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Posted on May 7, 2008June 27, 2018

Employees See Incredible Shrinking 401(k)s in Q1

When 401(k) participants open up their latest quarterly statements, many will be greeted by declines they haven’t seen in more than five years.


The first quarter wasn’t pretty, that’s for sure, with funds in every equity category posting losses during the period, according to consulting firm Mercer. The S&P 500 index, for one, lost 9.4 percent during the first quarter, the largest drop since the third quarter of 2002, when the index posted a 17.3 percent loss.


The decline in that mainstay index triggered a substantial drop in the value of U.S. equity funds held in 401(k) plans. The median large-cap growth fund tracked by Mercer plunged by 11.6 percent during the quarter, while large-cap core and large-cap value funds dropped by 9.5 percent and 9.1 percent, respectively.


“Participants took a bigger hit earlier this year than they have in a pretty long time,” said Andrew Kramer, a principal at Mercer. He added that the S&P 500 also posted a loss of 3.3 percent in the fourth quarter of 2007. “It wasn’t just limited to the U.S. either, so it had a pretty far-reaching impact.”


Overseas, emerging-market funds registered the worst performance, with a median decline of 11.3 percent during the quarter. The median global equity fund lost 9.6 percent, according to Mercer, while the median international fund dropped by 9.1 percent.


“There were few places for participants to hide during the quarter,” Kramer said.


The good news for plan participants is that the second quarter is off to a strong start. The S&P 500 index recovered quickly and posted a 4.9 percent gain for the month of April, ending a streak of five consecutive negative months. Non-U.S stocks were up more than 5 percent in April, while emerging markets were up more than 8 percent.


Filed by Mark Bruno of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on May 7, 2008June 27, 2018

The Rich Vein of Working Mothers

Working mothers are the largest group of entrants into the workforce.


    One of their biggest challenges is balancing work and family responsibilities. Typically these women continue to care for their family’s child rearing and elder care needs. As of the early 2000s, more mothers in the U.S. are working than ever before.


    According to a Pew Research Center survey completed in July 2007, among working mothers with minor children (ages 17 and under):


  • 21 percent say full-time work is the ideal situation for them;
  • 60 percent say part-time work would be their ideal; and,
  • 19 percent say they would prefer not working at all outside the home.

    In the study, mothers most inclined to endorse their current situation as their ideal are those who work part time. Among this group, 80 percent say that part-time work is their preferred option.


    Part-time work is also the preferred option of about half (49 percent) of mothers who work full time and a third (33 percent) of mothers who don’t work outside the home.


    USA Today recently declared that “[s]avvy employers realize that labor shortages will return, making it important to reach out to this largely untapped labor pool of returning mothers.”

Posted on May 7, 2008June 27, 2018

Relocated—Just for a Few Months

Five years after joining Aon Corp. in Chicago, attorney Samantha Caldwell took a six-month assignment in the insurance company’s London law division. Single and childless, with her parents in good health, Caldwell’s only extracurricular obligation was teaching Sunday school.


    After clearing that commitment with her pastor, she packed her bags.


    “I had been sitting in the same cubicle with the same view, and I wanted something different,” says Caldwell, 36, who had visited London twice before. “It was a great opportunity to get questions answered about the way business happens in other countries.”


    Caldwell is part of a boom in short-term global assignments at American companies. During the past seven years, assignments of less than one year nearly tripled, from 10 percent to 27 percent of total overseas relocations, according to the 2007 Global Relocation Trends Survey Report by Woodridge, Illinois-based GMAC Global Relocation Services.


    Global business and cost-cutting account for the spurt in shorter-term assignments. An employee who is absent for more than a year often must be replaced; his or her income is taxed in both countries, and benefits costs soar for transportation, housing, cost-of-living adjustments and education for the employee’s children.


    “Most people agree that longer-term gives you deeper skills and a better cultural introduction, but it is expensive,” says Mark Daniels, director of global relocation for Aon. “Short-term relocations can effectively introduce you to some of those same skills, and we can do more of them.”


    Short-term assignments can also be less disruptive: Families don’t have to be uprooted, apartments or condos need not be sublet, and pets can be cared for by friends. Still, any duration inevitably makes waves back home.


    Caldwell missed the funerals of a colleague and a great-uncle, whom she mourned alone at a London church. A competitive runner, she sat out a handful of major races in the Chicago area.


    Perhaps more challenging, she had to transfer much of her stateside workload to the U.K. and juggle it alongside her new responsibilities, requiring “working more hours and more efficiently,” Caldwell says. “Several U.S. colleagues didn’t even know I was overseas, even though they interacted with me on a regular basis.”


    New hires, accustomed to study-abroad programs and with fewer family commitments, are driving growth, too, says Aidan Walsh, partner in charge of international for accounting giant KPMG in Chicago. Just five or six years ago, 40 percent to 50 percent of recruits were interested in international assignments, he says.


    “Today, there’s probably not a kid graduating from a professional course who doesn’t have a passport,” and at least 90 percent expect to use it on the job, he says. “Kids are asking the question [during interviews] and absolutely will go elsewhere” if international experience is not on the table.


    For employers, the assignments help groom promising young employees: The stints overseas “help them understand how other parts of KPMG work and to start building up their network at peer level,” Walsh says.


A few apprehensions
   Mark Brusius, 27, a senior associate in the tax practice at KPMG in Chicago, had traveled extensively before he accepted an assignment in Kochi, India, but he owns up to some apprehension about working there.


    “My concerns were around normal, day-to-day things—food, health care, transportation,” he says. After consulting co-workers, he went because “good or bad, it is only three months.”


    Brusius left his Chicago apartment in his roommate’s hands, rented a parking spot to store his car for three months and kissed his girlfriend, Ashley Hutti, goodbye.


    “I wanted him to go,” says Hutti, 25, a teacher. “It was a good experience for him, and during Christmas break I visited him for 10 days.”


    Brusius missed a friend’s wedding and was unable to watch his alma mater, the University of Illinois, compete in the Rose Bowl, but says those missed opportunities “do not get anywhere close to topping the experiences I had in India.”


    His early concerns about dropping out of the loop in the home office proved unfounded. Brusius says the experience raised his profile within the company and pushed him into new responsibilities.


    “I had never led a two-hour training session for 80 people, but I’ve had to do that here [in India] lots of times,” he says.


    Sarah Ellison, 26, a senior associate in the audit practice at PricewaterhouseCoopers in Chicago, passed around her job responsibilities at home while she spent three months in Sydney, Australia. She lent a hand during Australia’s tax season last year, and some of their people returned the favor in Chicago from January through March.


    There were wrinkles in housekeeping while she was away: Her bank made a mistake that created a large deficit in her account, which she didn’t know about until her roommate spotted an urgent letter in the mail. Such headaches aside, “I believe it will help my advancement,” she says. “I was exposed to information and issues that were new to me.”


    With her overseas project measured in months rather than years, family and friends didn’t object too strenuously.


    “We only see her a few times a year anyway, so it wasn’t really different,” says Ellison’s mother, Sue, who lives in Michigan and visited her daughter in Australia. “The thing that came to me was, ‘I hope she doesn’t like it so much she wants to stay.’ We didn’t want to lose her.”


Global networking
   David Zydek, 29, was a middle manager in the tax practice at KPMG two years ago when he accepted a three-month assignment to Amsterdam, Netherlands, from July to October.


    Interspersed with his own concerns about adjusting to new colleagues, food, housing and medical care abroad, Zydek had to get past fearful feedback from his parents and some friends who had never lived overseas.


    “Their international exposure is what they see on television,” he says. “Given how the U.S. media covers overseas locations, they make it out to be really scary.”


    Amsterdam’s perceived drug problems and legal prostitution raised concerns, he says. Also, some friends were surprised that Zydek was willing to spend almost two months apart from his wife.


    “A lot of my friends wouldn’t dream of spending more than a week away from their significant other,” he says. “You have to make sure you are not too persuaded by what they say.”


    His wife, Jackie, joined him for the first six weeks. A schoolteacher, she says the toughest challenge was trying to fill her days in Amsterdam while her husband was working.


    “After the first week, it was very emotional,” says Zydek, who usually packs her days with work and activities. “It hit me: I’m away from home and not working. I always want to be doing something.”


    After all that, her husband says the assignment paid off.


    “I met all the senior tax partners [from numerous countries], built a name for myself and formed networks that will prove to be invaluable,” Zydek says.


    Last year, he was promoted to senior manager.


    “I’m not sure if [the promotion] was because of that assignment,” he says, “but the assignment surely helped.”

Posted on May 7, 2008June 27, 2018

A Case Study Best Buy

A study published in the Harvard Management Update of 88 managers and executives in 20 companies in the U.S. and Canada found that companies that allowed employees to craft nontraditional workloads and schedules yielded significant payoffs.


    There was a higher retention of high performers, greater productivity and efficiency, improved team functioning, and deeper cross-training and development within the group. A program implemented by Best Buy known as ROWE (Results Oriented Work Environment), confirms the findings.


    To address low morale and the level of stress in its corporate offices, Best Buy allowed employees to work when and where they like, as long as they get the job done. Since employees have stopped counting the number of hours they work, they are more productive.


    With the first experimental group of 300 employees, turnover in the first three months of employment fell from 14 percent to 0 percent; job satisfaction rose 10 percent; and team performance scores rose 13 percent.


    Some employees who were contemplating leaving said they no longer had the desire to leave, and many employees said the program was “changing their lives.”


    Best Buy recognized that the new approach was not just about helping employees; it was about staying competitive. The five-year-old plan now covers 60 percent of the employees at Best Buy’s corporate headquarters near Minneapolis.


    By all accounts, it’s working. Employee productivity has increased an average of 35 percent in departments covered by the program.


    Best Buy is poised to test the program in select retail stores

Posted on May 6, 2008June 27, 2018

Taleo to Acquire Vurv

Publicly traded talent management software firm Taleo has signed an agreement to acquire Vurv Technology, a privately held talent management software provider.


Rumors about the transaction had swirled about the blogosphere for the past couple of weeks.



The acquisition is subject to closing conditions, including regulatory approval, and is expected to be completed before the end of the second quarter.


Under the agreement, Taleo will pay about $128.8 million, based on Monday’s closing price for Taleo’s Class A common stock of $20.32, for all of the outstanding capital stock of Vurv and the assumption of vested employee stock options.


Talent management applications refer to software tools for key HR tasks such as recruiting, performance management, compensation management and employee development. The products are among the fastest-growing applications in the HR software field, which is itself the fastest-growing category of business software.


Taleo and Vurv are among the leading vendors of talent management software. Others include SuccessFactors and Authoria. The biggest vendors of HR software, SAP and Oracle, also sell talent management products.


Jason Corsello, vice president at consulting firm Knowledge Infusion, called the deal “a significant moment in the talent management market” given the prominence of the two vendors. He expects Taleo to move Vurv customers to Taleo software over time. Such migrations can be disruptive to organizations.


“The big question mark is what does this migration look like for a lot of Vurv customers,” Corsello says.

The financial details of the deal consist of 4.1 million shares of Taleo Class A common stock, about $36.5 million in cash (subject to adjustment for third-party expenses and certain other specified items) and the assumption of as much as $9 million of debt. In addition, Taleo will also assume unvested employee stock options.


“This announcement marks an inflection point for talent management, making it easier for customers to realize the full benefits of unified talent management applications,” Taleo president and CEO Michael Gregoire said in a statement. “Together, we can help companies better manage workforce challenges brought about by shifting demographics, globalization and low levels of engagement.


“These challenges demand a new generation of talent management solutions that unify recruiting, performance, succession and compensation applications onto one comprehensive on-demand software platform,” he said. “This unified talent management solution will help companies identify and attract the best candidates, manage and motivate their workforce, and tie compensation to performance.”


“Taleo shares our vision and passion for helping customers around the world attract, retain and engage their people,” Vurv CEO Derek Mercer said in a statement. “Both Vurv and Taleo have independently built world-class organizations with extensive domain expertise and development resources. By bringing our two companies together, we will be better able to deliver talent management solutions addressing the advanced needs of our customers.”


—Workforce.com staff report


Click here to view videos of both CEOs discussing the merger and its effect on customers of both firms.
(Link opens a new window)


Click here to discuss this story in the Workforce.com Community Center Technology Forum


Posted on May 6, 2008June 27, 2018

Hearing Deals Blow to Expansion of Employee Verification System

An effort to expand a federal electronic employment verification system was set back at a House hearing on Tuesday, May 6, as lawmakers voiced concerns that the mechanism would overburden the Social Security Administration.


In the first of a series of immigration hearings this spring, the House Ways & Means subcommittee on Social Security explored proposals to crack down on illegal hiring through electronic worker verification.


One idea is to extend the current government electronic system, called E-Verify, to each of the country’s 7.4 million employers. Today, about 61,000 companies voluntarily use E-Verify, which checks information from I-9 forms against databases at the Department of Homeland Security and the Social Security Administration.


Rep. Michael McNulty, D-New York and chairman of the subcommittee, cautioned that the Social Security Administration must not take on added immigration responsibilities while the agency is trying to reduce a huge backlog of disability claims. Constituent queries regarding the payments can take more than 500 days to answer.


“It would be very difficult to get a majority to vote for a nationalization of the E-Verify system at this point in time,” McNulty said in an interview after the hearing. “This whole issue needs a lot more careful thought.”


Although immigration reform is stuck in a political quagmire on Capitol Hill, Congress must address verification this year because the law establishing E-Verify expires in November.

McNulty did not comment on an alternative to E-Verify called the New Employee Verification Act, which was written by Rep. Sam Johnson, R-Texas and ranking member of the subcommittee.


“On any of these proposals, we need to move very, very slowly,” McNulty said.


Johnson’s measure would eliminate the I-9 process and mandate that companies submit new-hire information electronically to the Social Security Administration through a child-support enforcement system that about 90 percent of U.S. employers use.


Proponents of the Johnson bill say E-Verify is inefficient, prone to error and incapable of detecting identity fraud. The HR Initiative for a Legal Workforce, which is led by the Society for Human Resource Management, criticizes E-Verify for relying on the Social Security database, which has a 4.1 percent error rate and could mistakenly declare millions of people ineligible for employment.


The Johnson measure would address such problems through an appropriation that would clean up the Social Security database before the verification system goes into effect, according to Mike Aitken, SHRM director of government affairs. The bill also provides a safe harbor for employers who use the system, reduces the number of identification documents for new hires from 25 to four and allows people to put additional protections on their Social Security numbers.


Under the bill, employers could sign up for a secure electronic verification system based on biometric information collected by a network of government-approved private contractors.


An Arizona Democratic co-sponsor of the Johnson bill said that companies in her state have had bad experiences with E-Verify since the state Legislature mandated its use earlier this year.


“They are finding it complicated, unreliable and burdensome,” said Rep. Gabrielle Giffords, D-Arizona, at the hearing. “If Congress does nothing or simply extends E-Verify without much-needed reform, it would be disastrous.”


SHRM president and CEO Sue Meisinger gave a similar warning. “It will slow down the free flow of labor across the economy,” she testified.


But E-Verify also draws staunch support. Homeland Security Secretary Michael Chertoff calls it an important tool to combat illegal immigration.


The author of the original E-Verify bill, Republican Rep. Ken Calvert of California, testified that 92 percent of employees put into the system are immediately approved and only 1 percent will contest a nonconfirmation.


“E-Verify is doing the job it was intended: denying employment to people in the United States not authorized to work,” Calvert said. “Let’s build upon what works and give the American people what they want: mandatory employment verification.”


All employers would have to sign up for the system and eventually run all of their employees through it under a bill sponsored by Rep. Heath Shuler, D-North Carolina, that has 151 bipartisan co-sponsors. Republicans and some conservative Democrats are trying to send the bill directly to the House floor for a vote.


Democratic leadership, torn between members of the party who support an enforcement-only approach and those who promote a path to residency for the country’s 12 million illegal workers, set up this spring’s immigration hearings as a way to let members vent about immigration.


—Mark Schoeff Jr.


Posted on May 6, 2008June 27, 2018

ING to Buy CitiStreet for $900 Million; Acquisition Creates Third-Largest Benefits Administrator

ING Group has agreed to acquire CitiStreet, the benefits services company owned by Citigroup and State Street, for $900 million.


CitiStreet provides record keeping and administrative services, advice programs and other benefit plan services primarily in the U.S. The company serves more than 16,000 plans and 12 million participants and has approximately 3,700 employees with the majority located in the U.S.


Earlier reports had pegged Bank of America as the most likely buyer of the benefits administrator.


But with the acquisition, ING vaults to near the top of the benefits services business. Indeed, the deal will make the Netherlands-based bank and insurer the third-largest defined-contribution service provider in the U.S., with $351 billion in assets under management and administration. After the deal, ING will serve 14 million defined-contribution plan participants.


The transaction also includes a defined-benefit/pension business in the U.S., a health and welfare business in the U.S. and a retirement services business in Australia.


ING indicated the deal will provide “significant operational synergies.” The bank expects the acquisition to be earnings-per-share accretive by 2010, excluding merger-related expenses and the amortization of customer-based intangible assets.


The purchase will be financed entirely from ING’s existing internal resources. The company’s management said the proposed acquisition will have no impact on ING’s ongoing share buy-back program.


The transaction is expected to close during the third quarter.


Filed by John Goff of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on May 5, 2008June 27, 2018

Morgan Stanley Cutting 1,500 Jobs

Morgan Stanley is planning its next round of layoffs, this time to the tune of 1,500.


The New York-based investment bank is finalizing a plan to cut another 5 percent of its workforce, across all business sectors and primarily in the United States. Brokers, who make money largely on a commission, will not be affected by the cuts.


Morgan has 46,000 employees, including 8,000 brokers.


“We are constantly evaluating business conditions to ensure we are right-sized and we continue to do that,” a Morgan spokesperson said.


The cutbacks come after Morgan has already announced a $9 billion write-down, primarily because of bad mortgage bets. The investment bank posted a mild rebound in the first quarter, even as fellow banks Citigroup and Merrill Lynch continued to struggle. Morgan reported net income of $1.5 billion during the first three months of the year, still a significant drop from $2.5 billion in the first quarter of 2007.


The job cuts are expected to start this week and continue through the end of June, and Morgan chief executive John Mack hopes these cuts will be the end of Morgan’s layoffs through 2008, according to CNBC. The company already cut about 2,800 employees, or 5 percent of its workforce, earlier this year.


Morgan is far from alone in the pink slip parade. Merrill Lynch recently announced plans to cut 3,000 employees, on top of the 1,100 it laid off earlier this year, and Citigroup will eliminate 9,000 jobs. CIT Group shrunk its workforce by 500, or 9 percent, during the first quarter, and Wachovia laid off 12 percent of its investment bankers. In addition, about half of Bear Stearns Cos.’ 14,000 employees stand to lose their jobs as JPMorgan Chase & Co. swallows their firm through the end of June.


Filed by Kira Bindrim of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on May 5, 2008June 27, 2018

Extended-Coverage Laws Can Burden Employers

Employers are coping with a growing number of laws that extend the age to which insured plans must offer coverage to employees’ adult dependent children.


While there is variation in these laws—which now have been passed in more than two dozen states—they generally require employer health plans to offer continued coverage for adult dependent children still living at home.


And while the cost is not generally considered significant, the laws do create administrative burdens for employers, particularly those with multistate operations.


Previously, these state laws, which do not apply to self-insured plans, generally required that health plans cover employees’ children up to age 19 if they did not attend college, or generally to 24 if they were full-time students. But measures that have been passed in recent years extend coverage in many cases to age 25 or 26. In New Jersey, coverage must be offered up to age 30, the oldest cutoff among states.


And in many cases, the laws no longer require the dependent to be a student. For example, legislation signed last week by Kentucky Gov. Steve Beshear requires health plans to offer coverage for all young adults up to age 25. Previously, only students had to be covered up to that age.


Observers say the impetus behind the legislation is the large percentage of young adults that are uninsured. According to a 2007 study by the New York-based Commonwealth Fund, those ages 19 to 29 represent one of the largest and fastest-growing segments of the U.S. population without health insurance. In 2005, they accounted for 30 percent of the non-elderly uninsured even though they made up just 17 percent of the under-65 population, according to the study.


States regard these laws as a convenient way to address this issue without incurring any expense to themselves, observers say.


More legislation can be expected, said J.D. Piro, an attorney with Hewitt Associates Inc. in Norwalk, Connecticut.


“It’s a fairly easy fix—there’s no money required from the state and you can pass it on to the employers—so I wouldn’t be surprised to see more of this,” he said.


Joanne Hustead, Washington-based senior health compliance specialist-national compliance practice with the Segal Co., said, “A few of the laws say employers don’t have to pay for it, but most of them don’t even address that issue.”


On their face, these laws are not significantly costly to employers. Companies often pass on any additional premiums that result from complying with these laws to employees, observers say. Furthermore, young adults are a particularly healthy segment of the population and are less likely than other demographic groups to generate claims.


At the same time, such laws do increase the number of those covered, which will lead to at least some additional claims and ultimately some increased costs for employers.


Presumably, “it will cost more, but we haven’t seen how that’s broken out, at least in any kind of a direct way with respect to the expansion of coverage,” said Jay M. Kirschbaum, St. Louis-based national practice leader, legal and research group, for Willis North America Inc.


Depending on the experience, extending coverage for a longer period to employees’ older dependent children could lead to higher premiums, said Carol Tavella, senior manager with SMART Business Advisory & Consulting in Devon, Pennsylvania.


Even though this is not the most expensive group to insure, “it really takes only one really expensive” claim to seriously raise premiums, especially at small firms, said James Gelfand, senior manager-health policy at the U.S. Chamber of Commerce in Washington.


“It certainly widens or opens the door to risk,” said Randall Abbott, a senior consultant with Watson Wyatt Worldwide in Wellesley Hills, Massachusetts. Some young people engage in “risky behaviors that can generate substantial health claims, so from that point of view I’m more concerned from a broader risk perspective than I am from an immediate cost basis,” Abbott said.


Bill Lindsay, president of the Lockton Benefits Group in Denver, said the laws also “create adverse selection, in that the state law appeals to those who have health conditions and can’t obtain coverage on their own.”


A bigger concern for employers is the additional administration under such laws, observers say.


Rich Stover, a principal with Buck Consultants in Secaucus, New Jersey, said that “just the basic tracking of all these laws and keeping up to date on what the requirements are is very, very difficult.”


At Golden, Colorado-based Coors Brewing Co., it took some effort to ensure employees were notified of the provisions of Colorado’s law, which took effect in 2006, said a spokeswoman. She said the number of those affected by the law, which the company is not tracking, has been low. The Colorado law allows employees’ dependent adult children to keep coverage until age 25, even if they are not enrolled in an educational institution, as long as they are unmarried and are financially dependent on or live with a parent.


Fritz Hewelt, Minneapolis-based vice president and regional practice leader of Aon Consulting’s benefit plan compliance review services practice, said that “it’s just the administrative and communication and documentation and enrollment issues that follow anytime you have different plan designs.”


Stover said that in one case he encountered last year, an employee alerted his employer that Delaware had enacted such a law, when the firm’s insurer had been unaware of it.


Some clients in New Jersey, whose law took effect in 2006, have also either dropped insured health maintenance organizations from their programs or self-funded the plans if they are large enough, to avoid the state mandates, rather than trying to deal with the administrative complexity, Stover said.


In addition, because of the definition of a dependent under federal law, there may be a disparity between who is considered a dependent under federal law and under state law. This means that if there is any employer contribution, employers must track the value of the coverage as “imputed” taxable income for the employee.


The tax treatment in cases where the child is not considered a dependent under federal law is “another administrative burden for the employer,” because that can change from year to year, said Wendy Bunnell, an attorney with Halleland Lewis Nilan & Johnson in Minneapolis.


“In my mind, the thing we get the most questions on is relative to the tax treatment and the problems that that causes for many multistate [insured companies],” Hewelt said.


Filed by Judy Greenwald of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on May 2, 2008June 27, 2018

Labor Statistics Show Job Cuts Eased in April

The Bureau of Labor Statistics’ monthly jobs report showed a marked deceleration in the pace of job cuts in April, as 20,000 jobs were eliminated last month, compared with 81,000 positions cut in March. Unemployment also decreased in April to 5 percent from 5.1 percent in March.


Labor analysts say it could be a signal that the economic slowdown may be less severe than initially expected. An average of 121,000 jobs a month were eliminated in the first four months of the 2001 recession, compared with an average of 65,000 through the first four months this year, according to the BLS.


There were bright spots in the report. Health care jobs grew by 37,000 positions and technical services added 27,000 jobs. There are areas still being pummeled—construction, manufacturing and retail. Since its peak in September 2006, 457,000 jobs have been shed from the construction industry. Meanwhile, 137,000 jobs have been eliminated from the retail sector since March 2007.


Despite the mixed labor news, companies should continue to aggressively recruit.


“The war for talent is still as fierce as ever,” says Manny Avramidis, senior vice president of Global Human Resources for the American Management Association.


He warns companies against lowering their guard because unemployment rates hovering in the 5 percent range are relatively low, meaning qualified talent is still difficult to find.


He says when unemployment crosses into the 6 percent to 7 percent range, companies have a better shot at meeting their recruiting needs because, obviously, the number of workers without a job obviously is higher.


“At that point, it becomes an employer’s market,” he says. “Right now, talent holds the cards.”


—Gina Ruiz


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