Unemployment Rate Holds Steady
Jobs Growth
For the third consecutive month, hiring was strong, with 172,000 new jobs created in May. This figure actually lagged behind adjusted numbers for both prior months, which were changed as follows: March gained another 29,000 jobs, moving up from 185,000 to 214,000, while April was revised up by 64,000, from 115,000 to 179,000.
Taking these revisions into account, March and April combined employment is 93,000 higher than initially reported.
Top Industries
Job gains in May were recorded in leisure and hospitality, local government, and healthcare.
Unemployment
As was the case for the previous two months, the unemployment rate held steady in May at 4.3%.
Wages
Compensation rates for the month of May moved ahead from an April gain of 0.2% to 0.3%, while the 12-month average increased to 3.4% in May.
Work Week
There was no change in the average work week from April to May, which remained at 34.3 hours.
Temporary Job Trends
May brought a modest boost in temp employment with the addition of 1,400 new jobs. This is the fifth consecutive month of positive momentum for the temp sector.
What Does It All Mean?
May offered one of the brightest reports of labor market activity issued this year. Not only was there strong jobs growth for the month, but that growth was recorded on
the heels of two equally robust prior months. Even more promising, May hiring crossed multiple industry sectors, signaling an expansion of activity beyond healthcare, albeit on muted levels.
Not every indicator pointed skyward. Compensation lags the rate of inflation, which puts pressure on consumer spending. Rising prices, especially at the gas pump, are
ongoing concerns as an end to the war with Iran remains elusive.
Many employers continue to report difficulty filling open jobs, citing a mismatch of candidate skills and competencies. Likewise, those seeking employment bemoan both a lack of opportunities and extended timelines needed to secure a position in the continuing “low-hire/low-fire” environment. These factors may indicate more than a temporary market condition. They could be a sign that employers, educators and government legislators and administrators need to accelerate their collaborative efforts to reconfigure how schools prepare students for the working world. In the meantime, job candidates should take advantage of any opportunity to strengthen their skill set, while employers explore ways to bridge the gaps between candidate capabilities and organizational requirements.
It is inevitable that the labor market will pick up speed, magnifying every hiring challenge. Take the steps needed now to be ready then.
Sources: Bureau of Labor Statistics, Staffing Industry Analysts, CNBC, FOX News, MarketWatch, NBC News, CNN, The New York Times, Reuters
