An Analysis of the Bureau of Labor Statistics (BLS) Report

[Fred St Laurent]

This morning, the Bureau of Labor Statistics gave us a little bit better news than they have for the last few months. The workforce lost just 51,000 positions, 20,000 less than expected. Additionally, May and June's numbers were revised up 26,000 making July's net loss just 25,000 positions. Despite this, the unemployment rate did rise from 5.5 percent to 5.7 percent after being stable last month. Of course this is not the right direction, but we need to remember the historical context where over the last 30 years, anything under 6.0 percent is still on the low end.

In July, there were 32 percent more first time job seekers and 38 percent more job seekers returning to the job market than in July 2007. Both of these categories add people to the unemployment rolls, lifting the unemployment number. These are often candidates who either don't have post-collegiate experience or haven't had a job in the last six months. These candidates might be easy to find without the help of a recruiter, but they are not necessarily the type needed to fill higher-level positions.

Of course the area MRI Network is most concerned with is the professional and managerial workforce. While most of last year unemployment stayed near full employment hovering around 2.0 percent; in the last seven months, it has risen to 2.9 percent.
The 1.6 million unemployed professionals that the "2.9" number represents is not necessarily a pool of qualified candidates. It's comprised of some who have offers but are between jobs, many who are first time job seekers, and others that simply don't have stellar resumes.
Hiring authorities know, or should know, that the best candidates to fill critical positions are mostly still employed and are likely passive candidates. Evan as unemployment rates rise, quality recruiters remain the best source for quality candidates. View the report today.