Recent Employment / economic Trends

Over the past few weeks a flurry of statistics and articles relating to the local economy have been released. In this newsletter we have summarized those statistics and trends that historically have been most helpful in assessing the current economic situation, as well as forecasting the general business outlook for the next several months:

Unemployment Rate Drops

The Massachusetts unemployment rate in March fell to 9.3%, the first drop in years and below the national unemployment rate of 9.7%.  The Massachusetts economy added 7,600 jobs in March.  Rhode Island's unemployment rate dipped to 12.6% in March, the first month-over-month decrease in Rhode Island's jobless rate in almost 4 years.  New Hampshire’s unemployment rate for March was 7.0%, a decrease of 0.1% from the February rate.

Increasing Use of Technical Contractors

The March 19, 2010 issue of the Boston Business Journal included an article citing an increasing demand for technical contractors among area firms. This is a positive sign for the economy, as an increased use of contract labor is historically indicative of an improving overall employment environment.  When firms are unsure as to whether an up-tick in business is sustainable, or whether new projects will follow the ones they currently have, they will often turn to contractors as a means of getting the work done while maintaining a high degree of flexibility.

The March/April 2010 issue of The National Federation of Independent Business (NFIB) magazine My Business, similarly cites an up-tick in hiring on a contract or temporary basis and predicts a heavier reliance on this sort of employment relationship throughout the economic recovery.  The primary reasons for this trend: lower overall costs and the existence of a very talented pool of candidates willing to enter into less traditional work arrangements.

AIM Business Confidence Index

The Associated Industries of Massachusetts Business Confidence Index rose slightly in March after dropping in February.  Although levels still remain historically low, the data show that employers are “slightly positive” regarding business conditions for the first time in 2 ½ years.

Consumer / Manufacturing Activity

Other data released over the past several weeks shows that consumers are spending more and manufacturing in the region is expanding at its most rapid pace in five years.  This is consistent with the modest improvement in business confidence, and together support the general sentiment that the economy has bottomed-out and conditions are improving.

Triad Engineering Corp has specialized for almost 40 years in helping our clients fill their technical staffing needs on a contract, contract-to-direct and direct hire basis. Triad is locally owned and operated, with a large network of qualified engineering professionals throughout New England . Please contact us at 781-273-1880 or visit www.triad-eng.com for more information on how we can help you achieve your technical hiring goals.

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