This past month was definitely a preview of what's to come in the staffing industry. ADP has reported an astounding 263,000 new jobs in the non-farm private sector for the month of March. Once again, the service industry is dominating the growth. This positive trend is the highest it has been in two years and it’s a result of the recent sentiment in the economy and also a continuation of February's job report trends.
Small businesses will be happy to hear that out of these 263,000 new positions, 118,000 were created from companies that had 50 or fewer employees. Medium sized companies weren't left in the dust because they also contributed 100,000 jobs. While bigger companies only added 45,000 jobs, it still was a positive trend. If the first three months of the year are any indication of how the economy will do this year, we're going to be seeing major growth past our expectations. Although many economists believe that the labor market is close to or already at full employment, these monthly gains have gone way past 240,000 positions. This is truly fascinating and there too many factors in play right now to pick any one reason for the continued growth.
Regarding service-providing jobs, they made a big dent to the tune of 181,000 jobs. Professional/business services have contributed 57,000 jobs and financial activities have added 25,000. This is great news for those in that particular industry, but there are thorns on every rose
Growth Isn't All That
You may be excited about this growth, but keep in mind that more jobs can lead to the following:
- Fewer Quality Candidates
- Longer Hiring Cycles
- More Counter Offers
- Need For Backup Candidates
Need More Details?
If you'd like for us to expand on the adverse effects of this growth, check out our article about the possible effects of the February ADP report. When you find that you need help with your staffing, we are the right people to go to for the best staffing experience. Skills gaps will occur, there will be turnover, and there will be expansion. When that happens, ICS can obtain the top talent that you want. For more information and trends like this, check out our 2017 salary guide. Be in the know in this aggressive economy.