According to the latest monthly jobs report by the Bureau of Labor Statistics (BLS), the U.S. economy generated 156,000 new jobs in September 2016, falling below economists’ prediction of 170,000 to 176,000 new jobs for the month. The unemployment rate increased slightly from 4.9 to 5 percent, and the labor-force participate rate remained study at 62.9 percent.
Employment gains were strongest in professional and businesses services (67,000 jobs added) and in healthcare (33,000 jobs added). The construction industry also added 23,000 jobs, while the manufacturing sector lost 13,000 jobs. Payrolls in architectural and engineering services gained 1,500 new positions, it’s fifth-straight month of growth.
Insight into 2016 Presidential Elections via Hiring Data
A recent report by iCIMS, Inc. focused on employment trends specific to swing counties located in Ohio, Florida, and Pennsylvania. Key findings from the report included:
Ohio’s overall hiring growth is slower than the rest of the nation, yet two of the three swing counties have been outpacing the rest of the country.
For the past several months, Florida’s growth in hiring has outpaced the national average, causing growth in job vacancies to slow down.
Pennsylvania’s swing counties have had slow hiring growth.
“While every election reflects a multitude of factors, local hiring trends certainly play into how voters in these swing counties view the current economic climate and will likely influence how they vote. Historically, stronger job growth favors the incumbent party. Looking back at the 2012 election, reports indicated that just a few counties in swing states could have tipped the balance in either direction. While the 2016 election may not follow this same course, this report illustrates hiring trends that may shape voter sentiment in some of these crucial areas in the country.” ~Josh Wright, Chief Economist at iCIMS
Quicker Turnover in the Job Market
Recent data from the Bureau of Labor Statistics (BLS) shows that the median employee tenure was 4.2 years in January 2016, down from 4.6 years in January 2015. The quits rate rose from 1.7 percent in January 2014 to 2.1 per cent in July 2016.
Key insights regarding employee tenure and turnover in the job market include:
Median tenure for men declined from 4.7 years to 4.3 years
Median tenure for women dropped from 4.5 years to 4.0 years
Twenty-nine percent of men and 28 percent of women had been with the same employer for 10 years or more in January 2016
Men and women with a college degree or higher had been with their employer for 10 years or more in January 2016
The share of workers with one year or less of tenure with their current employer was 23 percent
Public-sector workers had more than double the median tenure of private-sector employees
Workers in manufacturing had the highest tenure among major industries at 5.3 years in January 2016
Workers in leisure and hospitality had the lowest median tenure at 2.2 years in January 2016
Workers in management and professional occupations had the highest median tenure at 5.1 years in January 2016, while workers in service occupations had the lowest median tenure at 2.9 years in January 2016
The Effects of Unemployment on Youth Wellness
According to a new poll from Gallup, young people aged 15-29 who are unemployed are about as likely to be thriving in their physical well-being as people older than 50 with a job. Gallup defines “physical well-being” as having good health and enough energy to get things done daily.
The analysis by Gallup reveals that physical well-being is higher for employer persons versus the unemployed among all age groups in high-income economies. Among unemployed persons aged between 15 and 29 living in high-income economies, physical well-being suffers more for those with the highest level of education.
U.S. Consumer Spending on the Rise
Recent analysis from Gallup reveals that Americans’ daily self-reports of spending averaged $91 in September 2016, the highest average for the month since 2008.
Since December 2012, Americans’ daily spending estimates have consistently averaged $80 or higher. In the four years prior (which included periods of high unemployment and part of the Great Recession), monthly spending averages were as low as $58 and below $77.
Freelancers Work More Hours than Average Americans
According to the latest employment report by the Department of Labor, the average American workweek is 34 hours. Meanwhile, a new study by UpWork and the Freelancers Unions states that full-time freelancers work an average of 36 hours per week.
“In September, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $25.79. Over the year, average hourly earnings have risen by 2.6 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $21.68 in September” ~BLS