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October Jobs Report

October Jobs Report: 43,000 More Jobs Than Expected

The numbers are in, and the Bureau of Labor Statistics reported a strong gain of 128,000 jobs, which is 43,000 more jobs than economists predicted. Moreover, the unemployment rate ticked up a tenth of a percent from a 50-year low to 3.6 percent. This small increase in unemployment is due to an even more substantial rise in the U.S. labor force (those Americans who are working and actively seeking employment). Overall, this month’s Jobs Report demonstrates that the economy is healthy and should ease fears of a looming recession.

Let’s take a more in-depth look at the October Jobs Report

October was officially the 109th month in a row of job gains despite a couple of factors. The six-week GM strike reduced employment by 42,000 jobs, according to the BLS. However, the strike is finally over, so we are likely to see a nice bump in November’s report as the striking workers head back to work. Additionally, the number of workers helping prepare for the 2020 census dropped by a whopping 20,000. Thus, if you take both of these numbers into consideration, the number of jobs added theoretically could be 62,000 higher.

Another factor that should boost all our confidence in the economy is the revised job gains over the previous two months. In August, job gains were revised up by 51,000 (219,000 jobs in total), and in September, job gains were revised up by 44,000 (a total of 180,000 jobs). With these revisions, job gains over the last two months equate to 95,000 more jobs than previously reported. After revisions, job gains have averaged an impressive 176,000 over the previous three months. And over the year, job gains have averaged 167,000.

Average earnings for all employees continued to rise with an increase of $0.06, for an average hourly wage of $28.18. Over the last 12 months, hourly wages have increased by 3 percent. The labor force participation rate was also little changed at 63.3 percent. These are both great signs that the labor market remains strong as we get closer to 2020.

Job gains by industry

The food services and drinking places industry added a staggering 48,000 jobs. Over the last three months, this industry has averaged 38,000 job gains.

The professional and business services group ticked up again in October (+22,000). The industry as a whole has averaged 33,000 gains over the year.

In October, employment in social assistance increased by 20,000 jobs and a total of 139,000 over the past year. Family services made up most of these gains, with 17,000 jobs added.

Financial activities rose by 16,000, with the majority of gains from real estate, rental, and leasing (+10,000). Financial activities have added a total of 108,000 jobs over the last 12 months.

Healthcare once again added jobs (+15,000) with total job gains of 402,000 over the last year.

Job declines by industry

Not surprisingly, manufacturing employment fell by 36,000 jobs in October, due to the 6-week strike from GM workers in the motor vehicles and parts realm (-42,000 jobs).

Moreover, employment in the federal government fell by 17,000 jobs in October due to the departure of 20,000 workers finishing up their work prepping for the 2020 Census.

Employment in other major industries–including mining, construction, wholesale trade, retail trade, transportation and warehousing, and information—showed little change over the month.

Let’s work together

With only two months left of the year, it’s essential to take care of your hiring needs to start the year off strong. If you need a helping hand to navigate today’s candidate-driven market, reach out to one of our stellar recruiting teams. We have decades of industry experience and can help source the candidates your team needs to start the new year on the right foot. Partner with a recruiter today!

September Jobs Report

September Jobs Report: Unemployment Rate Hits 50-Year Low

Last month, the unemployment rate declined to 3.5 percent, the lowest it has been since December 1969. That’s a 0.2 percent decline from the previous month. It’s also the 19th month in a row that the unemployment rate was at or below 4 percent. Additionally, employers throughout September added 136,000 jobs, short of economists’ predictions of 147,000 jobs. Despite missing projections, job gains throughout 2019 have averaged an impressive 161,000 per month.

Let’s take a detailed look at the September Jobs Report.

Employers keep adding jobs despite worries of economic growth

September 2019 was the 108th month in a row of payroll job gains. In other words, despite a shaky stock market this last week and fears of global growth cooling off, employers keep hiring at a remarkable pace.

Over the past two months, payroll employment was positively revised by an additional 45,000 job gains than previously reported. In July, job gains were revised from 159,000 to 166,000 jobs (+7,000 jobs) and from 130,000 gains in August to 168,000. After revisions, monthly job gains have averaged 157,000 over the last three months.

Unemployment claims also remained steady throughout the month at 219,000 for the week ending on September 28. The unemployment ratio (61 percent) was little changed over the month as the labor force participation rate held to 63.2 percent in September. Additionally, the number of unemployed persons decreased by 275,000 to a total of 5.8 million last month. In other words, the labor market is continuing to add jobs, while the number of unemployed Americans continues to decline, which illustrates the true strength of today’s job market.

September Jobs Report: Gains by industry

Last month, healthcare employers added 39,000 jobs, which was on par with the industry’s average monthly gains over the previous 12 months. Both ambulatory healthcare services (+29,000) and hospitals (+8,000) added jobs over the month.

The professional and business services industry continued to grow with an additional 34,000 job gains throughout the month. In 2019, the industry has averaged monthly gains of 35,000.

Employment in government resumed its growth with gains of 22,000 jobs. Over the last 12 months, government job gains have totaled 147,000, mainly coming from local government positions.

The transportation and warehousing industry edged upward in September with 16,000 job gains. Gains from this industry originated from both transit and ground passenger transportation (+11,000) and in couriers and messengers (+4,000).

Retail trade took another hit with the loss of 11,000 jobs. However, this number is consistent with last month’s report. Despite this decline, food and beverage stores added 9,000 jobs throughout the month.

Employment in all other major industries, including mining, construction, manufacturing, wholesale trade, information, financial activities, and leisure and hospitality, showed little change over the month.

Finding the talent you need in Q4

With hundreds of thousands of jobs added throughout the first three quarters of 2019, it is becoming increasingly difficult for employers to find candidates to fill their open positions. If you’re a worker thinking about making a career move, now is a great time to transition into a new role and make a jump in your career. But if you’re a hiring manager, this tight market can be frustrating. If your team needs a helping hand to navigate today’s job market, reach out to one of our recruiters at JSG. Let’s team up and work together to find the talent your organization needs to keep production healthy in the final quarter of 2019.

Jobs Report

August 2019 Jobs Report: 130,000 Jobs Added

Jobs Report

For the third month in a row, the unemployment rate remained 3.7 percent, according to the Bureau of Labor Statistics. That’s the 18th straight month of the unemployment rate being at or below 4 percent. Moreover, the employment of nonfarm payrolls rose by 130,000, short of economists’ predictions of 150,000. Despite missing expectations, job growth has averaged 158,000 per month so far this year. Here’s a deep dive of the latest jobs report.

Larger wages, fewer unemployment claims

In August, the number of unemployed persons was essentially unchanged at 6 million people. Additionally, average hourly earnings continued to increase by $0.11 to $28.11. That’s following an $0.18 raise over the last two months. Over the previous 12 months, average hourly earnings have increased by 3.2 percent.

While wages have steadily grown this year, the number of unemployment claims have declined. According to the Department of Labor, the total number of people claiming benefits in all programs for the week ending August 17 was 1,639,605, a decrease of 4,710 from the previous week. That’s over 9,000 fewer claims than this time last year. Thus, on average workers are making more money, and fewer people are receiving unemployment benefits.

Jobs Report revisions

In June, job gains were revised down by 15,000 from 193,000 to 178,000. And for July, jobs were revised down by 5,000 from 164,000 to 159,000. That equates to a net decrease of 20,000 job gains from the previous two months. However, over the last three months, job gains have averaged 156,000.

Job gains by industry

The federal government saw a steep increase last month with 28,000 open jobs. This was primarily due to a massive hiring surge of 25,000 temporary workers to prepare for the 2020 Census.

The healthcare industry came in a close second with 24,000 job gains over the month. And over the last 12 months, healthcare added 392,000 jobs. Ambulatory healthcare services were once again, the most significant contributor of this with 12,000 jobs.

The financial sector added another 15,000 jobs, with roughly half of those jobs occurring in insurance carriers and related activities. Over the year, the financial sector has added 111,000 jobs.

Once again, the professional and business services industry continued to climb upwards with 37,000 job gains. This industry has averaged 34,000 jobs throughout the year, largely due to computer systems design.

Employment in social assistance propelled upwards again with 13,000 jobs. Social assistance gob gains have averaged over 100,000 jobs over the last six months.

Retail trade (-11,000) and mining (-6,000) both saw declines over the month. Over the year, retail trade has lost 80,000 jobs.

All other industries, including construction, manufacturing, transportation, and warehousing, and leisure and hospitality saw little change over the month.

Finding talent in today’s tight market

Nearly every American who wants to work can easily find a job in today’s market. As more Americans re-enter the workforce and stop receiving unemployment benefits, it’s becoming increasingly difficult to find qualified candidates to fill your critical roles. If you need assistance navigating the tight labor market, why not partner with a recruiter that specializes in your industry? Let’s work together to find the talent your team needs to keep production running smoothly.

July 2019 Jobs Report

July 2019 Jobs Report: 370,000 Re-Enter Workforce

July 2019 Jobs Report

The numbers are in, and the labor market continues to tighten. In July’s Jobs Report, we saw an increase of 164,000 jobs for the month, well above economists’ estimate of 150,000 jobs. Over the last six months, job gains are averaging 141,000 per month. The unemployment rate also held steady at 3.7 percent, a near 50-year low. As a result, the labor market is continuing to strengthen month over month.

Americans are reentering the workforce

Discouraged workers in July amounted to 368,000 people, down 144,000 from last year. In other words, fewer Americans are discouraged from entering the workforce as they feel there are more opportunities available. Additionally, the number of long-term unemployed Americans substantially declined by 248,000 workers last month, accounting for just 19.2 percent of the total unemployed population.

The labor force participation rate as a whole was 63 percent in July, the highest rate since March 2018. However, this figure for prime-age participation worker (ages 25 to 54) was an impressive 82 percent. Thus, illustrating the vast majority of those who are years away from retiring are finding job opportunities.

However, an essential metric from this month’s report was a sharp decline in the broadest measure of unemployment. This metric comprises of those too discouraged to work as well as part-time workers seeking full-time employment. This measure fell to 7 percent – the lowest level since late 2000. Thus, fewer Americans are feeling defeated by the labor market.

Higher wages, more spending, and more savings

Average hourly earnings rose by $0.08 last month, for a total of $27.98, following another $0.08 gain in June. Over the past year, average hourly earnings have increased by 3.2 percent.

At the end of July, The Federal Reserve cut interest rates a quarter of a percent. After raising the interest rates for the first reduction since December 2008, Americans are finally receiving a break from escalating borrowing costs. Furthermore, the central bank “raised the federal funds rate nine times in three years, the highest yielding rates are now paying over 2.5%.”

This rate reduction is excellent news for any American worker looking to borrow money for their next big purchase or stash away some money in savings. Since workers are making more money and receiving favorable interest rate cuts, they have more discretionary income. As a result, Americans are spending more money and boosting their local economies, which is creating more jobs.

Job gains by industry

Professional and technical services saw a 31,000 job increase in July, which brings their 12-month total to 300,000 job gains. Approximately 33 percent of this growth this month came from computer systems design.

Healthcare employment rose by 30,000 this month, which has brought the 12-month total to a staggering 405,000 jobs added. Ambulatory healthcare accounts for two-thirds of this growth.

Social assistance has seen an increase of 143,000 jobs over the last 12 months and 20,000 gains alone in July. And employment in the financial activities industry rose by 18,000 in July, with insurance carriers leading the way.

Manufacturing showed signs of growth in July with 16,000 jobs added, which is slightly off from 2018’s average job gains of 22,000 per month.

Employment in other major industries, including construction, wholesale trade, retail trade, transportation and warehousing, information, leisure and hospitality, and government, changed little over the month. Mining did, however, see a decline in 5,000 jobs last month but demonstrating little change over previous months.

Jobs Report revisions

May and June job gains were revised down from 72,000 jobs to 62,000 jobs (-10,000) and from 224,000 to 193,000 (-31,000), respectively. The combined revisions over the last two months were -41,000 jobs. However, over the last three months, job gains have averaged 140,000 per month, indicating that the labor market is still steadily growing.

How can you navigate such a tight market?

With fewer Americans actively searching for new opportunities, it’s becoming more challenging to locate and recruit qualified workers for your vacant positions. In fact, in July alone, 370,000 Americans reentered the workforce, according to financial analyst Larry Kudlow.

So, with fewer civilians on the sideline waiting for a new job, you need someone on your sideline to help you tap into the elusive group of passive candidates. At JSG, we understand the market trends and take pride in knowing the ins and outs of your industry. Partner with one of our recruiters today and let’s help you fill your critical roles in this hot job market.

June 2019 Jobs Report

June 2019 Jobs Report

June 2019 Jobs Report

The month of June revealed another strong month in the labor market. Total nonfarm payroll employment increased by 224,000, which was 59,000 above economists’ predictions. This is the best job gain since the beginning of 2019. The unemployment rate ticked up slightly at 3.7 percent, with a total of 6 million unemployed in June. The small shift in the unemployment rate paired with the tremendous increase in employment for the month of June indicates that great candidates are re-entering the labor market.

In addition, wages rose by 6 cents at $27.09. Over the last year, average hourly earnings have increased by 3.1 percent. With wages experiencing a subtle rise, the average workweek remains unchanged at 34.4 hours per week. The stock market opened lower, resulting in a cut in interest rates.

Jobs Report By Industry:

Areas of increased job opportunities emerged in business and professional services (+51,000 jobs), health care (+35,000 jobs), transportation and warehousing (+24,000 jobs) and construction (+21,000 jobs).

Business and professional services are currently leading the job market. Compared to the average monthly gain in 2018 of 47,000, proving that June was a huge month for this industry – adding 51,000 jobs.

Employment within the healthcare industry increased by 35,000 in the month of June and 403,000 over the last year. Specific areas of growth include ambulatory healthcare services (+19,000 jobs) and hospitals (+11,000 jobs).

Last month, the transportation and warehousing industry experienced job growth of 24,000 with 7,000 in couriers and messengers and 3,000 air transportation.

Additionally, construction employment continues to grow with another increase of 12,000 jobs.

Revisions:

Total nonfarm payroll in April and May were 11,000 less than originally reported. Specifically, the total nonfarm payroll employment for April was revised from 224,000 to 216,000 and May was revised from 75,000 to 72,000 gain. Overall the net job gain averaged around 171,000 per month over the last three months.

job market

Traditional Recruiting Methods Aren’t As Effective in This Tight Market

tight market

The national unemployment rate ticked down to 3.9% in July 2018. By the end of July, 157,000 jobs were added, totaling 6.66 million job openings across the nation. This marks the third highest number in history.

The U.S. job market is the healthiest it is been in years, and as a result, companies are having difficulties finding the talent they desperately need. In this booming job market, candidates have options. Hiring managers are struggling to attract (and retain) qualified candidates. Traditional recruiting methods are unfortunately not as effective for many organizations.

Candidates are going rogue

This is the hottest job market in decades, and candidates are taking full advantage of the plethora of job opportunities. Candidates all across the nation are entertaining multiple offers. In fact, 20 percent to 50 percent of job applicants and workers are no-shows.

Qualified candidates are literally going dark on hiring managers and employers are feeling the frustrations. Candidates are accepting job offers and interviews and blatantly not showing up because they have a better offer in the works. Employers are so desperate that they are resorting to hiring candidates with little to no experience. To put this in perspective, 87 percent of employers have reported hiring “few or no qualified applicants.” Traditional recruiting methods just aren’t locking down the candidates that employers need.

It’s costing employers

With such a tight job market, filling positions isn’t the only difficult task for employers. Filling critical roles in our current job climate is hurting employers financially. The Harvard Business Review estimates that up to 80 percent of employee turnover is from poor hiring decisions. And on average, businesses spend nearly 33 percent of a worker’s base salary in replacement costs.

Organizations are spending millions of dollars trying to retain qualified employees. With a predicted 28.6 percent of workers leaving their jobs by the end of the year, companies are desperate for top-talent that is willing to stay put.

Partner with a professional

With today’s intense job market, it’s becoming more and more difficult to obtain the talent employers are searching for. Placing job openings on the careers page on your company’s website or listing your vacancies on job boards just isn’t going to cut it.

At JSG, we work solely for our clients to find them the best candidates for their positions, so they don’t have to. We understand that you are busy. Let us take one item off your HR department’s already busy plate and help you fill your most critical positions.

With JSG’s expertise in our current job climate, we can help your company fill your critical positions. By partnering with an expert, we take the stress out of recruiting so your team can focus on all their other tasks at hand.

Traditional recruiting methods won’t cut it

July 2018 Jobs Report

July 2018 Jobs Report

July 2018 Jobs Report

The United States added fewer jobs than anticipated in the month of July, but the labor market remains rock-solid. In July, 157,000 jobs were added, which is lower than the anticipated 190,000 jobs. However, the unemployment rate edged down to 3.9%, narrowly missing an 18-year low. The labor force participation rate remained at a strong 62.9%.

Revised jobs for May and April 2018

The Bureau also reported revised job gains for May and June and May of this year. The number of jobs added in May was revised from 213,000 jobs to a whopping 248,000. And in June, the revised number of jobs added increased from 244,000 to 268,000 jobs. The results equal a net change of 59,000 jobs added.

Over the past three months, the number of jobs added averages out to 224,000.

Average hourly earnings increase

Average hourly earnings also increased by $0.07 or an average $27.05. Over the last year, average hourly earnings have increased by $0.71 or 2.7%.

Employment numbers by industry

Once again, employment in the Professional & Business Services industry led the way in July with 51,000 added jobs. Over the 12 months, Professional & Business Services added a total of 518,000 jobs.

Manufacturing came in second with an added 37,000 jobs. Over the last year, the manufacturing industry added 327,000 jobs. Healthcare followed closely with 34,000 jobs added. Hospitals added 7,000 jobs and social assistance, individual and family services
added a combined 14,000.

Food services increased 26,000 in the month of July with a total increase of 203,000 jobs over the year. Construction followed with an increase of 19,000 jobs. The construction industry has added a staggering 308,000 jobs over the year. Retail saw a slight increase of 7,000. This is favorable to the 22,000 jobs lost in June 2018.

The employment in other major industries, including wholesale trade, transportation and warehousing, information, financial activities, mining, and government showed little to no change over the month.

Check out our infographic below for more stats from the July 2018 Jobs Report:

July 2018 Jobs Report

Recruiting Trends

Mid-Year Roundup: Recruiting Trends to Watch for in 2018

Recruiting Trends

For the first time since 2000, there are more job openings than available workers. According to the Bureau of Labor Statistics, there were just under 6.7 million job openings available in April but only 6.35 million eligible candidates to fill them. The unemployment rate has been hovering around 4% all year, and just in the last month, 601,000 workers re-entered the workforce.

The market for top-talent is tight and organizations must move quickly to secure the best candidates. If your hiring process is not efficient, you will find yourself missing out on the top candidates. The best prospective candidates are entertaining multiple offers and are sometimes not even actively on the job market.

Is your hiring process hurting you?

According to a report conducted by the Society of Human Resource Management (SHRM), it takes an average of 36 days to fill a position. That’s 36 days from the decision to open the position to the acceptance of an offer. That’s a long time!

If you want to ensure your team doesn’t miss out on the best candidates, you must streamline your hiring process. If you are taking 36 days or longer to extend an offer to a candidate, you will likely lose out on first-rate talent. With our candidate-driven market, interviewees have options (and plenty of them!). If your hiring process forces the candidate to jump through hoops to get an offer, they’ll likely move on.

How to improve your hiring process

If you are wondering where in your hiring process you can make improvements, here’s some food for thought:

As you can see, there’s room to improve your hiring process. Depending on your industry and the type of job opening, these impediments may obviously change. However, for most job openings, your organization can speed things up. Even if you speed up your interview process by just a few days, you will have top candidates in the running for your company!

And by having better candidates, you will likely experience better retention. The average number of separations within the first three months of employment is 16%. And with the average cost-per-hire hovering around $4,425, your organization will save money AND increase retention by being able to hire the best candidates available.

Partner with a recruiter

The easiest possible way to improve your hiring process is to work with a professional. Your team has enough to worry about. Let JSG help you quickly hire the top candidates on the market that will stick around and make an immediate impact.

June 2018 Jobs Report

June 2018 Jobs Report

June 2018 Jobs Report

We are officially at the mid-point of the year, and the labor market is still holding up strong. In June 2018, the U.S. added 213,000 jobs, beating economists projections of 195,000 jobs. This is largely the result of the increase in the labor force participation rate. 601,000 workers re-entered the workforce, increasing the labor force participation rate to 62.9%. However, there has been no sign of any trend thus far this year.

Revised jobs for April and May 2018

The Bureau also reported revised job gains for April and May of this year. April’s gains increased from 159,000 added jobs to 175,000 jobs and May’s jobs improved from 223,000 jobs added to 244,000. This is a net increase of 37,000 jobs for April and May combined. Over the past three months, job gains averaged a whopping 211,000 jobs.

Despite the strong job growth, the national unemployment rate slightly edged up to 4.0%. In the month of June, the number of unemployed persons increased by 499,000 people for a total of 6.6 million. A year ago to the date, the unemployment rate was at 4.3% with the number of unemployed Americans totaling 7.0 million.

Average hourly earnings increase

Average hourly earnings also increased by $0.05 or an average $26.98. Over the last year, average hourly earnings have increased by $0.72 or  2.7%.

Employment numbers by industry

Employment in the Professional & Business Services industry led the way in June with 50,000 added jobs.Over the last year, Professional & Business Services added a total of 521,000 jobs.

Manufacturing came in second with an added 36,000 jobs. Over the last year, the manufacturing industry added 285,000 jobs. Healthcare followed closely with 25,000 jobs added. Hospitals added 11,000 jobs and ambulatory services added 14,000. Construction added another 13,000 jobs and has gained a total of 282,000 jobs over the last 12 months.

Mining gained another 5,000 jobs, totaling gains of 95,000 jobs since a slump in October 2016. The Retail industry saw a major loss of 22,000 jobs for the month. This largely offsets the 25,000 jobs gained in May 2018.

The employment in other major industries, including wholesale trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government showed little to no change over the month.

Check out our infographic below for more stats from the June 2018 Jobs Report:

June 2018 Jobs Report

job openings

Job Openings Outnumber Unemployed

job openings

What this means for the world of recruitment

According to the Bureau of Labor Statistics, the unemployment rate ticked down to a 17-year low in May at 3.8%. As a result, there are currently more job openings than unemployed workers. There are 6.7 million job openings in the U.S. but only 6.4 million available workers. Competition for candidates is heating up, totally changing the landscape of the job market.

What does this mean for companies trying to hire in order to meet growth goals? What does it mean for candidates who are considering making a move? We’re doing a deep dive into how candidate-driven market will affect hiring and recruiting for the rest of 2018.

Employers Must Offer Competitive Wages

First and foremost, employers must offer competitive wages. At this point in time, almost everyone who wants a job has a job. So, in order to compete for top talent, employers have to come in strong with offers – including wages and benefits. “Hourly pay for nonsupervisors rose 2.8% in May from a year earlier, the best annual gain since mid-2009.”

Employers Must Have a Swift Hiring Process

The number of workers who are working or seeking work has been on the decline for almost two decades. The candidates who are open to new opportunities are entertaining multiple competitive offers. In order to secure the top echelon talent, employers must prioritize hiring and limit the number of hoops a candidate must jump through during the interview process.

For candidates that look great on paper, skip the phone interview and go straight to a face-to-face. People will appreciate your urgency and feel they are already adding value to your team.

It’s An Ideal Time For Candidates To Make A Move

For candidates, now is the perfect time to make a move. If you’re actively looking for a new position, don’t be afraid to apply to multiple opportunities. For passive candidates, it’s time to freshen up that resume then take the leap! Even if you don’t consider yourself a candidate at all, consider doing some searching or networking to see what is out there. Now is the best time to take the next step in your career, whether that’s in a different location, with a different company, or even a completely different role altogether!

No matter what, one of the best things you can do during an extremely tight labor market is to partner with a recruiter. We have connections with thousands of elite companies and candidates, and we’re ready to make the right match for your future and career goals.