Hickey Jobs Report Update February 2023
Hickey Jobs Report Update – U.S. adds 311,000 jobs in February 2023
Despite exceeding expectations by adding 311,000 new jobs in February, the latest U.S. Jobs Report delivered mixed results for the national economy. With continued hiring momentum across key sectors, wage growth slowed, and unemployment ticked back up to 3.6 percent. Data from today’s release, as well as, from the recent Job Openings and Labor Turnover Survey (JOLTS), quit rates have dropped significantly.
According to the latest U.S. Bureau of Labor Statistics, the biggest job gains for February 2023 were seen in Leisure & Hospitality, Retail Trade, Government, and Health Care sectors. Conversely, the employment rate fell in the Information and Transportation & Warehousing industries. As noted, average hourly earnings for all employees on private nonfarm payrolls only increased by 8 cents to $33.09, resulting in a 4.6 percent increase over the past 12 months, slightly missing expectations.
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 American economy continued to show hiring growth and added 311,000 jobs in February. Despite this positive momentum, the figure falls slightly below the average monthly gain of 343,000 jobs observed over the previous six months.
During the previous month, the Leisure and Hospitality industry added 105,000 jobs and maintained an average of 91,000 jobs during the past six months. Notably, the Food Services and Drinking Places sector experienced the highest gains by adding 70,000 jobs in the month alone.
In February, the average hourly earnings for employees rose by 8 cents or 0.2 percent to $33.09. Over the past 12 months, these earnings have increased by 4.6 percent. This slowed pace has raised concerns at the Federal Reserve and on Wall Street.
In February, the Transportation & Warehousing industry faced a reduction of 22,000 jobs, leading to a continued decrease in employment since October 2022, with a total loss of 42,000 jobs during that time. A trend we’re continuing to see following a rapid increase since the earliest days of the pandemic.
There was a slight uptick of 0.1 percent in the labor force participation rate, which reached 62.5 percent in February. However, the employment population ratio stayed the same at 60.2 percent, the same as the previous month. Despite these slight changes, both measures have remained relatively constant since early 2022 and still fall below their pre-pandemic levels that were observed in February 2020.
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
The most recent U.S. Jobs Report indicates that the American economy sustained its hiring momentum and added 311,000 jobs in February. However, this was lower than the average monthly gain of 343,000 jobs over the prior 6 months.
During February, significant employment gains were observed in the Leisure & Hospitality, Retail Trade, Government, and Health Care sectors. However, the Information and Transportation and Warehousing industries experienced employment declines.
The number of unemployed persons in the United States rose from 5.7 million to 5.9 million in February. As a result, the national unemployment rate increased from 3.4 percent to 3.6 percent, which brings the critical metric back above pre-pandemic levels.
The labor force participation rate saw a slight increase of 0.1 percent to reach 62.5 percent in February. Meanwhile, the employment population ratio remained steady at 60.2 percent, the same as the previous month. Despite these slight changes, both measures have remained relatively unchanged since early 2022 and remain below their pre-pandemic levels seen in February 2020.
The average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents, or 0.2 percent, to reach $33.09 in February. Looking back over the past 12 months, these earnings have increased by 4.6 percent, a slowing pace of wage rate growth than many predicted.
Key Industries
Leisure & Hospitality
The Leisure & Hospitality sector continued its upward trend by adding 105,000 jobs in the month of February. The Food Services and Drinking Places industry saw the biggest gain in employment of 70,000 new jobs as well as the Accommodation sector with the addition of 14,000 jobs. Overall, the Leisure & Hospitality industry is still below its pre-pandemic February 2020 levels by 2.4 percent, or 410,000 jobs.
Government
In February, employment in the Government sector increased by 46,000 jobs, which is consistent with the average monthly gain of 44,000 jobs observed in the previous 6 months. The increase was primarily driven by a trend in local government employment, which increased by 37,000 jobs in February. However, despite these gains, overall employment in the Government sector remains below its pre-pandemic level in February 2020 by 376,000 jobs, which represents a decline of 1.6 percent.
Retail Trade
In February, employment in the Retail Trade industry increased by 50,000 jobs, driven by a gain in general merchandise retailers with the addition of 39,000 jobs. However, despite this recent increase, overall Retail Trade employment has remained relatively stable over the year.
Professional & Business Services
In February, the Professional and Business Services industry experienced continued employment growth, adding 45,000 jobs. Of those jobs, 12,000 were in Management, Scientific, and Technical Consulting services. Over the previous 6 months, the industry had been adding an average of 35,000 jobs per month.
Health Care
In February, the Health Care industry experienced significant employment growth with the addition of 44,000 new jobs. This continues an upward trend seen in the past 6 months, with an average of 54,000 new jobs per month across the United States. The largest employment gains were observed in Hospitals, with the addition of 19,000 jobs, and Nursing and Residential Care Facilities, which added 14,000 jobs in February.
Other Notable Industries
In other notable industries, the Construction industry experienced a significant increase in employment with the addition of 24,000 jobs in February. Over the last 6 months, the industry has been consistently adding an average of 20,000 jobs per month. Similarly, Social Assistance employment also increased by 19,000 jobs in February, which is consistent with the average of the past 6 months. On the other hand, the Transportation & Warehousing industry experienced a loss of 22,000 jobs in February, contributing to a decline in employment since October 2022. The industry has lost a total of 42,000 jobs since then.
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: