October 2, 2015

BLS: Staffing Employment Stable in September

Published October 02, 2015 ■ Announcement

Temporary help employment showed little change from August to September (0.2%), according to seasonally adjusted data released today by the U.S. Bureau of Labor Statistics. Staffing employment was 3.7% higher than in September 2014.

Nonseasonally adjusted BLS data, which estimate the actual number of jobs in the economy, indicated that temporary help employment increased 1.5% from August to September. Year-to-year, there were 3.4% more staffing employees in September than in the same month last year.

Total U.S. nonfarm payroll employment increased 142,000 jobs in September (seasonally adjusted), BLS reported. Revisions for July and August decreased nonfarm payroll employment by 59,000, with monthly job gains averaging 167,000 over the past three months.

“The news behind the headlines is that demand continues to outpace the supply of qualified candidates for staffing and recruiting firms across several industry sectors,” said Richard Wahlquist, president and chief executive officer of the American Staffing Association. “With the labor force participation rate dropping to 62.4%, a level not seen since September 1977, there needs to be much more focus on ensuring that the American workforce has the skills needed to support U.S. growth and competitiveness in the years ahead.”

The unemployment rate held at 5.1% in September.

Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?

Buyers of a business generally expect sellers to be responsible for certain liabilities relating to when the seller owned its business—a concept mergers and acquisitions professionals refer to as indemnification. Indemnification is one of the most heavily negotiated, and potentially most significant, provisions of a purchase agreement, and understanding the terminology common to such agreements is essential when negotiating a deal. Attorney Paul Pincus of Ortoli Rosenstadt LLP explains what sellers are liable for, how a seller’s liability may be limited, and how buyers may seek to fund potential indemnity claims.

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ISM Manufacturing Index Falls to Lowest Level Since May 2013

Published October 02, 2015 ■ Headline News

Wall Street Journal (10/01/15) Jeffrey Sparshott

Manufacturing grew at the slowest pace in more than two years in September, according to the Institute for Supply Management. The ISM’s manufacturing purchasing managers index fell from 51.1 in August to 50.2 in September, marking the lowest level since May 2013. A reading above 50 indicates expansion. Economists polled by the Wall Street Journal had forecast a September PMI of 50.8.

The ISM new orders index fell from 51.7 in August to 50.1 in September. The employment index declined from 51.2 in August to 50.5.

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Employers Slash Nearly 60,000 Jobs in September

Published October 02, 2015 ■ Headline News

Challenger, Gray & Christmas News Release (10/01/2015)

Employers announced plans to shed 58,877 jobs in September, a 43% increase from the previous month, according to Challenger, Gray & Christmas Inc., and 93% higher than the 30,477 planned layoffs announced the same month a year ago. Job cuts by Hewlett-Packard accounted for about 30,000 of the September 2015 layoffs.

In all, 205,759 job cuts were announced in the third quarter, up 40% from the second quarter’s 181,213 job cuts, and 75% higher than the third quarter of 2014, when 117,374 job cuts were announced. While job cuts over the first two quarters of 2015 were dominated by oil-related industries, recent downsizing activity has been concentrated in the public sector and the computer industry.

For the year, employers have announced 493,431 planned layoffs, 36% more than the 363,408 cuts tracked from January through September a year ago. The year-to-date total is 2% higher than the 2014 year-end total of 483,171.

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Have You Reviewed Your ASA Central Profile Recently?M

Published October 02, 2015 ■ ASA for You

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Free ASA Webinar Monday—Improving Diversity in the C-Suite

Published October 02, 2015 ■ ASA for You

Don’t miss Monday’s ASA webinar “Encouraging Women to Lead,” 3–4 p.m. Eastern time. Hear what one staffing firm’s executives learned from female leaders, and how your firm can improve diversity at the highest levels.

All ASA webinars are free for ASA members, and most qualify for continuing education hours toward ASA certification renewal. To learn more and to register, visit americanstaffing.net.