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3 Things You Should Know From the November 2016 Jobs Report

December 2nd, 2016 Comments off
3 Things You Should Know From the November 2016 Jobs Report

The U.S. unemployment rate in November dropped to a nine-year low while wages took a tumble, according to the latest jobs report released by the BLS this morning.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. The jobless rate sits at a nine-year low. Wall Street was expecting an increase of about 180,000 jobs last month; in reality the U.S. economy added 178,000, which was not too far off the mark. The unemployment rate dropped from 4.9 percent last month to 4.6 percent, which is the lowest it has been since August 2007. According to The New York Times:

The official jobless rate is the lowest since August 2007. A broader measure of unemployment that includes part-time workers who would rather work full time or those too discouraged to keep looking also slipped down, to 9.3 percent from 9.5 percent.

According to CNN Money:

The drop in the unemployment rate was a bit mysterious. More people stopped looking for work in November compared to October, which sometimes explains why the unemployment rate drops. But such a large drop isn’t entirely explained by people leaving the workforce.

According to The Wall Street Journal:

Despite robust hiring, Friday’s report suggests there remains plenty of slack in the labor market. A broader measure of the unemployment rate, which counts part-time workers who would prefer a full-time job and marginally attached workers, remains elevated at 9.3%, although it has fallen in recent months.

2. Where are all the working people? Are baby boomers, in part, contributing to the decline in the labor force participation rate? According to Business Insider:

…[the] labor-force participation as a share of the working-age population declined to 62.7%, remaining near the lowest level since the 1970s. Fewer people are joining the labor force on net partly because baby boomers are retiring in droves.

According to Reuters:

The labor participation rate, or the share of working-age Americans who are employed or at least looking for a job, fell 0.1 percentage point to 62.7 percent last month, not too far from multi-decade lows, in part reflecting demographic changes.

3. Wage growth up year-over-year, down month-over-month. Even though wages were up from the same time last year, one big headline coming out of the latest jobs report is that wages dropped compared to last month.

According to Reuters:

A pullback in wage growth after two straight months of solid increases, however, put a wrinkle in the otherwise upbeat employment report. Average hourly earnings fell three cents, or 0.1 percent, after shooting up 0.4 percent in October.

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.

Did you miss the October jobs report breakdown? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the October 2016 Jobs Report

November 4th, 2016 Comments off
3 Things You Should Know From the October 2016 Jobs Report

Halloween may have come and gone, but the October jobs report – released this morning by the BLS – was by no means scary.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Numbers were slightly lower than expected, but the unemployment rate also dropped. Economists had predicted that today’s BLS job gains would be somewhere in the 170,000-plus range; but in reality the U.S. economy added 161,000 jobs in October.

Some reactions to the report: “Economists had forecast another report that was neither super-impressive nor terrible, and that’s what we got.”

However, it’s also worthwhile to note that an additional 44,000 jobs were added over the course of August and September, according to some new BLS revisions.

2. This is the last jobs report before the elections. So how might the candidates use this report to extract some talking points?

According to Business Insider:

As both presidential candidates make their final pitches to voters, they can pick data points in this report to advance their narratives. Hillary Clinton, the Democratic nominee, can point to the number of jobs that have been created during the recovery, the record 73 straight months of gains, and the drop in the unemployment rate to a postrecession low. Meanwhile, Donald Trump, the Republican nominee, can focus on the headline print that missed expectations and the 5.9 million people who still work part-time for economic reasons.

According to The New York Times:

While the final weeks of the presidential campaign seemed to be preoccupied with everything but the economy, Friday’s report from the Labor Department refocused attention – at least briefly – on the crucial bread-and-butter issue: jobs. For the candidates, the latest employment report …[allows] each side to offer its own distinctive narrative of the economy’s performance and prospects.

3. Wages appear to be stronger.

According to The New York Times:

Average hourly earnings rose 2.8 percent year over year, a level not reached since 2008.

According to The Wall Street Journal:

Hiring by U.S. employers remained healthy in October as wage growth accelerated to its strongest pace since the recession, signaling solid momentum in the labor market and broader economy just days before American voters elect a new president.

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 September jobs report breakdown? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the August 2016 Jobs Report

September 2nd, 2016 Comments off
3 Things You Should Know From the August 2016 Jobs Report

Like the weather in some parts of the country, U.S. payrolls cooled a bit in August as the new BLS jobs report numbers — released this morning — came in lower than economists were expecting.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Job gains slowed down in August. Economists had predicted that today’s BLS job gains would be somewhere in the 180,000 range. In reality, the 151,000 additional jobs came up short by about 29,000. To put that in context, more than 270,000 jobs were added in each of the prior two months. So what does this mean for the probability of a rate hike?

According to CNBC:

“We had a couple above numbers in the last two months. This is a below-average number,” said Jeff Kleintop, chief global investment strategist at Charles Schwab. “All that suggests the job market is OK, but it probably does put September off the table” for an interest rate hike.

2. What about wages? While there is progress being made on the wage front, the pace of growth has still been weaker than expected.

According to Business Insider:

Average hourly earnings rose 0.1% month-on-month, less than the 0.2% forecast, and increased by 2.4% year-on-year (versus 2.5% expected). Pantheon Macroeconomics’ Ian Shepherdson noted in a preview that when the survey week precedes the 15th of the month — payday for many people — some employers fail to report earnings.

According to The New York Times:

The jobless rate has been halved in the last seven years and consumer spending remains strong, but wages have only recently begun a slow climb.

According to The Wall Street Journal:

…annual growth slowed from 2.7% the prior month, the best gain in seven years. The slower growth could reflect the mix of hiring in August tilting toward typically lower-paying fields.

3. There’s just something about August. According to CNBC:

August has been a notoriously volatile month for the jobs numbers. The previous five reports have been revised upwards by an average of 71,000. In 2011, the initial report was zero, which later was revised up to 107,000. Goldman Sachs economists attribute the statistical noise to the start of the school year.

According to Bloomberg, which calls it the “August Curse”:

The payrolls data were contending with a pattern of August disappointment, with the survey median overshooting the first print for the month in each of the last five years, by an average 47,000. Low response rates in a popular vacation month and difficulty adjusting for seasonal effects at the start of the school year could be to blame.

 

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 MayJune and July jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the July 2016 Jobs Report

August 5th, 2016 Comments off
3 Things You Should Know From the July 2016 Jobs Report

For the second month in a row, the BLS released a jobs report that exceeded expectations. The new July report, released this morning, showed a total of 75,000 more jobs than economists were expecting (255,000 vs. 180,000 expected).

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. What do today’s numbers mean in relation to the big economic picture? Here are some reactions from leading news outlets:

According to The Wall Street Journal:

The U.S. labor market in July capped off the best two-month stretch of hiring so far this year, a sign of strength for an economy that has been showing mixed growth signals in recent months.

According to CNBC:

“This was another strong report that checked most, if not all of the significant boxes,” said Curt Long, chief economist at the National Association of Federal Credit Unions. “The labor market should remain strong as long as consumers maintain their robust spending pace.”

Here are some reactions from Twitter:

2. The labor force participation has increased. But what does that mean?

According to Business Insider:

The labor-force participation rate rose to 62.8%. It was being closely watched again to gauge whether a record number of job openings drew people into the labor force. The rate has steadily declined in recent years, partly because of baby-boomer retirements. But at the same time, there are fewer people outside the labor market finding jobs — suggesting that the economy is near or at full employment.

3. What about wages and the Fed? Wages haven’t really been the bright spot in previous reports, but there has recently been slight progress on that front.

According to Marketwatch:

The much stronger than expected increase in new jobs also raises the odds that the Federal Reserve might raise interest rates as early as September. The central bank held off after job creation appeared to slow in May.

According to The New York Times:

June’s gains were revised upward by 5,000 jobs, and May by 13,000. The combination of better gains in the spring and July’s jump in hiring suggest that the Federal Reserve may take a fresh look at raising interest rates when it meets in September.

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 AprilMay and June jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the June 2016 Jobs Report

July 8th, 2016 Comments off
3 Things You Should Know From the June 2016 Jobs Report

Following months of weak numbers  which prompted fears of an economic slowdown — the new June BLS jobs report, released this morning, exceeded everyone’s expectations.

CareerBuilder CEO Matt Ferguson discussed today’s jobs report with The New York Times this morning.

Matthew Ferguson, chief executive of the online job site CareerBuilder, which recently commissioned a survey of hiring managers and workers, said employers indicated they were being pressured to raise wages for skilled and semiskilled workers. Still, he has not seen any outsize bump or drop in hiring.

“We’ve just had a slow and steady labor market in the last couple years,” he said, “and I’m guessing that will continue for the next six months.”

Here’s what the numbers for 2016 look like when they’re averaged out.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Reason to celebrate? Here are a sampling of headlines from around the web: “Jobs Roar Back With Gain of 287,000 in June, Easing Worry” (The New York Times); “Jobs report suprises to the upside: U.S. added 287K jobs in June” (CBS); “US created 287K jobs in June vs. 175K expected” (CNBC); “June Jobs Report Blows Past Expectations” (Fortune); “Jobs report crushes expectations” (Business Insider).

According to CNBC:

Jobs watchers had been expecting Friday’s jobs report to show a substantial rebound from May’s unexpectedly weak growth, but the June number easily topped expectations.

According to Business Insider:

It was the biggest gain in eight months and was stronger than even the most optimistic forecasts among economists. Their median estimate was for a nonfarm-payroll gain of 180,000, according to Bloomberg.

2. Where were the biggest gains? Curious how various industries fared in June? According to Business Insider:

Factory jobs increased by 14,000 after a 16,000 drop in May as the manufacturing sector continues to recover from a slowdown triggered by the strong dollar and weak commodity prices. Big job gains were also recorded in leisure and hospitality, healthcare, and social assistance.

3. What about wages and the Fed? Wages haven’t really been the bright spot in previous reports, but there has recently been slight progress on that front.

But is it enough to impact interest rates?

According to CBS News:

Wage growth…rose a tepid 2 cents, or 0.1 percent, for the month, but the longer-term trend was positive, with wages up 2.6 percent from the year earlier. Wage growth during most of the recovery remained stagnant, so the recent uptick in pay suggests slack in the labor market is decreasing.

According to Fortune:

U.S. job growth surged in June as manufacturing employment increased, more evidence the economy has regained speed after a first-quarter lull, but tepid wage growth could see the Federal Reserve remaining cautious about hiking interest rates.

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 MarchApril and May jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the May 2016 Jobs Report

June 3rd, 2016 Comments off
3 Things You Should Know From the May 2016 Jobs Report

It may feel like summer, but the U.S. economy plunged into a deep freeze in May, according to the new BLS jobs report released this morning.

Reactions from news outlets have been strong, calling the report everything from “ugly” to “miserable” to “dismal” and more. Here’s a sampling of headlines from leading news outlets: “The Latest Jobs Report Badly Misses Estimates,” “U.S. job creation weak, even as unemployment rate falls to 4.7%” “Why the Disappointing May Jobs Report is So Important” and “May’s Jobs Report: Very Disappointing.”

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. May numbers weren’t even kind of close. While economists were expecting a modest 162,000 jobs to be added in May, the actual numbers were staggeringly lower at 38,000. That makes it the worst monthly job gain since 2010. It also means that job gains have dropped for the third month in a row.

According to CNN Money, external factors, such as Verizon’s strike may have contributed to the low numbers, but it still doesn’t explain it entirely.

About 36,000 Verizon employees went on strike for 6 weeks, demanding better pay and conditions. That had a negative impact on job gains. Still, the Verizon strike does not fully explain such weak job growth in May.

Here are some reactions via Twitter:

2. The unemployment rate is noteworthy. The unemployment rate ticked down to 4.7 percent in May, which is the lowest it has been since 2007, but take a look at the bigger picture. According to CNBC:

That rate does not include those who did not actively look for employment during the month or the underemployed who were working part-time for economic reasons. A more encompassing rate that includes those groups held steady at 9.7 percent.

3. What does this mean for interest-rate hikes? The bottom line is: It could certainly have an impact.

According to Time:

The case for the Federal Reserve raising interest rates just got a lot harder. For a second consecutive month employers added a disappointing number of new workers to their payrolls, the government reported on Friday. Now the Fed has to determine whether the economy is still strong enough to endure the first rate increase in six months when the central bank convenes in about two weeks.

According to The Wall Street Journal:

Federal Reserve officials have signaled that they would be ready to raise short-term interest rates again as soon as the June meeting if the U.S. economy continued to improve. Friday’s employment reportFriday’s employment report, which also showed employers added fewer jobs in April and March than previously estimated, doesn’t provide support for raising rates, analysts said.

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 FebruaryMarch and April jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the April 2016 Jobs Report

May 6th, 2016 Comments off
3 Things You Should Know From the April 2016 Jobs Report

Like the fashion at the 2016 Met Gala, the April jobs report — which was released this morning — didn’t live up to expectations.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Economists are probably not having the best day. While the April jobs report failed to live up to economists’ expectations, some people had mixed reactions on Twitter.

But some headlines didn’t appear as optimistic:

 

2. This report could have some ripple effects. According to Forbes:

The latest labor market snapshot came in below expectations, leaving the policy makers at the Federal Reserve to grapple with whether the market is in decline or circling full employment.

According to Business Insider, don’t hold your breath waiting for the unemployment rate to get significantly lower.

As the economy approaches full employment — meaning pretty much everyone willing to work and looking for a job has one — the unemployment rate is not expected to plunge that much further from its current level, which is near an eight-year low.

3. The silver lining was wages. The not-so-welcome news was that February’s numbers were revised down from 245,000 to 233,000 and March’s numbers were revised down from 215,000 to 208,000 for a total of 19,000 fewer jobs than were previously reported. But the silver lining in this report was wages.

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 JanuaryFebruary and March jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the March 2016 Jobs Report

April 1st, 2016 Comments off
3 Things You Should Know From the March 2016 Jobs Report

Has waiting for the results of the March jobs report, released by the BLS this morning, kept you on the edge of your seat as much as the latest season of “The Americans“? Good news: Your wait is over — and the results, much like the show, may give you ALL THE FEELS.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

  1. Job growth in March surpassed many economists’ expectations.

U.S. employers added 215,000 jobs in March, surpassing most economists’ expectations (economists surveyed by Bloomberg anticipated 203,000 new jobs). The U.S. economy has seen steady job gains for the last 73 months.

Economists also anticipated the unemployment rate to remain steady, but it has risen to 5 percent, up from 4.9 percent in both January and February. Hold onto your kerchiefs: Unemployment is up because of the increase in the labor force — and that’s a good thing. The increase in labor market participation accounted for most of the rate increase.

According to Forbes:

…the [unemployment] rate increased for what most economists consider the ‘right reasons.’ The labor force grew from 158,890,000 in February to 159,286,000 in March.

As The New York Times observes, the time people are spending looking for jobs may also be decreasing, as many seem to be going right into new work:

At the same time, the labor force itself grew more than the number of job seekers, suggesting that many of those re-entrants were going directly to work rather than spending a long time looking for a job.

According to Bloomberg, many people may be finding part-time work more easily than full-time work,:

The details showed that some people entering the labor force were only able to find part-time employment. The number of Americans working part-time for economic reasons rose by 135,000 to 6.12 million, the highest since August.

2. Average hourly earnings are up around 2.3 percent from a year ago.

Economists expected a 0.1 percent increase; the actual results, reflecting a 7-cent increase, indicate wages are getting stronger.

According to The Wall Street Journal:

Average hourly earnings are up around 2.3% from a year earlier. Average weekly earnings stumbled in February as employers cut back on hours. March saw some bounce back on that front, and average weekly earnings are up around 2% over the past year.

3. We’re seeing more Americans returning to the workforce.

The share of Americans working, or looking for work, increased to 63 percent — the highest percentage since February 2014.

According to The Wall Street Journal:

The steady demand for workers is drawing more people back into the labor force. In February, the share of Americans participating in the workforce rose to 62.9%, off its near-40-year low of 62.4% reached last fall. More workers coming out of unemployment or entering the workforce for the first time are signs of optimism around job prospects.

 

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 DecemberJanuary and February jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the February 2016 Jobs Report

March 4th, 2016 Comments off
3 Things You Should Know From the February 2016 Jobs Report

Unlike Netflix’s cringe-worthy “Fuller House” revival, the February jobs report — released by the BLS this morning — exceeded expectations.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. The economy took a leap forward. The better-than-expected February jobs report points to the U.S. labor market rebounding following last month’s slowdown, as employers added 242,000 jobs (which is nearly 50,000 more than economists were initially predicting). This figure puts the monthly job gains average of the past three months at 228,000.

Here are some initial reactions to today’s report from around the Web.

According to USA Today:

…the February jobs report came in stronger than expected, signaling that the economy continues to grow despite slowing growth overseas and early-year financial turbulence.

According to Forbes:

The latest labor market reckoning out from the Bureau of Labor Statistics Friday showed stronger than anticipated job growth and signs that discouraged workers are not only jumping back in the game, but also finding work quickly when they do.

2. We saw some notable revisions. December and January’s numbers were revised up by 9,000 and 21,000 respectively, for a total of 30,000 more jobs than the BLS had initially reported.

3. Where are we with wage growth? The reaction to the latest jobs report has been largely positive; still wages were the weak point. Here are some reactions to the fact that wages still aren’t where they need to be.

According to Marketwatch:

The report showed a drop in hourly wages and in the number of hours worked, which might give the Federal Reserve sufficient cause to hold off on raising rates in this month, after starting to normalize monetary policy back in December.

According to The New York Times:

Wages fell by 0.1 percent in February, a disappointing showing after the 0.5 percent increase in January, resulting in a 2.2 percent bump in the yearly rise.

And here’s a sampling of Twitter reactions — ranging from discontentment to hope.

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 NovemberDecember and January jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the January 2016 Jobs Report

February 5th, 2016 Comments off
3 Things You Should Know From the January 2016 Jobs Report

January was a bit cooler than expected — and we’re not talking about the weather. The latest BLS jobs report, which was released this morning, came in short of expectations following a strong close to 2015.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Slow start to 2016. U.S. payrolls increased by 151,000 in the first month of 2016, which came in well below the 190,000 or more jobs that economists were expecting. Also, compare that to the 262,000 jobs added in December. The unemployment rate dropped to a number we haven’t seen in eight years.

2. Will the “weak” jobs report have broader repercussions? Here are some initial reactions to today’s report from around the web.

According to USA Today:

Stocks were lower in morning trading Friday after the release of a weak January jobs report, a key data point that shows a downshift in the U.S. economy amid global economic turbulence and which adds further uncertainty to Federal Reserve interest rate policy.

According to Reuters:

The dollar rose against a basket of currencies on Friday along with Treasury yields, but global stocks fell after a key U.S. jobs report painted a mixed picture of the labor market and left investors with a muddled view on rate hike prospects.

According to CNBC:

The job market has been a pillar of strength for the U.S. economy and a key reason that the Federal Reserve was able to hike interest rates, so January’s employment report has become even more critical amid new signs the economy has hit a soft patch.

3. An update on wages. We’ve been talking about wages remaining stagnant for months, but the bright spot in the January jobs report was wages.

And as The New York Times pointed out:

The American economy’s jobs machine cooled in January, but still performed well enough to push unemployment to an eight-year low and deliver some much-needed wage gains for ordinary workers.

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 OctoberNovember and December jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the December 2015 Jobs Report

January 8th, 2016 Comments off
3 Things You Should Know From the November 2015 Jobs Report

The new year kicked off on a positive note, keeping up the steady pace with today’s December jobs report release, which exceeded expectations and closed out the year strong.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Strong way to close out the year. As a headline from The Wall Street Journal points out: “The U.S. added 292,000 jobs in December, capping [the] second best year since 1999.” With the addition of 292,000 workers to the U.S. workforce in December — which exceeded the 200,000 that economists were predicting — 2015 ended on a solid note. Here’s an official tweet from the U.S. Department of Labor:

2. Previous months were revised up. October and November jobs report numbers were a bit better than we thought they were. 

3. Wages still aren’t where they need to be. Despite December’s — and the year’s — solid economic performance, wages is an area that continues to lag behind.

According to The New York Times:

Despite the improving job market, sluggish wage growth remains a persistent thorn. Wages remained flat in December.

What does that mean for 2016? We’ll just have to wait and see.

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 SeptemberOctober and November jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the November 2015 Jobs Report

December 4th, 2015 Comments off
3 Things You Should Know From the November 2015 Jobs Report

Like NBC’s star-studded live musical “The Wiz Live” that aired last night to rave reviews, the November jobs report — which was released this morning — delivered a solid performance and beat expectations.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

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

1. Another month of strong growth. The U.S. economy added 211,000 jobs in November, keeping the streak of “solid” and “stronger than expected” jobs reports alive.

Meanwhile, the unemployment rate held relatively steady at 5 percent. But take a look at how it has changed over time.

2. Will they or won’t they? We are of course referring to the Federal Reserve. If you’re wondering whether the outcome of today’s jobs report will lead the Fed to raise interest rates, you’re not alone and, while there isn’t a guarantee, signs appear to be pointing in that direction. According to The New York Times:

The American economy created 211,000 jobs in November, the government reported Friday, a robust showing that all but guarantees policy makers at the Federal Reserve will raise interest rates for the first time in nearly a decade when they meet this month.

According to Forbes:

The Bureau of Labor Statistics released a somewhat stronger than expected November jobs report Friday, with numbers more than solid enough to support a interest rate hike from Federal Reserve later this month.

According to Business Insider:

On Friday morning, the November jobs report paved the way for the Federal Reserve to raise its benchmark interest rate in two weeks.

According to Marketwatch:

The economy produced another sturdy gain in new jobs in November, all but guaranteeing the Federal Reserve will raise U.S. interest rates later this month in response to a tightening labor market.

3. Winners and losers. Some industries fared better than others in November.

And speaking of winners, job gains for both September and October were stronger than was previously reported. October’s jobs numbers were revised up by 27,000 (from +271,000 to +298,000), while September’s gains were revised up by 8,000 (from +137,000 to +145,000). That’s a combined total of 35,000 more jobs than previously stated.

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 AugustSeptember and October jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Things You Should Know From the October 2015 Jobs Report

November 6th, 2015 Comments off
3 Things You Should Know From the October 2015 Jobs Report

We may be headed into winter, but today’s jobs report indicates the U.S. economy is heating up. On the heels of a relatively lackluster September, job growth in October surprised almost everyone — including economists — with nearly 100,000 more jobs than initially forecast and is thus far the best month for job growth in 2015.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Everyone was pleasantly surprised by October’s strong job growth. U.S. employers added 271,000 jobs in October, basically crushing initial expectations of 182,000. According to Business Insider:

The October jobs report was a blowout. Data out Friday morning showed that the US economy added 271,000 jobs in October. It was the strongest pace of employment growth this year, and nearly 100,000 jobs more than the consensus forecast for 182,000.

Headlines from leading news outlets — “Stellar October Jobs Report Blows Expectations Away,” “Jobs Report Crushes Expectations” — had similar sentiments, as did people’s reactions on Twitter.

 

What does this mean for the Federal Reserve and possible interest rate hikes? That remains to be seen.

2. More good news. The unemployment rate dropped slightly from 5.1 percent to an even 5 percent, which can be considered a milestone. According to The New York Times:

At 5 percent, the unemployment rate is very close to what would normally be considered the threshold for full employment by the Fed and many private economists.

Meanwhile, the combined total of August and September revisions takes the previously reported numbers up by 12,000.

3. We’re finally moving the needle on wages. Is it monumental growth? Absolutely not. But is it improvement and are we headed in the right direction? Certainly. According to Business Insider:

Wages grew at the fastest pace since mid-2009, as average hourly earnings rose 0.4% month-on-month, better than forecast.

And according to Fortune:

Average hourly earnings surged 9 cents per hour, much faster than economists were expecting. Over the past year, average hourly earnings have risen 2.5%, keeping ahead of inflation.

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 JulyAugust and September jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the September 2015 Jobs Report

October 2nd, 2015 Comments off
jobs report

Like Kanye West’s last-minute surprise show at New York Fashion Week, the September jobs report released this morning turned out to be lackluster. U.S. employers only added 142,000 jobs even as the unemployment rate remained at a steady 5.1 percent, prompting discussions of an economic slowdown.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Economists — and the economy — aren’t having a great day. If you want to increase the odds of winning the lottery, you might not want to take an economist’s advice. That’s because they were predicting there would be more than 200,000 new jobs added to the U.S. economy in September, but the actual number came in at just 142,000. (Womp, womp.)

Here are a few reactions to today’s report.

From the New York Times:

“There’s nothing good in this morning’s report. We had very low levels of job creation, wage growth isn’t budging, and the unemployment rate would have risen if the labor force participation rate hadn’t fallen.” – Carl Tannenbaum, chief economist at Northern Trust in Chicago

From CNN Money:

“It’s a very disappointing report across the board. The U.S. economy is really buckling under the pressure of a global economic slowdown.” – Sung Sohn, an economics professor at California State University, Channel Islands

From CBS News:

“Ugly, really ugly, it’s just hard to find anything good in the report. After last month we could all point to jobs, and say at least they are holding in there. The report is telling us the domestic economy is slowing.” – JJ Kinahan, chief strategist at TD Ameritrade

2. Is this going to have a domino effect? The question on everyone’s minds today is: What does this say about the global economy and will this impact interest rates? The easy answer is: No one knows … yet. But it is looking a little less likely that the Fed will start raising interest rates in the near future, as was previously anticipated. They may just decide to push it off until next year, according to this report. Either way, we’ll just have to wait and see.

3. Even more bad news (sorry). When it rains, it pours.The August jobs report numbers that were initially reported last month (173,000) turned out to be quite inflated; that number was revised down to just 136,000 jobs. And to add just a little more salt to the wound, July’s numbers were also revised down, though not as drastically.

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 and July and August jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the August 2015 Jobs Report

September 4th, 2015 Comments off
3 Highlights From the August 2015 Jobs Report

Like President Obama taking selfies and busting some new dance moves during his recent trip to Alaska, the August 2015 jobs report released this morning was unpredictable and got mixed reactions. The U.S. economy added 173,000 jobs in August, which was below expectations, but at the same time the unemployment rate dropped to a 7-year low.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Let’s celebrate the unemployment rate. No, seriously — the unemployment rate has been slowly but surely moving in the right direction lately, and we hit quite a milestone in August: It’s now sitting at a 7-year low.

2. August numbers were lower than expected and June/July numbers were higher than reported. August numbers — 173,000 — came in lower than the 220,000 that economists were expecting, but as The New York Times puts it:

Although hiring in August was well below the 220,000-job gain that economists had expected, the unemployment rate fell to 5.1 percent from 5.3 percent, the lowest since early 2008. At that level, joblessness is nearing the level that economists and the Fed consider close to full employment…

And as Forbes puts it:

Just 173,000 jobs were added to the U.S. economy in August, according to the latest release from the Bureau of Labor Statistics out Friday morning. That’s well below market expectations as well as the 12-month average. However, with the unemployment rate coming in at its lowest level since April 2008, seemingly for the right reasons, and solid revisions to prior months’ payroll count the situation may not be as lackluster as the August figure suggests.

Additionally, June and July numbers were revised up by a total of 44,000 more jobs than were initially reported.

3. Wages went up a little. U.S. hourly wages ticked up in August and showed overall year-over-year growth, which is a positive sign especially given how wages remained stagnant for awhile earlier in the year. According to Business Insider:

We … got some wage growth, with average hourly earnings rising 0.3% month-over-month and 2.5% year-on-year.

And even though there’s more to be desired on the wage front,

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 May and June and July jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the July 2015 Jobs Report

August 7th, 2015 Comments off
July 2015 jobs report BLS data economy

Unlike some of the unique personalities battling it out in this presidential campaign (we won’t mention any names), the July 2015 jobs report released this morning was steady, void of drama and in line with expectations.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Jobs numbers were solid, but some say “so-so.” U.S. employers added 215,000 jobs in July, which is a little lower than the 225,000 that economists were expecting but still a solid number. The unemployment rate held steady at a seven-year low of 5.3 percent.

Here’s what some experts on Twitter had to say:

Well, OK then.

2. Wage growth? Yes please! According to Business Insider:

Wages grew a bit in July after coming in flat in the prior period. Average hourly earnings grew 0.2% month-over-month (+0.2% expected) and 2.1% (+2.3% expected) year-over-year in July.

Granted the increase isn’t something to be jumping up and down about, but we’ll take any increase we can get.

3. These industries came out on top. There are no winners and losers in life… just kidding! As Forbes reported, here are some industries that are winning at adding more jobs than others:

The sectors that added the most jobs were: retail trade (36,000), health care (28,000) and professional and technical services (27,000). Mining was the only major industry to lose jobs, cutting 5,000.

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 April, May and June jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the June 2015 Jobs Report

July 2nd, 2015 Comments off
3 Highlights From the May 2015 Jobs Report

The economy added 223,000 jobs in June and the unemployment rate fell to 5.3 percent, according to the June 2015 jobs report released by the Bureau of Labor Statistics today. And while The New York Times can only describe it as “Good, but hardly great,” there is the fact that “The U.S. has now added jobs for 57 consecutive months, a streak that is unprecedented since World War II,” according to FiveThirtyEight.

Confused? Don’t be. Here are three points of insight from today’s report:

  1. Unemployment reaches seven-year low

But take that news with a grain of salt: “Some economists and experts cautioned that the labor force participation numbers from June could be muddled by complex calculations that the government uses to smooth out seasonal fluctuations. Normally in June the workforce swells with college graduates and summer workers; the Department of Labor tries to model the underlying trends, but that modeling is harder in months with such churn,” according to The Washington Post’s blog.

  1. Construction is heating up

The Wall Street Journal’s blog writes “In the sectoral breakdown, one sector stands to do pretty good in terms of jobs added: construction. May construction data yesterday showed a 1.5 percent gain on the month, following an even stronger April. Construction is now at a postrecession-high. So, although there’s been something of [an] anomaly where construction jobs haven’t rebounded to their pre-crisis highs, you can’t build home[s] without hiring workers. Expect this sector to show some solid additions again.”

  1. Higher wages wanted

According to MarketWatch, “The steady cascade of new jobs is still enough to gradually reduce the unemployment rate and whittle down the number of Americans who want a full-time job. Yet 16.7 million people still couldn’t find a job in June, were forced to stick to part-time work or were too discouraged to continue their search. That’s an unusually high number six years into an economic recovery and helps explain why wages and U.S. economic growth lag behind their historical pace.”

Did you miss the March, April or May jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the May 2015 Jobs Report

June 5th, 2015 Comments off
3 Highlights From the May 2015 Jobs Report

It’s as if the economy knew it was National Donut Day and wanted to join the celebrations by delivering a strong May jobs report this morning.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Jobs numbers FAR exceeded expectations. U.S. employers added 280,000 jobs in May, which is the biggest job gain since the end of 2014 and much higher than the 225,000 jobs economists were expecting.

That’s especially good news if you look back at some of the numbers from earlier this year.

2. The unemployment rate rose to 5.5 percent, but that’s not bad. Yes, the unemployment rate ticked up slightly from 5.4 percent in April, but there’s a good reason for it. As Reuters puts it:

While the unemployment rate rose to 5.5 percent from a near seven-year low of 5.4 percent in April that was because more people, likely new college graduates, entered the labor force, indicating confidence in the jobs market.

3. Where are we with wages? If you’ve been following our monthly jobs report recaps, you’ll know that we’ve been keeping an eye on wages, as they appeared to be stagnating for quite a while. But that may slowly but surely be changing. As Business Insider puts it:

The report … showed that wages rose faster than expected, with wages rising 0.3% over the prior month and 2.3% over the prior year.

And that’s not something to be taken lightly. After all, average hourly earnings have risen to its highest level since mid-2013 — and that’s certainly something to eat a donut about.

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 FebruaryMarch and April jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From The April 2015 Jobs Report

May 8th, 2015 Comments off
3 Highlights From The April 2015 Jobs Report

The U.S. economy, like the weather, has been somewhat unpredictable over the past few months. But just as Mother Nature shook off winter and spring finally emerged in many parts of the country, the U.S. economy rebounded after shaking off a disappointing month, according to the April jobs report released by the BLS this morning.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. The April jobs report numbers were pretty much in line with expectations. The April jobs report released this morning has been described as “pretty decent” and “boring,” which isn’t altogether a bad thing. After March’s disappointing numbers, we were hoping for a break — and got one. In fact, the unemployment rate fell from 5.5 percent to 5.4 percent, registering an almost seven-year low.

2. March numbers were revised wayyy down. While there typically are revisions, what stands out about March’s revisions is that it dropped from a slow 126,000 additional jobs to an even-more-dismal 85,000 jobs. Wage gains in March were also over-estimated — it has been revised down from a 0.3 percent increase to a 0.2 increase. All things considered, 2015 hasn’t been off to an ideal start. According to The New York Times:

Other recent reports have revealed a disappointing start to 2015, including new numbers out this week suggesting that the economy might have actually shrunk in the first quarter.

3. Wages are still not that impressive. Yes, we’ve made some strides in terms of wage growth over the past year, but the improvements are so slight that it’s nothing to write home about. According to Business Insider:

Solid wage growth is seen as one missing piece to creating a picture of full employment. This month’s wage growth was expected to be slightly higher than it has been over the past few months.

In the April jobs report, we saw average hourly earnings increase by 0.1 percent compared to March compared to the 0.2 percent economists were expecting. We also saw 2.2 percent annual growth in wages compared to the 2.3 percent that was expected.

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 JanuaryFebruary and March jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the March 2015 Jobs Report

April 3rd, 2015 Comments off
3 Highlights From the March 2015 Jobs Report

Like a model accidentally giving away a $22,000 car on “The Price Is Right,” the March jobs report — released this morning — was an epic fail. The final count of jobs added in March didn’t come anywhere close to what economists were expecting.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Not-so-good jobs report on Good Friday. Headlines today are screaming everything from “ugly” to “abysmal” to describe the March jobs report — and with good reason. Economists were expecting 248,000 jobs to be added in March, but the dismal number we all woke up to was 126,000. That’s a difference of 122,000, in case you were wondering. That amounts to the weakest job gains number since December 2013. According to The New York Times:

Analysts blamed the plunge in oil prices as well as the punishing weather in the Northeast, a combination that put a crimp on investment in the energy patch and construction and retail sales more broadly. But many still expect the economy to regain at least some of its momentum later this year.

2. January and February numbers were revised down. Some revisions were made to previous jobs reports from what was initially reported. January’s employment gains were revised down from 239,000 to 201,000 — a drop of 38,000 — while February’s numbers were revised down from 295,000 to 264,000 — a drop of 31,000. Combined, that’s a difference of 69,000. 

3. Wages are the silver lining. There has been increased scrutiny on wages in recent jobs reports and, while we still have a ways to go, there is ever-so-slight progress being made. According to Forbes

In March average hourly earnings rose by 7 cents to $24.86. The 12-month wage growth rate ticked up to 2.1%.

And Business Insider:

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 DecemberJanuary and February jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the March 2015 Jobs Report

April 3rd, 2015 Comments off
3 Highlights From the March 2015 Jobs Report

Like a model accidentally giving away a $22,000 car on “The Price Is Right,” the March jobs report — released this morning — was an epic fail. The final count of jobs added in March didn’t come anywhere close to what economists were expecting.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Not-so-good jobs report on Good Friday. Headlines today are screaming everything from “ugly” to “abysmal” to describe the March jobs report — and with good reason. Economists were expecting 248,000 jobs to be added in March, but the dismal number we all woke up to was 126,000. That’s a difference of 122,000, in case you were wondering. That amounts to the weakest job gains number since December 2013. According to The New York Times:

Analysts blamed the plunge in oil prices as well as the punishing weather in the Northeast, a combination that put a crimp on investment in the energy patch and construction and retail sales more broadly. But many still expect the economy to regain at least some of its momentum later this year.

2. January and February numbers were revised down. Some revisions were made to previous jobs reports from what was initially reported. January’s employment gains were revised down from 239,000 to 201,000 — a drop of 38,000 — while February’s numbers were revised down from 295,000 to 264,000 — a drop of 31,000. Combined, that’s a difference of 69,000. 

3. Wages are the silver lining. There has been increased scrutiny on wages in recent jobs reports and, while we still have a ways to go, there is ever-so-slight progress being made. According to Forbes

In March average hourly earnings rose by 7 cents to $24.86. The 12-month wage growth rate ticked up to 2.1%.

And Business Insider:

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 DecemberJanuary and February jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Highlights From the February 2015 Jobs Report

March 6th, 2015 Comments off
3 Highlights From the February 2015 Jobs Report

Americans may have been divided on what color the dress was, but we can all agree that the February 2015 jobs report — which was released this morning — was a win. The U.S. economy added a whopping 295,000 jobs in February, while the unemployment rate dipped from 5.7 percent in January to 5.5 percent.

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Overall the jobs report was pretty solid. U.S. employers added 295,000 new jobs in February, beating the 240,000 that economists were expecting. The unemployment rate also dropped to 5.5 percent (economists were expecting 5.6 percent) — and just so you know, that’s the lowest the unemployment rate has been in nearly seven years (since May 2008, when it was 5.4 percent).

2. We’re moving in the right direction. OK, so there are a lot of bumps along the way. In terms of revisions, December’s numbers remained unchanged at 329,000 while January was revised down 18,000 (257,000 to 239,000). No one’s saying the economy is anywhere close to perfect, but given recent trends we at least appear to be headed in the right direction, so let’s take a moment to savor a few facts:

Job gains have averaged 288,000 a month the past three months.

And…

February marks the 12th straight month of jobs gains over 200,000.

slow cap for jobs report

3. Wages still need some work. Remember how we said a few months ago that there would be increased scrutiny on wages in upcoming jobs reports? Well, there has been … and, unfortunately, it’s one of the areas that could use significant improvement. As Fortune puts it:

Hourly wages advanced 2%, falling short of the 2.2% gains logged in January. Those two months still fall short of the 3% annual wage growth seen prior to 2007. While employers have picked up their hiring, they’ve been less apt to boost pay. Economists and regulators have been anxiously waiting for wages to pickup, a key indicator for when the Federal Reserve may raise interest rates.

4. Bonus insight: Despite what the “evidence” says, the dress is without a shadow of a doubt white and gold.

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 NovemberDecember and January jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

Job Growth is Strong: Will you Have to Pay More?

February 19th, 2015 Comments off
Wage growth

According to the January jobs report, U.S. employers added 257,000 jobs, beating expectations. The report has also shown some increase in wages. The bad news within this good news is you may have to increase compensation.

In a recession, the increase in unemployment puts downward pressure on wages. In fact, a high level of unemployment can indicate that wages are too rigid and have not come down enough. It’s supply and demand: In a recession, demand for workers is low, so wages need to decrease to allow more workers to find and keep a job. Right now, we are (finally) out of a recession, so one can expect wages to come back up as job creation increases and unemployment decreases: But how quickly do these adjustments happen? What do we know about wages’ response to the business cycle?

If we look at all employed workers, we see that, in the U.S., a 1 percentage point decrease in unemployment is associated with a 1.2 percent increase in real wages (i.e. after accounting for inflation). So if the unemployment rate were to decline from its current 5.7 percent level to 4.7 percent by the end of the year, real wages would likely increase by about 1.2 percent. This number gives us an idea of how much the compensation of the average worker is likely to increase if the economic outlook continues to improve.

The impact on new hires

Recruiters, beware: For new hires, the impact of economic conditions is even stronger. If the unemployment rate were to decline from its current 5.7 percent level to 4.7 percent by the end of the year, real wages of new hires would likely increase by about 1.8 percent (Martins, Solon, Thomas, 2012). CareerBuilder’s Supply & Demand portal can help you stay ahead of the compensation trends and decide on a competitive compensation package for your vacancy. In a nutshell, recruiters should budget for increases in the compensation to stay competitive in the race for talent as the state of the economy improves.

Have you had to increase compensation for new hires? Tell us in the comments section.

 

 

3 Highlights From the January 2015 Jobs Report

February 6th, 2015 Comments off
3 talking points from the January 2015 jobs report

U.S. employers came out swinging in the New Year with a strong January 2015 jobs report, which was released this morning. The U.S. economy added 257,000 jobs in January — more than economists had been expecting — and there were also a few other positive surprises sprinkled throughout the report.

Here are a few of today’s headlines so you can get a sense of the reaction to the report: “Jobs Report Crushes Expectations,” “This Is a Great Jobs Report Across the Board,” “Good Jobs Report Is Good News for Stocks” and “It’s Raining Jobs!

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Solid numbers all around — and labor force participation increased. U.S. employers added 257,000 jobs in January, beating expectations. And even though the unemployment rate ticked up slightly from 5.6 percent to 5.7 percent, it’s not necessarily bad news because in this case the labor force participation rate increased, which means a greater number of Americans entered the labor force. As The New York Times explained:

That uptick in the unemployment rate? It happened not because fewer people had jobs, but because the size of the labor force rose by a whopping 703,000 in January after annual population adjustments.

2. Everyone’s buzzing about November and December revisions. And you should, too. Both months posted massive gains compared to what was previously reported. The BLS revised November’s numbers up by a whopping 70,000 (from 353,000 to 423,000), while December’s numbers were revised up by 77,000 (from 252,000 to 329,000). That’s a total of 147,000 additional jobs. Significant? Yes. As The Wall Street Journal reported:

November’s overall job gain — 423,000, revised up from the prior 353,000 figure — was the biggest since May 2010, when the government was hiring Census workers. November private-sector hiring was the most since September 1997.

3. Wages are slowly picking up. Remember how we talked about the stagnation of wages last month? (Here’s last month’s recap, if you want to refresh your memory.) Average hourly earnings in January, however, took a slight turn for the better increasing by 12 cents to $24.75. That’s a 2.2 percent jump from last January. Will the upward trend continue in the months to come? With talk about wages heating up across the country, you can expect this topic to continue to be front and center for months to come.

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 OctoberNovember and December jobs report breakdowns? It’s never too late to catch up on some economy-related reading.

3 Talking Points From the December 2014 Jobs Report

January 9th, 2015 Comments off
highlights from the BLS report

While temperatures plunged and a deep freeze gripped much of the U.S., job creation thankfully continued to thaw. According to the December 2014 jobs report released this morning, U.S. employers added 252,000 jobs in December, which exceeded the 240,000 that economists were expecting, while the unemployment rate dropped to 5.6 percent (the lowest it’s been since June 2008). Also, if you look at the past year, more than 2.95 million jobs were created in 2014, which signals the strongest year of job growth in 15 years.

That’s great news, right? Absolutely — but let’s look at the whole picture.

In case you’re looking for handy, easily digestible charts from the just-released jobs report, Quartz has some with highlights.

As you may know, following each month’s jobs report, we read dozens of news reports, scour the Web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.

HERE’S THE NEWS YOU CAN USE FROM TODAY’S RELEASE:

1. Job creation stays (relatively) strong … but there are caveats. U.S. employers added 252,000 jobs in December, beating the 240,000 that many economists were expecting. Meanwhile, the unemployment rate dropped to 5.6 percent, the lowest level since the recession. Numerous news outlets touted 2014 as the best year for job growth in 15 years (since 1999).

Hold the celebrations though because there’s still a lot of work to be done. For starters, consider the labor force participation rate that hasn’t been impressive and dropped 0.2 percent (to 62.7 percent) in December. Also, the number of long-term unemployed individuals, or those who have been out of work for more than 27 weeks, is nowhere near where it should be.

2. There were significant positive revisions. The already-glowing November jobs report — which the BLS had initially reported had added 321,000 jobs — was given even more of a boost when that number was revised up to 353,000. That’s a 32,000 difference, in case you were wondering. The BLS also revised up the October numbers from 243,000 to 261,000 (a difference of 18,000). For the two months, that amounts to a 50,000 increase than was previously estimated.

3. What’s up with wages? Possibly the most unsatisfactory part of today’s jobs report was the underwhelming average hourly earnings, which have remained relatively stagnant over the past five years. After some glimmering hope emerged when it increased by 0.4 percent in November, everyone was hoping the upward wage trend would continue. But nope. Hopes were dashed when it dropped 0.2 percent in December.

You may not have seen this wage stagnation dominating headlines in the past, but many experts say this piece is integral to a successful and sustained economic recovery moving forward. So watch for more of a focus on wages in upcoming labor market reports and analysis.

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 SeptemberOctober and November jobs report breakdowns? It’s never too late to catch up on some economy-related reading.