July 2014 Jobs Report

The U.S. economy added 209,000 jobs in July while the unemployment rate rose slightly to 6.2%, according to the Bureau of Labor Statistics' Employment Situation Summary. The number of long-term unemployed persons remained little changed 3.2 million and accounted for 32.9% of the total unemployed.

Major industries with gains in July included professional and business services (+47,000), manufacturing (+28,000), retail (+27,000), and construction (+22,000). Temporary help services decreased by 33,600 in July, a typical pattern due in part the Independence Day holiday.

Manufacturing added 28,000 jobs in July, making it the industry with the second-highest job growth. Most gains occurred in motor vehicles and parts and furniture-related products. Over the prior 12 months, manufacturing has added an average of 12,000 jobs per month, primarily in durable goods industries. Other industries, such as leisure and hospitality, transportation and warehousing, information, financial activities, and government changed very little during the month of July.

State of the Economy and June 2014 Jobs Report

The U.S. economy has seen tough times over the past few years, and speculation as to its health and recovery is in the news every day because Americans want to know how secure their jobs are, what they will be able to afford for themselves and their families, and what to expect for the future of their dollars. In recent weeks and months, optimism for the health of our economy has seemed to wane.

For the past two years, our economic growth rate has remained at a measly 2 percent. Economists were confident at the beginning of this year that we would finally boost that growth to 3 percent, but in mid-June, the International Monetary Fund (IMF) reduced its estimate of 2.7 percent growth for 2014 to 2 percent (Bloomberg.com, 6/16/14). Although employers have added many jobs over the past few months, the long winter placed a strain on several industries, and experts are worried that climate change could present even more challenges to economic projections in the coming years.

Some experts say that the economy is doomed to never fully recover from the Great Recession in 2008. While it would seem as though the economy has rebounded greatly, the truth is that salaries and household incomes have not risen in years and many are still unemployed despite growing numbers of jobs added each month. Other economists maintain that full recovery is on its way, but will take more time than originally estimated due to the slow rate of growth (The New York Times, 6/11/14).

While this speculation, estimation, and evaluation continues among experts and politicians, the Economic Employment Situation for June 2014 had some unexpected positive news – with the economy creating a higher-than-expected 288,000 jobs and the unemployment rate falling to 6.1%, a six-year low. In addition, the May payroll number was revised upward.

Other news from the June Jobs Report included:

  • The number of long-term unemployed persons declined by nearly 300,000 and nearly 2% of the total unemployed.
  • Major industries with gains included professional and business services (+67,000), retail trade (+40,000), food services and drinking places (+33,000), health care (+21,000), financial activities (+17,000), transportation and warehousing (+17,000), and manufacturing (+16,000).
  • Temporary help services continued its upswing by gaining 10,000 jobs in June, which makes for a total gain of 216,000 over the past year.

Upon the news, the Dow Jones Industrial Average broke the 17,000-point barrier for the first time. Similarly, the S&P 500 and Nasdaq Composite were in the green. Some news outlets, like CNNMoney, claimed that this report was an indication "the American jobs recovery seems to have finally hit its stride" and also noted that rising pay rates, partially spurred on by some minimum wage increases in several states, have encouraged consumer and economic optimism (CNNMoney, 7/3/14).

Traditionally, the run-up to elections causes some economic uncertainty in the nation. We'll have to see if the optimism stemming from today's Jobs Report will stay high in the coming weeks and months.

Readers: Do you think the economy has recovered as much as it can already?

May 2014 Jobs Report

The United States economy added 217,000 jobs in May while the unemployment rate remained at 6.3%, according to the Bureau of Labor Statistics' Employment Situation Summary. The number of long-term unemployed persons remained at about 3.4 million and accounted for 34.6% of the total unemployed.

Major industries with gains in May included professional and business services (+55,000), health care and social assistance (+55,000), food services drinking places (+32,000), and transportation and warehousing (+16,000). Temporary help services continued its upswing by gaining 14,000 jobs in May, which makes for a total gain of 224,000 over the past year.

Although manufacturing did not add a significant number of jobs this past month, its gain of 105,000 jobs over the past year is promising. Other industries, such as mining and logging, construction, retail, and government employment changed very little during the month of May.

Whose Market Is It?

Last week, TradePost discussed how to interview and hire new graduates, many of whom have unpolished interview skills but are eager to learn and produce for you. However, these eager new employees may have more of an upper hand than hiring managers think. With the unemployment rate falling to 6.3% in April, the lowest rate since Fall 2008, job seekers are finding themselves with more choices than in the past few years.

Now, we are not completely out of this scenario. While the economy has improved greatly, the drop in the unemployment rate has still been slow in coming. Many employers are still apprehensive about hiring new employees, especially if they have found a way to get all of their work completed with fewer staff members over the past few years.

So, whose market is this? The answer is that we are in transition. On one hand, we see more companies making plans to hire recent graduates (USA Today, 4/24/14). However, we do still see uncertainty by employers regarding economic growth and the continuing political landscape (EconoMonitor, 05/20/14).

In the current situation where things are getting better, but while we have still not fully recovered from the recent recession, trends are emerging and hiring managers can be aware of them. First, it is likely that while your company may have received a very high volume of responses to job postings in the last few years, you will now receive fewer résumés for positions that you post, and responses may be delayed as job seekers are taking time to think about available positions before applying rather than applying to any posting that seems feasible.

Also, after receiving those responses and conducting interviews, job seekers are more likely to negotiate salary and benefits upfront. While you could count on at least one of your preferred candidates to accept an offer without too much negotiation in recent months and years, this is changing as those same preferred candidates are now more likely to have offers from other companies. Some of your candidates may even be negotiating with more than one company at once!

Finally, do not be surprised if you offer a candidate the position with a fully competitive salary and with benefits and they still turn it down. Your first choice may be someone else's first choice as well. Or perhaps he or she still has a job and does not feel that your offer warrants leaving the current position. You may be contacting your second-choice candidates more often in the coming months.

Finally, do not be surprised if you offer a candidate the position with a fully competitive salary and with benefits and they still turn it down. Your first choice may be someone else's first choice as well. Or perhaps he or she still has a job and does not feel that your offer warrants leaving the current position. You may be contacting your second-choice candidates more often in the coming months.

Readers: Have you experienced any of these recent changes when hiring for your last position?

April 2014 Jobs Report

The April Employment Situation Summary as reported by the Bureau of Labor Statistics showed a gain of 288,000 jobs as well as a fall in the unemployment rate from 6.7% to 6.3%, the steepest drop since December 2010.

Professional and business services gained the most jobs at 75,000. Within that category, temporary help services continued to grow by adding 24,000 jobs in April, up 9.3% year over year. This industry continues to grow at about 9% annually.

Retail trade also grew in April by adding 35,000 jobs, and food services and drinking places increased by 33,000. Construction added 32,000 jobs while health care added 19,000. Finally, mining had a decent gain of 10,000 jobs in April.

Other major industries showed little change since March. The average hourly wage also remained unchanged from $24.31 per hour. April has been a month of growth for most industries. However, with such a sudden and steep drop in the unemployment rate, May's numbers may prove to be less exciting as the unemployment rate is not likely to continue to decrease at such a rapid rate.

March 2014 Jobs Report

The unemployment rate remained stable at 6.7% in March, according to the Bureau of Labor Statistics' Employment Situation Summary. Some 192,000 jobs were added to nonfarm payrolls, making March another month of little change for the United States' employment situation.

Several industries added jobs in March with the most notable being professional and business services (+57,000). Within that category, temporary help services added 29,000 jobs. Health care also added 19,000 jobs, while food services and drinking places (+30,000) and construction (+19,000) also had substantial gains.

Government employment as well as manufacturing, wholesale trade, retail trade, transportation and warehousing, information, and financial activities remained unchanged from February.

February 2014 Jobs Report

According to the Employment Situation Summary from the Bureau of Labor Statistics, the unemployment rate rose for the first time in over a year from 6.6% in January to 6.7% in February. This may be due to continuing layoffs of seasonal workers after the holidays. 175,000 jobs were added in the month of February, and the number of long-term unemployed persons increased by 203,000, accounting for 37.0% of the total unemployed.

Employment in professional and business services rose by 79,000, and within that category temporary help services added 24,000 jobs. This continual rise in temporary services can likely be attributed to the ever-approaching employer mandate in the Affordable Care Act, making temporary help a viable solution for many businesses. Wholesale trade rose by 15,000 with most of those gains being in durable goods (+12,000). Food services and drinking places trended upward by adding 21,000 jobs.

Construction (+15,000), and health care (+10,000) each added some jobs, but made no notable change in employment for the month. Retail trade lost 4,000 jobs in February, and information declined by 16,000 jobs.

January 2014 Jobs Report

The unemployment rate in the United States continued to tick downward slightly from 6.7% in December to 6.6% in January and added 113,000 jobs, according to the Bureau of Labor Statistics' Employment Situation Summary. The number of long-term unemployed declined also by 232,000 and accounted for 35.8% of the total unemployed.

The construction industry added 48,000 jobs in January, more than any other industry. Manufacturing also added 21,000 jobs, and wholesale trade added 14,000 jobs. Other industries with gains include professional and business services (+36,000) and leisure and hospitality (+24,000).

The health care industry remained unchanged in January, and retail lost 13,000 jobs. Federal employment also declined by 12,000, but the U.S. Postal Service accounted for most of this loss.

Temporary help services added 8,000 jobs in January, and this industry is showing year-over-year growth with 9% more employees than in January of last year.

December 2013 Jobs Report

The Bureau of Labor Statistics' Employment Situation Summary showed another drop in the unemployment rate from 7.0% to 6.7% in December, dropping the United States' unemployment rate down by 0.6% since October. Approximately 74,000 jobs were added in December. The long-term unemployment rate showed little change.

Retail trade added 55,000 jobs in December, and wholesale trade added 15,000 jobs, likely due to the holiday shopping season. Temporary help services also had a strong gain of 40,000 jobs. Professional and business services added 19,000 jobs, while manufacturing added 9,000 jobs. Employment also increased slightly in mining, adding 5,000 jobs.

Health care employment saw a loss of 6,000 jobs, but this is a small change. Information had a greater loss of jobs (-12,000), and construction lost 16,000 jobs.

While the unemployment rate has seen a great amount of recovery in the past couple of months, stocks have remained fairly stagnant. Some retailers cut their earnings forecasts, and hiring did not actually pick up in December as much as Wall Street had anticipated. According to Reuters, 196,000 jobs were expected to have been added to nonfarm payrolls in December, making the actual number of 74,000 a large disappointment (Reuters, 1/9/14).

November 2013 Jobs Report

The United States jobs market looked great in November as 203,000 jobs were added to nonfarm payrolls and the unemployment rate fell from 7.3% to 7.0%, according to the November Employment Situation Summary released by the Bureau of Labor Statistics. Part of this reflects the return of federal workers after the October 2013 furlough, and the number of long-term unemployed accounted for 37.3% of the total unemployed, a number that has remained static since October.

The industries with the greatest gain in jobs included transportation and warehousing (+31,000), health care (+28,000), manufacturing (+27,000), and professional and business services (+35,000). Retail also had a significant gain at 22,000 jobs added, with 14,000 of those being in general merchandise stores.

Other notable gains in jobs include food services and drinking places (+18,000) and construction (+17,000). Temporary help services also gained 16,400 new jobs in November. Government employment declined by 7,000 jobs. The average hourly earnings for employees on private nonfarm payrolls rose by $0.04 to $24.15.

More Entries