Dive Brief:
- The National Center for the Middle Market (NCMM) released its Q4 2017 Middle Market Indicator (MMI), citing 71% of middle market firms reported improved year-to-year performance. The overall performance of middle market firms has been increasing steadily, but this quarter showed the highest percentage of reported improvements — almost 10% higher than the average.
- However, hiring is beginning to slow. The 5% employment growth rate in Q4 2017 for middle market firms is the lowest rate since Q3 2016. Despite this slowdown, half of the surveyed executives said talent would be a "top long-term challenge" as the market continues to tighten.
- For middle market business, maintaining talent is a priority with 40% planning to increase their investment in workforce training and education and 43% citing wage increases as a tool for retention.
Dive Insight:
The MMI is just another indicator of growth in the economy that’s translating into jobs. 2017 saw the highest level of entry-level hiring on record, with businesses projecting they will recruit an even larger amount of entry-level candidates in 2018.
In addition to entry-level hiring, many big-name facilities are in the works or breaking ground. With the help of Alabama’s state agency, a new plant with the potential to hire 4,000 workers will open soon. In Wisconsin, a new Foxconn plant promises another 13,000 new jobs. And of course, Amazon's HQ2 promises to bring 50,000 jobs to whichever city it ends up choosing.
Following the devastation of last year’s hurricane season, the U.S. Bureau of Labor Statistics reported 33,000 jobs were lost in the retail and service space. However, across the country, net job increases were seen in transportation and warehousing, financial services, health care, and social assistance.
