Tag Archives: job market

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Slow job market impacts higher education

In the United States, recent news surrounding the economy is optimistic as the country’s GDP grew at a rapid 3.9 percent during the third quarter of 2014. The nation has now recovered all of the 8.7 million jobs lost during the recession, and the national unemployment rate has dropped to 5.8 percent, the lowest since July 2008. Some states who had been hovering at an unemployment rate of 8 percent have also seen a steady drop, but remain above the national average. Arizona is among these states, with the unemployment rate at 6.8 percent in recent months.

When there is an economic downturn, people have historically gone back to school as the value of a higher education increases, which for some outweighs the benefits of returning to the job market. Higher Ed Growth, a leader in post-secondary education marketing, has analyzed its data over the past year to pinpoint trends in higher education as a result of the recovering economy. Its findings show that the nation as a whole is currently experiencing reduced growth in college enrollments compared to previous years as students enter the job market again.

However, Arizona has seen an increase in students enrolling in higher education institutes from 2013 to 2014.

The Enrollment Pursuit Report released by Higher Ed Growth at the beginning of the year illustrated multiple changes in the higher education industry that reflect the current shift in the job market. Developments in both technology and health care are driving an increase in career opportunities to those fields. Degrees within the health care industry have grown more than 15 percent since 2011 as students pursue more in-demand fields. Business degree enrollments are down by about 10 percent, and because business degrees account for a majority of online programs, there has also been a decrease in online class enrollment in recent years.

In Arizona, certificate-level programs saw a decrease of about 18 percent, while associate and bachelor-level degrees increased. This differs from national statistics, which show a steady increase in certificate-level programs. This indicates that Arizonans are investing more time and resources into their education than those in other states.

As the Arizona economy continues to recover and reach a lower unemployment rate, the enrollment rate will likely drop as well. The most significant change in higher education will likely be a shift in degree types offered as new programs are both created and phased out. Students will continue to flock to degrees within health care and technology, and schools should focus their efforts on these along with other programs that are high demand and have high job placement rates.

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Manpower Employment Outlook Survey Forecasts Favorable Job Market for Arizona

Employers in Arizona expect to hire at a steady pace during the third quarter of 2012, according to the Manpower Employment Outlook Survey. Among survey participants, the Arizona employment outlook is one of the weakest in the nation.

From July to September, 19 percent of the companies interviewed plan to hire more employees, while 10 percent expect to reduce their payrolls. Another 68 percent expect to maintain their current staff levels and 3 percent are not certain of their hiring plans. This yields a Net Employment Outlook of 9 percent.

“Employers’ hiring plans for Quarter 3 2012 are more sluggish compared to Quarter 2 2012 when the Net Employment Outlook was 15 percent,” said Manpower spokesperson Sunny Ackerman. “Compared to one year ago when the Net Employment Outlook was 8%, employers are similarily positive about their staffing plans.”

For the coming quarter, job prospects appear best in Durable Goods Manufacturing, Non-Durable Goods Manufacturing, Wholesale & Retail Trade, Information, Financial Activities, Professional & Business Services, Education and Health Services, Leisure & Hospitality, Other Services and Government. Hiring in Construction and Transportation & Utilities is expected to remain unchanged.

Of the more than 18,000 employers surveyed in the United States, 21 percent expect to add to their workforces, and 6 percent expect a decline in their payrolls during Quarter 3 2012. Seventy-one percent of employers anticipate making no change to staff levels, and the remaining two percent of employers are undecided about their hiring plans. When seasonal variations are removed from the data, the Net Employment Outlook is +11 percent, similar to the Quarter 2 2012 Net Employment Outlook of +10 percent.

For more information on the Manpower Employment Outlook Survey, visit Manpower’s website at manpowergroup.com/press/meos_landing.cfm.

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Commercial Real Estate Market Taking Off In Phoenix

As I flew into Phoenix last week, seeing the city from the air and the approach to the airport reminded me that the Valley’s commercial real estate market still has a lot of runway for growth.

More than 1,200 top executives of Jones Lang LaSalle met in Scottsdale last week for our annual leadership meeting. It’s an important event, given that our collaborative culture enables our firm to deliver value to commercial and corporate real estate clients in ways that other service firms can’t, or don’t. So most of the people here were thinking about ways to connect with, and learn from, each other.

But as Jones Lang LaSalle’s Southwest Market Director, my thoughts were on the opportunity for growth in Phoenix. I work with our brokers, property managers, project managers and other real estate professionals in Phoenix and across the region. Our business grows when real estate investors and corporate occupiers grow. And Phoenix is frequently high on the list of U.S. cities for business growth.

It may not be obvious at a time when house prices are about half what they were a few years ago, and unemployment remains maddeningly high. But between 2001 and 2011, Phoenix added more than 80,000 jobs, making it the country’s fourth-largest gainer when the boom and bust are both taken into account.

Moreover, the job market appears to be on the upswing again — a little or a lot, depending on which study you look at. Recently, the Urban Land Institute reported that Phoenix added more than 34,000 jobs since mid-2009 in private education and health services sectors.

Most important, corporate leaders continue to think of Phoenix when they’re considering a business expansion or relocation. That’s good for the city’s long-term growth prospects.

And it’s good for the Phoenix economy overall – including our brokers, construction managers and property management teams.

Peter Belisle - Commercial Real Estate MarketPeter Belisle is the Southwest Market Director for Jones Lang LaSalle, charged with overseeing the firm’s business across the region, which includes Phoenix, Las Vegas, the Los Angeles area, Orange County and San Diego. Business lines under Peter’s direction include tenant and landlord representation, project management and a property and facilities management portfolio of 62 MSF.