BY: Adam Gavriel
The November jobs report has arrived and boy was it discouraging.
Gallup reported on Wednesday that there was a huge increase in the United States unemployment number jumping from a reported 7% in October to close to 8% again moving to 7.8% for November. Seasonally adjusted unemployment rose from 7.4% in October to 8.3% over the same time frame.
Though the cause for the huge jump in unemployment is not clear, some economists believe it could be due to jobs lost to the devastating Hurricane Sandy. Economists also believe that it could be due to a very lackluster holiday hiring season.
Looking at November alone, it’s not as bad as it has been as the unemployment rate remains below 8% and at 7.8% is the 2nd best month reported in the year 2012. However after the unemployment rate hit a huge low at 7% in October, and just after the presidential election, it is discouraging to say the least that the unemployment rate is now a reported 7.8%
A report from Bloomberg shows a different side however, reporting that the number of people seeking unemployment fell heavily last week. The report at Bloomberg states that this could be due to those who filed for unemployment in the wake of Hurricane Sandy now back at work. The number reported showing that applicants dropped 25,000 last week and fell to a seasonally adjusted 375,000. In the week ending November 10th, just 12 days before the biggest day of thanks in the nation, unemployment applicants was at 451,000 so it is very encouraging to see that number continue to drop.
“The report is “a positive development for the labor market, which appears to be recovering from the temporary effects of Sandy more rapidly than originally anticipated,” Joseph LaVorgna, an economist at Deutsche Bank, said in a note to clients.”
This report provides little encouragement however on top of the news of the unemployment rate skyrocketing today. Hopefully, as more and more get off of their temporary stay on unemployment aid, the unemployment rate returns to a manageable level.
The news doesn’t end there however. Further reports from Gallup show that Small-Business Owners continue to slow down their hiring. Small-Businesses are the engine that run the United States economy and when they’re not hiring it’s easy to tell which way the economy will head. Net hiring intention for the next 12 months plummeted to -4 matching its previous record low.
Gallup also reported that small-business owners who intend to decrease jobs at their companies sky-rocketed to 21%, while those who intend on adding jobs dropped to 17%
All further signs that this recession is here to stay.
Here at Crossroads Consulting, LLC. we are working to try and keep the unemployment rate in the country as low as possible. We understand that the motor that feeds a strong economy is a strong working class, and getting people in to jobs and lowering the unemployment rate. That’s what we strive to do every day. Check out our listings. We have over 50 positions, many unadvertised on our website. Don’t be shy about applying either; we want to see your resume. If you’re not confident in your resume, don’t worry, we can help you there as well with our recommended resume optimization process.
Remember, at Crossroads Consulting we’re trying to put the ‘human’ back into ‘human resources.’