HICKEY Jobs Report Update August 2022
Hickey Jobs Report Update – U.S. adds 315,000 jobs in August 2022
As the U.S. continues to navigate an uncertain economic environment, the American economy still added over 315,000 new jobs in August, according to the latest U.S. Bureau of Labor Statistics Jobs Report. While exceeding expectations overall, the latest hiring numbers were far less than the previous month. Despite adding more jobs to the workforce, the unemployment rate did slightly increase to 3.7 percent, back up above pre-pandemic levels again.which is the same as
The leading industries in job gains for August included Professional & Business Services, Health Care, and Retail Trade. Hourly wages increased by ten cents – 0.3 percent – to $32.36. Wages have now increased by 5.2 percent overall during the past year, staying on pace from the previous month.
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:
Despite heightened economic uncertainty, American businesses continued adding to their workforce, exceeding economist expectations. With 315,000 new jobs in August, the U.S. economy has added more than 3.6 million new workers since the beginning of 2022.
Professional and Business Services sectors once again led the charge, especially as Americans are increasingly returning to an office environment. Overall, the industry has 1.1 million jobs above pre-pandemic levels.
As expected, hourly wages once again increased in August with a 10-cent increase rise. Overall wage inflation over the past year remains at 5.2 percent. When tracked against the consumer price index, which slightly stabilized to 8.5 percent, , with the national average at 5.2 percent. While increasing this past month, hourly compensation is still trailing.
After being a disruptive force over recent years, the robust Warehousing and Storage sector has seen two consecutive months of overall job losses, a trend many would have never imagined earlier this year.
Despite adding another 315,000 jobs, the unemployment rate increased slightly back above pre-pandemic levels to 3.7 percent. Among the factors driving the trend, the total Labor Participation Rate which increased in August by 0.3 percent, a positive metric for economic health.
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.
Report Summary
According to the latest U.S. Jobs Report, the August 2022 Employment Situation Summary, U.S. Bureau of Labor Statistics Jobs Report, the American economy added another 315,000 jobs, despite heightened economic uncertainty. With these new hires, the U.S. economy has added more than 3.6 million jobs since the beginning of 2022.
With that calculation for year-to-date hires, the federal labor agency did revise their previous projections, setting and employment in June and July combined is to be 107,000 jobs lower than previously reported.
Strongest gains were in Professional & Business Services, Health Care, and Retail Trade, along with Manufacturing and Leisure + Hospitality, among others.
The national unemployment rose slightly to 3.7 percent from the month, despite the addition of jobs to the workforce. The overall national unemployment rate slightly decreased to 3.5 percThe labor force participation meanwhile increased by 0.3 percent from the previous month to 62.4 percent. America’s jobless rate slightly decreased from the previous month to 3.5 percent, which is finally at pre-pandemic levels.
According to the release, U.S. hourly wages increased by another ten cents in August, which maintains the same placing the national average at 5.2 percent. Ttotal wage inflation over the previous 12 months increased at 5.2 percent. According to another Bureau of Labor Statistics survey, the consumer price index slightly stabilized from recent spikes to 8.5 percent over the past twelve months.
Key Industries
Leisure and Hospitality
The Leisure & Hospitality sectors still added more jobs in July, but at a slower rate than in recent months. After averaging monthly gains of 90,000 jobs each month to start 2022, the sectors only added 31,000 jobs in August. The industry overall is down from February 2020 levels by 7.2 percent, or 1.2 million jobs.
Professional and Business Services
Continuing on last month’s growth, the Professional & Business Services sectors added 68,000 jobs in August. The dynamic industry is now 1.1 million jobs above pre-pandemic levels. Most significant job gainers were Computer System Design and Related Services, Management and Technical Consulting Services, and Architectural and Engineering Services.
Manufacturing
Manufacturing continued a hiring surge with another addition of 22,000 jobs in August, primarily in the Durable Goods Industries with 19,000 new jobs. In total, the industry has added 461,000 jobs over the past year.
Retail Trade
Continuing to expand the workforce above pre-pandemic levels, Retail Trade increased employment by 44,000 in August. Largest growth was seen in General Merchandise Stores and Food & Beverage stores, with both adding 15,000 new jobs in their sectors.
Transportation and Warehousing
Despite a slower pace, the Transportation & Warehousing sector continued their momentum by adding nearly 5,000 jobs in August. However, Warehousing and Storage had a 2nd consecutive negative month as the sector lost over 6,000 more jobs in August, a trend many thought unlikely just a few months ago.
Health Care
The Health Care sectors had large gain in employment in August with over 48,000 new jobs across the U.S. These gains were led by Offices of Physicians and Hospitals – both adding 15,000 jobs each in the previous month. Overall, the industry is only 0.2 percent – or 37,000 jobs – below pre-pandemic levels.
Other Notable Industries
In other notable industries, Financial Activities employment rose by 17,000 jobs, Construction employment added 16,000, and the Wholesale Trade sector brought on 15,000 jobs during August.
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: