Employment Recovery a Long, Uphill Climb

After 2009’s record-breaking labor-market deficits, the New Year may offer some light at the end of the tunnel, albeit a very long tunnel. A job-market turnaround is expected in 2010, with job creation beginning to outpace job losses, according to outplacement firm Challenger, Gray & Christmas, although the pace of job growth will take years to reach pre-recession levels. Hiring is expected to pick up in the first part of the year, but that is unlikely to diminish the unemployment rate as millions of workers no longer counted in that labor statistic begin to compete for jobs again. CEO John Challenger explains, "One of the factors that will keep unemployment high, even as companies begin to increase hiring, is the reentrance of the many people who have been sitting on the sidelines, waiting until a stronger job market emerges." About 27 million Americans are currently unemployed or underemployed, but only 15.4 million are part of the jobless rate calculated by the Bureau of Labor Statistics. Even if the nation achieves monthly job gains of more than 200,000 by the end of 2010, it probably will not be enough to offset the influx of jobseekers returning to the labor pool. "Improvements in the job market may not be that evident in the labor-market statistics until 2011 or later," says Challenger. The most optimistic forecast for the job market’s return to pre-recession unemployment levels is no earlier than late 2012.

Hiring Plans on the Rise

A recent survey by CareerBuilder.com found that 20 percent of employers plan to add full-time, permanent employees in 2010, a six-percent increase from 2009. Eleven percent expect to add part-time staff, up slightly from 2009’s nine percent. However, 61 percent of the employers surveyed plan no change in their headcounts, and nine percent anticipate cutting jobs.

Job growth began showing significant improvement in the latter part of 2009, with the percentage of firms adding jobs doubling from an all-time low of 6 percent in July to 12 percent in October, according to a survey by the National Association for Business Economics. October also saw the addition of 34,000 temporary jobs, which is one of the early indicators of a recovery in progress.

On the Job Front:

JACKSON – The flagging economy has forced layoffs at the Jackson Rancheria Casino. The 115 positions eliminated were mostly back-of-house middle management. Employees will be getting severance packages, and management hopes to rehire those laid off when the economy improves. With nearly 1800 employees remaining, the casino is the largest employer in Amador County.

LOYALTON – Sierra Pacific Industries will restart its biomass electrical power plant, which was closed in Sept due to economic conditions. The 19 employees who were laid off will have the opportunity to return to their former jobs.

MERCED – Boat-builder Centurion is hiring back 25 percent of its employees laid off in 2009. President Rick Lee anticipates the return of trained workers as well as hiring more support staff. Currently, the company has logged enough orders to keep workers busy until June.

OAKLAND – The CA Air Resources Board has allocated $11 million to help over 1200 truckers meet new Clean Air requirements and keep their jobs at the Port of Oakland.

RANCHO CORDOVA – The US Census Bureau is accepting applications to fill several hundred positions opening up in the spring. The part-time temporary jobs include census takers and staff for Census offices and questionnaire assistance centers. Field pay starts at $15 per hour. Prospective employees must pass a 30-minute test, and most positions require a valid driver’s license and use of a vehicle. Jobseekers can sign up for a test by calling the Elk Grove Census office at 800-861-2010. More info about the openings and a practice test are available online at 2010censusjobs.gov.

SAN JOSE – The low ratio of jobseekers to jobs advertised online here was ranked second in the nation, with 2.68 unemployed for every job posted. Search engine JuJu.com awarded first place to Washington DC (1.87), with Baltimore, Boston and New York rounding out the top five. Detroit was the worst of the 50 cities ranked, with 20.76 unemployed for every advertised job.

STOCKTON – Weyerhauser Company is adding warehouse space, outside storage, and an unknown number of jobs to it facility here. . . Union Planing Mill is closing after 118 years in business, another victim of the devastated construction industry. The mill has employed thousands of Stockton residents over twelve decades, with up to 150 skilled craftsmen working in its three fabrication shops in better years. The mill is currently reduced to about half a dozen workers finishing up the last remaining order.