Hiring Activity Up: Head Hunter
A top head hunting firm has been seeing consistent and solid signs since the start of the year that American companies are hiring again.
ADP's private payroll report Wednesday showed 201,000 private sector payrolls were added in March, just about the same number economists expect to see in the government's March employment report when it is released Friday. In February, the economy added 192,000 jobs and the unemployment rate was 8.9 percent, but economists say they have yet to see signs that the economy is able to create jobs at a sustainable, healthy rate.
Geoff Hoffmann, Chief Operating Officer at executive head hunter firm DHR International says he's seeing real signs of job creation first hand.
"The jobs are coming back, especially in the executive ranks. But those executive jobs are always a leading indicator for everyone else," Hoffmann said. The hiring managers across the board are looking to add employees, and in a big way, he said on "Squawk on the Street" Wednesday.
He declined to name the companies, but he said that three California-based tech companies he's talking to will add up to 8,000 jobs in the next few months. All 8,000 new employees will be based throughout the United States. These are U.S. positions, not international jobs.
Hoffmann, however, added that jobs are being added by American employers internationally as well. He's seeing clients hire at an especially fast rate in Asia and Brazil.
In the U.S., Hoffmann says he sees significant job growth in the technology sector, and there are also new jobs being added in the healthcare industry.
"It has nothing to do with the government or new rules and regulations. Healthcare jobs are being added simply because of changing American demographics. And these are good jobs, executive level jobs in many sub-sectors of the healthcare industry," he said.
Hoffmann also sees new jobs being added in sales as well, an indication that both manufacturing and services jobs are being added. The ADP jobs data echoes that. There were 89,000 new service sector jobs created in March, along with 37,000 in American manufacturing.
As far as those sales jobs are concerned, companies are looking for employees to use more sophisticated sales strategies, aiming at more than traditional customers. "New sales jobs are focused on integrating and cross selling across many different platforms," Hoffmann said.
Friday's jobs number calls for the unemployment rate to remain at 8.9% but economists think the U.S. will add 195,000 jobs.