.9 percent from 46 percent in May. However, there is little indication if long-term unemployed people finding work are causing this, or if they have simply taken themselves out of the job market.

The presence of temporary census jobs in the employment figures over the past few months first exaggerated the recovery by showing large gains yet now are hiding its stability by indicating losses. The slow, but relatively stable growth of private sector jobs over the last seven months are reminiscent of what would be expected in a post-bubble-era of any market and indicates U.S. businesses regaining their footing.

NewsRelease

Contact:

Mark Angott

248.650.4800

August 17, 2010
(Rochester, Michigan) – Angott Search Group is pleased to announce the addition of Chad Darnell as a Director who will focus on the continued growth of the firm’s Insurance Division. “The addition of Chad to our organization will help ASG continue to develop lasting and productive relationships with our clients and candidates within our Insurance industry specialization,” said Mark Angott, President. “His strong client relationships and close ties within the industry position him well to generate further growth and momentum for Angott Search Group.”

With thirteen plus years of increased responsibility in the insurance industry, Mr. Darnell brings an impressive track record of success at both large and regional insurance carriers. “We are extremely excited to have someone of Chad’s caliber join our team,” remarked Angott. “His real world experience with Employee Group Benefits and Personal/Commercial Property and Casualty markets will assist both our customers and clients.”

Darnell graduated from Central Michigan University with a BA in Organizational Communications and was Co-Captain of the Central Michigan Football team earning 1^st Team All-MAC honors as a quarterback. He is also a Licensed Resident Agent for Life, Accident, Health, Property and Casualty lines of insurance.

For more information, contact:

Mark Angott

Angott Search Group

(248) 650-4800

mangott@asgteam.com

About Angott Search Group

Angott Search Group (ASG), (www.asgteam.com) located in Rochester, Michigan has been identifying, qualifying and delivering top talent to our clients since 1981. Our team of recruiters has decades of hands-on experience and specializes in several different industry niches. Our goal is to positively impact companies and enhance careers with a business approach that embodies the principles of honesty, integrity, and professionalism. It is this belief coupled with our mission that has made Angott Search Group one of the leading executive search firms in the nation.

Angott Search Group is committed to providing quality service. We strive to become a partner with our client’s management team. This dedication has resulted in a strong track record of success. We have been privileged to serve many of our clients for over two decades. As a result, over 75% of our business is generated from existing clients.

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When monthly total employment job losses began to jump 18 months ago, the total number of “job separations,” as economists refer to people quitting, being fired and being laid off, didn’t increase. In fact, unlike the last recession, the monthly job separations rate reached its lowest rate on record, 3.1 percent since January.

So why did total employment drop so rapidly? Hiring was falling at an even faster rate. In April of 2009, when the separations rate was at 3.5 percent, the hires rate had already fallen to 3.0 percent. In an economy with a civilian workforce of more than 150 million workers, half a percentage point is a massive difference. After factoring in both new entrants and those who had actually left the job market, that .5 percent turned into a net loss of 528,000 jobs for the month, which was still an improvement over the previous six months of losses.

All of this leads us to the uptick in the hires rate from 3.1 to 3.3 percent in March of this year, which was then sustained in April. The hires rate for the first time since late 2007 now exceeds the separations rate by .2 percent. And this all happened before the main thrust of Census hiring, which didn’t occur until May. Even the quit rate, the percentage of people leaving their jobs voluntarily, and an indication of their expectation of being able to get another job, has risen to 1.5 percent after being as low as 1.3 percent in September of last year.

“While we have been seeing a great number of economic indicators turn upward over the last six months, job market liquidity hasn’t been one of them, until now,” says Mark Angott, president of Angott Search Group. “This is one of the most trailing of the trailing indicators, but it’s also one of the most important to HR professionals. Job market liquidity makes it easier for companies to lure candidates away from other firms, but it also means that their employees may be tempted away as well.”

Neither the separations nor the hires rates are anywhere near their high 3 percent levels of early 2007. In addition, the job openings rate—2.3 percent—hasn’t returned to its highs in the mid 3 percent range either. These are slow moving, yet decisive indicators, and every tenth of a point represents the jobs and welfare of hundreds of thousands of Americans.

“After such a prolonged recession, with so many companies having to go through morale eroding actions like layoffs, furloughs and benefit cuts, employees with the chance to change jobs, especially for a promotion, won’t need to think too hard,” notes Angott “That will lead to not only a brain drain for employers, but possibly a reduction in capacity for some firms, especially those running lean in the first place.”

Temporary contract workers make for an especially important part of workforce planning in this situation. They allow employers to get impact players onboard almost immediately, but minimize the commitment if the extra workforce becomes unnecessary.

“Average turnover in the U.S. is still well over 30 percent a year, and even professional firms with low levels of turnover, still approach 10 percent,” says Angott. “That means any employer with more than five or ten employees should know, almost for a fact, that they will lose at least one person in the next year, if not many more. That requires more than contract staff planning, but permanent hire planning as well.

“Things are moving again. And before we know it, they’ll be moving fast.”