Market Overview 

"For the second month in a row, Texas topped the list for nonfarm payroll employment gains, according to the Bureau of Labor Statistics' May regional and state employment report. Texas gained 22,700 jobs compared with April, followed by Illinois with 12,200 and California with 10,800.

According to the report, Texas has gained 239,000 jobs since May of last year. The increase is the largest in the country, with California and Florida following with 228,600 and 125,900 respectively.

Compared with the same month last year, Texas saw a 0.9 percent drop in unemployment from 5 percent to 4.1 percent in May 2007. Idaho and Montana tied for first with the lowest May unemployment rates at 2.3 percent each. Again, Michigan reported the highest with 6.9 percent. For the nation as a whole, unemployment stayed unchanged at 4.5 percent."

So far interest rates have remained steady as inflation is being tracked to give some guidance. We have seen an increase in salaries but off shoring and vacant openings appear to be keeping labor cost under control.

At Strategic Careers® and Strategic IT Services, we specialize in placing Information Technology, Sales, Marketing and Bio-IT Professionals and Executives. Our services include contract and permanent staffing solutions.

Have a great day!

Bobby Lowe
President

The unemployment rate has been a good gauge for how the economy is doing; if nothing else it keeps things in perspective. At 5% the economy is good, good candidates are working and companies are hiring. Under 5% the economy is good (or better), good candidates are working (and they want more) and companies are struggling to find good candidates. Over 5% the economy is ok or slowing, good candidates are working but consolidations, mergers and layoffs are of concern and companies are a mixed bag (some laying off, some hiring and some just staying in business).

The unemployment rate rose to 5.0 percent in December as reported by the Bureau of Labor Statistics of the U.S. Department of Labor. Job growth in several service-providing industries, including professional and technical services, health care, and food services, was largely offset by job losses in construction and manufacturing.

Employment in professional and technical services was up by 33,000 in December and by 322,000 over the year. Within this industry grouping, employment continued to trend up in December in architectural and engineering services (8,000) and in management and technical consulting services (12,000).

Locally employers added 59,800 jobs during the past 12 months, a 2.4 percent gain, according to the Texas Workforce Commission. Houston's unemployment rate was 4.2 percent in December, up from 4 percent in November.

The statewide unemployment rate rose to 4.5 percent in December, its highest level in 10 months and a sign of slowing in the regional economy. Figures showed that the number of job hunters swamped a modest increase in hiring in Texas, pushing unemployment up from 4.2 percent in November.

In Houston we have seen an increase in positions for Application Development Managers, Infrastructure Managers, Project Managers and Business Analysts. The global econ

On the technology front for skilled workers it is much tighter than the unemployment numbers would suggest with the rate being in the low 2's at best; Houston's could be lower. With the surge in the oil and gas space over the last 2 years, the competition for technology people is as tight as ever. Salaries and other benefits are increasing for the work force at a steady pace. Outsourcing has kept the increases within reason but it will be interesting going forward to see what happens. I don't think that employees are as concerned about outsourcing as they may have been in the past but it is still a concern for them. More people are continuing to do contract work as the opportunities are increasing in the marketplace.

Unlike other times in the past when we have seen a strong market for some areas of IT, the IT market as a whole is very tight, carrying over to all areas of expertise. I would recommend that CIOs, VPs and IT Managers evaluate their current situation and take the necessary steps to keep the staff that they want; people will start looking around in the first quarter.

Please let me know your thoughts in these areas and what we can do this quarter to partner with you in these challenging areas.

I will be posting these comments and future comments on our website on a periodic basis if