US Talent Market Monthly May 2014


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US Talent Market Monthly May 2014

  1. 1. M a y 2 , 2 0 1 4 • Robust hiring in April and upward revisions to prior months’ job creation totals drive 2014 monthly average employment gains above the 200,000 benchmark. • The jobless rate plunged 0.4 percentage points to 6.3%, bringing unemployment to its lowest levels since 2008. • April’s employment report is largely positive, suggesting U.S. economic growth may be gaining momentum after a winter slump. Job creation surged in April, as employers added 288,000 new workers to their payrolls, the largest monthly employment gain in more than two years. Employment growth in March was revised upward by 11,000 workers, and an additional 25,000 workers were added to February’s payroll gains. With the revisions, employment growth has averaged more than 214,000 per month thus far in 2014. (Continued) JOB GAINS WIDELY SURPASS EXPECTATIONS AVERAGE HOURLY EARNINGS (ALL WORKERS) $24.31 1.9% ABOVE LAST YEAR U.S. EMPLOYERS HIRED +288,000 WORKERS IN APRIL THE UNEMPLOYMENT RATE FELL TO 6.3% 7.5% LAST APRIL
  2. 2. Talent Market Monthly: May 2, 2014 April’s employment growth was widespread across industries. Job gains in the construction industry were strong again at +32,000, and manufacturing employment also showed a slight increase (+12,000). The professional and business services sector added 75,000 workers in April, exceeding the monthly average gain of +55,000 over the past year. Hiring was also strong in consumer sectors including retail trade (+34,500) and food and drink establishments (+32,600), and in the education and healthcare sectors (+12,400 and +18,700 respectively). The unemployment rate fell from 6.7% in March to 6.3%, its lowest point in more than five years. A reduction in labor force participation was partly responsible—more than 800,000 workers left the labor force, nearly offsetting the previous two months’ gains. However, the number of unemployed workers also fell during the month, bringing U.S. unemployment under 10 million workers, the lowest level since 2008. April’s healthy job gains and favorable unemployment trends may signal that the U.S. economy is finally set to spring back from its winter cooldown. EMPLOYMENT OVERVIEW NOV DEC JAN FEB MAR APR Total non-farm employment growth 274K 84K 144K 222K 203K 288K Private sector employment growth 272K 86K 166K 201K 202K 273K Unemployment rate 7.0% 6.7% 6.6% 6.7% 6.7% 6.3% An Equal OpportunityEmployer ©2014 Kelly Services, Inc. W1093e. Kelly Services, Inc. makes no representationor warranty with respect to the materialcontained in this report. READY FOR THE REAL WORLD 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 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 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar14 Apr14 UnemploymentRate(%) Employment(000s) Total non-farm employment growth Unemployment rate As this year’s crop of new college graduates enters the workforce, they will find a modestly favorable hiring climate: according to a new survey by CareerBuilder and, 57 percent of employers say they plan to hire new college graduates in 2014, up from 53 percent last year and significantly higher than 44 percent in 2010. Despite the rosy hiring intentions, employers express some doubts about how well universities are preparing new graduates for their first jobs. Nearly a quarter of employers (24 percent) don’t feel that academic institutions are adequately preparing students for the positions needed within their organizations. Surprisingly, the key deficiencies noted are not technical skills, but deal with practical, real-life issues. The number one concern was too much emphasis on book learning instead of real-world learning, cited by more than half of employers (53 percent). More than a third of employers (35 percent) also said that their companies need graduates with a better blend of soft skills and technical skills. Companies also recognize that their expectations for recent college graduates are rising. More than a quarter (26 percent) of employers say that their entry level roles are growing more complex, creating a disconnect between students’ skills and their companies’ workforce needs. Source: CareerBuilder