Tuesday, June 09, 2009

3rd quarter hiring plans...

Manpower is large, national temporary help firm that has a pretty good sense of the hiring trends in the domestic market.

Today they came out with their third quarter hiring survey and despite expectations that things might be picking up, companies continue to sit on their hands when it comes to hiring.

"U.S. employers’ hiring plans for the third quarter held at a record low, signaling fired workers will have to wait many more months to find a job, a survey showed.

Manpower Inc., the world’s second-largest provider of temporary workers, said its employment gauge for July through September was minus 2 after adjusting for seasonal variations, matching the second quarter’s reading as the lowest since data began in 1989."

Surprisingly, construction hiring showed signs of life while "the biggest deterioration in the outlook occurred in education and health services and at government agencies."

Education, health and government have been the only pockets of strength in the US employment as of late. These sectors should lag the private market as budgets are constrained in the coming years.

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Oakland, CA is at least considering a bankruptcy filing. This is going to be a trend ---

"We have asked the (bankruptcy) question because we wanted to know the impact," said District 5 council member Ignacio De La Fuente. "In closed session, the question has been asked, and an answer was given." He would not elaborate.

"It's a possibility," he acknowledged. "Things are that bad."

"Out of next year's general fund of approximately $415 million, police costs are estimated at $212 million, fire protection service $103 million and $41 million in debt service payments. That leaves about $60 million to pay for everything else, from library services to recreation centers to public works."

Tax rolls are shrinking as home ownership declines and assessments are falling along with house values. Declining local revenues mean some things can happen:

* Taxes can go up (boo!)
* Cities can cut benefits, pay, and employees
or
* Cities can contemplate bankruptcy

It would be a fun time to be in local politics!!

Cheers!

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