Affinity HR Group Your HR Partner & Resource Labor Market January 2019 Summary News Your Business Can Use
Trends for 2019 Findings: Focus on attracting and Topics Covered retaining employees! ■ Unemployment Trends ■ Wage Growth ■ Minimum Wage ■ Immigration ■ Occupational Outlook ■ Legislative Outlook 3 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Unemployme Unemployment Rate by nt Age National Unemployment Rate by Age (All Unemployment Workers) 12 at 3.9% - Approx. 11 1 million more 10 job openings 9 than unemployed 8 workers 7 Percentage (%) of 6 unemployment 5 4 ■ 32 States have 3 unemployment rates of less 2 than 4% (up from 26% in 1 June 2018) 16-19 20-24 25-34 35-44 45-54 55+ Ag ■ Aimes IA has lowest rate of e What employers need to do: 1.4% ■ El Centro has highest rate ■ Expect difficulty recruiting & retaining employees. at 19.3% ■ Anticipate need to increase wages. ■ Know your competitors. ■ Identify traditional and non-traditional sources for candidates. ■ Plan on training as pool of experienced candidates continues to shrink. 1 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Wage • Growth High-Growth/Urban Areas increased almost 7% • Boise, ID is now the fastest-growing area in the 2018 Wage Growth – US Approx 3.2% • Price for new hires approx. 15% - 20% above budget Anticipated • 2019 Wage Minimum wage growth, unemployment rate, Growth 3.2% – restricted immigration & opioid crisis driving 3.5% wage growth What employers need to do: ■ Review pay policies for competitiveness in recruiting market(s) and internal salary equity. ■ Anticipate the need to increase wages. ■ Provide richer, more comprehensive benefit packages and more on the job training and education. ■ Provide more flexible schedules and work requirements. ■ Anticipate the need to raise prices of goods/services to pay for increased wages and benefits . 3 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Minimum Wage The federal minimum wage of $7.25 has not been increased since 2009. • 29 States & DC have minimum wages exceeding fed. Level. 11 states will increase in 2019 • 17 States index rates • Several states adapting regional Minimum Wage What employers need to do: ■ Changes are active – not just something to be looked at annually. ■ Monitor in all the locations where they do business. ■ Be aware of effective dates - not all changes take effect on January 1. 4 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Immigration Restricted legal In 2017, ICE conducted 1,300 workplace audits. In and illegal 2018, 6,000 were conducted – an increase of more immigration than 360%. affecting work pool. Workplace arrests are up nearly 700%, from 300 • Crack down arrests in 2017 to 2,300 arrests in 2018 (mostly illegal on illegal workers). immigration What employers need to do: • Restrictions Expect continued dramatic increases in 2019. on legal ■ Evaluate I9 form policies. immigration ■ Consider online electronic forms to minimize errors. • Reduction of ■ Maintain forms in proper file format. refugee immigration 2 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Janitorial/Cleaning Sector Statistics Occupational Outlook Change 2016 – 2026 Occupation New As of August, Jobs 2018, 7.1 million job Janitor/Cleaner 236,500 +9.9% openings vs. 6.1 million Metro Area Median Hourly Wage unemployed and looking All Us Metro Areas $12.02 for work. Boston Metro Area $17.90 Manufacturing assembly jobs San Francisco Bay $17.58 are expected Area Southeast Iowa to decrease Area 14% $12.28 North Texas Area $10.90 What employers need to do: ■ Know your competitors are particularly true for entry level employers. ■ Anticipate the need to increase wages to recruit and retain as demand increases. 7 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Legislative Outlook 2018 was quiet on Emerging Legislation: federal level. Not • Minimum Wage so on local level. • Pay Equity (39 states enacted or under consideration) • Ban the box (33 states & 150 counties) • Marijuana Use (9 recreational states/ 31 recreational states) • Predictive Scheduling Laws (Oregon & 6 jurisdictions) What employers need to do: ■ Examine pay policies for compliance ■ Examine interview questions & job application for all locations ■ Examine current drug testing policies and practices ■ Determine how you are going to stay abreast of state and local changes 6 Labor Market Summary - December www.affinityhrgroup.co 2018 m
Questions? Claudia udia St. . John, hn, SPHR, R, SHRM-SCP CP President, Affinity HR Group claudia@Affinityhrgroup.com 877-660-6400 affinityHRgroup.com 4 Labor Market Summary - December www.affinityhrgroup.co 2018 m
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