With prospectus from Neil S. Lebovits, CPA
President and COO, Ajilon Office

Strong economic conditions to continue?
The U.S. economy possesses considerable underlying strength as broad-based growth and expansion have continued while the unemployment rate has remained well below the 50 year historical average. This strength is magnified when one considers all of the dynamics that have reshaped the marketplace over the past year, including record energy prices, expansive damage from seasonal storms and ongoing political uncertainty. Additionally, the voluntary quit rate remains extremely high. This suggests strong job growth, as workers are confident enough to leave their current place of employment.

Overall, a few powerful factors should continue to fuel growing economic conditions:

• Favorable fiscal and monetary policies and historically low long-term interest rates are still in place
• Businesses are continuing to benefit from profit growth, strong internal cash flows, and demand generated by sustained economic expansion
• Strong corporate balance sheets point to further steady gains in business investment
• With near-peak levels of worker productivity, look for incremental hiring and broad-based job creation to continue throughout the labor force

Which industries will benefit?
Just as it has been for the past few years, employment growth will be concentrated in the service-providing sectors of the economy. Industries that are projected to grow faster than average in the near future include:

• Education
• Health services
• Professional and business services
• Information technology
• Leisure and hospitality
• Transportation and warehousing

In 2005, administrative assistants held over 4 million jobs, ranking among the largest occupations in the U.S. economy. Administrative and office support services is expected to grow by nearly 7% through the next 5 years, adding up to 1.6 million new jobs to the labor force (Bureau of Labor Statistics). As companies grow and expand, look for this trend to continue as organizations will require more key support services to meet their business objectives.

Rising employee turnover fuels the talent war.
Another trend that will continue to impact the workplace in the coming months is an overall surge in employee turnover. The percentage of job leavers has been rising at an alarming rate over the past year (currently 11%), while the voluntary quit rate is nearly 2% (or close to 3 million workers on an annualized basis!). This percentage has been rising steadily since the economy began its 2003 rebound and will continue to increase as the job market grows and workers remain overworked and overstressed.

A talent war is heating up, with corporate America looking for individuals that have the experience – and proven ability – to affect a company’s bottom line. This should positively impact compensation packages, as salaries will continue their trend upward as organizations seek to attract and retain top talent to help meet critical business objectives.

Interested in learning more about economic and job market trends in your area, and how this will affect hiring activity in the coming months? Contact your local Ajilon Office branch at 1.866.GO AJILON or at ajilonoffice.com to speak with a staffing professional for more helpful advice on key workplace issues affecting the labor market and more!

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