Hickey Jobs Report Update April 2023
Hickey Jobs Report Update – U.S. adds 253,000 jobs in April 2023
Despite a slowing economy, the U.S. maintained the hiring surge with the addition of 253,000 new workers, according to the latest Jobs Report. Additionally, the number of jobless individuals in the country slightly decreased from 5.8 million to 5.7 million, and the national unemployment rate saw a marginal reduction from 3.5 percent to 3.4 percent. It's worth noting that the unemployment rate has remained relatively stable since early 2022.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for April 2023 were seen in Professional and Business Services, Leisure and Hospitality, Health Care, and Government sectors. Average hourly earnings for all employees on private nonfarm payrolls increased by 16 cents to $33.36, resulting in a 4.4 percent increase over the past 12 months.
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 sustained its trend of employment growth, adding 253,000 jobs in April. Although this reflects positive momentum, the figure is slightly lower than the average monthly gain of 290,000 jobs observed over the last six months.
In April, the Professional Business Services sector saw a notable increase of 43,000 jobs, while maintaining an average of 25,000 jobs over the past 6 months. It's worth highlighting that the Professional, Scientific, and Technical Services subsector alone added 45,000 jobs this month.
In April, the average hourly earnings for employees rose by 16 cents or 0.5 percent to $33.36. Over the past 12 months, these earnings have increased by 4.4 percent. This trend will be particularly interesting to watch as the Fed continues to evaluate interest rates, following another recent hike.
During April, the count of jobless people in the United States dropped slightly from 5.8 million to 5.7 million. Furthermore, the country's overall unemployment rate decreased by 0.1 percent from the prior month, settling at 3.4 percent.
Throughout 2022, the labor force participation rate and employment population ratio have remained relatively unchanged at 62.6 percent and 60.4 percent, respectively. This trend persisted in April, as both rates saw little to no variation from the previous month.
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 - April 2023
Report Summary
With heightened uncertainty across sectors, according to the latest U.S. Jobs Report, the American economy still continued a hiring surge by adding another 253,000 jobs in the month of April. This trends with the last few months having an average of 290,000 jobs added per month and 17,000 more than seen in March 2023, which ultimately was reduced significantly from initial reporting.
During April significant employment gains were observed in the Professional and Business Services, Leisure and Hospitality, Government, and Health Care sectors. However, the temporary help services experienced employment declines.
The total nonfarm payroll employment for April was adjusted downward by 78,000 jobs, from 326,000 to 248,000. Additionally, the change for March was also revised downward by 71,000 jobs, from 236,000 to 165,000. These revisions indicate that the combined employment for February and March is now 149,000 jobs lower than the previous report.
In April, the number of unemployed individuals in the United States declined from 5.8 million to 5.7 million. The national unemployment rate also marginally decreased by 0.1 percent from the previous month to 3.4 percent. Since early 2022, there has been negligible change in the unemployment rate at the national level.
The labor force participation rate, 62.6 percent, and employment population ratio, 60.4 percent, have seen little to no change over 2022, and continued that trend in the month of April from March.
The average hourly earnings for all employees on private nonfarm payrolls increased by 16 cents, or 0.5 percent, to reach $33.36 in April. Looking back over the past 12 months, these earnings have increased by 4.4 percent.
Key Industries
Leisure and Hospitality
In April, the Leisure & Hospitality sector experienced further growth with the addition of 31,000 jobs. Among the industries within this sector, the Food Services and Drinking Places sector saw the most significant increase in employment, adding 25,000 jobs. Despite the positive trend, the Leisure & Hospitality industry is still 2.4 percent, or 402,000 jobs, below its pre-pandemic levels in February 2020. However, over the last six months, the industry has consistently added an average of 73,000 jobs per month.
Professional and Business Services
The Professional and Business Services sector gained 43,000 jobs in April, surpassing the average monthly increase of 25,000 jobs in the previous six months. However, Temporary Help services employment continued to decline, with a reduction of 23,000 jobs in April, resulting in a total decrease of 174,000 jobs since its peak in March 2022.
Health care
The Health Care sector added 40,000 jobs in April, maintaining its average monthly gain of 47,000 jobs over the past six months. Ambulatory Health Care services recorded the highest increase in employment, adding 24,000 jobs, followed by Nursing and Residential Care Facilities, which added 9,000 jobs.
Financial Activities
The Financial Activities industry sustained its employment growth in April, with an addition of 23,000 jobs. Out of those jobs, 15,000 were in Insurance Carriers and Related Activities, while 9,000 were in Real Estate. The industry had observed negligible changes over the past three months.
Government
The Government sector maintained its positive trend of employment growth in April, with the addition of 23,000 jobs. This follows a consistent upward trend observed over the last six months, with an average monthly increase of 52,000 jobs across the United States. Despite the progress, Government employment is still 1.3 percent or 301,000 jobs below its February 2020 level.
Other Notable Industries
In other notable industries, the Social Assistance industry experienced a significant increase in employment with the addition of 25,000 jobs in April. Over the last 6 months, the industry has been consistently adding an average of 21,000 jobs per month.
The Mining, Quarrying, and Oil and Gas extraction industry recorded an increase of 6,000 jobs in April and has gained 102,000 jobs since hitting a recent low in February 2021. The majority of the job gains in April were in support activities for mining. However, employment in other significant industries such as Construction, Manufacturing, Wholesale Trade, Retail Trade, Transportation and Warehousing, Information, and Other Services remained unchanged over the month.
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.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: