Welcome to Risk Management Plus+ Online

A Service of Travelers Bond & Specialty Insurance

print   email   Share

The Economy Is Back: How Will That Affect Employers?

By Jack McCalmon, The McCalmon Group, Inc.

The labor participation rate rose again to 63.1 percent despite the weather. Most believed the September job reports to be a setback because of the Texas, Florida, U.S. Virgin Islands, and Puerto Rico hurricanes, but the underlying numbers prove that the economy is standing strong. 

The recent numbers from the Department of Labor show that the unemployment rate dropped to 4.2 percent, the lowest since 2001. The hurricanes did impact the food industry and led to an overall loss of 33,000 jobs, however. Even so the overall unemployment rate has stayed steady at 8.6 percent. http://news.gallup.com/home.aspx

Although the numbers look good for finding and keeping a full-time job, what employers need to consider is that wages are continuing to go up. Payroll numbers rose to 12 cents, and the average hourly earnings have increased 2.9 percent in the last 12 months. Susan Jones "63.1%: Participation Rate Reaches Trump-Era High; Record Number of Employed" www.cnsnews.com (Oct. 06, 2017).


Commentary

Once the impact of the hurricanes is addressed, employers can expect that the job and wage numbers will increase especially as construction begins in Texas, Florida, U.S. Virgin Islands, and Puerto Rico. Congress also has bilateral support for an infrastructure program. If an infrastructure program is passed, employers will find a very competitive job market, especially in the construction industry.

When an economy improves, especially after the recession, turnover is bound to increase especially from employees who are presently filling low- paying or part-time jobs. Employees with experience, but working part-time, will have more options for increased wages and full-time employment.

Employers that have low wages, who cannot increase wages and do not have competitive benefits, will have to look at candidates with less experience or who are reentering the job market. Employers that use temporary employees may also experience a shortage of qualified talent. 

As for litigation exposure, layoffs and terminations place employers at their biggest risk. When the economy improves, there are fewer layoffs and terminations lowering risk. Moreover, employees who are laid off or terminated are more likely to find “like employment,” decreasing the possibility that they will seek legal redress.   

Finally, your opinion is important to us. Please complete the opinion survey:

News & Information

Malware Piggybacking On Popular Software And Apps: How Can Employers Increase Awareness

The recent CCleaner malware proves that even legitimate software poses a significant cyber risk. Learn more about this risk and keeping up on emerging risks.

Read More

How Negligent Supervision Can Lead To Massive Fraud And Crippling Litigation

An employee of a lottery programming company commits fraud. Learn how the employer's failure to oversee the employee could lead to class action lawsuits.

Read More

Bluetooth Malware Discovered: 5.3 Billion Devices At Risk

BlueBorne, a new strain of malware, spreads quickly and easily by exploiting Bluetooth technology. Learn more about Bluetooth, its vulnerabilities, and how you can stay safe.

Read More

Is Cybersecurity Fatigue The Cause Of So Many Hacks?

A recent survey finds many users create weak passwords out of convenience because of password fatigue. We examine.

Read More