Looking at the Job Market

I have been asked quite frequently for my assessment on the current status of the job market.

Spring has typically been a time of activity in the search business as companies that work on a calendar/fiscal year have had a chance to assess their needs since the start of the year and have now developed people strategies for the rest of the years mandate.

This time of year is also one where departments will often receive their funds for their budget needs for the remainder of the year.

In addition, candidates typically receive their bonuses paid out at this time of year and are now portable to take their services elsewhere.

Ever since the recession however,

the traditional calendar year in the executive search has been disrupted and it has become much more difficult to predict when clients will be reaching out to us for assistance.

Conversely, candidates who are ready to move after receiving their bonuses, now sometimes find that there is not the plethora of positions available in the spring as their once was at this time of year.

The market has had a series of periods of "warmth" that have been followed by periods of "coldness."

Both European and U.S. setbacks have continually led to losses in momentum.

Many people have tried to predict when a string of warm periods will truly get the economy humming again at previous levels.

We are certainly in a period of warmth right now, but how do we know whether it will sustain itself?

We don't.

But I can say that the difference between this period of warmth and others previous, are that there is much more discussion from companies regarding what they need to do from a people stand point, as well as discussion regarding what they are planning to do in addition to any moves that they are currently making.

This optimism could bode well for everybody.

The U.S. is still the straw that mixes everybody's drink and there were two very encouraging statistics that came out of the U.S. last week.

1.

Fewer Americans sought unemployment aid which allowed the U.S. to hit a 5 YEAR low last month.

2.

Americans spent at the fastest pace in the last five months in February, boosting retail spending 1.1% compared to January.

Retail sales rose 0.6%.

This statistic also takes gas prices into effect.

This also occurred at a time when further taxation was speculated, and it was a month which is traditionally a slow one for retail.

Farewell,

Mike