What's Happening in the Labor Market

Gain in Output Per Hour Revised Up to 2.6 Percent
The productivity of nonfarm businesses in the first three months of the year rose more than reported previously, as output increased and workers' hours fell, according to revised figures released June 4, 2008, by the Labor Department's Bureau of Labor Statistics. Labor productivity, or output per hour, grew 2.6 percent at an annual rate seasonally adjusted, rather than the 2.2 percent initially estimated by BLS on May 7. In the last three months of 2007, output per hour rose 1.8 percent.

Job Growth in "Green" Economy
Efforts to curb global warming and build a “green” economy will provide millions of American workers in key industries with job security, according to a report released June 3, 2008, by a coalition of conservation and labor groups. The report, Job Opportunities for the Green Economy, was prepared by the Department of Economics and Political Economy Research Institute of the University of Massachusetts–Amherst and commissioned by the Natural Resources Defense Council.

Jobless Rate Up to 5.5 Percent
The unemployment rate rose from 5 percent in April to 5.5 percent in May, while nonfarm payroll employment continued to trend down, dropping 49,000 jobs - the fifth consecutive month of contraction - the Labor Department's Bureau of Labor Statistics reported June 6, 2008. Thus far in 2008, payroll employment has declined by 324,000, according to BLS. In May, employment continued to fall in construction, manufacturing, retail trade, and temporary help services. The unemployment rates were up for adult men (4.9 percent), adult women (4.8 percent), teenagers (18.7 percent), whites (4.9 percent), and blacks (9.7 percent). The jobless rate for Hispanics (6.9 percent) was unchanged, and the unemployment rate for Asians was 3.8 percent, not seasonally adjusted.

Manpower Employment Outlook Survey Shows Slight Hiring Decline
U.S. employers are projecting a slight decline in hiring for Quarter 3 2008, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey conducted quarterly by Manpower.

Online Job Ads Drop
The number of unduplicated help-wanted ads posted on Internet job sites nationwide dropped in May from last year's level, the third consecutive month of year-over-year decline by 13.2 percent, indicating continuing weakness in labor markets, the Conference Board reported. Until recently, online help-wanted advertising had grown rapidly, as increasing numbers of employers and job-seekers moved from the traditional printed classified advertising sections of newspapers to Internet job sites.

Planned Job Cuts Highest Since 2005
U.S. employers announced 103,522 planned job cuts in May, a 15 percent increase from the 90,015 workforce reductions the previous month, marking the first time since December 2006 that the number exceeded 100,000, Challenger, Gray & Christmas reported June 4, 2008. May's job cuts were the most since December 2005, when 107,822 were announced, the Chicago-based outplacement firm said, and 46 percent higher than May 2007, when 71,115 workforce reductions were announced. Over the first five months of 2008, employers have announced a total 394,193 job cuts.

Temporary Employment Down
U.S. staffing companies employed an average of 2,757,000 million temporary and contract workers per day during the first three months of 2008, a decrease of 1.7 percent from the 2,805,000 contingent workers employed at the same time last year, according to survey results released May 27, 2008, by the American Staffing Association. Meanwhile, the number of temporary and contract workers employed during January, February, and March declined by 302,000 from the 3,069,000 workers employed during the fourth quarter of 2007, ASA said.

Canadian Job Growth Slows
Canadian employment grew only marginally in May and, in a surprising turn, the manufacturing sector provided additional jobs while the services sector, which has supported job creation in recent months, showed a decrease, Statistics Canada reported June 6, 2008. Despite a small increase in employment, the national unemployment rate remained unchanged in May at 6.1 percent. "Over the past 12 months, employment in Canada has risen by 339,000 (+2.0 percent)," the federal statistics agency said.

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