Tag Archives: Federal Reserve System

PRITCHETT: IMPROVING JOB MARKET MEANS IMPROVING COMPETITION FOR JOBS

Casey PritchettBY: Philip Pritchett

According to the Wall Street Journal, June saw an increase in U.S. jobs that reduced the unemployment rate to 6.1% – its lowest point since September 2008.  The 288,000 jobs created also helped to extend the best five-month period the U.S. has seen since 2006.  These results pleasantly surprised many economists who had anticipated a 215,000 job increase with no real impact on the unemployment rate.  “This is one welcome Fourth-of-July report for the outlook,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ.  The 288,000 new jobs “are just the fireworks the economy needs to brighten up.”

This Wall Street Journal report also included signs of positive growth in other areas of the economy.  U.S. stocks showed signs of life, as the Dow Jones Industrial Average surpassed 17000 in a single day for the first time ever.  The dollar even gained value due to the effect that the strengthening economy could have on Federal Reserve interest rate increases.  “Today’s report indicated that labor market slack is diminishing, albeit slowly,” said Bricklin Dwyer, economist at BNP Paribas.

The recent job creation is evidence that the economy is continuously gaining momentum.  The retail and hospitality industries produced almost 80,000 jobs, while manufacturing and construction added another 22,000.  “The latest five monthly jobs reports are consistent with the view that, in spite of a horrendous first-quarter GDP result that was the victim of a ‘perfect storm’ of negative circumstances, the economy is well underpinned,” said Joshua Shapiro, chief U.S. economist at MFR Inc.

As the economy continues to strengthen, so too will the competition for the best available jobs.  Job seekers owe it to their self to be as prepared as possible when pursuing their next career opportunity.  The process is changing, and those who are unaware of these changes will find themselves at a disadvantage.  Firms such as Crossroads Consulting help job seekers maximize their chances of landing their dream job by staying on top of current trends within the job market.  With services that range from interview preparation all the way down to contract negotiation, their guidance can be the difference between settling for that mediocre job that EVERYONE’S qualified for and the high-paying job that YOU’RE qualified for.  Contact them today at (203) 459-9969, or send a resume to info@crossroadsconsulting.com.

DAMMIT JANET… WHAT’S WITH THE JOB MARKET?

Janet YellenAn End in Sight?

BY: Brian St. Louis

It’s no question that the recent recession of ‘08 hit the US hard. Many small businesses were forced to shut down, and many larger corporations required millions (if not billions) in bailouts. But at least we’re out of the woods now right? According to a recent interview with Federal Reserve Chair Janet Yellen, at Bloomberg.com, there may still be a long road ahead of those looking for the job market to rebound.

“This extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policy makers… The scars from the Great Recession remain, and reaching our goals will take time” says Yellen at a recent conference in Chicago.

Yellen goes on to emphasize that the government is looking to put 10.5 unemployed Americans back to work, and this is its main goal. So far in January 2014, the unemployment rate was the lowest it has been since October 2008, at 6.6 percent. In the recent months however, data shows that number is increasing slightly, up to 6.7 percent. This seems to contradict the fact that the economy created 175,000 in February, which is more than the projected number of jobs thought to be created.

Yellen also mentions a larger amount of ‘slack’ in the open job market, citing evidence such as “Large numbers of partly unemployed workers, stagnant wages, lower labor-force participation and longer periods of joblessness.” Yellen makes it clear that she doesn’t just want to decrease the unemployment rate but also the part-time employment rate, as there are still over 7 million Americans working part-time who would rather be working full time.

Although Yellen does not give a specific timetable, she makes it clear that even though the economy is still feeling the after effects of the ‘Great Recession’ as she calls it, and makes a point to mention that the government is not done trying to jump start the economy. Whether or not the idea of job creation and massive stimulation of  the economy will work in the long run is still yet to be seen, but whether it works or not the government has clearly not forgotten about all those Americans hurt by the recession.

At Crossroads Consulting, our job is to help to decrease the unemployment rate however we can. With over 50 job placements available, there is something here for everybody. We also provide a resume preparation service for which anybody can seek help building and maintaining a strong image for potential employers.

Here at Crossroads Consulting, we put the ‘Human’ back into ‘Human Resources.’

Enhanced by Zemanta

THE TAYLOR RULE… JOHN’S NOT OPIE’S

220px-JohnBTaylorOLYMPUS DIGITAL CAMERABY: Adam Gavriel

In the United States, the unemployment rate continues to fall at a steady pace. There is a subliminal meaning in that however, as it is always important to note where these “lost” unemployed Americans are going. Are they all getting jobs? No way. Some of the decline in the unemployment rate is due to Americans who have left the workforce altogether.

In a editorial column on the Huffington Post, contributor Jared Bernstein offers a look into some of the deeper analytics of the unemployment rate. Mr. Bernstein notes specifically the effect of the Taylor Rule, and where the Federal Funds Rate (FFR) currently stands. Continue reading

ECONOMICS 101: NOBODY AGREES ON ECONOMICS

1_photoBY: Adam Gavriel

With so many conflicting reports on the American economy, it’s hard to get a true read on the strength of the recovery.

A report from Reuters.com states that contracts to buy previously owned homes in the US fell for the third straight month in August; however fewer Americans filed for jobless benefits last week.

A different report showed a sharp decline in consumer prices during the second quarter of this year.

“Together, the data offers a challenge for the Federal Reserve, which wants to see more evidence that the U.S. economy is gaining momentum before it scales back a bond-buying stimulus program.”

Continued:

“The Fed last week flagged a rise in interest rates as a threat to the economy, and also said that employment and inflation remain too weak.”

Although economists believe that the housing market isn’t collapsing, it appears to be losing steam.  

The labor market, on the other hand, seems to be continuously heading in a slow by steady recovery. Last week, initial jobless claims for state unemployment benefits dropped by 5,000. This at the same time that economists believed the expected numbers in jobless claims would be on the rise.

The four-week average of new claims fell to its lowest level since June 2007.

Conflicting reports continue though, as The Commerce Department said prices for goods and services purchased by U.S. households fell in the second quarter – for the first time in four years.

“That is worrisome because it suggests demand in the economy is so weak that business have little leverage to raise prices. Bernanke has said the Fed doesn’t want to end its bond-buying stimulus program until inflation begins to trend higher.”

This marked the first decline since the first quarter of 2009, one of the darkest times since the recession began in 2007.

In such a serious time of recession, it continues to be nearly impossible to get a clean read on the U.S. economy. While the unemployment rate continues to drop steadily, it does not take into account those who have left the labor force completely, or are not actively looking for work.

With these conflicts comes no clear way of getting a solid read on the economic recovery. All we can do is put our heads down and get our feet moving on the pavement towards helping each other.

That’s why at Crossroads Consulting, we continue to roll out services that do our duty as a search agency to help you from step one, to stepping into your new office. With resume and interview preparation services, and over 50 job openings we are looking to fill today, we want to hear from you!

Our job is to help you find a career. And we hope to do that by putting the ‘human’ back into ‘human resources

Photo Courtesy of media1.policymic.com

FED RESERVE HURTING YOUR JOB CHANCES?

English:

(Photo credit: Wikipedia)

BY: Adam Gavriel

The Federal Reserve has a dual mandate to promote price stability and ensure full employment. It has yet to achieve either. It has set an annual inflation target of 2 percent, yet the consumer price index rose only 0.1 percent in May after falling 0.4 percent in April, and it was up only 1.4 percent in the 12 months ending in May.” 

This quote pulled from an article published on Bloomberg.com Monday by author A Gary Shilling, is an authors clear frustrations boiling over and onto the page.

Mr. Shilling continues: “The central bank hasn’t defined what it would consider full employment, even when it pledged to continue buying $85 billion in securities each month ‘until the outlook for the labor market has improved substantially.’” 

The Federal Reserve’s efforts have not appeared to be overly effective in the employment market. Despite a recovery, and a slow by steady improvement, the US unemployment rate remains at 7.6 percent – relatively high for historical standards.

About 1.65 million more people would have jobs if the unemployment rate dropped to the Fed’s trigger level of 6.5 percent. Even though the Fed hasn’t specified a full-employment rate, past discussions suggest it believes that 5 percent to 6 percent joblessness is possible without straining labor markets. A 5.5 percent rate would add an additional 1.6 million employees, for a totally of 3.2 million.” 

Unfortunately for the American economy and job seekers, the United States unemployment rate hasn’t been below 6 percent since July 2008, and hasn’t been five percent or lower since April 2008; now over five years ago.

This report from Mr. Shilling has to be one of the most informative we have seen on the Economy in quite some time. The veteran expert on the economy paints a bleaker picture than the numbers are trying to convey. While the American economy remains in a recovering trend, the numbers simply do not reflect where the country needs to be. Underemployment and labor participation rates continue to truly reflect what continues to be a struggling nation.

As an employment agency, we at Crossroads Consulting take these numbers to heart when they are released. In the office we are in a position to directly impact the Nation’s economy as a whole, and we take pride in our ability to help our neighbors.

Conducting business as a search firm, it is also our duty to find you. Unfortunately, we can’t find all of you. We implore you to use us as your connection into the position you have been looking for. Crossroads Consulting is currently hiring nearly 50 positions located around the United States, but we can’t fill them without YOU.

Even if you can’t find a position that you’re looking for on our website, make sure you email us your resume TODAY. Not confident in your resume? We have a recommended resume service that will make sure your resume most effectively jumps off the page to potential employers.

We want to be there from step one, until you’re walking into the office on your first day. Our mission is to put the ‘human’ back into ‘human resources.

FORBES TALKS UNEMPLOYMENT NUMBERS

BY: Adam Gavriel

The June United States unemployment numbers have been released, and well, they’re not too appealing to the eye.

As the old story of the tortoise and the hare racing will tell us, slow and steady wins the race; but when it comes to economic recovery, who exactly is winning with “slow and steady”? On the brighter side, progress is still progress, and as long as the economy is moving forward, Americans and the world alike can remain optimistic with hope on the horizon.

According to an article published by Forbes, employers added 195,000 workers in June, slightly higher than economists’ prediction of 165,000. Despite the added workers, the unemployment rate remained unchanged at 7.6%

Since June’s numbers are merely more of the same, it’s unlikely to significantly alter the Fed’s thinking. The central bank is targeting 7% unemployment before they begin to reduce their monetary easing. Regardless, markets have been hit with waves of volatility lately as investors tried to deduce when the Fed would cut back on its bond purchases.”

The Federal Reserve, of course, is pumping $85 billion-a-month bond-buying program into the US economy to try and increase activity. AS the article states, they are aiming for an unemployment rate of 7% or less to cut on the initiative.

While the private sector is beginning a recovery, the public sector continues to bring the recovery down. While private employers added 202,000 workers in June, state, local and federal governments fired 7,000 workers.

While slow and steady eventually wins the race in the folk tale, it’s a different story when it comes to a recovering economy. Again, while progress in a forward motion is still better than the alternative, with the American economy struggling for as long as it has, we’d like to see better and more rapid progress begin to show.

That’s why at Crossroads Consulting, we’re doing everything we can to get the process to speed up. As an employment agency dedicated to putting the ‘human’ back into ‘human resources’ we’re not just a job board, we’re an office of people working FOR you. Our search firm is the connection you need to get introduced to the correct job path, and career path, that you’ve been looking for.

With our nationwide job postings that are always updating, and our recommended resume service, there is no reason not to get in contact with us at Crossroads Consulting today.

STOCKS AND THE MARKET AND EMPLOYMENT

BY: Adam Gavriel

The best reflection of how the United States economy, and the world economy in some cases, is going is shown by the stock market. What’s even more incredible about this, is that is an instant indicator, and one that will tell a story in very few words. The stock market can make or break a fortune; but if a picture says a thousand words, how many words does a graph say?

1graph

Here is a graph of today’s market movements so far. In blue, the Dow, in red, the NASDAQ, and in yellow, the S&P 500. All trending downward since the market opened this morning.

This is all because early Wednesday morning reports cited that the economy is continuing to “recover” at its incredibly sluggish pace.

From an article posted on Yahoo! News this morning:

“Investors have become increasingly sensitive to economic reports in the last two weeks. They are trying to anticipate when the Federal Reserve will pull back on its $85 billion of bond purchases a month. That program has supported markets this year, and on some days stocks have even rallied on speculation that an ailing economy would ensure the stimulus will remain in place.

“We’re pleased to see the market sell off on some bad news,” said John Lynch, a regional chief investment officer for Wells Fargo private bank. “The whole idea that bad news was good news was frustrating because it suggests to me that the markets are becoming too Fed-dependent.””

On Friday, the United States Department of Labor will release the employment report from the month of May. Many economists expect the Unemployment rate to continue dropping to a more manageable number. The problem will continue to lie in the speed of the recovery, which is making the economy seem more and more stagnant every month.

As an employment agency, we are seeking candidates every day to fill the open job positions that we have TODAY. We pride ourselves on being a search firm, so we may find you before you find us, but wouldn’t it be greater to meet in the middle somewhere?

At Crossroads Consulting, we firmly believe in being an employment agency that fully understands their clients on both sides of the employment spectrum, we aim to be human. That is why it is our goal as a search firm to put the ‘human’ back into ‘human resources.’

If you’re not comfortable in your resume, we can help you there with our recommended resume service.

Please do not hesitate to get in contact with us, because it is only together that we can speed up the rate at which unemployment falls!