US Talent Market Monthly April 2014


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US Talent Market Monthly April 2014

  1. 1. A p r i l 4 , 2 0 1 4 $24.30 AVERAGE HOURLY EARNINGS (ALL WORKERS) 2.1% ABOVE LAST YEAR • Job growth remained solid for a second straight month, after winter weather cooled U.S. labor market performance in December and January. • All of the employment gains in March came from the private sector, bringing non- government payrolls back above the pre-recession level for the first time. • Employers continue to show some confidence, suggesting the U.S. economy and labor market could be poised for faster growth in the coming months. Hiring in the U.S. continued on a steady pace in March, as the economy generated a respectable 192,000 jobs. Upward revisions to the prior two months’ employment gains totaled 37,000, bringing average monthly job creation to nearly 178,000 for the first three months of 2014. Private sector employment surpassed 116 million, topping the pre-recession peak employment level reached in January 2008. (Continued) WORKERS IN MARCH U.S. EMPLOYERS HIRED A TOTAL OF 192,000 PRIVATE EMPLOYMENT BOUNCES BACK 6.7% THE UNEMPLOYMENT RATE REMAINED UNCHANGED AT 7.5% LAST MARCH
  2. 2. Talent Market Monthly: April 4, 2014 March’s employment gains were broad-based. Hiring was strong in the professional and business services sector (+57,000), as well as in consumer-facing sectors including retail trade (+21,300) and accommodation/ food services (+33,100). The construction industry saw a third straight month of increased hiring (+19,000), and healthcare employment also rose (+27,000). The unemployment rate stayed unchanged at 6.7% in March. More than a half million workers entered the labor force, edging the labor force participation rate up by 0.2 percentage points. The number of long-term unemployed (those jobless for 27 weeks or more) fell over the month, and is down by more than 830,000 over the prior year. This month’s continued solid employment figures suggest that the U.S. labor market suffered fewer negative effects from bad winter weather than previously supposed, and is progressing steadily—but still very slowly—in the right direction. EMPLOYMENT OVERVIEW OCT NOV DEC JAN FEB MAR Total non-farm employment growth 237K 274K 84K 144K 197K 192K Private sector employment growth 247K 272K 86K 166K 188K 192K Unemployment rate 7.2% 7.0% 6.7% 6.6% 6.7% 6.7% An Equal OpportunityEmployer ©2014 Kelly Services, Inc. W1093e. Kelly Services, Inc. makes no representationor warranty with respect to the materialcontained in this report. LABOR MARKET DASHBOARD U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE Source: Bureau of Labor Statistics 6.0 7.0 8.0 9.0 10.0 0 100 200 300 400 UnemploymentRate(%) Employment(000s) Total non-farm employment growth Unemployment rate Although the unemployment rate and payroll employment gains are the most heavily-watched monthly labor market indicators in the U.S., a handful of other statistics have now risen in importance, as the Federal Reserve Board recently announced it is broadening its strategy for guiding financial markets. Under its previous plan, the Fed said its decision on raising the benchmark interest rate rested on the U.S. unemployment rate falling to 6.5 percent. Now, the Fed will utilize what Chair Janet Yellen is calling a “dashboard” of labor market data to inform policy decisions. This dashboard of metrics includes the monthly job gain figure, the overall unemployment rate, and the labor force participation rate. It also includes a measure of long-term unemployment, and a broader view of joblessness, the U-6 unemployment rate (which also counts part-time workers who would prefer a full- time job, and those who aren’t in the labor force but say they want and are available to work). The Fed will also consider turnover rates—quits, layoffs, hires, and openings—which provide additional insight into job flows. Wages and spending will also factor into the Fed’s decisions on the health of the economy. Currently, most of these indicators show a labor market that is improving, but has yet to fully recover from the recession: only two figures (monthly payroll gains and the layoff rate) have returned to their pre-recession averages. Sources:;