PeopleScout Jobs Report Analysis – January 2021

The U.S. economy gained 49,000 jobs in January. The modest growth follows December’s drop in employment, and suggests growth remains sluggish. The economy is still more than nine million jobs short of pre-pandemic levels. The unemployment rate fell to 6.3%. Year-over-year wage growth was at 5.4%.

peoplescout jobs report infographic january 2021

The Numbers

49,000: The U.S. economy added 49,000 jobs in 2021

6.3%: The unemployment rate fell to 6.3%.

5.4%: Wages rose 5.4% over the past year.

The Good

Though the numbers in January’s jobs report reveal little to celebrate, the addition of 49,000 jobs averts a second straight month of losses, as the New York Times reports some economists expected. The most significant gains were made in the business and professional services sector, with more modest gains in financial services.

The Bad

As the Washington Post reports, the jobs report reveals that the economy finished 2020 even weaker than originally indicated. November’s jobs gains were adjusted down 72,000 from the original estimates, and revised estimates now show a decrease of 227,000 jobs in December, rather than the 140,000 initially reported.

Some of the most significant losses came in leisure and hospitality as restaurants continued to struggle. The retail sector also shed jobs after boosted hiring during the holiday season. Even transportation and warehousing, which had previously remained a bright spot, reported a loss of nearly 28,000 jobs.

Though the decrease in the unemployment rate may initially seem like good news, the Wall Street Journal reports that the drop is largely because many workers dropped out of the labor force and were no longer actively looking for jobs.

The Unknown

January’s jobs report comes as coronavirus vaccinations continue around the country and as congress moves forward with President Biden’s $1.9 trillion aid package. Economists will be watching the impact of the additional federal aid and the rising number of vaccinated Americans.

IR35 Reform: How Well Are You Communicating with Your Contingent Workers?

The changes being brought about by the IR35 reforms will have a significant impact on both employers and freelance workers. Yet, it seems that organisations are failing to communicate with contractors about the shift. As an award-winning RPO, MSP and Talent Advisory company, PeopleScout lives and breathes the importance of internal and external candidate and employee communications. 

A Brief Summary of IR35

IR35 is a set of tax laws designed to combat tax avoidance by freelance or contract workers and the organisations using their services (i.e., the end-client). These workers are typically self-employed and engaged by organisations through an intermediary rather than on an employment contract.

Determining whether a contract would be categorised as employment, in which IR35 applies, or as business-to-business services, in which IR35 would not apply, is complicated. If the legislation applies, a contractor could be significantly impacted financially as they would have to pay income tax and National Insurance Contributions (NICs) as if they were a full- or part-time employee. Employers would also be on the hook for taxes and NICs.

This off-payroll legislation was introduced to the public sector in 2017 and is now being extended to the private sector.

The Employer’s Responsibilities Under IR35

The responsibility of determining whether a contract sits within IR35 is not just up to the contractor. Both the contractor and end-client are equally accountable, and any unpaid tax can be collected from both parties if an error is made.

Yet, contract workers are largely uninformed about what their end-clients are doing to prepare for IR35. A recent survey of over 1,400 contractors who will be affected by IR35 reform revealed:

  • 57% have not been contacted by their end-client about IR35 reform.
  • Only 15% have received a Status Determination Statement (SDS), outlining their perceived IR35 position.
  • Of those who have had their contract assessed, 56% have been determined as outside IR35, with 44% deemed inside the legislation.
  • 28% have been informed of their end-client’s strategy for the changes but are yet to be issued with an SDS.

Given that IR35 in the private sector has already been postponed from April 2020 due to COVID-19, it’s surprising that companies, contractors and agencies are not better prepared.

The Importance of Communication About Compliance

Most companies are going to be affected in one way or another by IR35 reform. It’s imperative that you prioritise preparation for IR35 to ensure compliance, especially if you have contingent workers with hard-to-find specialist skills and knowledge. 

As with any change, communication is key. Your contractors want to be kept informed about what you’re doing to ensure compliance, and if they don’t receive that reassurance they will move on to other projects or opportunities where the strategy is clear.

The last thing you need is to lose talent. This could impact your ability to service customers, to achieve strategic milestones and fulfil financial objectives. Contingent workers are an important part of your workforce, and communicating about your IR35 plans will keep them engaged and productive.

PeopleScout Jobs Report Analysis – December 2020

The U.S. economy shed 140,000 jobs in December. This is the first monthly decrease in employment numbers since the recovery began. In 2020, the economy lost more than 9 million jobs. The unemployment rate remained at 6.7%. Year-over-year wage growth was at 5.1%.

u.s. jobs report infographic

The Numbers

-140,000: The U.S. economy shed 140,000 jobs in December.

6.7%: The unemployment rate remained at 6.7%.

5.1%: Wages rose 5.1% over the past year.

The Good

In the jobs report with the first losses in seven months, you have to look closely to see any good news. As Bloomberg reports, the job losses are in specific sectors, with other areas of the economy holding up. There were job gains in retail, professional and business services, construction and manufacturing, despite significant losses in other sectors.

CNBC reports the other bright spot is that despite an increase in temporary layoffs, permanent layoffs decreased in December.

The Bad

December’s jobs report indicates that the recovery isn’t just slowing down or stalling, its going in reverse, as the New York Times reports. The leisure and hospitality sector saw the biggest decrease with restaurants and bars cutting 372,000 jobs in December and hotels cutting 24,000 more. Education also saw a smaller decrease with private schools and colleges cutting 60,000 jobs.

Additionally, the losses had the greatest impact on women, and specifically women of color. As CNN reports, women accounted for all of the job losses in December, with 156,000, while men gained 16,000. (These numbers are cumulative, indicating while individual men lost jobs in December, those were offset by gains in men’s employment.) Women have already been disproportionally impacted by pandemic related job losses, with the unemployment rate for Latinas at 9.1%, Black women at 8.4% and white women at 5.7 percent.

The Unknown

Starting a new year, the U.S. economy faces a variety of factors that could impact the recovery. First is the impact of the coronavirus pandemic. Surging cases have been blamed for December’s job losses, and new strains recently identified in the UK have shown to be even more contagious.

Additionally, as the Wall Street Journal reports, these job losses come just as the most recent $900 billion coronavirus aid package kicks in, and president-elect Joe Biden has indicated another package could be on the way in early 2021.

COVID-19 Series: The Waffle House Index and How a Structured Approach to Contingent Labor Can Ensure Business Continuity During a Crisis

As organizations around the globe confront the challenges presented by the coronavirus outbreak, even the most seasoned talent leaders find themselves in uncharted territory.

Months into the pandemic, we still face rising cases around the globe and continued uncertainty. However, for many organizations, it is important to keep the talent acquisition and workforce management function moving.

In that spirit, we’re sharing a conversation about how a structured approach to contingent labor can ensure business continuity during a crisis. This podcast is a recording of a Talking Talent Webinar. Our three panelists joined to talk about the Waffle House Index and how the concept can be applied to contingent labor.

In a hurricane, tornado or other catastrophic event across the American south, the Waffle House is one of the last or only businesses that remains open. The concept is so famous that FEMA has used the Waffle House Index for the last decade when assessing the severity of storms.

How does the restaurant chain do it? And how can you replicate that idea?

Our panelists are Jen Torres, Senior Vice President of Client Delivery at PeopleScout; David Corrigan, Business Development Manager at PeopleScout; and Nicki Chipp-Flohr, Vice President of Strategic Accounts at PeopleReady.

Jen Torres has more than 14 years of experience as a partner to Fortune 100 companies seeking managed workforce solutions. Her creativity and innovation helped some of the country’s largest financial and technology institutions launch and develop workforce operations into industry-leading programs. She is known for her passion for people and excellence in leading custom workforce solutions with emphasis on customer service.

Jen is personally passionate about involvement in volunteerism, diversity networks and with disability affinity groups that have a greater positive impact on the communities they operate in.

David Corrigan has more than 12 years of strategic sales experience across the talent landscape of workforce solutions, enterprise technology, and advisory services.

David maintains a deep understanding of industry trends, best practices, and business acumen. This foundational knowledge enables him to become a trusted advisor to his clients and deliver a high touch and relationship-centered experience. He takes a programmatic approach to identify, develop, and execute sales strategies, ensuring a measurable and accountable sales process.

With over 25 years’ experience in staffing and employment-related fields, Nicki Chipp-Flohr joined PeopleReady as Vice President, Strategic Accounts in February 2019. In this position, Nicki oversees growth, strategy and operations of PeopleReady’s national accounts.

Nicki brings expertise in crafting and leading solutions for national and multiple-unit, high-volume staffing accounts.

In addition to staffing, Nicki has worked in vendor management and managed/outsourced services, overseeing multiple SOWs and accounts. She has worked in various roles in her career, from recruitment and on-site management to multi-state and national leadership positions.

PeopleScout Jobs Report Analysis – November 2020

U.S. employers added 245,000 jobs in November. This was a slowdown from the previous month, and lower than economists expected. Despite the growth, the jobs numbers show a significant slowdown in the recovery. The unemployment rate fell to 6.7%. Year-over-year wage growth was at 4.4%.

U.S. Jobs report infographic

The Numbers

245,000: The U.S. economy added 245,000 jobs in November.

6.7%: The unemployment rate fell to 6.7%.

4.4%: Wages rose 4.4% over the past year.

The Good

If we were looking at the numbers for November 2019, the 245,000 jobs added to the economy and the 0.2% drop in the unemployment rate would look like good news. However, in 2020, those numbers tell the opposite story. There are few bright spots in the November jobs report. The Wall Street Journal reports the most significant jobs growth happened in transportation and warehousing, likely related to holiday hiring for ecommerce roles.

The Bad

November’s job growth is by far the weakest since the recovery started this spring. The numbers fell below economist expectations, and as the Washington Post reports, the retail sector shed 35,000 jobs. Bars, restaurants and other food-service businesses shed 17,000. This comes as coronavirus cases have been surging across the U.S., causing some jurisdictions to implement new restrictions, including closing indoor dining. The increase in cases may also be pushing some Americans to complete holiday shopping online, rather than inside retail stores.

Additionally, the decrease in the unemployment rate occurred mostly because 400,000 people dropped out of the workforce, as NPR reports. The economy is still 9.8 million jobs behind pre-pandemic levels.

The Unknown

As 2020 draws to a close, there are still several unanswered questions. Congress is still negotiating a relief bill. Two runoff elections in Georgia will determine control of congress in 2021, which could influence the possibility of additional aid in the coming year.

Americans are also still awaiting FDA approval of the first coronavirus vaccines. As the New York Times reports, many employers see the vaccine as the “sunlight in the distance,” but it will likely take months before the vaccine is available to the majority of Americans.

Building an Effective Veteran Hiring Program

Building an Effective Veteran Hiring Program

If you want to hire veterans, you can’t just wait and hope it happens. Veterans won’t apply through your one-size-fits all careers page. Their skills and experience don’t fit into a standard application. And if veterans do apply, do you have a team that can understand the military language? Can you translate their achievements and place that veteran in the best position for their skill set?

In this ebook, Best Practices for Hiring Veterans, you’ll learn:

  • The most important and effective steps to take when creating a veteran hiring program
  • The veteran hiring landscape
  • The unique challenges veterans face as they transition into the civilian workforce

PeopleScout Jobs Report Analysis – October 2020

U.S. employers added 638,000 jobs in October. This was a slowdown from the previous month, but higher than economists expected. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 6.9%. Year-over-year wage growth was at 4.5%.

U.S. jobs report infographic October 2020

The Numbers

638,000: Employers added 638,000 jobs to the economy in October

6.9%: The unemployment rate fell to 6.9%

4.5%: Wages rose 4.5% over the past year

The Good

The U.S. economy continued to add jobs for the sixth straight month. The 638,000 jobs added surpassed economists’ expectations, especially because the number was offset by the loss of 268,000 government jobs. Most of those losses were temporary census jobs. The gain for private sector employers was 906,000. The biggest gains came in leisure and hospitality, retail and construction, as the Wall Street Journal reports. The drop in the unemployment rate to 6.9% is also good news.

The Bad

In a normal year, the 638,000 jobs would have been considered a great month of growth; however, 2020 is not a typical year. The Washington Post reports that October’s job growth is another slowdown. About 11 million people remain unemployed. The unemployment rate is also unevenly distributed. Black American workers still face an unemployment rate of 10.8%, while the unemployment rate for white workers is only 6%.

The Unknown

The October jobs report has come down at a particularly uncertain time in an already uncertain year. Coronavirus cases are surging across the country and there is still no clarity on further federal aid.

As the New York Times reports, some of the hardest hit industries could face another setback as winter arrives. Outdoor dining has helped bring back restaurant jobs, but as the weather cools and some states add more restrictions on indoor dining, the leisure and hospitality industry faces another difficult period.

PeopleScout U.S. Jobs Report Analysis – September 2020

U.S. employers added 661,000 jobs in September, a slowdown from the previous month. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 7.9%. Year-over-year wage growth was at 4.7%.

U.S. Jobs Report September 2020 infographic

The Numbers

661,000: The U.S. economy added 661,000 jobs in September.

7.9%: The unemployment rate fell to 7.9%.

4.7%: Wages rose 4.7% over the past year.

The Good

September marked the fifth straight month of job growth, and the unemployment rate fell to 7.9% from nearly 15% in April. This brings the unemployment rate below the peak of the last recession. The largest gains came in the leisure and hospitality sector, which added 318,000 jobs, 200,000 of which came from bars and restaurants. MarketWatch also reports that workers are putting in more hours at work, which is good news.

The Bad

The recovery is slowing down. CNBC reports that the 661,000 jobs added to the economy in September fell short of the 800,000 expected in the Dow Jones estimate. This is also the first month of recovery where fewer than 1 million jobs were added. The New York Times reports that if the recovery continues at September’s pace, it will take 17 months to return to pre-pandemic employment levels.

The Wall Street Journal reports that the number of people reporting their layoffs as temporary has decreased, indicating that more layoffs are becoming permanent. This follows several large corporations announcing large numbers of planned layoffs. Though those numbers were not included in the September report, the news indicates that the recovery will continue to slow.

The Unknown

The September report leaves a lot unknown. This will be the last jobs report released before the 2020 U.S. election, where both President Donald Trump and democratic challenger former Vice President Joe Biden have promised to create millions of jobs. It’s not clear what, if any, impact the report will have on the election. The report was also released on the same morning when millions of Americans woke to learn that President Trump has been diagnosed with COVID-19.

Additionally, MarketWatch also reports that economists don’t agree on what will happen next. Some believe that the recovery will continue to slow and slide backward because of the end of federal aid and the start of the cold and flu season. Others believe the recovery will grow stronger as restrictions continue to lift and people find new ways to cope with the impact of the pandemic.

Business Continuity and Contingent Labor: Building a Better Normal

The stark and apparent lessons learned from the COVID-19 pandemic are unparalleled in modern times. Prevailing business models have been severely tested and weak points exposed, while organizations and their workforces are coping with the ongoing challenges presented by the pandemic.

As organizations continue their rebound and recovery efforts, they must be proactive in their decision-making to maintain business continuity and build greater organizational resilience.

However, a business continuity survey conducted by Gartner Partners reveals that only 12% of organizations are highly prepared for the impact of the pandemic and just 2% of companies believe they can continue business as usual, leaving many organizations to adjust and learn as they go.

What’s more, COVID-19 has highlighted blind spots in many organizations’ contingent workforce programs, including gaps in enterprise reporting of where contingent workers are on assignment, how to effectively negotiate and communicate with staffing suppliers and how to keep contingent staff informed of rapid operational changes.

To combat business continuity and contingent labor challenges, organizations need to reimagine their total talent supply chain and current operating strategies. In this article, we explore how organizations can best protect their contingent workforce and better prepare for business continuity challenges in the future.

Why Business Continuity Matters Now More Than Ever

Traditionally, business continuity plans are intended to minimize the impact of scenarios such as natural disasters — hurricanes and earthquakes — or societal disruptions — such as civil unrest and war — on business operations and productivity.

TALKING TALENT PODCAST: BUILDING A MODERN BUSINESS CONTINUITY PLAN

Because organizations rely on business continuity planning to formalize, document and implement emergency management protocols, processes and policies, the plan should be a living, breathing protocol document that is continually updated — incorporating lessons learned and growing alongside your organization’s evolving needs.

Unfortunately, the severity and pace of COVID-19 caught many leaders off guard. Before the pandemic, business continuity plans were created with information gathered in a growing economy with very little turbulence and historically low unemployment, so plans typically took a growth and operations-first approach. While suitable for a pre-COVID world, current business continuity plans need to be updated to put people-first.

By laying the foundation for business continuity during the current pandemic, you can build whatever structure you need to on top of it as the situation evolves and new challenges and opportunities present themselves.

Leveraging Contingent Labor for Greater Business Continuity

Initially, contingent workers were perceived as a potentially vulnerable segment of the workforce during the early days of the COVID-19 crisis. However, as organizations prepared to scale their workforce at the pace of demand, employers were hesitant to add permanent headcount in the face of economic uncertainty, instead  turning increasingly to contingent staff to fill in the gaps. Moreover, according to a recent survey, 32% of organizations are “replacing full-time employees with contingent workers as a cost-saving measure.”

The cost-savings benefits of enlisting flexible short-term workforce support to supplement traditional staff will continue as organizations continue to regain their bearings and operate with leaner talent acquisition budgets.

Contingent workers can play a significant role in maintaining business continuity by keeping distribution centers and delivery networks staffed and operating, filling positions in your organization’s call center, filling skills gaps when employees are not available, and acting as health screeners and temperature takers to reduce outbreaks in key facilities. 

At PeopleScout, our team partners with clients to implement virtual staffing programs to fill skills gaps due to layoffs, furloughs and shutdowns. Once a client location notifies our virtual staffing team of a talent needs, we create a requisition on behalf of the client, contact our top suppliers in the market and make sure adequate staffing is provided on time and within budget. This highly responsive and dynamic contingent labor model provides our clients with great flexibility, less downtime and greater business continuity. 

Preventing work stoppages altogether may be impossible, but harnessing the skills and experience of contingent workers as part of your business continuity plan can certainly help reduce losses and keep your organization as productive and profitable as possible.

Business Continuity Means People Continuity

Many organizations have recognized the enormous human toll of the pandemic and have in turn prioritized the health and well-being of all workers. Successful business continuity plans will hinge on an organization’s ability to humanize and diversify both the substance and delivery of your candidate messaging.

Now is not the time for your organization’s employer branding initiatives to fall by the wayside. In fact, according to a LinkedIn study, COVID-19 posts on the platform from organizations that received the most engagement used the following words more often in their messaging:

  • “Health”
  • “Help”
  • “Social distancing”
  • “Health authorities”
  • “People”
  • “Employees”
  • “Support”
  • “Public health”
  • “Healthcare workers”

Although there are several engagement strategies available for you to utilize to convey your employer value proposition, it’s important to keep in mind the circumstances in which most contingent candidates are likely to find themselves: perhaps recently unemployed, concerned for their safety and that of their family and stressed from uncertainty. Your organization’s greatest “value” will need to manifest in the form of empathic, concise and compassionate communications.

The right MSP provider can empower your organization to engage and communicate with contingent candidates at scale. Communication campaigns should focus on providing skills development opportunities (i.e., free courses, certifications, learning centers, etc.), while strategic social media messaging can both raise awareness and extend your employer brand’s reach, further building your contingent talent pool.

Onsite, you should also provide safety information wherever contingent workers are most likely to see it. This may be in the cafeteria, the breakroom, or bathrooms. Make sure that it clearly states what to do in the case of an outbreak. You should also establish protocols to notify all contingent workers about outbreaks and facility closures. Providing subsequent changes to plans regarding work locations is also a crucial element of maintaining business continuity and productivity.

Organizations capable of preserving the human touch will be well-positioned to grow their talent networks with top-tier contingent candidates – further fortifying and stabilizing business continuity.

Workplace Safety and Working with Staffing Suppliers

Failing to provide adequate workplace safety not only carries compliance risks and financial penalties, it can also impact your organization’s employer brand and in turn negatively impact your total talent program. According to a survey conducted by Marsh & McLennan, 9 out of 10 employees across all industries are worried about how the virus could affect them or their families. Because of the inherent risk associated with working at an onsite location, contingent candidates are looking for reassurance from employers when it comes to their health and well-being and that of their family and community.

It is important to take the time to reassess your staffing suppliers to ensure you are on the same page regarding protecting your contingent workforce.

You can start your supplier assessment by asking all current and prospective staffing suppliers to complete detailed, pandemic-specific assessments that account for the full spectrum of COVID-19 risks – such as security, employee health and safety and financial distress. Your business depends on having a clear understanding of the current status of your critical suppliers, their mitigating actions and your own exposure to risk and compliance concerns.

When negotiating contracts with staffing suppliers, clearly define a joint safety program. Identify the responsibilities of each party. In most contracts, the staffing agency provides general safety training, while a representative from your organization covers safety procedures specific to a work location. The staffing supplier and MSP provider are then responsible for ensuring ongoing compliance with the program.

For each contingent role, policies and procedures for site access, safety equipment provisioning and training should be developed that take into consideration all the health and safety risks in the environment in which the person will be working. Be sure that the training addresses actions such as proper hygiene, mask policies, material handling and other pandemic mitigating policies.

For one client, PeopleScout acts as a communications hub for 40 staffing suppliers. As part of this effort, we collect the acknowledgment that each supplier agrees to be compliant with our client’s health and safety protocols.

This includes everything from directions on what to do when an associate is confirmed positive with COVID-19 to protocols for contact tracing and the safe return to work. Moreover, we collect data from all 40 suppliers and report all confirmed cases of COVID-19 to the client’s health and safety leaders.

Lastly, keeping the workplace safe begins with prevention. Consider deploying a team of non-medical contingent professional to take temperatures at designated checkpoints in your facility with no-touch thermometers to help keep the workplace safe.

Conclusion

Business continuity in the age of COVID-19 is about more than logistical and operational thinking, it is also about people — how to keep people safe, save lives and keep the economy running by getting people back to work. Remember, stay focused on your culture to make sure your organization’s values are authentic and the attitudes and actions of your leadership team reflect these values.

PeopleScout U.S. Jobs Report Analysis – August 2020

U.S. employers added 1.4 million jobs in August, a slowdown from the previous month. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 8.4%. Year-over-year wage growth was at 4.7%.

u.s. jobs report

The Numbers

1.4 million: The U.S. economy added 1.4 million jobs in August.

8.4%: The unemployment rate fell to 8.4%.

4.7%: Wages rose 4.7% over the past year.

The Good

August marked the fourth straight month of job growth, and the unemployment rate fell to 8.4% from nearly 15% in April. This brings the unemployment rate below the peak of the last recession. The New York Times reports that women have made the strongest recovery; however, women took the heaviest hit earlier in the year. The labor participation rate rose to 61.7%, up from last month’s 61.4%, but still below February’s 63.4%.

The Bad

While the continued recovery is good news, it is slowing down. The survey was also taken early in the month of August, before economists say they saw worrying signs in the economy and only shortly after enhanced economic benefits expired. NBC reports that job postings have dropped by 9%, and several large companies have announced additional layoffs or furloughs.

The Unknown

As the recovery slows down, economists are concerned about what is next. The Wall Street Journal reports that the additional waves of layoffs announced by some large employers in August demonstrate that some companies had prepared for only a short-term shut down. Now, as the pandemic continues, leaders need to make additional adjustments.

There is also still uncertainty over a second coronavirus relief bill. More than one month after many elements of the previous bill expired, Congress has yet to agree on how much and what types of aid should be provided.