US Talent Market Monthly September 2012


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US Talent Market Monthly September 2012

  1. September 7, 2012 U.S. EMPLOYERS HIRED A AVERAGE HOURLY EARNINGS THE UNEMPLOYMENT RATE TOTAL OF (ALL WORKERS) FELL TO 96,000 WORKERS IN AUGUST $23.52 1.7% ABOVE LAST YEAR 8.1% 9.1% LAST AUGUSTEMPLOYMENT GROWTH BELOW EXPECTATIONS IN AUGUST• Job creation remains positive but very tepid, as U.S. employers continue to hold back on hiring amid broader domestic and global uncertainty.• The unemployment rate decline in August was caused by workers leaving the labor force, pushing the U.S. labor force participation rate to a 30-year low.• The labor market recovery remains prolonged and subdued, prompting the question of when—or whether—the employment picture will brighten.The U.S. labor market continued to move at a lukewarm pace in August, as employers added just 96,000 jobs in the month. The prior twomonths’ employment figures were also revised downward by a net 41,000 jobs. Employment gains over the past six months have averagedless than 100,000 a month, as hiring activity remains hampered by concerns over global economic conditions and domestic policyuncertainties. The sluggish growth trend is further prolonging the time it will take to boost U.S. employment back to its pre-recession level.(Continued)
  2. Talent Market Monthly: September 7, 2012Service sectors drove the employment gains in August, led by U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATEthe leisure and hospitality industry (+34,000). Health care Unemployment Rate (%)employment was up by 17,000 and professional and business 600 11 Employment (000’s)services jobs increased by 28,000. Manufacturing jobs 10decreased in August (-15,000), partially due to a change in the 300 9automakers’ layoff and recall process this year. 8 0 7The unemployment rate fell to 8.1% in August, largely as a 6result of a drop in the overall labor force as fewer Americans -300 5 Apr-10 Apr-11 Apr-12 Jul-10 Oct-10 Jul-11 Oct-11 Jul-12 Jan-10 Jan-11 Jan-12were looking for work. The U.S. labor force participation ratecontinues to decline, and is now at its lowest point in morethan three decades. Non-Farm Employment Private-Sector Employment Unemployment RateThe continued weak employment figures show that thus far inthe recovery cycle, employers remain cautious and the job EMPLOYMENT OVERVIEWmarket has failed to gain any substantive momentum. A key AUG JUL JUN MAY APRquestion as the labor market struggles to move forward iswhether this moderation is the “new normal.” Some Total non-farm employment growth 96K 141K 45K 87K 68Keconomists claim that the recession changed the structure ofthe labor market so much that higher unemployment has now Private employment growth 103K 162K 63K 116K 85Kbecome the norm, while others contend that the sluggishemployment picture will continue to improve, albeit gradually. Unemployment rate 8.1% 8.3% 8.2% 8.2% 8.1% Source: Bureau of Labor StatisticsMIND THE GAP A new study from the Brookings Institution finds a significant gap between the central California and Texas among those showing the largest deficiencies. educational levels that employers want and the schooling that the average The imbalance of education is a long-term, structural factor that must be addressed American has attained. The study analyzed job openings along with demographic in the U.S. labor market—but the study also found that a lack of job openings and economic data in the nation’s 100 largest metropolitan areas. overall is a key short-term problem for workers of all skill levels. The study found that while 43% of all U.S. job openings require at least a bachelor’s Before the recession, there were 12 available jobs for every worker with a degree, only around a third of adults have earned one. And while 40% of the U.S. bachelor’s degree or more, and 2.9 jobs for workers with a high school diploma. population holds a high school diploma or less, only 25% of jobs are available for Those ratios have now fallen to 5.6 job openings per college-educated worker and workers with that level of education. The so-called education gap, or the difference just 1.6 jobs available for each person with a high school education. between the average years of schooling desired by employers and the average years held by the population, varies widely among U.S. metro areas, with cities in Source: Brookings Institution, August 2012An Equal Opportunity Employer ©2012 Kelly Services, Inc. W1093e