The 313,000 net new jobs created in February represented the highest monthly level of job creation since mid-2016.
Growth was found throughout the labor market, with goods-producing sectors such as construction, retail and manufacturing in particular holding firm and, in the case of retail trade, rebounding after months of losses.
Gains were also possible as a result of a sharp increase in labor-force expansion, which boosted labor force participation and kept unemployment at 4.1 percent rather than declining further.
2. February 2018 U.S. labor market at a glance
2
+313,000
(88 consecutive months of growth)
1-month net change
+2,281,000
(+1.6% y-o-y)
12-month change
+886,000
10-year average annual growth
4.1%
Unemployment rate
5,359,000
(+474% y-o-y)
Job openings
-60bp
12-month change in unemployment
63.0%
Labor force participation rate
4,092,000
(+4.8% y-o-y)
Hires
2,823,000
(+8.0% y-o-y)
Quits
Source: JLL Research, Bureau of Labor Statistics
3. February’s growth was very strong, boosted by a range of industries and subsectors
The 313,000 net new jobs created in February represented the highest monthly level of job creation since mid-2016. Growth was found throughout the labor
market, with goods-producing sectors such as construction, retail and manufacturing in particular holding firm and, in the case of retail trade, rebounding after
months of losses. Gains were also possible as a result of a sharp increase in labor-force expansion (+806,000 in February), which boosted labor force
participation and kept unemployment at 4.1 percent rather than declining further.
Secondary labor-market fundamentals such as openings and turnover are steady
Job openings, hires and quits have all shown signs of stabilization in recent months, but are still healthy and, in the case of job openings, at near-record highs.
Job openings finished off the year 4.5 percent above 2016 levels, while hires also surpassed 2016 volumes even as skilled talent becomes very difficult to
recruit and harder to retain. Quits, an important indicator of worker confidence, rose over the year as well. These trends mirror the slow-but-steady rise in
consumer confidence, which has been at its highest levels since 2000 in recent months.
February’s figures bode well for the labor market and broader economy’s 2018 outlook
From both the labor-market perspective as well as that of the broader economy, 2018 has been off to a strong start. Job growth continues apace even with talent
shortages and employment occurring faster than the labor force can expand. Although certain areas such as wage growth have fallen somewhat below
expectations, overall sentiment is highly positive, with a combination of healthy business investment and consumer spending to drive economic activity in the
coming quarters.
February 2018 U.S. labor market highlights
3Source: JLL Research, Bureau of Labor Statistics
9. 2.2%
2.8%
2.8%
3.4%
3.7%
3.7%
3.8%
3.9%
4.4%
4.5%
0% 1% 2% 3% 4% 5%
Construction
Mining and logging
Manufacturing
Trade, transportation and utilities
Other services
Professional and business services
Financial activities
Information
Leisure and hospitality
Education and health
Job openings rate (%)
Job openings across industries are stabilizing, in most
cases between 3.5 and 4.0%
9Source: JLL Research, Bureau of Labor Statistics
10. -3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
12-month%change
Wage growth Inflation
A tightening labor market is still not showing signs of
upward movement in wage growth, stuck at 2.6%
10Source: JLL Research, Bureau of Labor Statistics
11. 0.7%
1.7%
1.9%
2.4%
2.5%
2.8%
3.0%
3.3%
4.6%
4.6%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Mining and logging
Manufacturing
Trade, transportation and utilities
Professional and business services
Education and health
Other services
Leisure and hospitality
Construction
Information
Financial activities
12-month wage growth (%)
Wage growth remains bifurcated between office-using
and non-office-using industries
11Source: JLL Research, Bureau of Labor Statistics
+3.9%
Office-using
wage growth
+2.3%
Non-office-using
wage growth
12. -8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ChangesinceJanuary2007(%)
Civilian labor force Employed
Employment and civilian labor force growth are
showing some signs of divergence in recent months
12Source: JLL Research, Bureau of Labor Statistics
13. 62%
63%
64%
65%
66%
67%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Laborforceparticipationrate(%)A spike in new entrants to the workforce helped the
participation rate, which has been wobbly this cycle
13Source: JLL Research, Bureau of Labor Statistics
14. -12.0
1.2
5.8
8.0
10.0
15.4
16.0
23.0
26.0
28.0
31.0
50.0
50.3
61.0
-20 -10 0 10 20 30 40 50 60 70
Information
Utilities
Wholesale trade
Mining and logging
Other services
Transportation and warehousing
Leisure and hospitality
Education and health
Government
Financial activities
Manufacturing
Professional and business services
Retail trade
Construction
1-month net change (thousands)
Construction and other goods-producing industries
surged in February, diversifying monthly growth
14Source: JLL Research, Bureau of Labor Statistics
15. -20%
0%
20%
40%
60%
80%
100%
120%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Jobgrowthsince2010(%)Countering a further 12,000-job contraction in February,
the “other” component of information is rising
Source. JLL Research, Bureau of Labor Statistics 15
+107.9%
Other information services
Growth since 2010 (%)
0.4%
Information (overall)
16. -62.0
-2.6
35.0
49.0
58.0
70.9
95.0
143.0
147.6
224.0
254.0
325.0
449.0
495.0
-100 0 100 200 300 400 500 600
Information
Utilities
Retail trade
Government
Mining and logging
Wholesale trade
Other services
Financial activities
Transportation and warehousing
Manufacturing
Construction
Leisure and hospitality
Education and health
Professional and business services
12-month net change (thousands)
Annual trends show little variance: PBS, education and
health lead by a significant margin
16Source: JLL Research, Bureau of Labor Statistics
495.0
449.0
325.0
143.0
224.0
610.0
PBS Education and health
Leisure and hospitality Financial activities
Manufacturing Retail trade
All other jobs
Core subsectors added 73.3 percent of all
jobs over the past 12 months.
17. -3%
-2%
-1%
0%
1%
2%
3%
2010 2011 2012 2013 2014 2015 2016 2017 2018
12-monthnetchangeA surge in jobs in February helped bring retail back into
positive territory (+0.2%) over the year
Source: JLL Research, Bureau of Labor Statistics 17
19. -300
-250
-200
-150
-100
-50
0
50
100
150
200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1-monthnetchange(thousands)
Professional and business services Financial activities Information
Office-using growth roughly doubled compared to
much of late 2017, even as information contracts
19Source: JLL Research, Bureau of Labor Statistics
20. -10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
12-month%change
Tech Energy, mining and utilities Office-using Total non-farm
Broad-based gains across sectors boosted tech,
energy and office-using industries
20Source: JLL Research, Bureau of Labor Statistics