Hey there! I just took a look at LaborIQ's "First Friday" job report and here's what I found out:
November was a surprise with more jobs added than we expected and wages not rising too fast. But, there's a twist – fewer people are out of work, showing that companies are really looking for more help.
Now, jobs are growing, but not as fast as before. Different types of work are seeing different changes. For example, some places are hiring a lot, but others not so much. In November, the US added 199,000 jobs, a bit more than the 185,000 we thought we'd see. Most of these new jobs are in just a few areas, like government and healthcare.
Even though hiring isn't super fast everywhere, we're not seeing lots of job losses either. Unemployment is pretty steady, and sometimes the job numbers get updated to be more accurate. Like, September and October's job counts went down by 35,000.
Job Gains:
In November, 199,000 new jobs popped up. Some of these were because strikes in car making and movies ended. This year, 2.5 million jobs were added – that's about 232,000 jobs each month. Jobs have been growing for 35 months straight!
Industries:
The job market's been strong, but not all types of work feel it the same way. In November, two-thirds of the new jobs were in government and healthcare. Adding back 50,000 workers from strikes in car making and entertainment, almost 90% of the jobs were in just four areas. But, not every industry is growing fast, and some aren't growing at all.
Unemployment Rate:
Unemployment dipped a bit to 3.7%. That's pretty low historically. Earlier this year, it went up a little, but there hasn't been a big increase in people out of work or big layoffs.
Wages and Compensation:
Wages grew 4% in November, the smallest rise since mid-2021. This shows the job market is strong but not overheating. Companies should plan for a 3.5–4% wage increase next year to keep and attract good people.
Jay Denton from LaborIQ gives us these updates each month. He's noticed fewer people quitting their jobs, except in leisure and hospitality. The quit rate's been about 2% for a while, meaning about 24% of people might leave their jobs each year. Pay for new hires is going up too, but not as fast as before – now it's a 5.6% increase. We should keep an eye on how spending, government actions, and talent shortages affect jobs and wages next year.
Conclusion:
It's important to note the shifting dynamics in the labor market. One key area to watch is consumer spending. It's a big driver of the economy, affecting how many jobs are available and what types. If people spend more, companies might need to hire more. But if spending slows down, jobs might not grow as fast.
Another thing to keep an eye on is how government actions, like shutdowns or strikes, impact hiring. These events can cause big changes in job numbers, especially in sectors directly affected by such disruptions. Understanding these impacts helps us predict job trends better.
Lastly, the ongoing talent shortage remains a crucial factor. It's not just about how many jobs are out there, but also about finding the right people for those jobs. Companies are struggling to find skilled workers, and this can slow down growth. It's a challenge that affects wages too. If there aren't enough skilled people, companies might have to pay more to attract the ones they need.
In summary, while the labor market shows strength and resilience, the journey ahead is complex. Businesses and workers alike need to stay informed and adaptable to navigate these changing tides. As we move into the new year, these factors – consumer spending, government actions, and talent shortages – will play significant roles in shaping the job landscape. Being aware and prepared for these dynamics is key to success in the evolving world of work.
November was a surprise with more jobs added than we expected and wages not rising too fast. But, there's a twist – fewer people are out of work, showing that companies are really looking for more help.
Now, jobs are growing, but not as fast as before. Different types of work are seeing different changes. For example, some places are hiring a lot, but others not so much. In November, the US added 199,000 jobs, a bit more than the 185,000 we thought we'd see. Most of these new jobs are in just a few areas, like government and healthcare.
Even though hiring isn't super fast everywhere, we're not seeing lots of job losses either. Unemployment is pretty steady, and sometimes the job numbers get updated to be more accurate. Like, September and October's job counts went down by 35,000.
Job Gains:
In November, 199,000 new jobs popped up. Some of these were because strikes in car making and movies ended. This year, 2.5 million jobs were added – that's about 232,000 jobs each month. Jobs have been growing for 35 months straight!
Industries:
The job market's been strong, but not all types of work feel it the same way. In November, two-thirds of the new jobs were in government and healthcare. Adding back 50,000 workers from strikes in car making and entertainment, almost 90% of the jobs were in just four areas. But, not every industry is growing fast, and some aren't growing at all.
Unemployment Rate:
Unemployment dipped a bit to 3.7%. That's pretty low historically. Earlier this year, it went up a little, but there hasn't been a big increase in people out of work or big layoffs.
Wages and Compensation:
Wages grew 4% in November, the smallest rise since mid-2021. This shows the job market is strong but not overheating. Companies should plan for a 3.5–4% wage increase next year to keep and attract good people.
Jay Denton from LaborIQ gives us these updates each month. He's noticed fewer people quitting their jobs, except in leisure and hospitality. The quit rate's been about 2% for a while, meaning about 24% of people might leave their jobs each year. Pay for new hires is going up too, but not as fast as before – now it's a 5.6% increase. We should keep an eye on how spending, government actions, and talent shortages affect jobs and wages next year.
Conclusion:
It's important to note the shifting dynamics in the labor market. One key area to watch is consumer spending. It's a big driver of the economy, affecting how many jobs are available and what types. If people spend more, companies might need to hire more. But if spending slows down, jobs might not grow as fast.
Another thing to keep an eye on is how government actions, like shutdowns or strikes, impact hiring. These events can cause big changes in job numbers, especially in sectors directly affected by such disruptions. Understanding these impacts helps us predict job trends better.
Lastly, the ongoing talent shortage remains a crucial factor. It's not just about how many jobs are out there, but also about finding the right people for those jobs. Companies are struggling to find skilled workers, and this can slow down growth. It's a challenge that affects wages too. If there aren't enough skilled people, companies might have to pay more to attract the ones they need.
In summary, while the labor market shows strength and resilience, the journey ahead is complex. Businesses and workers alike need to stay informed and adaptable to navigate these changing tides. As we move into the new year, these factors – consumer spending, government actions, and talent shortages – will play significant roles in shaping the job landscape. Being aware and prepared for these dynamics is key to success in the evolving world of work.
