Hickey Jobs Report Update September 2023
Hickey Jobs Report Update – U.S. adds 336,000 jobs in September 2023
Exceeding expectations and surprising to many, employment growth across the U.S. economy is gaining momentum once more with the creation of 336,000 jobs in September. This number marks an increase of 125,000 compared to the previous month and surpasses the average monthly gain of 267,000 jobs observed over the past year.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for September 2023 were seen in Leisure and Hospitality, Government, Health Care, Social Assistance, and Professional, Scientific, and Technical Services. Average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents to $33.88, or 0.2 percent, resulting in a 4.2 percent increase over the past twelve months.
The primary labor market indicators derived from the household survey revealed minimal to no fluctuations during the month. In September, the unemployment rate remained stable at 3.8 percent, with the number of unemployed individuals remaining virtually unchanged at 6.4 million.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
The U.S. economy's employment growth trajectory demonstrated increased momentum, as it gained 336,000 jobs in September. This significant figure stands well above the average monthly increase of 267,000 jobs recorded over the past twelve months.
September marked a substantial upswing in the Leisure and Hospitality sector, creating an impressive 96,000 new jobs, above the 61,000 average monthly gain. Food Services and Drinking Places led the way with a noteworthy gain of 61,000 jobs this month, which finally brings the sector back to pre-pandemic levels.
The average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents, or 0.2 percent, to reach $33.88 in September. Looking back over the past twelve months, these earnings have increased by 4.2 percent, which is on trend with 2023 so far.
During the month, both the labor force participation rate at 62.8 percent and the employment-population ratio at 60.4 percent remained unchanged, indicating stability in workforce participation and employment among the working-age population.
Labor market indicators from the household survey remained stable in September. The unemployment rate held steady at 3.8 percent, with around 6.4 million unemployed individuals, indicating employment stability during this period.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Hickey US Jobs Report - September 2023
Report Summary
During September, the most substantial employment increases were concentrated in several key sectors. Notably, these sectors included Leisure and Hospitality, Government, Health Care, Social Assistance, and Professional, Scientific, and Technical Services. These areas demonstrated robust job gains during the reported month, reflecting their significance in driving employment growth within the U.S. economy.
The change in total nonfarm payroll employment for July was adjusted upwards by 79,000 jobs, from 157,000 to 236,000. Additionally, the change for August was also revised up by 40,000 jobs, from 187,000 to 227,000. These revisions indicate that the combined employment for July and August is now 119,000 jobs higher than the previous report, a changing trend for 2023.
The primary labor market indicators obtained from the survey of households exhibited minimal fluctuations or any noteworthy alterations during the course of the month. Specifically, the unemployment rate remained constant at 3.8 percent throughout September, showing remarkable stability. Furthermore, the count of unemployed individuals experienced very little variation, with approximately 6.4 million people still seeking employment, indicating a status quo in this regard. This steadiness in the labor market suggests a level of continuity and stability in the employment landscape for the period under consideration.
In September, the average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents, translating to a 0.2 percent increase, reaching a total of $33.88. When examining the past twelve months, these earnings have demonstrated a notable uptick, growing by 4.2 percent. This trajectory aligns with the trends observed throughout the year 2023 thus far.
Over the course of the month, there were no shifts in either the labor force participation rate or the employment-population ratio. The labor force participation rate held steady at 62.8 percent, indicating that the proportion of individuals actively participating in the workforce remained consistent. Likewise, the employment-population ratio remained at 60.4 percent, signifying that the percentage of the working-age population currently employed remained unchanged.
Key Industries
Leisure and Hospitality
In September, the Leisure and Hospitality sector experienced a significant increase in employment, adding 96,000 jobs. This surpasses the average monthly gain of 61,000 jobs observed over the previous twelve months. Within this sector, employment in Food Services and Drinking Establishments grew by 61,000 jobs during the month, fully recovering to its pre-pandemic February 2020 level. However, the accommodation industry also showed positive employment growth, adding 16,000 jobs, although it remains below its February 2020 level by 217,000 jobs, which represents a 10.3 percent decline.
Health Care
Healthcare witnessed the addition of 41,000 jobs, a figure lower than the average monthly gain of 53,000 jobs over the preceding twelve months. Job growth in healthcare was notable across various areas, including Ambulatory Health Care services, which saw an increase of 24,000 jobs, Hospitals, which added 8,000 jobs, and Nursing and Residential Care Facilities, also contributing 8,000 jobs.
Government
In September, Government employment saw a notable increase of 73,000 jobs, surpassing the average monthly gain of 47,000 jobs over the preceding twelve months. Within the Government sector, there were job gains in State Government Education, which added 29,000 jobs, and in Local Government, excluding Education, which saw an additional 27,000 jobs created. However, overall Government employment remains slightly below its February 2020 level, with a net loss of 9,000 jobs during that period.
Social Assistance
Social Assistance recorded the addition of 25,000 jobs, a figure roughly in line with the average monthly gain of 23,000 observed over the past twelve months. Job growth during the month was particularly noteworthy in Individual and Family Services, where 19,000 new jobs were added to the economy.
Transportation and Warehousing
During September, the employment landscape in Transportation and Warehousing remained relatively stable, with the addition of 9,000 new jobs to the U.S. economy. Within this sector, Truck Transportation saw an increase of 9,000 jobs, rebounding from a decline of 25,000 jobs in August, largely attributed to a business closure. Additionally, Air Transportation contributed 5,000 new jobs in September. Overall, Employment in the Transportation and Warehousing sector has exhibited minimal net change over the course of the year.
Other Notable Industries
In the Professional, Scientific, and Technical Services sector, employment increased by 29,000 jobs, aligning with the average monthly gain of 27,000 jobs over the past twelve months. Meanwhile, the Information sector experienced minimal change in September, resulting in a loss of 5,000 jobs. Within this sector, the Motion Picture and Sound Recording industries continued to decline, shedding 7,000 jobs and marking a total loss of 45,000 jobs since May, largely due to labor disputes.
There was little employment change in other major industries during the month, including Mining, Quarrying, and Oil and Gas Extraction, Construction, Manufacturing, Wholesale Trade, Retail Trade, Financial Activities, and Other Services.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
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