The U.S. labor market rebounded in April with the addition of 211,000 new jobs and the unemployment rate falling to 4.4%. Key sectors like leisure/hospitality, professional/business services, and healthcare saw employment gains. The labor force participation rate ticked down slightly while average hourly earnings rose by 0.3% and GDP growth slowed to 0.7% in the first quarter. Overall, the report indicates continued steady growth in the U.S. economy and labor market.
2. U.S. hiring rebounds in April from a disappointing early Spring showing, as the
unemployment rate falls to a new post recession low.
U.S. LABOR MARKET UPDATE
• U.S. adds 211,000 new jobs in April evidence that the economy is still growing at a healthy clip
• The unemployment rate fell to 4.4% low, last seen in May 2007
• The labor force participation rate ticked down slightly to 62.9% from 63.0% in March
• The size of the labor force expanded by 12,000 people
• 1st-quarter GDP increased to an annual rate of 0.7%, slowest growth in 3 years
• Average wages rose 0.3% to $26.19 an hour last month as companies pay more to attract or
maintain talent
3. U.S. JOB REPORT HEADLINES: APR 2017
“U.S. Job Gains Rebound; Unemployment Falls to Pre-Crisis Low”
– Bloomberg
“Jobs Make a Comeback, Unemployment Rate Drops to the Lowest in a Decade”
– Business Insider
“BIG BEAT: US Posts Strong Jobs Gains Across the Board”
- CNBC
“US Jobs Bounced Back in April After a Disappointing March”
- Fortune
“U.S. Job Growth Bounces Back; Unemployment at 10-Year Low”
- New York Times
“Unemployment Rate Drops to Lowest Level in a Decade in April as Economy Adds
211,000 Jobs”
- Washington Post
4. U.S. CURRENT EMPLOYMENT SITUATION: APR 2017
Change from March 2017
Total non-farm payroll: +211,000
Private-sector payroll: +194,000
• Leisure/Hospitality +55K
• Professional/Business Services +39K
• Healthcare +20K
• Finance +19K
• Retail +6K
• Manufacturing +6K
• Construction +5K
• Transportation +4K
Temporary Help: +6,000
Government: +17,000
160MM IN THE U.S. WORKFORCE
7.1MM UNEMPLOYED PEOPLE IN THE U.S.
5.7MM AVAILABLE JOBS IN THE U.S.
+0.7% U.S. GDP IN Q1 2017 (Advance Estimate)
62.9% U.S. LABOR PARTICIPATION RATE
4.4% U.S. UNEMPLOYMENT RATE
5. U.S. CIVILIAN WORKFORCE
In April 2017, the number of people in the
U.S. who had jobs or were seeking
employment amounted to 160.2 million;
an increase of just 12,000 (+0.0%) from
March and remained significantly higher
than the year prior, an increase of 1.3
million (+0.8%).
The size of the labor force has increased
by 757,000 people in the past five months.
The Labor Force (aka Workforce) is the
sum of employed and unemployed persons
in the U.S.
Source: Bureau of Labor Statistics
6. U.S. UNEMPLOYED WORKFORCE
The U.S. unemployment dipped to 4.4% in
April 2017 – a new post peak low. The
unemployment rate peaked in October
2009 at 10.0%.
The number of unemployed people in the
U.S. is now 7,056,000 a decrease of
146,000 (-2.0%) from March and lower
than the year prior, a decrease of 854,000
(-10.8%).
Source: Bureau of Labor Statistics
7. U.S. EMPLOYMENT (NON-FARM)
The U.S. created 211,000 new jobs in
March 2017 (+0.1%) from March. Job
creation reflects the 79th consecutive
month of job gains. Over the year jobs
increased by 2.2 million (+1.6%)
The US has added an average of 186,000
jobs each month over the past 12-months.
New jobs increased by 893,000 jobs in the
past five months.
Source: Bureau of Labor Statistics
8. EMPLOYMENT SITUATION: 2017-YTD
TOTAL NON-FARM PAYROLL
Source: Bureau of Labor Statistics
GOVERNMENT PRIVATE SECTOR
+41K +697K
+738K
Professional +190K
- Temporary +44K
Leisure/hospitality +112K
Construction +94K
Health Care +78K
Financial activities +58K
Manufacturing +53K
Education +22K
Transportation +5K
Retail -15K
Information -27K
UNEMPLOYMENT RATE
APRIL 2017
4.4%
9. U.S. TEMPORARY HELP EMPLOYMENT
Source: Bureau of Labor Statistics
There were 3.0 million temporary help jobs in the
U.S. in April 2017. The number of persons
employed in U.S. temporary help jobs increased
by 5,800 (+0.2%) jobs over the month and rose
by 112,400 (+3.9%) from the year prior.
Temporary help services employment has
traditionally been viewed as a leading economic
indicator to overall employment or the general
economy.
The temporary help services industry is the
largest component of the staffing industry and is
comprised of companies that employ workers to
do temporary work on the premises of, and under
the supervision of, customers.
10. U.S. JOB OPENINGS
There were 5.7 million job openings on the last
business day of February 2017, little changed from
January. The job openings rate was 3.8%, an
increase of 118,000 jobs (+2.1%). Over the year,
job openings increased by 177,000 jobs (+3.2%).
The number of quits edged down in February to
3.1 million. The quits rate was little changed at
2.1%.
The quits rate is a proxy for worker confidence as
willingness to leave a job usually indicates a
better job is on the horizon.
Source: Bureau of Labor Statistics
11. U.S. LABOR PARTICIPATION RATE
The U.S. labor force participation dipped
to 62.9% in April. The participation rate
peaked in 2000 at 67.3%. Participation
was at a post-peak low of 62.4% in
September 2015 and is currently 0.5
percentage points higher.
The participation rate measures the active
portion of the labor force; the number of
people who are either employed or are
actively looking for work.
Source: Bureau of Labor Statistics
12. U.S. GDP
The U.S. Real GDP was $16,842.4 billion in
the first quarter of 2017. Real GDP
increased at an annual rate of 0.7%
(advance estimate), down from an
increase of 2.1% in the fourth quarter and
down slightly from 0.8% a year ago.
Real GDP is the value of the goods and
services produced by the nation’s economy
less the value of the goods and services
used up in production, adjusted for price
changes.
Source: Bureau of Economic Analysis
13. U.S. AVERAGE HOURLY EARNINGS
Source: Bureau of Labor Statistics
Average hourly earnings increased +0.3% to
$26.19 an hour in April. Wage growth kept pace,
with earnings up 2.5% percent annualized.
Average Hourly Earnings is the average amount
employees make per hour in a given month. In
other words, it the price businesses pay for labor.
The Federal Reserve uses average hourly
earnings in deciding whether to raise or lower
interest rates.
14. U.S. BEVERIDGE CURVE
Job openings continue to climb, yet
unemployment remains higher than pre-
recession levels.
In February 2017, the job openings rate was
3.8% and the unemployment rate was 4.7%.
The job openings rate corresponds to a higher
unemployment rate than it did before the most
recent recession.
From 2010 to today, nearly each month’s point
moved up and to the left as the job openings
rate increased and the unemployment rate
decreased.
Source: Bureau of Labor Statistics