For several months, the economy has been on an upward trend, including the employment sector. However, the latest report from the Bureau of Labor Statistics is being met with mixed reactions from economists and other experts in the field.
When businesses have comprehensive HR software solutions in place, it can help them make strong hiring decisions that will benefit the company in addition to the economy. It is important for organizations to hire applicants that will contribute to daily operations, and not just be another number in the employment sector.
August’s report showed that just 169,000 nonfarm payroll jobs were added, yet the unemployment rate fell to 7.3 percent. That is the lowest rate since December 2008. The BLS also revised its numbers from the last two months, lowering July’s initial report of 162,000 added positions to just 104,000. June’s numbers were revised from 188,000 to 172,000.
Lindsey Piegza, managing director and chief economist at Sterne Agee, told ABC News that the unemployment rate decreased for “inorganic reasons.” She added that the labor force participation rate fell to 63.2 percent in August, the lowest since 1978.
“Clearly the labor market is losing momentum,” Piegza said.
Stephen Bronars, senior economist at Welch Consulting agreed, telling the news source that the unemployment rate is declining for all of the wrong reasons. The current numbers are partly due to an aging workforce, but Bronars said that people are simply dropping out of the workforce. In general, it is a “disappointing jobs report.”
Not only can HRIS software help HR teams stay organized, it will show which departments are struggling and which are successful. From there, it can be determined the type of applicants to search for and bring on to a company. It’s important to make hiring decisions for the short- and long-term.