N o v e m b e r 4 , 2 0 1 1

$23.19 AVERAGE HOURLY EARNINGS (ALL WORKERS)

1.8% ABOVE LAST YEAR

• U.S. payrolls grew by just 80,000 workers last month as businesses continue to chase productivity gains before adding headcount.

• Initial estimates show the economy grew at an annualized rate of 2.5 percent during the third quarter – nearly doubling the pace seen during the prior quarter. Consumer spending and business investments in equipment and software drove growth higher during the quarter.

• Average monthly job creation in 2011 now stands at 125,000/month – consistent with an economy that is growing, but not yet strong enough to significantly lower unemployment.

U.S. employers remain hesitant to add to their payrolls, choosing instead to try and increase productivity coming from their existing workforce. This week, the government reported productivity grew at a 3.1% annual rate during the third quarter, as businesses squeezed more output from their employees. Meanwhile, U.S. employment is on pace to grow just 1% in 2011. While productivity gains must eventually give way to hiring, the current trend provides insight into the mindset of U.S. employers. (Continued)

SLOW BUT STEADY JOB GROWTH

80,000 WORKERS IN OCTOBER

U.S. EMPLOYERS HIRED A TOTAL OF

9.0% THE NATIONAL UNEMPLOYMENT

FELL TO

9.7% LAST OCTOBER

Talent Market Monthly: November 4, 2011

U.S employers added just 80,000 workers last month, a slowdown from September and below analysts’ expectations. However, hiring totals for August and September were revised up by just over 100,000 jobs, pushing 2011 job creation up to nearly 1.3 million. Private employers have accounted for nearly all U.S. job creation during the past year as the government continues to downsize.

The national unemployment rate dipped last month as the pace of layoffs slowed, but has been stuck around 9% for most of the year. An analysis of unemployment trends by age reveals employers are hiring for experience as the unemployment rate among 35 to 54 year old workers approaches 7%, compared to nearly 10% among 25 to 34 year olds.

Employment within goods-producing industries fell by 10,000 last month, and has been nearly flat since August. The 114,000 jobs added by the service sector were concentrated in the business services, hospitality and healthcare sectors. Government payrolls fell 24,000 last month and are down nearly 275,000 since the start of the year.

While recent data on jobs and the economy continues to underwhelm, it has certainly helped ease concerns about the U.S. tipping back into recession. With the current outlook calling for modest economic growth to extend into 2012, job creation will likely remain below the levels needed to substantially lower the unemployment rate.

EMPLOYMENT OVERVIEW

OCT SEPT AUG JULY JUNE

Total non-farm employment growth

80K 158K 104K 127K 20K

Private employment growth 104K 191K 72K 173K 75K

Unemployment rate 9.0% 9.1% 9.1% 9.1% 9.2%

An Equal Opportunity Employer ©2011 Kelly Services, Inc. W1093e

HIGH-TECH WORKERS IN DEMAND – SO WHERE’S THE SUPPLY?

5.0 6.0 7.0 8.0 9.0 10.0 11.0

-900

-600

-300

0

300

600

Jul-

08

Oct

-08

Jan

-09

Ap

r-0

9

Jul-

09

Oct

-09

Jan

-10

Ap

r-1

0

Jul-

10

Oct

-10

Jan

-11

Ap

r-1

1

Jul-

11

Oct

-11

Un

em

plo

ymen

t R

ate

(%

)

Emp

loym

ent

(000

’s)

Non-Farm Employment Private-Sector Employment

U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE

Despite an unemployment rate that has hovered above 9% for much of the past two years, competition for high-tech talent remains strong as companies work to develop innovative new products and services. STEM (science, technology, engineering and math) professionals play a critical role in driving innovation, which has led to the current situation where demand for STEM workers is outpacing available supply.

A recent analysis conducted by Economic Modeling Specialists, Inc. (EMSI) shows Washington D.C., Washington, Virginia, Maryland and Massachusetts as having the highest concentration of STEM talent in the nation.

Washington D.C., is estimated to have more than twice the concentration of STEM workers than the national average, driven in large part by the federal government. Similarly, Virginia and Maryland, whose economies are also closely connected to the federal government, offer large concentrations of STEM workers.

In the state of Washington, 70% of the STEM workforce is located in the Seattle area. Massachusetts rounds out the list of top states with STEM employment levels 1.5 times above the national average despite a 3% loss in STEM occupations during the past decade.

Source: Bureau of Labor Statistics

Sources: EMSI , The Conference Board HWOL (10/11)