While the U.S. economy saw its 101st month of consecutive job growth in February, payroll expansion was well below analysts’ expectations. Employers added 20,000 jobs last month, according to the February jobs report from the Bureau of Labor Statistics (BLS). That is the lowest number since September 2017.
Job gains in January were 7,000 more than previously reported, according to the BLS. Since the start of 2019, employers have added 331,000 jobs to the U.S. economy.
Employers in professional and business services led job growth in February, adding 42,000 jobs, including 5,800 jobs in temporary help services.
Unemployment declines to 3.8 percent
The national unemployment rate dropped to 3.8 percent in February, from 4.0 percent in January.
The unemployment rate for college-degreed workers who are 25 or older — the professionals most in demand by employers — fell to 2.2 percent.
What employers need to know
At the end of 2018, 7.3 million jobs were waiting to be filled, according to the Job Openings and Labor Turnover (JOLTS) report from the BLS. So, the demand for skilled talent persists, and employers need to be prepared to negotiate salary with potential hires. In this competitive market, many job candidates feel empowered to ask for more money. In fact, more than half (55 percent) of professionals responding to a recent Robert Half survey said they had tried to negotiate a higher salary with the last employment offer. That’s a 16-point jump from a similar Robert Half survey released in early 2018.
If you’ve already researched local trends to calculate the salary for the position, what else can you do to ensure compensation discussions are constructive for you and the candidate? Here are two quick tips:
- Be transparent from the get-go. Be proactive about discussing salary with candidates early in the hiring process. The “money discussion” is unavoidable, so why put it off? Transparency gives candidates the opportunity to walk away if they feel the pay won’t meet their needs. And it allows you to focus on the applicants who do find the salary acceptable.
- Highlight perks and benefits. Salary is only one part of a compensation package — and not necessarily a dealmaker or -breaker for all candidates. So, underscore other high-value offerings, such as paid vacation time, professional development opportunities or telecommuting programs. And don’t forget benefits like health insurance and retirement savings plans, which many workers covet.
If you come across a candidate you believe would be an ideal fit for the job and your organization, be willing to flex on salary to the extent possible.
