Unemployment cyclicality still fuels uncertainty over the timing of economic recovery. That said, there are some rays of hope out there. Check out the recruiting news in this week’s Week in Review.
1. U.S. Economy: Jobless Claims Rise Amid Auto Closings (Bloomberg)
Jobless claims last week rose by 32,000 to 637,000, more than originally anticipated. This increase signals the first wave of auto-related claims as Chrysler filed for bankruptcy this week. Fallout from the auto industry will continue as dealerships across the U.S. are expected to be shuttered.
2. U.K. jobless total hits 2.2 million (BBC)
The U.K.’s Office of National Statistics (ONS) announced that the number of people unemployed rose 244,000 in the first quarter of 2009, with unemployment now at 2.2 million. The jobless rate rose from 6.7% to 7.1%. These figures are the highest that it has been since 1981.
3. As Layoffs End One Cycle, Recruiters Await Word on What Comes Next (Workforce Management)
With a wave of layoffs behind them, many recruiting organizations find themselves wondering what steps to take next. To prepare for the future, this Workforce Management article discusses how, in the short-term, recruiting organizations can poach talent from first-tiered organizations and hire recruits or develop employees who fit the needs of the current times. In the longer-term, organizations may see an increase in contingent hires, but they need to be wary of disconnects that may arise between HR and procurement.
Want more tips to help direct your recruiting team in a downturn? Check out the Roundtable’s Talent Attraction Playbook (Member only) and Cost-Conscious Recruiting (Member only) Topic Center.
4. Bright Spots on the Job Front (The Wall Street Journal)
North Dakota: The New Silicon Valley? That may be hard to picture, but U.S. unemployment is not uniform across the country. Some states in the U.S., including North Dakota, Wyoming, Nebraska, and South Dakota, have been sheltered from the fallout of financial companies and able to fend off the worst of the economic downturn and lay-offs. Home to diverse industries, talent, and high-growth sectors, these states are still actively recruiting for new employees in industries where business is expanding. These states have also been insulated because they did not over-invest their job market in one industry (e.g., Detroit, New York City).
5. Stimulus to Pay for More Summer Jobs (New York Times)
New York recently announced that a part of the U.S. federal economic stimulus will go towards a program that expands the number of summer jobs available to youth and college students. As part of this program, participants not only receive minimum wage but also receive training to help prepare them for the future. Employers, which include city agencies, non-profits, and private companies, can apply and receive tax credits as part of this program.
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