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U.S. Sees Strongest Annual Growth in Wages in October

November 4th, 2016 Comments off
BLS april 2016

While U.S. job growth in October didn’t meet economists’ predictions, growth in hourly earnings far exceeded expectations.

The U.S. added 161,000 new jobs in October, according to the latest report from the Bureau of Labor Statistics. While this number is lower than the expected gain of 175,000 jobs, it is well within the means of healthy job growth. What’s more, the BLS revised upward the job gains in both August (from the originally reported 167,000 new jobs to 176,000 new jobs) and September (from 156,000 new jobs to 191,000). That’s a total of 44,000 additional jobs for those two months!

The real highlight of the report, however, was the 10 cent rise in hourly earnings, bringing average wagest to $25.92 an hour. Wages are now up 2.8 percent year over year, the strongest annual growth in wages recorded since the recession, according to The Wall Street Journal.

The unemployment rate ticked down slightly, back to 4.9 percent. Once again, the industries that saw the biggest gains were professional and business services (adding 43,000 jobs) and health care (adding 31,000 jobs).

October marks the 73rd consecutive month of job growth, and has “averaged over 200,000 job gains a month for most of the past couple of years,” according to NPR’s John Ydstie.

As I always say, small businesses are a major driver of economic growth in this country, so I urge you to keep doing what you are doing to attract, engage and retain your best asset – your people.

Modest Job Gains in September, According to Latest BLS Report

October 7th, 2016 Comments off
BLS april 2016

While U.S. job creation fell short of economists’ expectations this month, the labor market continues to show healthy growth. According to the latest BLS employment situation report, released today, the U.S. created 156,000 jobs in September, which was lower than the 176,000 gain predicted, but well in the margin of healthy job growth.

The unemployment rate ticked up slightly from 4.9 percent to 5 percent in September, but so did the labor force participation rate – from 62.8 percent to 62.9 percent. This increase is an indication that people are gaining confidence in the labor market and returning to look for jobs.

The industries that saw the biggest gains were professional and business services and health care.

While this marks the second consecutive month of modest job gains, it’s important to note that the overall economy has created a healthy 2.44 million new jobs in the last 12 months, and September was the 72nd consecutive month of positive job growth — the longest on record.

And there’s more good news, according to CNN Money: “America also reached a post-recession milestone: Counting September’s gains, the United States has added 15 million jobs since employment hit its low in February 2010.”

3 Things You Should Know From the September 2016 Jobs Report

October 7th, 2016 Comments off
3 Things You Should Know From the August 2016 Jobs Report

 

As election season heats up, the U.S. labor market continues to be a hot topic for both presidential candidates. But how much of what they say is actually true? Let’s take a look at the most recent jobs report to get an idea of where the economy really stands today.

Here’s the News You Can Use From Today’s Release:

  1. Job creation was lower than expected. While the U.S. created 156,000 jobs in September, and while economists had predicted higher gains of 176,000 jobs, this is no reason to panic.

 

According to The New York Times:

“As an election season marked by fears about jobs and wages enters the final stretch, the American economy looks more resilient than some campaign rhetoric might suggest.”

According to Business Insider:

“The increase in nonfarm payrolls was lower than expected. But it remained strong enough to indicate that the job market is still robust, with employers unable to find all the skilled workers they want to hire.”

According to MSNBC:

“Over the last 12 months, the overall economy has created 2.44 million new jobs, which is a pretty healthy number. What’s more, September was the 72nd consecutive month of positive job growth, which is the longest on record.”

 

  1. Labor force participation is up. The labor participation rate ticked up from 62.8 percent to 62.9 percent. What’s the significance of this number?

 

According to CNS News:

“At a recent news conference, Federal Reserve Chair Janet Yellen said the labor force participation rate has increased on balance since late last year, which ’shows a substantial number of people are being attracted into the labor market.’”

According to the Wall Street Journal:

“Workforce participation peaked in 2000 and is expected to decline further in the coming years due to demographic and other forces. But the measure picked up over the past year, a sign the tightening labor market is drawing would-be workers off the sidelines. That’s helped pin the unemployment rate in place despite continued employment gains.”

 

  1. Wages increased, too. Average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $25.79 in September, while average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $21.68.

 

According to CNN Money:

“Pay checks are improving at a faster pace for Americans too. Wages grew 2.6% in September compared to a year ago. That’s not stellar wage growth, which is usually above 3%. But it’s better than the 2% growth — or less — seen for years during the recovery.”

According to the Wall Street Journal:

“After years of wage growth stuck around 2%, pay raises began to move higher in 2015 and into this year—outpacing the long-sluggish pace of price inflation.”

Looking at the overall economy over the past 12 months, the U.S. has created a healthy 2.44 million new jobs. What’s more: September was the 72nd consecutive month of positive job growth — the longest on record. We’re not out of the woods yet, however: The New York Times notes that “despite robust hiring in late 2015 and during much of 2016, notable pockets of economic weakness remain, more than seven years after the start of the current recovery.”


Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.

Did you miss the June, July and August jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

August BLS Report Shows Unemployment Rate Holding Steady

September 2nd, 2016 Comments off
Jobs in Technology

Following two months of better-than-expected job growth, hiring in the U.S. slowed down a bit in August, while the unemployment held steady.

According to the latest BLS employment situation report, released today, private sector employers added 151,000 and the unemployment rate remain unchanged at 4.9 percent. Average hourly earnings increased by 3 cents in August, going to $25.73 – a 2.4 percent increase from a year ago.

The industries that saw the biggest gains were food services, social assistance, professional and technical services, and financial activities. Health care also saw modest gains while mining once again declined.

While August’s job growth number didn’t come anywhere near the number of jobs added in both June (271,000) and July (275,000) and fell short of expectations (economists predicted 180,00 jobs added), it’s worth pointing out that August has long been one of the weakest months for job creation, according to Ryan Detrick of LPL Financial (via the WSJ). Another thing to keep in mind: August marks 78 straight months of job growth, according to NPR.

Whatever industry you are in, it is always important to keep in mind that people are an organization’s greatest asset. So even if you aren’t in a position to hire right now, continue setting your employees up for success and building your talent pipeline for the future.

Job Growth Exceeds Expectations for Second Month in a Row

August 5th, 2016 Comments off
survey with exceeded expectations checked

For the second month in a row, U.S. job growth exceeded economists’ expectations, according to the latest BLS employment situation report.

According to the report, released today, the U.S. added 255,000 jobs in July, after economists predicted the U.S. would add 180,000 jobs. This is the second time in two months job growth has exceeded expectations – 287,000 new jobs were created in June, up from the 180,000 new jobs expected – and a giant contrast from May’s remarkably weak job job growth (38,000, which would later be revised to a pitiful 11,000).

While the unemployment rate remained unchanged at 4.9 percent, and the labor force participation rate increased slightly from 62.7 to 62.8 percent – an indication that unemployed individuals who stopped looking for work may be starting to feel more optimistic about their job prospects.

The industry that saw the biggest gains was professional and business services – which has now added more than half a million jobs over the last year.

Average hourly earnings also increased this month, going up 8 cents to $25.69 per hour – a 2.6 percent increase from a year ago.

While month-to-month changes aren’t as significant as changes over a longer term, it is important to celebrate these small wins. It’s no secret that small businesses contribute greatly to the health of the economy, so I urge you to keep up the good work and keep building your talent pipelines, hiring the right people and setting your employees up for success – after all, their success is your success.

BLS Report: U.S. Only Added 38,000 Jobs in May

June 3rd, 2016 Comments off
CB_small biz_BLS May

Following the release of the ADP Small Business report yesterday, the Bureau of Labor Statistics released its monthly report today, with vastly different figures.

According to the BLS report, the U.S. only added 38,000 jobs last month (far below the ADP’s figure of 73,000), making May the lowest month of jobs created since September 2010.

And while the unemployment rate dropped by .3 percentage points, to 4.7 percent, that figure likely comes from people giving up their job searches and dropping out of the labor force.

One of the only high notes from the report was that average hourly earnings increased by 5 cents in May, to $25.59.


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