MARKET UPDATE: JULY 2010

According to the Department of Labour (DOL); 
“The economy is now recovering, and economic growth over 2010 is expected to be relatively robust. However, since the end of the recession, employment has continued to fall - by 29,000 over the past three quarters. Further falls in employment are possible and even when employment does start to increase; growth is expected to be sluggish.”

And in looking into why employment may be taking longer to recover post recession the DOL has a number of reasons to note such as:

• Layoffs may have become more permanent
• The labour market has become increasingly global
• The workforce has become more specialised
• The current downturn has followed a periods of severe shortages

However although the market does seem ‘fragile’ we are seeing signs of improvement....there is a growing trend for temporary and contracting staff.  This represents a demand-driven market and reflects what we have been seeing this year at Frog.

And we are hearing our clients talk positively again – which is great news. According to the February 2010 National Bank Business Outlook;  
“a net 50.1% of respondents expect general business conditions to improve over the next year.  This is the highest figure since 1999 when the economy was last recovering from a recession.  Construction, manufacturing and the service sector remain the most optimistic. Consumer confidence also remains historically high, despite recent easing. “

So all in all – a lift is occurring; it is being reflected in the volumes of work we are managing and the diversity of the work we are involved with.   And – we’ll keep you posted as the year progresses!