The Bureau of Labor Statistics (BLS) sent out an interesting release today that I have not seen before. It is a Business Employment Dynamics release that takes the employment, unemployment and business information and analyzes it to find out what the overall market conditions are like. I really like this considering I have tried to put these data sources together and get an overall picture of what is happening in employment in the US. But that’s just because of the industry I work in. Most people don’t have data geek tendencies like that. The one drawback is that the data takes so long to be crunched and processed that this information is almost a year old. So, it can provide learnings, but only in retrospect. It is hard to use this to get an accurate picture of the market currently or to predict the future market direction.
Overall between September and December 2006 (Q4) there were 7.7 job gains (hirings and new job creatin) and 7.2 job losses. (job losses, firings and shipping jobs overseas) That does produce an overal gain of 500K jobs. Which I would not have guessed looking at the media or the job searching stories of my friends and family. It also states that the companies with over 1,000 employees had the most job gains and the companies with 1-4 employees had the most job losses. Which shouldn’t be too suprising really. We know that large companies have the capital and resources to grow quickly and we also know that 60% of all new small businessed fail in the first 4 years. It’s just a steep hill to climb to profitability and sustainability when you start a new buisness. They also mention that there were 370K more jobs created in Q4 2006 than in Q3 2006. So maybe there was something good about that time if you were looking for a job like I was. True Dat. I found one within 3 weeks, and now my friends are not having the same experiences. I have one friend that has been looking for 2 months and 2 others who have been looking for 3 months.
I don’t think that there will be a Q3 2007 report saying that there were as many gains as there were last year. I think too many people have read “The World is Flat” and are shipping their company’s jobs to China faster than you can say “lead paint”. But it is true that overall businesses are finding cheaper ways of doing business and there is a lot of shifting going on in business processes and company production. Only time will tell if we can keep creating jobs for all the Americans that live here, need work and need healthcare. I just hope that the high level executives keep in mind the benefits to having their company hire Americans vs sending the jobs to India and China. Because there are always positives and negatives to every decision. The negatives may not be as apparent in the beginning, but there will be significant losses in the future if the U.S. CEOs continue to take jobs away from their own country’s citizens and give them to foregin countries.