A muted December capped off a slower, more inconsistent 2016. Job creation over the course of 2016 totaled nearly 2.2 million jobs, a 21.4-percent lower figure than the more than 2.7 million jobs created in 2015. Monthly gains averaged 180,000 vs. the 229,000 in 2015, largely as a result of talent shortages in major markets.
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US employment rate data and trends – December 2016
1. U.S. employment situation: September 2013
Release date: October 22, 2013
A muted December capped off a
slower, more inconsistent 2016
U.S. employment situation: December 2016 January 6, 2017
2. December 2016 employment summary
• 2016 was slower and more inconsistent than 2015
- Job creation over the course of 2016 totaled nearly 2.2 million jobs, a 21.4-percent lower figure than the more than 2.7 million jobs created
in 2015. Monthly gains averaged 180,000 vs. the 229,000 in 2015, largely as a result of talent shortages in major markets. More notably,
monthly additions were more inconsistent throughout the year, ranging from a high of 252,000 in July to a low of 24,000 in May. As slack in
the labor market continues to decline, this rate of slower growth and general fluctuation is likely to persist.
- On the other hand, unemployment continued to perform well, declining by 30 basis points over the year to 4.7 percent and reaching a
cyclical low of 4.6 percent in November. Declines in unemployment came as a result of a steadily increasing workforce, marginally boosting
participation, and job growth outperforming the rate of expansion in the workforce. Total unemployment declined by more than double the
rate of headline unemployment and now stands at 9.2 percent.
- Industry growth was also inconsistent in December. Notably, the temporary help services component of PBS contracted by 15,500 jobs and
construction fell by 3,000, while retail trade rose by only 6,300. Many critical components of job creation, such as PBS and manufacturing,
also registered greater fluctuations in 2016.
• Wage growth continues to outpace inflation, reaching highest rate of increase this cycle
- Despite the inconsistencies found in terms of job creation, wage growth remained a constant bright spot throughout the year, increasing by
2.9 percent year-over-year in December, its fastest rate since 2009. Hourly earnings rose across a variety of industries, with information,
leisure, manufacturing and construction leading at more than 3.0 percent each. Only education and health saw annual gains below 2.0
percent.
- Earnings also increased above the rate of inflation even as the consumer price index rebounded markedly on the back of increasing energy
prices. Tightening in the labor market will likely keep wage growth above or at the CPI over the short term, although the effects of the
Federal Reserve’s recent interest-rate hike have yet to be fully seen.
Source: JLL Research, Bureau of Labor Statistics
2
3. December 2016 U.S. labor market at a glance
+156,000
(75 consecutive months
of growth)
1-month net change
+2,157,000
(+1.5% y-o-y)
12-month change
+786,000
10-year average annual growth
Source: JLL Research, Bureau of Labor Statistics
4.7%
Unemployment rate
-30bp
12-month change in unemployment
62.7%
Labor force participation rate
5,534,000
(+2.1% y-o-y)
Job openings
5,099,000
(-2.2% y-o-y)
Hires
2,986,000
(+6.8% y-o-y)
Quits
3
5. A 10-basis-point increase in participation and steady growth in
the labor market pushed up unemployment to 4.7 percent
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
Unemploymentrate(%)
1-monthnetchange(thousands)
Monthly employment change Unemployment rate
Source: JLL Research, Bureau of Labor Statistics
5
6. Job openings continue to fluctuate around the 5.5 million
mark, but show no sign of falling as of yet
Source: JLL Research, Bureau of Labor Statistics
6
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jobopenings(thousands)
7. 1.8%
2.6%
2.9%
3.0%
3.0%
3.7%
4.0%
4.2%
4.3%
5.0%
1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
Mining and logging
Manufacturing
Other services
Construction
Information
Trade, transportation and utilities
Financial activities
Professional and business services
Leisure and hospitality
Education and health
Job openings rate
Rate of job openings continues to rise, particularly in
education, health, finance and trade
Source: JLL Research, Bureau of Labor Statistics
7
8. 0
1,000
2,000
3,000
4,000
5,000
6,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Hiresandquits(thousands)
Hires Quits
Hires and quits are both stable, but saw no significant rise
during the second half of 2016
Source: JLL Research, Bureau of Labor Statistics
9. Wage growth hit a cyclical high of 2.9 percent in December,
once again outpacing growth in inflation
Source: JLL Research, Bureau of Labor Statistics
9
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016
12-month%change
Hourly wage growth CPI growth
10. 1.8%
2.2%
2.4%
2.4%
2.7%
3.0%
3.0%
3.4%
4.4%
4.4%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
Education and health
Other services
Professional and business services
Financial activities
Mining and logging
Trade, transportation and utilities
Construction
Manufacturing
Leisure and hospitality
Information
12-month % change in wages
Below-average wage growth in education, health and PBS
countered by gains in leisure, manufacturing and trade
Source: JLL Research, Bureau of Labor Statistics – office-using sectors in red
10
11. Annual growth in both the labor force and employment have
slowed, but job growth continues to eclipse new entrants
Source: JLL Research, Bureau of Labor Statistics
11
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016
12-month%change
Civilian labor force Total non-farm
12. Labor force participation remains wobbly, but increased 10bp
in December to 62.7 percent
Source: JLL Research, Bureau of Labor Statistics
12
60%
61%
62%
63%
64%
65%
66%
67%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Laborforceparticipationrate(%)
13. -15.5
-8.0
-6.0
-3.0
-2.0
0.2
2.0
2.0
2.9
6.3
12.0
13.0
14.7
15.0
15.0
17.0
24.0
63.3
70.0
-20 -10 0 10 20 30 40 50 60 70 80
Temporary help services
Other services
Information
Construction
Mining and logging
Utilities
Nondurable goods
Wholesale trade
Motor vehicles and parts
Retail trade
Government
Financial activities
Transportation and warehousing
Durable goods
Professional and business services
Manufacturing
Leisure and hospitality
Health care and social assistance
Education and health services
1-month net change (thousands)
Counter to earlier months, temporary help services and
construction contracted, pulling down net gains
13
Source: JLL Research, Bureau of Labor Statistics
14. -80.0
-53.0
-45.0
-2.0
1.8
8.0
15.9
23.1
51.5
57.0
62.1
102.0
159.0
183.0
256.7
295.0
514.1
522.0
593.0
-200 0 200 400 600 800
Mining and logging
Durable goods
Manufacturing
Information
Utilities
Nondurable goods
Motor vehicles and parts
Temporary help services
Wholesale trade
Other services
Transportation and warehousing
Construction
Financial activities
Government
Retail trade
Leisure and hospitality
Health care and social assistance
Professional and business services
Education and health services
12-month net change (thousands)
593.0
522.0295.0
256.7
159.0
331.3
Education and health PBS
Leisure and hospitality Retail trade
Financial activities Manufacturing
All other jobs
Contractions in manufacturing and a slowdown in retail trade
reduced diversity of job creation in 2016 compared to 2015
Source: JLL Research, Bureau of Labor Statistics
14
Core subsectors added 84.6 percent
of all jobs over the past 12 months.
16. A drop-off in PBS growth, stability in finance and contraction in
information kept office-using employment minimal in December
-300
-250
-200
-150
-100
-50
0
50
100
150
200
2009 2010 2011 2012 2013 2014 2015 2016
1-monthnetchange(thousands)
Information Professional and business services Financial activities
Source: JLL Research, Bureau of Labor Statistics
16
17. Energy is still posting contraction on an annual basis, but
declines are slowing quickly
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
9.0
2008 2009 2010 2011 2012 2013 2014 2015 2016
High-tech Energy, Mining, and Utilities Office-using industries Total non-farm
Source: JLL Research, Moody’s. Note: Due to data lags, high-tech employment only available through September 2016
17
12-month%change(jobs)
18. Initial unemployment claims continue to stay near their 40-year
low; moving average at 256,000 per week
Source: JLL Research, U.S. Department of Labor
18
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
Claims
Initial claims 4-week moving average
20. Even though tech is beginning to cool off and normalize to new
growth rates, Seattle and Silicon Valley remain leaders in jobs
Source: JLL Research, Bureau of Labor Statistics
20
Silicon
Valley
3.3%
Orlando
4.5%
Denver
3.1%
Dallas
3.3%
Salt Lake
City
3.5%
Seattle-
Bellevue
3.5%
21. Unlike headline employment, total unemployment dipped
once again to 9.2 percent, a 70bp annual drop
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Totalunemployment(%)
Total unemployment U-6 10-year average
Source: JLL Research, Bureau of Labor Statistics
21