The May jobs report from the US Bureau of Labor Statistics showed a better than expected job growth. Hiring has accelerated, surpassing conservative estimates and resting down the fears of a slowing labor market.?
Job Growth and Unemployment Rates
In May, total nonfarm payroll employment increased by 272,000 jobs, reflecting robust growth across various sectors of the economy. Key industries, including health care, government,? leisure and hospitality, and professional, scientific, and technical services? emerged as primary contributors to employment expansion.?
Number of Jobs (in Thousands)
Despite an acceleration in job growth, the unemployment rate edged up to 4 percent, marking a 0.1 percentage point increase from the previous month, breaching 4 percent for the first time since January 2022. The increase was unexpected, as economists had anticipated the rate to hold steady at 3.9 percent.
The unemployment rates for adult men (3.8 percent), adult women (3.4 percent), and teenagers (12.3 percent) remained relatively stable or saw minimal change.
Long-term unemployment remained largely unchanged, with 1.4 million individuals jobless for 27 weeks or more.?
The labor force participation rate and employment-population ratio, both changed little in May, suggesting stability rather than expansion in the workforce.
Industry-Specific Insights
Several key sectors experienced job gains in May with healthcare and government accounting for a major chunk of the employment gains.?
- Healthcare: The healthcare sector added 68,000 jobs in May, slightly above the average monthly gain of 64,000 over the past year. Job growth was particularly strong in ambulatory healthcare services, hospitals, and nursing and residential care facilities. Healthcare has continued to lead in job creation for the past year, demonstrating resilience and sustained demand for healthcare services.
- Government: Government employment rose by 43,000 jobs in May, slightly below the monthly average of 52,000 per month over the past year.
- Leisure and Hospitality: Employment in leisure and hospitality increased by 42,000 jobs in May, above the average monthly gain of 32,000 over the past year.
- Professional, scientific, and technical services: Employment in Professional, scientific, and technical services added 32,000 jobs in May. There were job gains in management, scientific, and technical consulting services (+14,000) and architectural, engineering, and related services (+10,000).?
- Social Assistance: The social assistance sector added 15,000 jobs in May, slightly below the monthly average of 21,000 over the past year.
- Retail Trade: Retail trade employment saw growth of 13,000 jobs, with little change observed over the year.?
- There was minimal to no change in employment over the month in several major industries, including mining, quarrying, and oil and gas extraction, construction, manufacturing, wholesale trade, transportation and warehousing, information, financial activities, and other services.
Wage Growth and Working Hours
Average hourly earnings for all employees increased by 0.4 percent to $34.91, with a 4.1? percent increase over the past 12 months. The average workweek for all employees remained unchanged at 34.3 hours in May.
Looking Ahead: Key Hiring Trends for 2024
Considering the May jobs 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 with Pratik Patel of Mastercard as he opens up about his path to category leadership in contingent staffing, discussing challenges and the importance of embracing skill & diversity.
Learn how a Fortune 500 leader embraces diversity with a pay it forward mentality and applies it to Contingent Staffing Programs?
- How family ambition shaped a desire to acquire skill
- Facing and overcoming discrimination in formative years
- How a non-traditional career path transformed into CS success
- Leveraging lean principles and skill to optimize contingent staffing
? 11:30 am EST / 8:30 am PST
?? Thursday, June 27, 2024
