BLS Employment Situation Report for July — Channeling “Groundhog Day”?
July’s job numbers were just released by the U.S. Bureau of Labor Statistics, and they may give you flashes of Bill Murray a la Groundhog Day, as the unemployment rate remained at 9.5 percent in July and another month went by without significant improvement in our employment situation. But as Bill Murray’s character, Phil Connors, reminded us in the film, we can see see the groundhog signifying six more weeks of winter as bleak and dark and bereft of hope, or look at the positives of the situation and acknowledge where we’re improving. After all, we’ve gained 630,000 private sector jobs this year — and there’s still five months of 2010 that remains to be seen.
Additionally, we’re seeing moderate, sequential improvements across almost every job category on CareerBuilder itself. Entry-level jobs are up 100 percent year over year, and in the skilled areas for both construction and manufacturing, we’re seeing jobs up 50 percent year over year, as CareerBuilder CEO Matt Ferguson pointed out on CNBC’s Squawk Box this morning. Ferguson explained July’s job numbers from his point of view, how things have changed since 2008, and the good and the bad of what’s going on now.
Watch the VIDEO:
Let’s take a closer look at BLS’s Employment Situation report for July:
- Both the number of unemployed persons, at 14.6 million, and the unemployment rate, at 9.5 percent, were unchanged in July.
- Total nonfarm payroll employment declined by 131,000 in July, but those losses were due to to 143,000 temporary workers hired for the decennial census completing their work.
- So far this year, private sector employment has increased by 630,000, with about two-thirds of the gain occurring in March and April.
- The average hourly wage rose slightly in July, from $22.55, to $22.59. Over the past 12 months, average hourly earnings have increased by 1.8 percent.
- Private employers added 71,000 jobs in July, up from a downwardly revised 31,000 in June but below the consensus forecast of 90,000.
- The number of persons employed part time for economic reasons (because either their hours had been cut back or they were unable to find a full-time job) was essentially unchanged over the month at 8.5 million but has declined by 623,000 since April.
- The average workweek for all employees on private nonfarm payrolls increased from 34.1 hours to 34.2 hours — signaling employers are looking for more productivity from the same number of workers.
NOTE: June’s number was revised dramatically downward to a total loss of 221,000 jobs. The agency originally reported that the nation lost 125,000 jobs in June.
Industry-Specific Changes for July:
- Manufacturing employment increased by 36,000 over the month. Manufacturing employment has expanded by 183,000 since December 2009.
- Health care added 27,000 jobs in July. Over the past 12 months, health care employment has risen by 231,000.
- Employment in professional and business services was little changed (13,000) in July.
- The number of jobs in temporary help services showed little movement (-6,000) over the month.
- Employment in financial activities continued to trend down in July, with a decline of 17,000. So far this year, monthly job losses in the industry have averaged 12,000, compared with an average monthly job loss of 29,000 for all of 2009.
- Construction employment changed little (-11,000) in July; 10,000 construction workers were off payrolls due to strike activity.
- Employment in other private-sector industries, including wholesale trade, retail trade, information, and leisure and hospitality showed little change in July.
What happens next?
Although we’ve pointed out positives when looking at 2010 as a whole, expectations are high, and many say job market improvements are not keeping up with the number of entrants to the job market. An article in The New York Times stresses that today’s unemployment report renewed pressure on lawmakers to consider the next steps they might take to bolster the economy. After more of the same with job numbers, employers are hoping to break the Phil Connors cycle and wake up next to Rita with “I’ve Got You Babe” playing on the radio — er, wake up with more jobs to be had and more people getting work. Time will tell as to what combination of factors will get us there — and stop us from stepping in that same puddle every morning.
