Investing March 20, 2003

Jobless Claims Down But Market Still Floundering

March 20, 2003 (PLANSPONSOR.com) - The government's jobless claims totals fell for the second straight week, but remained higher than a key market benchmark and drove a closely watched job market barometer higher than it has been since May 2002.
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According to the US Department of Labor, the number of Americans lining up for state unemployment benefits dipped slightly in the March 15 week to 421,000 from a revised 425,000 the prior week. Last week’s numbers were also down (See    Jobless Claims Break Upward Cycle; Drop 15,000 in Latest Report ). The latest tally was in line with predictions of 420,000 from economists participating in Reuters’ weekly survey.

Despite the drop, the latest report featured two causes for concern:

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  • The latest report marks the fifth straight week that the DoL jobless totals stubbornly clung to a level above the key 400,000 mark. Economists consider numbers above that watermark a sign that the jobs market is still floundering.
  • The four-week moving average – a more reliable indicator of job trends – rose for the seventh consecutive report to 424,750 from a revised 421,000 in the previous week. That was the highest total since hitting 429,500 in the week of May 4, 2002. The average is considered a more accurate trend indicator because it smoothes out short-term volatility.
Benefits March 19, 2003

IT Employee Burnout Rate Reaches Critical Mass

March 19, 2003 (PLANSPONSOR.com) - A majority of IT managers (71%) say employee burnout is currently a serious issue in their organizations.
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Employers recognize the potential impact of burnout and are taking steps to assess the degree of employee dissatisfaction, with 84% indicating they do employee surveys, another 18% using the performance review process to obtain employee feedback, and 15% using suggestion boxes to keep the lines of communication with employees open, according to the 2003 IT Staffing and Compensation Guide, released by META Group, Inc.

Additionally, 55% of those surveyed have begun implementing skill development programs as a means to boost employee morale, while 24% have created better overall retention programs.

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However, monetary rewards still register as a viable backup plan as:

  • 11% of surveyed companies raised salaries
  • 11% are hiring more staff
  • 8% offer cash incentives to prevent employee burnout

Surprisingly, a few IT organizations with remote locations relied on a change of scenery to attract more talent and retain good people, while 5% moved the company to a new location altogether in an effort to lure skilled workers and reduce employee malaise.

For more information about the 2003 IT Staffing and Compensation Guide, visit  www.metagroup.com .

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