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CAREERS AND RECRUITING
A Tale of Two Job Markets  
December 2008

Hiring managers in fields including accounting firms and technology are having a tough time finding qualified job candidates due in part to employees who fear switching jobs in an uncertain economy, according to a report issued by Robert Half International and CareerBuilder.com.

Among the findings in The 2008 Employment Dynamics and Growth Expectations Report:

The primary recruiting challenge remains a shortage of qualified professionals, according to 59% of hiring managers.

Nearly one in five hiring managers said the impact of higher gas prices and commuting costs is greatly affecting their ability to attract skilled employees.

Recruiting a new full-time employee takes anywhere from four to 14 weeks, on average, depending on the position.

Hiring managers estimate that 43% of the resumes they receive come from unqualified candidates.



Source: Robert Half International,
www.rhi.com.


BUSINESS TRENDS
Behind the Export Boom  
December 2008

Industrial supplies and materials were the leading driver of export growth for the year ending in the second quarter of 2008, accounting for about 36% of the growth, according to the U.S. Bureau of Economic Analysis.

American exports grew at an inflation-adjusted rate of 11.8% in the 12 months studied. Capital goods, except automotive, accounted for about 34% of the growth; automotive, consumer and other goods accounted for about 22%; and foods, feeds and beverages accounted for about 8%.

Source: Bureau of Economic Analysis, www.bea.gov.

 


PUBLIC INFRASTRUCTURE
Could User Fees Break Gridlock?  
December 2008

Road user pricing is an effective approach to the gridlocked traffic facing many communities in the United States, according to a new study from Deloitte, Changing Lanes: Addressing America’s Congestion Problems Through Road User Pricing.

The study cites statistics showing that in the United States in 2007 congestion caused 4.2 billion hours of travel delay and 2.9 billion gallons of wasted fuel, for a total cost of $78.2 billion. At the same time, approximately 18% of the nation’s more than 912,000 miles of roads and highways are in poor or mediocre condition, and approximately 27% of the nearly 594,000 U.S. bridges are structurally deficient or functionally obsolete.

The answer could be road user pricing, which links travelers’ driving choices to the actual costs imposed on the traffic system. The study says pricing systems can be designed that both reduce traffic congestion and raise money to make needed repairs—but the system has to fit the need.

Road user pricing can be implemented in several ways, including pricing on a single corridor, pricing areas within dense urban environments during peak travel, and developing variable pricing for parking.

New York, Los Angeles, San Francisco, Chicago and Denver have each explored the potential for road user pricing in recent months.

Source: Deloitte, www.deloitte.com/us/transportation.


IN THE SPOTLIGHT
A Slowing Economy Affects Charitable Donations  
December 2008

It’s the giving time of year, but will the checks to charities be a little smaller this year?

A 2008 examination of the Giving USA report on charitable donations by the Giving USA Foundation, a research and education organization for philanthropy, found that giving slows slightly during recessions.

In the five recessions since the one from 1973 to 1975, giving fell an average of 1.3%, adjusted for inflation.

In nonrecession years, from 1966 through 2006, giving rose an average of 4.3%.

Source: Giving USA Foundation, www.givingusa.org.

 


TOP LINE
Data Point: 69  
December 2008
Percentage of companies that said rising energy costs have led them to pass higher costs on to their customers.
 
Source: Grant Thornton Business Optimism Index, www.grantthornton.com.

BUSINESS TRENDS
Small Businesses Fret the Finances  
December 2008

What keeps small business owners up at night? The things they can’t control, according to a study by the National Federation of Independent Business, sponsored by Wells Fargo.

The Small Business Problems and Priorities survey, based on responses from 3,530 small business owners, asked respondents to rate each of 75 possible business problems on a scale of 1 to 7 with 1 being "critical" and 7 being "not a problem."

Half of the top 10 problems worrying small business owners were costs, such as health care and energy. The remaining top 10 problems fall under tax, such as federal taxes on business income, property tax (real, inventory or personal property), tax complexity, and state taxes on business income.

The cost of health insurance continued its 20-year run as the No. 1 problem, with more than 55% of respondents saying it was "critical."

Source: National Federation of Independent Business, www.nfib.com.

 


TOP LINE
Data Point: 21  
December 2008
The average life span in months for a $1 bill.
 
The U.S. Mint, as directed by the Presidential $1 Coin Act of 2005, is promoting the use of dollar coins as a green alternative to the greenback. The mint says dollar coins last decades and that their use could save the government billions of dollars over many years. The Mint has minted more than 1 billion of the new presidential dollar coins since January 2007. Four designs are minted each year, honoring the presidents in the order in which they served.
 
Source: Bureau of Engraving and Printing, www.moneyfactory.gov; U.S. Mint, www.usmint.gov.

CAREERS AND RECRUITING
Retirement's Not Their Game  
December 2008

Between 1977 and 2007, employment of workers 65 and over increased 101%, compared to a much smaller increase of 59% for total employment (16 and over). The number of employed men 65 and over rose 75%, while employment of women 65 and older increased by nearly twice as much, climbing 147%.

And these older workers are working more. Most are full-timers: 56% in 2007, up from 44% in 1995.

While the number of employed people age 75 and over is relatively small (0.8% of the work force in 2007), this group had the most dramatic gain, increasing 172% between 1977 and 2007.

The increase in older workers can’t be attributed to baby boomers, because in 2007 the baby-boom generation—those individuals born between 1946 and 1964—had not yet reached age 65.

Source: Current Population Survey, U.S. Bureau of Labor Statistics, www.bls.gov.


BUSINESS TRENDS
Hot Market for Forensic Services  
December 2008

The demand for CPAs providing forensic accounting services has accelerated, according to an AICPA survey.

More than two out of three CPAs polled (68%) say their forensic practices have grown over the past year.

The results were released in connection with the 2008 AICPA National Accounting Conference on Fraud and Litigation Services in October. The conference marked the official launch of a new credential exclusively for CPAs—Certified in Financial Forensics (CFF). The credential encompasses specialized skills that CPA practitioners apply in a variety of service areas, including bankruptcy and insolvency; computer forensics; fraud investigations; family law; and litigation support, among others.

Of those respondents who reported increased demand for their services, 67% cited computation of economic damages as the leading reason, followed by marital disputes (56%) and investigations of financial statement fraud (54%).

AICPA research shows that CPAs represented 94% of forensic experts hired over the past two years.

More than 5,400 members of the AICPA’s Forensic Valuation Services Section completed the survey.

Source: AICPA, www.aicpa.org.


PUBLIC ACCOUNTING
Top 100 Firms Post Double-Digit Growth for Three Years Running  
December 2008

The big keep getting bigger, according to CCH’s most recent survey of the top 100 highest-revenue accounting firms.

According to the Public Accounting Report for 2008, the top 100 firms showed an average growth rate of 11.4%, up from 10.7% in 2007. This year’s list actually includes 102 firms, as three tied for the last spot in the rankings.

The report shows no change in the top 10 firms from the previous year. They are:

1. Deloitte

2. Pricewaterhouse Coopers

3. Ernst & Young

4. KPMG

5. RSM McGladrey

6. Grant Thornton

7. BDO Seidmanv

8. CBIZ/Mayer Hoffman McCann

9. Crowe Groupv

10. BKD


Source: CCH Public Accounting Report 2008, www.cch.com.


BUSINESS TRENDS
U.S. Leads Way in "Cleantech" Investments  
december 2008

As climate change moves up the corporate agenda, “cleantech” investment is reaching record levels, according to Ernst & Young.

Climate change challenges are creating opportunities for next generation technologies as companies seek to respond to stakeholder expectations, current and anticipated regulation, and rising energy costs.

The study of 150 global companies found that 90% of those surveyed were undertaking climate change initiatives, with disclosed financial commitments totaling $276 billion over the next 10 years.

This accelerated corporate response to climate change is reflected in global venture capital investment trends. As a proportion of global venture capital investment, cleantech has grown rapidly—up from just 1.6% of total investment in 2003 to 11% in 2008. And in terms of value, global venture capital investment in cleantech is set to significantly exceed the record $3 billion invested last year, having already reached $2.2 billion in the first six months of 2008.

The United States led the study with 301 venture-backed cleantech companies that have received cumulative investment of $7.29 billion, weighted toward solar and biofuel companies. Similarly, Europe (203 companies), China (25) and Israel (16) are weighted toward solar manufacturing in terms of capital invested.

Source: Ernst & Young, www.ey.com.

 


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