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Recruiting In The Trough II

(November 14, 2007) Conventional wisdom (and BLS Data) suggests that there are about 50,000,000 employment transactions annually in the United States. That's just another way of saying that the average job is held for about three years. The number is different in different regions, industries, sectors of the economy and demographics. On average, an employee holds a job for three years.

This graph (from the BLS) shows hiring transactions (Millions) by month since 2000:

Hiring Transactions By Month (Millions)...BLS

This next graph shows Separation transactions (Millions) by month over the same time period:

Separation Transactions By Month (Millions)...BLS

And finally, the next graph shows the number of Job Openings (Millions) over the same time period.

Job Openings By Month (Millions)...BLS

These three graphs, taken together, paint a clear picture of a prototypical recession. The economy continued to grow in the two worst years of the last down turn. It was just at a very slow rate. The rebound affected Hiring, Separations and Openings equally.

In the scenario under consideration, the downturn won't be reflected in a downward employment change. Instead, it will appear as an increase in hiring and separations.

John Sumser. - .Permalink. - .Today's Bugler . - .Send To a Friend  © 2007 Two Color Hat Inc., San Rafael, CA



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