Kappa Search | Employment Report | Job Growth in Sales/Manufacturing

Following a May employment report showing an increase in U.S. nonfarm payrolls of 431,000, MarketWatch’s survey of top economists forecasts a draw down of 115,000 jobs in June. These numbers are quite misleading when you look at the number of temporary census workers included in the statistics. After filtering out the census employment hires in May, private sector employers produced an anemic 41,000 jobs during that period. On the contrary, the above June survey forecasts 250,000 census worker lay offs, an additional 20,000 state and local government worker layoffs and an increase of 125,000 private payrolls. Despite the net job loss, June’s lukewarm forecast should be considered a mild improvement over May’s. If these projections hold, the national unemployment rate should remain just under 10%.

Overall, the United States remains stuck in a U-shaped, jobless recovery despite solid GDP growth. Real GDP growth of 3% and 150,000 – 250,000 monthly payroll increases are required for stable employment numbers due to U.S. population growth. So far, the current recovery has not produced sufficient private sector jobs to dent the historically high unemployment and underemployment percentage.

Now the good news. Corporate America has banked huge profits through productivity gains and tight payrolls. This should foster private job growth eventually as demand increases and current employee weekly work hours maxes out.

Anecdotally, Kappa Search is experiencing solid growth in manufacturing, quality assurance, technical sales and supply chain permanent jobs in addition to contract staffing in all areas. We are especially busy in the medical devices, industrial, renewable energy(solar & wind power) and consumer staples industries. Traditionally, we have been primarily a contingeny-based employment agency. In response to our clients’ needs, we have expanded our contract staffing services nationwide.

June 30 update: Nonfarm private employment increased 13,000 from May to June 2010 on a seasonally adjusted basis, according to the ADP National Employment Report®.

July 2 update: The US economy lost 125,000 jobs in June according to the Labor Department. Private employers added 83,000 employees while U.S.census jobs fell 225,000. The unemployment rate fell to 9.5% from 9.7%, as 652,000 people dropped out of the labor force.