After adding 74,000 jobs in December, the U.S. unemployment rate fell 30 basis points to 6.7 percent—though total unemployment, which includes individuals who have stopped actively seeking jobs, stuck at 13.1 percent. The economy has recovered 86.5 percent of jobs lost in the downturn and we’re now 0.9 percent below previous peak unemployment, with office-using employment 47.1 percent higher than the previous peak. See details on the data, including demographic, geographic and industry breakdowns, in this report featuring research from the Bureau of Labor Statistics and Jones Lang LaSalle.

1. An abnormally slow
December caps off the
year with a range of bright
spots as well as challenges
U.S. employment situation: September 2013
U.S. employment situation: December 2013
Release date: October 22, 2013
Release date: January 10, 2014

2. What were this month’s bright spots and challenges?
Overview
•
•
•
•
•
•
The U.S. economy added 74,000
jobs in December.
Unemployment fell 30 basis points
to 6.7 percent.
86.5 percent of jobs have been
recovered; now less than 0.9
percent below previous peak
employment.
Office-using employment is 47.1
percent higher than previous
peak.
Trade, PBS, leisure and
manufacturing the largest
contributors to monthly growth.
PBS, retail trade, leisure and
hospitality and education and
health the largest contributors to
year-on-year growth.
Bright spots
Challenges
•
•
•
•
•
•
•
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
Service-providing industries see
best year during the recovery
(+2.0 million jobs).
Unemployment down to 7.1
percent for high school graduates
with no college; stable and much
lower for degree holders.
Tech still posting growth well
above the national average.
Initial unemployment insurance
claims wobble near recovery lows.
Consumer confidence sees 6.1point rebound in line with drop in
unemployment.
Fastest-growing metro areas sees
some geographic expansion.
•
•
•
•
•
Total unemployment stuck at
13.1 percent, still very elevated
compared to historic norms.
Private sector responsible for all
gains throughout the year,
however seeing slowdown.
Information’s 12,000-job monthly
contraction pushes down officeusing gains and share of overall
one-month net job growth.
Labor force participation rate
nationally is down to 62.8
percent and for high school
graduates down to 58.0 percent.
Temporary help services sees
40,400 new jobs added in
December, surpasses 2.8 million.
Midwest and East Coast markets
still lag rest of national recovery
OVERVIEW
2

3. Oct-10
Nov-10
Dec-11
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
120,000
100,000
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
89,000
87,000
199,000
200,000
175,000
172,000
271,000
247,000
241,000
238,000
219,000
205,000
223,000
202,000
176,000
142,000
148,000
160,000
138,000
165,000
153,000
125,000
157,000
200,000
112,000
112,000
85,000
96,000
251,000
246,000
220,000
300,000
84,000
110,000
332,000
311,000
350,000
74,000
54,000
150,000
121,000
250,000
220,000
1-month net change
December saw the addition of only 74,000 jobs, the
second-lowest monthly gain throughout the recovery
50,000
0
OVERVIEW
3

4. Three-month net change down to 515,000…but
unemployment drops 30 basis points to 6.7 percent
600
Monthly employment change
12%
Unemployment rate
10%
200
8%
0
-200
6%
-400
4%
-600
2%
-800
-1000
0%
2002
2003
2004
2005
2006
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2007
2008
2009
2010
2011
2012
2013
OVERVIEW
4
Unemployment rate (%)
One-month net change (thousands)
400

5. 74 months into the cycle, total employment is now less
than 0.9 percent below prior peak levels
Past recessions (40 years)
1973
1981
1990
2001
2007
102%
Pre-recession employment level
Recovered jobs (%)
100%
98%
96%
94%
92%
90%
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
OVERVIEW
5

6. 86.5 percent of jobs have been recovered from the
recession; now 1.2 million jobs below pre-recession peak
Jobs lost during recession…
Jobs gained during recovery…
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
OVERVIEW
6

7. All office-using jobs have been recovered, but are much
more tech- and management-centered
Office-using jobs lost
during recession…
Office-using jobs gained
during recovery…
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
OVERVIEW
7

8. Trade, PBS, manufacturing and leisure contribute the
majority gains in an otherwise slow month
Retail trade
Retail trade
Temporary help services
Professional and business services
19.0
Wholesale trade
9.0
Leisure and hospitality
Education and health
All other jobs
15.4
Manufacturing
Leisure and hospitality
Financial activities
40.4
PBS
Manufacturing
55.3
9.0
Durable goods
6.0
Mining and logging
4.0
Financial activities
4.0
Nondurable goods
3.0
Motor vehicles and parts
1.0
Other services
1.0
Education and health services
0.0
Transportation and warehousing
-0.6
Health care and social assistance
-1.0
Information
-12.0
Government
-13.0
Construction
-16.0
-40
-20
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
0
20
40
60
80
Core subsectors added more jobs
than monthly net total.
OVERVIEW
8

9. Over the year, however, core growth areas PBS, leisure,
retail trade and education and health remain dominant
Professional and business services
637.0
Leisure and hospitality
Retail trade
Education and health services
327.0
Health care and social assistance
Leisure and hospitality
Education and health
Financial services
380.8
PBS
Retail trade
390.0
Manufacturing
All other jobs
280.2
Temporary help services
247.4
Construction
122.0
Wholesale trade
95.0
Financial activities
84.0
Manufacturing
77.0
Durable goods
76.0
Transportation and warehousing
42.2
Motor vehicles and parts
39.8
Mining and logging
31.0
Other services
30.0
Nondurable goods
1.0
Information
-4.0
Government -25.0
-100
0
100
200
300
400
500
12-month net change (thousands)
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
600
700
Core subsectors added 86.7 percent
of all jobs over the past 12 months.
OVERVIEW
9

10. Tech still leading, while energy, mining and utilities
growing, but at national rates of growth
High-tech
Energy, Mining, and Utilities
Office-using industries
Total non-farm
7.0
5.0
12-month % change
3.0
1.0
-1.0
-3.0
-5.0
-7.0
-9.0
-11.0
2008
2009
2010
2011
2012
Source: Jones Lang LaSalle Research, Moody’s. Note: Due to data lags, high-tech employment only available through November 2013.
2013
OVERVIEW
10

11. Service-providing industries see best year during the
recovery (+2.0 million jobs)
Goods-producing
Service-providing
600
One-month net change (thousands)
400
200
0
-200
-400
-600
-800
-1000
2008
2009
2010
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2011
2012
2013
BRIGHT SPOT
11

12. High school graduates see unemployment fall to 7.1
percent; rate stable, but much lower, for degree holders
Bachelor's degree and higher
High school graduates, no college
12
7.1%
10
8
6
4
2
3.3%
0
2001
2002
2003
2004
2005
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2006
2007
2008
2009
2010
2011
2012
2013
BRIGHT SPOT
12

13. Tech is up near recovery norms again after seeing
slowdown in recent months
Year-on-year percent growth
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
BRIGHT SPOT
13

14. Initial unemployment insurance claims fall to new lows,
wobbling between 330,000 and 360,0000 per week
Initial claims
4-week moving average
650,000
600,000
550,000
500,000
450,000
400,000
350,000
4 week moving average below 400,000 claims
(consistently) means economy is adding jobs
300,000
250,000
Mar-08
Mar-09
Source: Jones Lang LaSalle Research, U.S. Department of Labor
Mar-10
Mar-11
Mar-12
Mar-13
BRIGHT SPOT
14

15. Online help wanted ads jump by 126,500 as
unemployment drops to a recovery-low in December
6,000,000
12.0%
New help wanted ads
Unemployment rate
4,000,000
8.0%
3,000,000
6.0%
2,000,000
4.0%
2.0%
0
0.0%
2008
2009
Source: Jones Lang LaSalle Research, Conference Board
2010
2011
2012
Unemployment rate
10.0%
1,000,000
Online help wanted ads
5,000,000
2013
BRIGHT SPOT
15

16. In line with a drop in unemployment, the consumer
confidence index increased 6.1 points in December
100
12%
Consumer confidence index
Unemployment rate
90
10%
80
70
8%
60
50
6%
40
4%
30
20
2%
10
0
0%
2008
2009
2010
2011
Source: Jones Lang LaSalle Research, Conference Board, Bureau of Labor Statistics
2012
2013
BRIGHT SPOT
16

17. After a year dominated by the Sunbelt, a more varied
landscape of employment growth emerges
New York
2.8%
Silicon Valley
2.9%
Dallas
2.7%
Austin
2.7%
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
Houston
3.1%
Tampa
3.3%
BRIGHT SPOT
17

18. Overall wage growth and a falling number of
discouraged workers point in a positive direction
+$12.07 (+1.5%)
+5.2% y-o-y
Average weekly earnings are
on the up year-on-year
Management and technical consulting
among the strongest components of PBS
-151,000 (-14.1%)
-140bp
The number of discouraged workers has
fallen by 14.1 percent year-on-year
PBS-related unemployment is down
140 basis points year-on-year
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
BRIGHT SPOT
18

19. Total unemployment remains steady at 13.1 percent for
the month, but trending downward
Total unemployment U-6
10-year average
18%
16%
14%
12%
10%
8%
6%
2002
2003
2004
2005
2006
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2007
2008
2009
2010
2011
2012
2013
CHALLENGE
19

20. High school graduates’ participation rate drops to just
58.0 percent, with college graduate rate stable
79
College graduates
63
High school grads no college
62
77
61
76
60
75
74
59
73
High school graduates
College graduates
78
58
Jan07
Jan08
Jan09
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
Jan10
Jan11
Jan12
Jan13
CHALLENGE
20

21. Private sector is responsible for all gains (101.1 percent)
in 2013; government jobs continue their contraction
Private sector hiring up 4.5
million since December 2011
Change in '000s jobs
400
200
0
-200
Public sector shed 112,000
workers since November 2011
-400
-600
-800
-1,000
2008
2009
2010
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2011
2012
2013
CHALLENGE
21

22. Growth in trade and overall diversification of growth
push down office-using industries’ share of gains
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
CHALLENGE
22

23. Information’s 12,000-job contraction reduces growth in
office-using industries
Information
Professional and business services
Financial activities
150
100
50
0
-50
-100
-150
PBS represented 75.0 percent of office jobs lost in February 2010.
In December 2013, it represented all net new office-using jobs.
-200
-250
-300
2009
2010
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2011
2012
2013
CHALLENGE
23

24. Temporary help services posts sharp jump in
employment, surpasses 2.8 million for the first time ever
Temporary employment monthly net change
Temporary employment
60
Monthly net change in jobs (ths)
3,000
2,800
40
2,600
2,400
20
2,200
0
2,000
-20
1,800
-40
Temporary employment (ths)
80
1,600
-60
1,400
-80
1,200
-100
1,000
2009
2010
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
2011
2012
2013
CHALLENGE
24

25. Midwestern and East Coast markets still lag the rest
of the country
Milwaukee
0.1%
OaklandEast Bay
0.3%
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
Cleveland
-0.8%
Westchester
County
0.5%
St. Louis
0.5%
CHALLENGE

26. Other supplementary indicators show that many
challenges still remain
+2,893,000 (+3.2%)
-6 minutes
The number of people out of the workforce
has risen by 3.2 percent year-on-year
On average, employees are working six fewer
minutes (-0.1 hours) year-on-year
-1,000 jobs (-0.0%)
62.8% (-20bp)
Legal services has seen a 12-month net
contraction of 1,000 jobs
The labor force participation rate fell
20 basis points to 62.8 percent
Source: Jones Lang LaSalle Research, Bureau of Labor Statistics
CHALLENGE
26

27. For more information, please contact:
Ben Breslau
Managing Director - Americas Research
Benjamin.Breslau@am.jll.com
John Sikaitis
Managing Director - Office & Local Markets Research
John.Sikaitis@am.jll.com
Phil Ryan
Research Analyst
Phil.Ryan@am.jll.com
©2014 Jones Lang LaSalle Research IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

28. In addition to
unemployment reports,
we regularly publish
research on economic and
other factors that impact
commercial real estate.
>> See all research
U.S. employment situation: September 2013
Release date: October 22, 2013