Katrina's impact on employment numbers

The Bureau of Labor Statistics is scheduled to report on the September employment situation tomorrow (10/7). Jim Lanzalotto from Yoh, says, “Hurricane Katrina has had a dramatic effect on the labor market in the Gulf Coast and will be a significant factor in the September Bureau of Labor Statistics report. But despite a projected decline in U.S. payrolls, we still anticipate the report of healthy growth in temporary hiring nationwide, from August to September. Moving forward, we expect to see increased demand for high-technology consultants and direct hires in the fourth quarter, especially in R&D sectors, as companies begin to solidify budgets and staff up for 2006 programs and projects.”

“I’m also encouraged by the recent robust report on hiring in the manufacturing industry from the Institute for Supply Management–the 28th straight monthly increase,” he adds. “But with the rising cost of crude oil, there might be need for concern about this movement leveling off.”