April’s 211,000 net new jobs were a return to the more robust growth rates seen over the past two years, although March figures were revised down once again to 79,000 jobs. Unemployment fell by 10 basis points to another cyclical low of 4.4 percent in April.

1. National employment
situation: April 2017
May 5, 2017

2. April 2017 U.S. labor market at a glance
2
+211,000
(79 consecutive months
of growth)
1-month net change
+2,237,000
(+1.6% y-o-y)
12-month change
+800,000
10-year average annual growth
4.4%
Unemployment rate
5,743,000
(+3.2% y-o-y)
Job openings
-60bp
12-month change in unemployment
62.9%
Labor force participation rate
5,314,000
(-2.4% y-o-y)
Hires
3,084,000
(+3.4% y-o-y)
Quits
Source: JLL Research, Bureau of Labor Statistics

3. Lack of contribution from retail trade pulling down monthly gains
April’s 211,000 net new jobs were a return to the more robust growth rates seen over the past two years, although March figures were revised down once again
to 79,000 jobs. Year-to-date, employment growth stands at 738,000 jobs compared to 741,000 this time last year, indicating steady gains so far. Broken down by
industry, leisure, education and health and professional services continue to be dominant, contributing to 63.9 percent of monthly additions. Previously a leader,
retail trade continues to struggle: it has contracted by 14,500 jobs year-to-date, well below the 113,800 jobs that it created by April 2016.
Unemployment drops once again as saturation intensifies
Unemployment fell by 10 basis points to another cyclical low of 4.4 percent in April, aided by a combination of stronger job growth and fewer people entering
and participating in the workforce: only 12,000 net new entrants were recorded during the month, while participation slid by 10 basis points to 62.9 percent. At
annual rates, job creation is double that of labor force expansion, which is further squeezing talent and pushing up wages. The effects of this are beginning to be
seen in the office market with slower occupancy growth due to talent shortages, most notably in tech-heavy geographies.
Confidence is up even as inflation ramps up
Even with a slight dip in April, consumer confidence remains above pre-recession heights at 120.9 points, with similar sentiment felt in much of the business
community. However, rising inflation is beginning to have an effect on consumer spending, which was largely flat during the first quarter and suppressed GDP
growth to just 0.3 percent. Wage growth remains high, particularly in skilled areas such as information and professional services, but increasing prices of goods
and services will begin to temper further spending.
April 2017 U.S. labor market highlights
3Source: JLL Research, Bureau of Labor Statistics

4. 360,000
226,000
243,000
96,000
110,000
88,000
106,000
122,000
221,000
183,000
164,000
196,000
360,000
226,000
243,000
96,000
110,000
88,000
160,000
150,000
161,000
225,000
203,000
214,000
197,000
280,000
141,000
203,000
199,000
201,000
149,000
202,000
164,000
237,000
274,000
84,000
166,000
188,000
225,000
330,000
236,000
286,000
249,000
213,000
250,000
221,000
423,000
329,000
221,000
265,000
84,000
251,000
273,000
228,000
277,000
150,000
149,000
295,000
280,000
262,000
168,000
233,000
186,000
277,000
24,000
271,000
252,000
176,000
208,000
135,000
164,000
155,000
216,000
232,000
79,000
211,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2011 2012 2013 2014 2015 2016 2017
1-monthnetchangeApril’s 211,000 new jobs were a return to normal, but
March’s weak figures were further downgraded
Source: JLL Research, Bureau of Labor Statistics 4

5. 0%
2%
4%
6%
8%
10%
12%
-1,000
-800
-600
-400
-200
0
200
400
600
Unemploymentrate(%)
1-monthnetchange(thousands)
1-month net change Unemployment rate
A further 10bp dip in unemployment to 4.4 percent came
on the back of a lack of increase in participation
5Source: JLL Research, Bureau of Labor Statistics

6. 2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
Jobopenings(thousands)Job openings continue to hover around the 5.7-million
mark as labor-market dynamics shift
6Source: JLL Research, Bureau of Labor Statistics

7. 2.4%
2.4%
2.6%
2.9%
3.2%
4.2%
4.5%
4.7%
4.9%
5.2%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Construction
Information
Mining and logging
Manufacturing
Trade, transportation and utilities
Financial activities
Other services
Professional and business services
Leisure and hospitality
Education and health
Job openings rate (%)
The job openings rate for education and health has
risen past 5.0 percent; stable elsewhere
7Source: JLL Research, Bureau of Labor Statistics

8. -3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Wage growth Inflation
A 30bp drop in the consumer price index was matched
by an equal drop in wage growth to 2.4 percent
8Source: JLL Research, Bureau of Labor Statistics

9. 4.3%
2.4%
2.3%
2.5%
2.6%
2.6%
3.0%
2.4%
3.5%
4.4%
1.4%
1.7%
1.9%
2.1%
2.2%
2.6%
2.7%
3.1%
4.3%
4.6%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
Mining and logging
Trade, transportation and utilities
Education and health
Construction
Financial activities
Other services
Manufacturing
Professional and business services
Leisure and hospitality
Information
12-month wage growth (%)
April 2017 April 2016
Information, leisure and professional services saw
most sustained increases in wage growth
9Source: JLL Research, Bureau of Labor Statistics

10. 62%
63%
63%
64%
64%
65%
65%
66%
66%
67%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%changeAfter increasing earlier in 2017, the labor force
participation rate declined by 10bp to 62.9 percent
10Source: JLL Research, Bureau of Labor Statistics

11. -6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Civilian labor force Employment
Jobs continue to be added twice as fast as people enter
the labor force, resulting in tightening
11Source: JLL Research, Bureau of Labor Statistics

12. -7.0
-3.0
0.7
2.8
3.5
5.0
5.8
6.0
6.3
7.0
8.2
9.0
10.0
17.0
19.0
36.8
39.0
41.0
55.0
-20 -10 0 10 20 30 40 50 60
Information
Durable goods
Utilities
Motor vehicles and parts
Transportation and warehousing
Construction
Temporary help services
Manufacturing
Retail trade
Other services
Wholesale trade
Nondurable goods
Mining and logging
Government
Financial activities
Health care and social assistance
Professional and business services
Education and health services
Leisure and hospitality
1-month net change (thousands)
Leisure, education, health and professional services
continue to lead monthly additions by a large margin
12Source: JLL Research, Bureau of Labor Statistics

13. -46.0
-8.0
0.4
2.4
21.0
40.0
48.0
53.9
56.0
75.0
83.5
112.4
173.0
173.0
179.0
304.0
435.5
512.0
612.0
-100 0 100 200 300 400 500 600 700
Information
Durable goods
Utilities
Motor vehicles and parts
Mining and logging
Manufacturing
Nondurable goods
Wholesale trade
Other services
Retail trade
Transportation and warehousing
Temporary help services
Construction
Financial activities
Government
Leisure and hospitality
Health care and social assistance
Education and health services
Professional and business services
12-month net change (thousands)
Hiring constraints are beginning to lower annual
growth figures, but distribution of gains not changed
13Source: JLL Research, Bureau of Labor Statistics
612.0
512.0
304.0
173.0
75.0
521.0
PBS Education and health
Leisure and hospitality Financial activities
Retail trade Manufacturing
All other jobs
Core subsectors added 76.7 percent of all
jobs over the past 12 months.

14. 0%
1%
2%
3%
4%
5%
6%
12-month%changeEven with an increase in participation, bachelor’s
degree-holder unemployment fell to 2.4 percent
14Source: JLL Research, Bureau of Labor Statistics

15. -300
-250
-200
-150
-100
-50
0
50
100
150
200
2009 2010 2011 2012 2013 2014 2015 2016 2017
1-monthnetchange(thousands)
Professional and business services Financial activities Information
Financial activities saw a significantly bump in April
(+19,000 jobs), but information is still in contraction
15Source: JLL Research, Bureau of Labor Statistics

16. -10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Tech Energy, mining and utilities Office-using Total non-farm
Tech’s 4.4-percent annual growth is the slowest so far
this cycle as industry-specific constraints emerge
16Source: JLL Research, Bureau of Labor Statistics

17. 200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
Initialunemploymentclaimsperweek
Intial weekly claims 4-week moving average
Initial unemployment claims’ moving average appears
to have settled at a very low 242,000-243,000 per week
17Source: JLL Research, U.S. Department of Labor

18. 0
20
40
60
80
100
120
140
ConsumerconfidenceindexAlthough dropping slightly in April, consumer
confidence remains above pre-recession highs
18Source: JLL Research, Conference Board

19. Atlanta and Nashville saw employment accelerate
rapidly to 3.9 percent as in-migration increases
19
3.2%
3.3%
3.3%
3.4%
3.6%
3.7%
3.8%
3.9%
3.9%
2.5% 3.0% 3.5% 4.0%
Seattle-Bellevue
Salt Lake City
Austin
Fort Lauderdale
Orlando
Jacksonville
Dallas
Atlanta
Nashville
12-month % change
Source: JLL Research, Bureau of Labor Statistics

20. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
12-month%change
Total unemployment 10-year average
Total unemployment declined markedly by 30bp in April
to 8.6 percent; lowest rate since 2008
20Source: JLL Research, Bureau of Labor Statistics

21. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 21
Phil Ryan
Phil.Ryan@am.jll.com
202 719 6295