The unemployment rate dropped yet again in June, to 6.1 percent. However, total unemployment, which dropped only 10 basis points in June to 12.1 percent, is still double that official rate. Total non-farm employment increased by 288,000 jobs, making June the fifth consecutive month of growth over 200,000 net new jobs. And, this growth was diverse, with the top three industry markets contributing only one-half of new jobs, and all but two subsectors showing net growth. See more employment data, including demographic, geographic and industry breakdowns, in this report featuring research from the Bureau of Labor Statistics and JLL. Additional office market research at: http://bit.ly/1znn4KF

1. U.S. employment situation: September 2013
Release date: October 22, 2013
Another 288,000 jobs added in June
signal sustained and broad growth
U.S. employment situation: June 2014 July 7, 2014

2. What were June’s bright spots and challenges?
Source: JLL Research, Bureau of Labor Statistics
2
• Total non-farm employment
increased by 288,000 jobs, the fifth
consecutive month of growth of
more than 200,000 net new jobs.
• Unemployment declined yet again,
this time to 6.1 percent.
• The national economy now has
415,000 more jobs than at its pre-
recession peak.
• June’s employment growth was
highly diverse, with the top three
markets contributing only one-half of
new jobs and all but two subsectors
being net contributors.
• Year-on-year, the story is still led by
core subsectors such as PBS,
although this is beginning to change
as well.
• Private sector hiring is up 4.8 million
jobs compared to two years ago,
while increases in public sector
employment have also become more
apparent.
• Unemployment for high school grads
fell dramatically to 5.8 percent, while
white-collar unemployment is stable
at 3.3 percent and will likely not move
much lower.
• Initial unemployment insurance
claims continue to hover around
310,000 per week, another sign of an
improving labor market.
• As unemployment falls, consumer
confidence is rising; the index
jumped to 85.2 points in June.
• Similarly, online help wanted ads are
on the rise.
• Midwestern and East Coast
geographies continue to grapple
with below-average employment
growth, some still contracting.
• The labor force participation rate is
stuck at its record low of 62.8
percent.
• Total unemployment dropped by
only 10 basis points to 12.1 percent
and is still double the official rate of
6.1 percent.
• Although office-using jobs saw a
slight comeback in June, their
contribution remains smaller than
earlier in the recovery.
• Non-durable goods slowing down
goods-producing employment.
• High school graduate participation
fell to 57.8 percent.
Overview Bright spots Challenges
OVERVIEW

3. July saw the fifth consecutive month of more than 200,000
new net jobs, with revisions boosting previous growth
220,000
121,000
120,000
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
144,000
222,000
201,000
304,000
224,000
288,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Oct-10
Dec-11
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
1-monthnetchange
Source: JLL Research, Bureau of Labor Statistics
3
OVERVIEW

4. As a result, the national economy has added 816,000 jobs over
the past three months; unemployment down to 6.1 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
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Unemploymentrate(%)
1-monthnetchange(thousands)
Monthly employment change Unemployment rate
Source: JLL Research, Bureau of Labor Statistics
4
OVERVIEW

5. 90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
102.0%
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 76 78 80
1973 1981 1990 2001 2007
There are now 415,000 more jobs than at the previous peak,
an increase of 0.3 percent
Recoveredjobs(%)
Past recessions (40 years)
Source: JLL Research, Bureau of Labor Statistics
Pre-recession employment level
5
OVERVIEW

6. -6.0
-1.0
0.0
4.0
6.0
9.0
10.1
12.1
15.1
16.0
16.6
17.0
17.0
26.0
33.7
38.0
39.0
40.2
67.0
-40 -20 0 20 40 60 80
Other services
Nondurable goods
Utilities
Mining and logging
Construction
Information
Temporary help services
Motor vehicles and parts
Wholesale trade
Manufacturing
Transportation and warehousing
Financial activities
Durable goods
Government
Health care and social assistance
Education and health services
Leisure and hospitality
Retail trade
Professional and business services
1-month net change (thousands)
Growth was highly diverse in June, with the top three
subsectors contributing only half of new jobs this month…
Source: JLL Research, Bureau of Labor Statistics
6
OVERVIEW
PBS
Retail trade
Leisure and hospitality
All other subsectors
Top three
subsectors
responsible for
50.8 percent of
monthly
growth.

7. -28.0
-2.8
5.0
38.0
43.0
56.0
59.0
72.2
125.0
130.0
138.7
140.2
186.0
215.9
316.8
324.3
378.0
393.0
647.0
-100 0 100 200 300 400 500 600 700
Information
Utilities
Nondurable goods
Other services
Mining and logging
Government
Financial activities
Motor vehicles and parts
Durable goods
Manufacturing
Transportation and warehousing
Wholesale trade
Construction
Temporary help services
Retail trade
Health care and social assistance
Education and health services
Leisure and hospitality
Professional and business services
12-month net change (thousands)
PBS
Leisure and hospitality
Education and health
Retail trade
Manufacturing
Financial activities
All other jobs
…helping to broaden year-on-year gains slightly, although
PBS, leisure, health and retail trade remain in the front seat
Source: JLL Research, Bureau of Labor Statistics
7
Core subsectors added 77.1 percent
of all jobs over the past 12 months.
OVERVIEW

8. -1,000
-800
-600
-400
-200
0
200
400
2008 2009 2010 2011 2012 2013 2014
Change in '000s jobs
Public-sector hiring, which had posted drop-offs earlier this
year and in late 2012, is now a net contributor
Private sector hiring up 4.8
million since June 2012
Public sector shed 15,000 workers
since June 2012
Source: JLL Research, Bureau of Labor Statistics
8
BRIGHT SPOT

9. 0
2
4
6
8
10
12
Unemployment(%)
Bachelor's degree and higher High school graduates, no college
Unemployment for high school grads drops to 5.8 percent;
stability for white-collar unemployment indicates saturation
3.3%
5.8%
Source: JLL Research, Bureau of Labor Statistics
9
BRIGHT SPOT

10. Total non-farm now stable at 1.8 percent for the third
consecutive month; tech still leads by a wide margin
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
2008 2009 2010 2011 2012 2013 2014
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 May 2014.
10
12-month%change(jobs)
BRIGHT SPOT

11. Tech is up near recovery norms again after seeing slowdown in
recent months, while energy picks up a bit in recent months
Year-on-year percent employment growth
Source: JLL Research, Bureau of Labor Statistics
11
BRIGHT SPOT

12. Initial unemployment insurance claims are declining slowly and
averaging only 310,000 claims per week
Source: JLL Research, U.S. Department of Labor
12
BRIGHT SPOT
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

13. 0%
2%
4%
6%
8%
10%
12%
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013 2014
Unemploymentrate(%)
Consumerconfidenceindex
Consumer confidence index
Unemployment rate
On the heels of falling unemployment and stronger monthly job
growth, consumer confidence reaches recovery high of 85.2
Source: JLL Research, Conference Board, Bureau of Labor Statistics
13
BRIGHT SPOT

14. 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2008 2009 2010 2011 2012 2013 2014
Unemploymentrate
Onlinehelpwantedads
Online help wanted ads
Unemployment rate
Online help wanted ads increase as unemployment decreases,
signaling employer confidence in the labor market
Source: JLL Research, Conference Board
14
BRIGHT SPOT

15. Year-on-year job growth of more than 3.5 percent is becoming
increasingly common in many metro areas
Source: JLL Research, Bureau of Labor Statistics
15
BRIGHT SPOT
Orlando
4.5%
Raleigh-
Durham
4.1%Silicon Valley
4.0%
Dallas
3.8%
Austin
3.5%

16. Still, some markets, particularly on the East Coast and in the
Midwest, are in slow-growth mode
Source: JLL Research, Bureau of Labor Statistics
16
CHALLENGE
Hampton Roads
-0.3%
Detroit
-0.3%
New Jersey
0.0%
Westchester
County
0.5%
Washington,
DC
0.5%

17. The labor force participation is stuck at 62.8 percent, a record
low for decades
Source: JLL Research, Bureau of Labor Statistics
17
CHALLENGE
61.0%
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
2008 2009 2010 2011 2012 2013 2014
Laborforceparticipationrate(%)

18. Total unemployment is stubbornly high at 12.1 percent, but is
slowly decreasing and approaching the 10-year average
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total unemployment U-6 10-year average
Source: JLL Research, Bureau of Labor Statistics
18
CHALLENGE

19. One-third of jobs added in June were office-using category,
an increase from previous months but still below average
Source: JLL Research, Bureau of Labor Statistics
19
CHALLENGE

20. Office-using gains have been less consistent of late than earlier
in the recovery, reducing year-on-year growth to 2.3 percent
-300
-250
-200
-150
-100
-50
0
50
100
150
2009 2010 2011 2012 2013 2014
Information Professional and business services Financial activities
PBS represented 75.0 percent of office jobs lost in February 2010.
In June 2014, it represented all 23.3 percent of new office jobs.
Source: JLL Research, Bureau of Labor Statistics
20
CHALLENGE

21. Goods-producing employment remains low, averaging only
38,667 new jobs per month in 2012
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
2008 2009 2010 2011 2012 2013 2014
1-monthnetchange(thousands)
Goods-producing Service-providing
Source: JLL Research, Bureau of Labor Statistics
21
CHALLENGE

22. As with the overall economy, labor force participation in both
college and high school grads is falling
Source: JLL Research, Bureau of Labor Statistics
22
CHALLENGE
55.0%
56.0%
57.0%
58.0%
59.0%
60.0%
61.0%
62.0%
63.0%
64.0%
70.0%
71.0%
72.0%
73.0%
74.0%
75.0%
76.0%
77.0%
78.0%
79.0%
80.0%
2007 2008 2009 2010 2011 2012 2013 2014
Highschoolgraduatelaborforceparticipationrate(%)
Collegegraduatelaborforceparticipationrate(%)
Bachelor's degree High school, no college

23. Temporary help services nears 2.9 million jobs, growing at 8.1
percent year-on-year
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
2,200.0
2,400.0
2,600.0
2,800.0
3,000.0
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
2009 2010 2011 2012 2013 2014
Monthlynetchangeinjobs(ths)
Temporary employment monthly net change Temporary employment
Temporaryemployment(ths)
Source: JLL Research, Bureau of Labor Statistics
23
CHALLENGE

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