Job Market Expected to Stabilize

Auburn, Aug. 17---The job market is expected to stabilize after a long downward spiral. The month of July provided three indicators that the job market may begin to improve, says Dr. Jacquelyn P. Robinson, a community workforce development specialist with the Alabama Cooperative Extension System.

First, for the third consecutive month, the jobless rate held constant at 4.5 percent.. While some sectors, such as manufacturing, continued to experience a downward trend, enough jobs were created in other areas, such as health services, restaurants, engineering and management, to maintain a stable total workforce.

Second, although the total job loss in manufacturing during the past year amounts to more than three-quarters of a million jobs, the rate at which companies are slashing jobs seems to be slowing. The net loss of 49,000 jobs during the month of July was less than half the number in each of the previous three months.

Third, the manufacturing workweek increased by 0.1 hour to 40.8 hours. Customarily, manufacturers first utilize overtime to increase production before recalling workers or hiring new ones. Manufacturers of all types make tools, equipment, materials and supplies for most of the other sectors of the economy. Typically, a slight upturn in manufacturing signals a slight upturn for the other segments as well.

SOURCE: Dr. Jacquelyn P. Robinson, Community Workforce Development Specialist, Alabama Cooperative Extension System (334) 844-5353