JOB GROWTH?

BY: Adam Gavriel

According to an article released on Bloomberg BusinessWeek earlier in this week, job growth in the US seems capable of rebounding from its brief slump. Analysts from JP Morgan Chase & Co. and Deutsche Bank Securities Inc. say that there are no signs of a repeat of 2010 and 2011, when hiring started slumping after promising starts. However these predictions of good news are not universal, with economists at Bank of America Corp. disagreeing believing that employment will slump in the second half of the year.

Bruce Kasman, who stands as chief economist at JPMorgan believes that the economy will only be “OK” while the job market will be “better than OK.” Kasman believes that this is one of the most prominent times to hire, to invest in human capital.

March revealed incredibly positive numbers showing that the Nation’s jobless rate dropped to 8.2%, a three-year low; although, the global markets have yet to take notice of this positive change. The S&P 500 is finally on the rise today, after a huge drop in value during the market day on April 10th. It is important to note that the global market as well as the job market will never increase, or for that matter decrease, at a straight line. There will always be give and take and fluctuations in the market. It’s when to know when the lows won’t be any lower, and the highs won’t go any higher before the next fluctuation that breeds winners out of uncertain times.

To quote Kasman again, he believes ““The Fed will be very patient here,” he said. With 12.7 million Americans still unemployed, the competition for available jobs will probably rein in wage gains, which “allows the Fed to believe there is a lot of slack that can be eaten up in this recovery,” and policy makers can “let the economy run” by keeping interest rates low.”

This report comes just 3 days before Sony announced a bombshell today, that the prominent electronic company will be cutting 10,000 jobs, or ~6 percent of their global workforce. Sony has decided to take this measure 2 months after notable video game company Blizzard shed 600 jobs unexpectedly. So while many economists believe that the job market may be steadily increasing, or fluctuating in a positive manner, there are still companies out there that are hurting in this global economy.

Sony has been consistently losing market share to the rising Apple Inc. as well as companies like Samsung and Vizio. Not only that but environmental issues in their Thailand operation have slowed production, as well as the strength of the Yen, which reduces their profits from exports.

So while economists believe the future may be bright, the present still seems gloomy for some, while others are thriving. As mentioned before, Vizio has been stealing market share from Sony with their ability to produce screens for televisions and computers at a very low cost. With their internal strength being low costs, Vizio will be entering the PC market soon with a line of home computers that will attempt to take some of the market share from Apple.

All these reports lead me to believe that the unemployment rate will increase in April, compared to the 8.2% reported in March. Like all things in life, fluctuations are expected.

At Crossroads Consulting we hope that your job search is going well, and we believe that if it’s not we have the tools to help you obtain what you are looking for. With Job openings from coast to coast and an extensive resume and interview preparation service, we can help you from start to finish.

Remember, we’re in business to put the ‘human’ back into “human resources.” All we need is for you to let us know how we can help.

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