Hickey Jobs Report Update August 2023
Hickey Jobs Report Update – U.S. adds 187,000 jobs in August 2023
While showing signs of cooling over the previous few months, the nation’s labor market is remaining resilient after adding a reported 187,000 jobs in August. Meanwhile, as more Americans have returned to the workforce and are actively seeking employment, the unemployment rate jumped back up to 3.8 percent. Overall, following estimated job numbers from the previous two months were revised downward by 110,000, this was the slowest period of job growth in the U.S. over the last three years.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for August 2023 were seen in Health Care, Leisure and Hospitality, Social Assistance, and Construction sectors, the same sectors that led the previous month, as well. Average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $33.82, or 0.2 percent, resulting in a 4.3 percent increase over the past 12 months.
As noted, the national unemployment rate increased to 3.8 percent, from a previous low of 3.5 percent. This rate increase is buoyed by the most Americans seeking work since January 2023, and further highlighted by the downward revisions in job hiring estimates for the previous two 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 labor market remains resilient, but robust signs of cooling across the economy is evident. After revising down the estimates over the previous two months, the period of June through August was the lowest level of job creation seen over any similar stretch druing the last three months.
The nation’s labor participation rate has surged up to levels not seen since the onset of the pandemic after flat-lining since this March. Now at 62.8 percent, Americans actively seeking employment are at a rate far higher than April 2020, which was only 60.1 percent. Data in the latest findings also highlights that Americans are spending more time between jobs.
Health Care, Leisure and Hospitality, Social Assistance, and Construction sectors were the leading industries for a second consecutive month, with a total of 159,000 new employees coming on their collective payrolls.
Wages across industries cooled in the month of August only increasing by 0.2 percent, or 8 cents. This reduces the annual wage increase to 4.3 percent, a critical figure as the Federal Reserve evaluates future rate hikes.
Transportation and Warehousing once again lost significant employment over the previous month, which was vastly impacted by the closing of a major trucking company. Truck Transportation alone fell by 37,000 jobs in the month of August.
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 Video - August 2023
Report Summary
According to the latest U.S. Jobs Report, during the month of August, the nation added 187,000 jobs, which was close to expectations. This was significantly less than seen last August, which saw over 315,000 workers added to the nation’s payrolls. While still showing resiliency in the nation’s labor markets, these latest figures show robust signs of cooling.
In August, significant employment gains were observed in the Health Care, Leisure and Hospitality, Social Assistance, and Construction sectors, the same sectors that led the previous month, as well. The Transportation and Warehousing and Information sectors were the largest losses seen in the economy.
The change in total nonfarm payroll employment for June was adjusted downward by 88,000 jobs, from 185,000 to 105,000. Meanwhile, the estimates for July were revised downward by 30,000 jobs, from 187,000 to 157,000. With these downward revisions, the latest three-month period was the lowest similar stretch in job growth over the previous three years.
With more Americans participating in the workforce, and job estimates revised downward for the previous two months, the nation’s unemployment rate hiked back up to 3.8 percent. While still historically low, the heightened rate does show signs of the labor market cooling. The labor participation rate has now reached levels not seen since the onset of the pandemic, which was also the first increase in the key figure since this March.
The average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents, or 0.2 percent, to reach $33.82 in August. Looking back over the past 12 months, these earnings have increased by 4.3 percent, which is a continued downward trend for 2023 to date.
Key Industries
Health Care
The Health Care industry has continued to be a shining star for the economy after adding another 71,000 new jobs in August. Key sectors in the industry leading the way included Ambulatory Health Care Services, Nursing and Residential Care Facilities, and Hospitals.
Social Assistance
In August, the Social Assistance sector added 26,000 jobs to their payrolls. This remains on trend over the previous 12-month period as the sector averages 22,000 new jobs each month. Individual and Family Services led the way with 21,000 new hires.
Leisure and Hospitality
Employment in the Leisure and Hospitality sector increased payrolls by 40,000 new hires in August, which is below the monthly average gain over the prior 12 months of 61,000 jobs. The industry that was decimated by the pandemic still remains below February 2020 levels by 1.7 percent, or 290,000 jobs overall.
Construction
Strong signs for the overall economy came out of the Construction sector, which added 22,000 jobs in August. Notable sectors leading the industry growth came from Specialty Trade Contractors and Civil Engineering Construction, the latter likely driven by increasing spending on infrastructure across the country.
Transportation and Warehousing
The hardest hit industry in August was the Transportation and Warehousing sector, which saw a loss of 34,000 jobs. This employment decline was driven primarily by a reduction in workforce from the Truck Transportation sector, which lost 37,000 workers over the previous month.
Other Notable Industries
Employment in the Information sector lost approximately 15,000 jobs in August. This downward shift was driven by a decrease in employment of 17,000 jobs in the Motion Picture and Sound Recording industries, which is reflective of strike activity.
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: