PHILADELPHIA - September 12, 2006 - Reflecting the stronger economy earlier this year, laid-off employees at all levels found new jobs quicker during the first six months of 2006 than in each of the past two full years, according to Right Management, aleading global provider of integrated consulting solutions across the employment lifecycle.
"The strong economy earlier this year was a contributing factor to displaced employees landing new employment faster," said Mike Touhey, Executive Vice President of the Americas for Right Management. "Employees at all levels found new jobs quicker, and people were able to launch businesses or consulting practices sooner. However, the recent slowdown in creation of new jobs may contribute to longer job-search times for the remainder of the year."
More than three quarters (77%) of lower-to-mid-level managers found new jobs within 3 months from January through June this year, while more than half (53%) of senior-level executives landed new employment within 4 months.
59% of those starting or buying businesses got them up and running within 3 months, and 53% starting or buying consulting practices launched them within that same time frame.
The data included 3,745 laid-off employees throughout North America who found new jobs, or started or acquired businesses or consulting practices, from January through June 2006 with the assistance of Right Management outplacement consulting programs.
"Continuing a trend from last year, laid-off employees launched businesses or consulting practices faster. There was a 24% increase in the number of people who launched consulting practices within 3 months, and an 11% increase in the number of people who started or acquired businesses within 3 months," said Touhey.
20% of people landing new jobs during the first six months of this year were entrepreneurs, with 11% starting or buying consulting practices, and 9% launching businesses. In 2005, 21% were entrepreneurs, with 11% launching businesses and 10% opening consulting practices.
"Entrepreneurship continued to be viewed more as an active choice, and less as a fallback position," said Touhey. "When the economy is slow or in recession, more people finally decide to start their own businesses only after exhausting all other options, since available jobs are tougher to get. In a good job market, more people who choose to become entrepreneurs really want to have their own businesses, and they start these more quickly."
The national average unemployment rate fell to 4.7% for the first six months of 2006, compared with 5.1% for 2005, 5.5% in 2004, and 6% in 2003, according to the U.S. Bureau of Labor Statistics.
Job-search data included:
- Lower-to-mid-level managers: 77% landed new jobs within 3 months from January through June 2006, and 93% found new jobs within 6 months. In 2005, 72% found new jobs within 3 months, and 92% within 6 months.
- Senior-level executives, such as department heads and senior vice presidents: 53% landed new jobs within 4 months from January through June 2006, and 85% found new jobs within 8 months. In 2005, 45% found new jobs within 6 months, and 72% within a year.
- Key executives, including executive vice presidents up through chief executive officers: 65% landed new jobs within 6 months from January through June 2006, and 90% found new jobs within a year. In 2005, 45% found new jobs within 6 months, and 72% within a year.
- Started/bought a business: 59% got their businesses up and running within 3 months, and 89% within 6 months, from January through June 2006. In 2005, 53% got their enterprises going within 3 months, and 80% within 6 months.
- Started/bought a consulting practice: 53% launched their consulting practices within 3 months and 79% within 6 months from January through June 2006. In 2005, 43% began them within 3 months, and 71% within 6 months.
Job-search times for people receiving outplacement services from Right Management generally are significantly less than for those who conducted searches without experienced consultants or transition support services.
"Receiving practical, professional career advice, and using proven job-search strategies, helps people speed up the process of finding satisfying and rewarding new careers," added Touhey.
About Right Management
Right Management (www.right.com) is a leading global provider of integrated consulting solutions across the employment lifecycle. Right Management helps clients maximize the return on their human capital investments while assisting individuals to achieve their full potential.
Right Management is a wholly owned subsidiary of Manpower, Inc. (NYSE:MAN), a world leader in the employment services industry, creating and delivering services that enable its clients to win in the changing world of work.