US Talent Market Monthly February 2014


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US Talent Market Monthly February 2014

  1. 1. February 7, 2014 U.S. EMPLOYERS HIRED A TOTAL OF AVERAGE HOURLY EARNINGS (ALL WORKERS) THE UNEMPLOYMENT RATE FELL TO 113,000 $24.21 6.6% WORKERS IN JANUARY 1.9% ABOVE LAST YEAR 7.9% LAST JANUARY ANEMIC JOB CREATION CONTINUES INTO 2014 • A second straight month of sub-par employment gains: just 188,000 jobs were created in December and January combined. • Despite the lackluster hiring totals, the unemployment picture improved slightly, as the unemployment rate edged down and labor force participation rose. • With a labor market that has shifted into low gear, there are growing concerns that the U.S. economy may be losing some momentum. The pace of hiring remained sluggish to begin 2014, as January’s job gains totaled just 113,000, following an increase of 75,000 in December—again well below consensus expectations. The BLS’ annual revisions to the prior year’s employment data brought a little better news. Total payroll gains for 2013 were revised upwards by 136,000, raising last year’s average monthly job increase to 194,000—a slight acceleration from 186,000 per month in 2012. (Continued)
  2. 2. Talent Market Monthly: February 7, 2014 After a solid performance in the summer and fall of 2013, winter has ushered in a surprisingly weak U.S. labor market, with two straight months of disappointing job gains. Although the outlook for the rest of 2014 is still positive, this slowdown in job creation will likely renew some fears about the strength of both the labor market and the economy. 10.0 300 9.0 200 8.0 100 7.0 0 6.0 Total non-farm employment growth Unemployment rate EMPLOYMENT OVERVIEW AUG SEP OCT NOV DEC JAN Total non-farm employment growth 202K 164K 237K 274K 75K 113K Private sector employment growth 180K 153K 247K 272K 89K 142K Unemployment rate 7.2% 7.2% 7.2% 7.0% 6.7% 6.6% Source: Bureau of Labor Statistics LONG TERM WOES Although unemployment continues to decline, there are still more than 10 million people out of a job in the United States. More than half of those workers have been unemployed for 15 weeks or more, and more than a third for 27 weeks or more. According to a new survey from CareerBuilder, many of the long-term unemployed continue to face significant challenges in their search for new jobs. Forty-five percent of unemployed workers say that they are concerned that the extended period of joblessness has caused their skills to depreciate, with the loss of technology skills a chief concern for more than half. And nearly two-thirds of workers (63%) say that the longer they are unemployed, the less responsive employers seem to have become. For those who have been out of work the longest, the job market has been particularly harsh: 30% of people who have been unemployed for a year or more say they have not had a single job interview in that time. But many of the very long-term unemployed remain optimistic, building up skills and searching for new opportunities. Twenty percent say they’ve boosted their networking; the same number (20%) have volunteered, and 12% have taken a class. More than four in ten (43%) of respondents say they look for jobs every day. An Equal Opportunity Employer ©2013 Kelly Services, Inc. W1093e. Kelly Services, Inc. makes no representation or warranty with respect to the material contained in this report. Source: CareerBuilder, 01.24.14; BLS Unemployment Rate (%) 400 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 Jan 14 Construction was one of the biggest job producers in January, adding 48,000 jobs, while the manufacturing sector also showed solid employment gains (+21,000). Hiring in health care was flat for the second month in a row, and retail employment saw a post-holiday decline (-13,000). Government employment fell by 29,000 in January, with job losses at the U.S. Postal Service accounting for nearly a third of the decline (-9,000). U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE Employment (000s) The unemployment rate inched down again to 6.6%, representing significant and steady progress over last January’s 7.9%. The improvement in unemployment came even as the labor force gained around a half million workers, and the labor force participation rate also edged up for the month.