PLEASANTON, Calif., Dec. 12, 2019 /PRNewswire-PRWeb/ -- Steven Drexel, Cornerstone Staffing Solutions president and CEO, shares his November 2019 labor market observations following the Bureau of Labor Statistics' ("BLS") press releases on December 6 describing The Employment Situation and his predictions for 2020. As an economist and seasoned staffing industry professional, Drexel is regularly asked to participate in monthly surveys and discussions that predict key elements of labor market activity.
Drexel says the report was very well received with an impressive 266,000 net new jobs created that far exceeded virtually anyone's expectations which were pegged at around 180,000. With revisions to the prior two months adding another 41,000 jobs, Drexel believes this positive activity injects additional substance to these prior periods as well. "Thankfully, both October and November soundly beat their expected results and given sizable revisions to August and September, these recent months all reflect unexpected strength. The average growth for the four-month period came in at 209,000 net new positions whereas, the run rate looked like around 140,000 per month if we dial back about 120 days. This strength is very welcome news," comments Drexel. "Further, the unemployment rate edged down one-tenth of a percentage point to 3.5% during November, matching a 50-year low."
Drexel notes that the better than expected jobs growth during August through, and especially during, November has been a reassuring bulwark for our aging but resilient economic expansion. "Incredibly, job growth has persisted for an unprecedented 110 months and is an important propellant fueling our consumer-driven economy," he adds. He also states that during November, the industry segment data indicated that growth was strong and broad-based in that the share of the 258 detailed industries that improved during November was 61.6 percent, up from 52.7 percent during October. "The share of 76 manufacturing industries that improved during November was 54.6 percent notably up from 36.2 percent during October. The average workweek held constant at a respectable 34.4 hours another signal of continuing strength." In summary, Drexel says November's job growth along with the upward revision to prior months paints a picture of a still strong and expanding labor market.
Drexel's Employment Situation Retrospective
In summary, Drexel declares the BLS Employment Situation Report for November was all good news. "After beating expectations during October and with sizable positive revisions to August, September and October, we are in a better place than anyone could have imagined. The labor market remains robust with a strong tailwind," he remarks. In addition, he shares these positive numbers:
- The unemployment rate is exceptionally low but remarkably stable;
- Average hourly earnings continue to provide real (greater than inflation) growth;
- Average weekly hours remain strong;
- The stock market recently set new records;
- The banking system is healthy; and
- The current business cycle expansion has persisted into its tenth year (compared to an average expansion of five or six years).
Drexel concludes that these factors along with prime-age labor force/employment participation rates and duration of unemployment statistics indicate that the labor market while solid and enduring is not overheating and has room to continue to grow.
The Outlook for 2020
Overall, Drexel is confident that the labor market remains remarkably strong and powerful support for the broader economy. He predicts that we can expect job growth to average around 150,000 in 2020 while the unemployment rate drifts up a bit to 3.8 percent. "The near-term risk of recession has been creeping down recently and remains low given the absence of any critically growing asset bubbles or an imminent financial shock," he says. "The combination of more employees earning higher wages with a high level of hours worked is a very good formula for consumer spending."
More About Cornerstone Staffing
Cornerstone Staffing Solutions is among the largest staffing firms in America and received ClearlyRated's (formerly Inavero) Best of Staffing® Client Award every consecutive year since 2016. Since 2003, Cornerstone has grown from a neighborhood staffing provider to a national firm that employs thousands of people at hundreds of companies from coast to coast. The Cornerstone family of companies also includes Dallas, Texas-based RightStone (http://www.rightstone.com), and Chicago, Illinois-based Arlington Resources, Inc.(http://www.arlingtonresources.com) and Casey Accounting & Finance Resources (http://www.caseyresources.com). Providing candidate searching and job placement for administrative, industrial, technical, sales and transportation positions, Cornerstone truly is where talent and jobs meet. Visit Cornerstone at http://www.cornerstone-staffing.com.
SOURCE Steven Drexel
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