April 27, 2024

Fewer Layoffs, but Employers Are Still Hesitant to Hire

Applications for benefits dropped 16,000, the Labor Department said Thursday. The four-week average declined 4,500 to 357,500.

Jobless claims are a proxy for layoffs. When they decline, it signals that companies are cutting fewer jobs.

Still, layoffs are only half the equation. Businesses also need to be confident enough in the economy to step up hiring. Many companies have been advertising more jobs but have been slow to fill them. Job openings jumped 11 percent during the 12 months that ended in February, but the number of people hired declined, according to a Labor Department report this month.

The still-uncertain economy has made many companies reluctant to hire. Some employers appear to be holding out for perfect job candidates. In particular, companies say they cannot find enough qualified candidates for high-skilled manufacturing and engineering jobs.

Still, most economists were encouraged by Thursday’s report on unemployment benefits, though some cautioned against reading too much into one week’s data. “The downtrend in unemployment remains on track,” said Jim O’Sullivan, chief United States economist at High Frequency Economics.

In March, employers added only 88,000 jobs. That was a sharp drop from the previous four months, when hiring averaged 220,000 a month.

The unemployment rate fell to a four-year low of 7.6 percent in March from 7.7 percent in February. But the drop occurred because more people out of work stopped looking for jobs. The government does not count people as unemployed unless they are actively looking for work.

More than five million Americans received unemployment aid in the week ending April 6, the latest data available. That is about 80,000 fewer than the previous week. Some recipients may no longer receive benefits because they have found jobs. But many have used up all the benefits available to them.

The economy is expected to have grown at a much quicker pace in the January-March quarter, and the government will give its first estimate on growth in the nation’s gross domestic product on Friday. Many economists forecast that growth accelerated to an annual rate of more than 3 percent in the first quarter, up from just a 0.4 percent rate in the fourth quarter.

Article source: http://www.nytimes.com/2013/04/26/business/economy/fewer-layoffs-but-employers-are-still-hesitant-to-hire.html?partner=rss&emc=rss

Economix Blog: For Each U.S. Job Opening, 4.6 Unemployed

There were 4.6 unemployed workers for every job opening in the United States in August, according to new data from the Labor Department.

Bureau of Labor Statistics, via Haver Analytics

That’s a slight tick up from July, because the number of unemployed rose slightly and the number of job openings fell.

The bottom line is, even if all job openings were filled overnight, there would still be about 11 million people who were still out of work.

Total separations from jobs rose a bit, but primarily because people left their jobs voluntarily (as opposed to being laid off or fired). That could be a good sign for the economy, in that it means workers see opportunities to find other jobs they like better and are opening up more positions in the process. Part of the reason employers have been reluctant to hire is that so few people have been leaving their jobs.

DESCRIPTIONSource: Bureau of Labor Statistics, via Haver Analytics

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New Law Creates Demand for Patent Specialists

Patent lawyers are in such demand that their specialty may account for more than 15 percent of law firm job openings while representing just 3 percent of lawyers in the United States.

Such lawyers typically have degrees in fields like engineering as well as law. Some law firms are now almost doubling recruitment fees to meet the growing demand for specialists in intellectual property, or I.P., particularly in technology, said T. J. Duane, a principal at a legal recruitment firm, Lateral Link.

“There is a boom in I.P., with many openings in what is usually a niche practice,” Mr. Duane said.

The demand can be attributed in part to the America Invents Act, the biggest overhaul in the United States patent system in six decades. The legislation, which changes how patents are processed and reviewed, is spurring a race among law firms for star talent in a small pool of patent lawyers.

More than 230 positions are open for patent lawyers among the more than 1,400 nationwide for all lawyers, with a majority in the San Francisco Bay area, home to Silicon Valley, Mr. Duane said. About 60 posts have been open since July. An additional 25 were added last month, he said.

“The quantity of qualified attorneys who can perform this work is limited,” Mr. Duane said.

Lateral hires among law firms are on the rise after two years of decline. They jumped 38 percent last year after plummeting 52 percent from 2008 to 2009, according to a report by the National Association of Law Placement.

Hiring among law school graduates continues to weaken as large law firms fill fewer positions. The employment rate among American law school graduates fell 4.7 percent last year, the association said.

About 40,000 patent lawyers and agents are registered with the United States Patent and Trademark Office, having passed a separate patent bar examination, according to the office.

While patent agents have taken the patent exam, they are not lawyers who have taken state bar tests, the patent office said on its Web site.

Agents may prepare patent applications and conduct cases before the patent office, though they are not permitted to litigate in court or draw up contracts.

“These are hard people to find,” said Barton E. Showalter, chairman of the intellectual property department at Baker Botts in Dallas.

About 1.2 million lawyers are licensed in the country, according to the American Bar Association.

The patent act, the culmination of more than a decade of negotiations and lobbying, is putting a high premium on the best patent lawyers, Mr. Showalter said.

“It’s an exceedingly complex law now with a number of new procedures,” he said. “That puts a premium on highly technical-skilled patent lawyers.”

Law firms are also being pressured by technology clients that have expanded into new growth areas like cloud computing, said Mark J. Itri, the leader of the intellectual property practice group at McDermott Will Emery.

Some companies have also consolidated the number of patent lawyers they work with to cut costs, Mr. Itri said. “Near term, you’ll see a big demand to hire to meet some of those client needs,” he said.

Mr. Itri’s firm has hired 28 patent lawyers and patent agents this year, adding roughly a dozen last month alone, as it seeks to expand its patent prosecution practice. The firm plans to hire an additional 20 by next spring, he said.

The most highly sought degrees held by patent lawyers are in electrical engineering, computer science and computer engineering, Mr. Duane said.

The ideal candidate would hold a doctoral degree in electrical engineering, have graduated from a top 10 law school and have worked for four years at a strong law firm, Mr. Duane said.

“That person could get a job anywhere,” he said.

If the talent is not available, Mr. Duane said, “some firms may end up closing their positions or repurposing the general practice attorneys to focus on the nontechnical sides of these complex cases.”

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Economix: Nearly 5 Workers for Every Available Job

CATHERINE RAMPELL

CATHERINE RAMPELL

Dollars to doughnuts.

More bad news on the job market front: the number of jobless workers per job opening stayed flat at 4.7 in May, according to a new report from the Labor Department. That is more than twice the average ratio seen during the boom years that preceded the Great Recession.

DESCRIPTIONSource: Bureau of Labor Statistics, via Haver Analytics

As Henry Mo, vice president for economics at Credit Suisse, observed in a note to clients on Tuesday, “Even if all job vacancies were filled overnight, almost 11 million workers would still be left unemployed.”

The quantity of actual hiring stayed flat, too, and the number of separations, both voluntary and involuntary, rose slightly.

DESCRIPTIONSource: Bureau of Labor Statistics, via Haver Analytics Levels shown refer to the total number of workers quitting, or laid off or discharged, each month.

These trends in separations may not sound like something to celebrate, but one silver lining may be that they eventually could lead to more job openings.

Part of the problem with the labor market is that there is so little churn; that is, companies aren’t hiring partly because no one is leaving. Hopefully having more separations will give companies reason to ramp up hiring, and hopefully that will lead to having more jobs on net. I realize, though, that that’s a lot of hopefullys.

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