US Talent Market Monthly June 2012


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US Talent Market Monthly June 2012

  1. June 1, 2012 U.S. EMPLOYERS HIRED A AVERAGE HOURLY EARNINGS THE UNEMPLOYMENT RATE TOTAL OF (ALL WORKERS) ROSE TO 69,000 WORKERS IN MAY $23.41 1.7% ABOVE LAST YEAR 8.2% 9.0% LAST MAYJOB CREATION REMAINS SLUGGISH• Weak employment gains, downward revisions to prior months’ numbers, and an uptick in the unemployment rate signal a slowdown in the fitful U.S. labor market.• Subdued economic growth in the U.S. and cooling trends across the globe are keeping employers cautious and hiring levels muted.• Manufacturing employment growth represents a bright spot in the tepid job market, with nearly 150,000 manufacturing jobs created this year and almost 500,000 added since the low point in 2010.The U.S. labor market continued to lose steam in May, as job creation slowed further amid broader economic malaise. Employersadded only 69,000 jobs over the month, the lowest job creation figure in a year. Employment figures for April and March were alsorevised downward by nearly 50,000 combined, bringing average employment creation for the past three months to less than 100,000a month. In the prior three months, U.S. employers added an average of more than 250,000 jobs per month. (Continued)
  2. Talent Market Monthly: June 1, 2012The unemployment rate ticked up slightly to 8.2% in May, U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATEfollowing a nine-month declining trend, as more workers re- Unemployment Rate (%)entered the labor market. Recent weakness in both jobless 600 11 Employment (000’s)claims and employment demand also suggest that the 300 10momentum in lowering unemployment may be stalling. 0 9 8 -300 7Transportation and health care drove employment gains in May, -600 6with each sector adding more than 30,000 jobs. Employment inthe manufacturing sector also continued to climb, with a gain of -900 5 Aug-09 Aug-10 Aug-11 Feb-10 Feb-11 Feb-12 May-09 May-10 May-11 May-12 Nov-09 Nov-10 Nov-1112,000 in May, and temporary help services also added morethan 9,000 jobs. The construction industry lost 28,000 jobs inMay, and government employment continued on a downward Non-Farm Employment Private-Sector Employment Unemployment Ratetrend, with a decline of 13,000.After a robust start to the year, labor market gains have been EMPLOYMENT OVERVIEWsluggish and slowing in recent months. U.S. economic growth MAY APR MAR FEB JANhas been similarly tepid, and the continuing crisis in Europethreatens to keep growth rates subpar across much of the globe. Total non-farm employment growth 69K 77K 143K 259K 275KEconomic conditions are expected to improve as the yearprogresses, but thus far in the recovery, sustained momentum Private employment growth 82K 87K 147K 254K 277Kand strength in the U.S. labor market continue to be elusive. Unemployment rate 8.2% 8.1% 8.2% 8.3% 8.3% Source: Bureau of Labor StatisticsMANUFACTURING RENAISSANCE One of the bright spots in an otherwise lackluster jobs recovery following the Growth in manufacturing is critical to the health of the overall labor market. recession has been the reemergence of U.S. manufacturing. The manufacturing Manufacturing jobs provide decent wages and benefits to a wide range of workers, sector has seen steady growth in employment over the last two years, creating particularly those at the lower end of the skills and education spectrum. It also nearly 500,000 jobs since its most recent low in January 2010. spurs creation of service jobs, as well as providing an impetus to high-level research The U.S. has become a more attractive location for manufacturing employers as and innovation activity. Preparing workers with the skills needed to sustain the wages have begun to grow in offshore markets. Firms have also come to realize the momentum in U.S. manufacturing will require cooperation from companies, benefits of being able to access experienced and skilled workforces in many governments, and educational institutions. locations across the country. And manufacturing productivity in the U.S. has seen tremendous gains in recent years, averaging 13% more in output per hour in the past five years. Sources: LA Times, 05.09.12; Wall Street Journal, 05.28.12; BLSAn Equal Opportunity Employer ©2012 Kelly Services, Inc. W1093e