What does the January jobs report tell us?

The U.S. Bureau of Labor Statistics recently released the January 2024 job report and it provides valuable insights into the country's employment landscape, offering a glimpse into potential trends for the rest of the year. The report highlights an impressive and unexpected increase in job numbers, underscoring the labor market's ongoing resilience and signaling a robust economy for the year 2024.

Job Growth and Unemployment Rates

January witnessed a substantial uptick in total nonfarm payroll employment, surging by 353,000—nearly twice the anticipated figure. Key industries, including professional and business services, health care, retail trade, and social assistance, experienced noteworthy job gains during this period.

The unemployment rate held steady at 3.7 percent. Unemployment rates for various demographic groups, including adult men and women, teenagers, Whites, Blacks, Asians, and Hispanics, showed marginal changes in January.

Long-term unemployment remained largely unchanged, with 1.3 million individuals jobless for 27 weeks or more, constituting 20.8 percent of all unemployed people.

The labor force participation rate and employment-population ratio, both unchanged in January, suggest stability rather than expansion in the workforce.

Industry-Specific Insights

Breaking down job gains by industry, professional and business services added 74,000 jobs, health care saw a rise of 70,000 jobs, and retail trade employment increased by 45,000. Conversely, the mining and oil and gas extraction industry experienced a decline of 5,000 jobs. Many economists have attributed the job growth defying expectations to a surge in seasonal hiring.?

Wage Growth and Working Hours

Average hourly earnings for all employees increased by 0.6 percent to $34.55, with an impressive 4.5 percent increase over the past 12 months. The average workweek for all employees decreased by 0.2 hours to 34.1 hours in January.

Looking Ahead: Key Hiring Trends for 2024

Considering the January job report, here are key hiring trends to watch for in the coming months:

• Continued Industry Resilience: Industries like professional and business services, health care, and retail trade are expected to remain strong, driving job growth and contributing to economic stability.
• Skills-based hiring: Companies will prioritize candidates with diverse skill sets and the flexibility to adapt to changing job roles and responsibilities. Upskilling existing employees would also be a priority to meet evolving demands.
• Rise of Online Hiring Platforms and Offshoring: Online hiring platforms will witness a surge in usage, catering to companies' offshoring needs amidst talent shortages. With businesses embracing remote work, the demand for global talent will continue to rise.
• AI in recruiting: ?AI will lead the charge in revolutionizing the recruitment process. It will not only automate tasks but also enhance the quality of hire. Pre-employment skills-based assessments and behavioral tests will shape the hiring landscape in 2024.?
• Contingent Staffing: The rise of contingent staffing, including gig and contract work, adds another dimension to the workforce landscape. Companies are increasingly relying on flexible staffing solutions to meet fluctuating demand and address skill gaps efficiently.

It is estimated that by 2050, 50% of the US workforce will be freelancers or contingent workers. In December 2023 alone, 22 million Americans were part-time workers. Glider AI is hosting a webinar featuring Jason Ezratty, CEO at Brightfield , Brian Salkowski, COO at Guidant Global , and Satish Kumar, CEO at Glider AI as they share an AI Blueprint on Contingent programs.

If you are a TA leader, join us as we dive into?AI specific to the contingent workforce, addressing:

- When AI is a fit and when it's not?

- Mitigating risks and ensuring compliance

- Operationalizing AI across your contingent ecosystem

? RSVP: https://glider.ai/webinar-ai-for-contingent-workforce-programs/?

? 11:30 am EST / 8:30 am PST

?? Thursday, Feb 29, 2024