04 Jan 2008

Unemployment Numbers Portend Rigorous Approach to Job Search

The unemployment rate rose to 5 percent last month, and non-government payrolls fell by 13,000. In brief, December's report by the Bureau of Labor Statistics reflects a far weaker job report than many economists had expected. Total payrolls rose by 18,000, the weakest month for job growth since August 2003.

Though one month of poor job growth does not necessarily signal a trend, indicators in the report suggest the weakening economy has finally reached the job market. Examples include payroll growth, which has slowed since June, with an average gain of 84,000 jobs per month, compared to 147,000 January-May of last year. Also, unemployment has steadily risen, not just among any one group, but across the spectrum of demographic groups. In total, unemployment rose 0.6 percent over the year, adding 895,000 to the jobless rolls.

Hiring was weak across most industries. Less than half of private-sector industries expanded last month, the worst showing in over four years. The private-service sector, a mainstay of job growth in the last several years, added only 62,000 jobs last month, its lowest month since October 2005. Also, there was a very large jump -- from 4.5 million to 4.7 million -- in the number of people working part-time as a result of not being able to find full-time jobs.

The housing downslide and declines in manufacturing continue to batter employment among trade and skilled workers.

At year's end, total job growth was up 1 percent for 2007, the slowest year since 2003. Unemployment, as noted, ended the year at 5 percent compared to 4.4 percent in December 2006.

All Star Resume urges to job seekers to be savvy about these numbers and prepare for a competitive job search. Now more than ever, gaining access to jobs in growth industries requires effective cover letters and resumes and skilled interviewing techniques.

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