This has certainly been quite the year for the job market. Despite optimistic predictions concerning expected growth, the ADP Employment Report estimates a decrease in private sector jobs. While wages are reportedly increasing across various industries, the overall creation of new jobs seems to be fluctuating and the unemployment rate is holding steady at 7.7%.
“The slowdown has been even starker in the private sector, where the full-year pace of job growth dropped to 2.1 million in February from nearly 2.7 million a year ago,” Reports Ben Casslemen of The Wall Street Journal. “Friday’s jobs report would need to show a better-than-expected gain of 205,000 jobs (208,000 in the private sector) to reverse the trend in March.”
Though the economy is indeed stronger than it was a year ago, the ADP Employment Report doesn’t provide much optimism, even for those industries that have experienced wage growth. Jobs in Goods and Manufacturing took a hit, and companies with 50 or more employees added fewer new jobs than expected as well. This may be a result of small businesses waiting to see how upcoming health care reform will impact their overhead. ADP also reports that the private sector added 158,000 jobs in March, which is significantly lower than the Labor Department’s prediction of 246,000.
While this may seem like unsettling news, rest assured. Smaller companies are still experiencing steady wage growth, and while top-performing industries may have taken a dive, they are by no means stunted.
If you keep up to date with the PayScale Index, you probably know that wages have seen a steady increase for various industries, namely energy, construction, and tech. Our upcoming 2013 Q1 Index will be published on Tuesday, April 9, and early estimates show a slight decrease in wages for these industries. You might be surprised though to see which industry seems to be experiencing the largest spike in the history of the index. Economists still have their doubts about the exact rate at which employment numbers and wage growth will occur, but it does seem like we are looking at more positive figures in the near future.
Keeping up to date with industry trends and data is a great way to keep tabs on the ever-changing job market, especially if you’re concerned about a possible hiccup for wages in your industry. Using tools like the PayScale Index to examine trends could make all the difference when planning your next career move.
We want to hear from you! What’s your take on the current Job Market? Do you think wages and job creating will continue to flourish, or are we heading for a less-than-desirable plateau?