Hickey Jobs Report Update July 2023
Hickey Jobs Report Update – U.S. adds 187,000 jobs in July 2023
The momentum of employment growth within the U.S. economy has begun to wane, evident in the addition of 187,000 jobs in July, below market expectations. This figure represents a decrease of 22,000 when compared to the previous month of June. It is particularly striking when contrasted with the consistent average monthly increase of 312,000 jobs observed over the preceding 12 months. This shift signals a notable departure from the established pattern of robust employment expansion, prompting a closer assessment of the factors contributing to this shift and the potential implications for the broader economic landscape.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for July 2023 were seen in Health Care, Social Assistance, Leisure and Hospitality, and Construction sectors. Average hourly earnings for all employees on private nonfarm payrolls increased by 14 cents to $33.74, or 0.4 percent, resulting in a 4.4 percent increase over the past 12 months.
The national unemployment rate saw a marginal reduction from 3.6 percent to 3.5 percent. Notably, this rate has exhibited a remarkable stability since early 2022, showcasing resilience amidst challenging economic conditions.
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 trajectory of employment growth in the U.S. economy showed signs of weakening, with the addition of 187,000 jobs in July. This figure notably falls well below the average monthly increase of 312,000 jobs witnessed over the previous 12 months.
Maintaining its consistency for the fifth month in a row, the labor force participation rate remains unchanged at 62.6 percent, reflecting an ongoing stable pattern. The employment population ratio exhibited minimal variation, edging up from 60.3 percent to 60.4 percent during the month.
June marked a substantial upswing in the Health Care sector, creating an impressive 63,000 new jobs. Ambulatory Health Care services led the way with a noteworthy gain of 35,000 jobs this month.
During the month of June, employee earnings exceeded market expectations in their average hourly wages, witnessing an uptick of 14 cents or 0.4 percent, resulting in a new figure of $33.74. Noteworthy is the substantial growth of 4.4 percent in these earnings over the preceding 12 months.
In the month of July, minimal shifts were observed in both the unemployment rate, holding firm at 3.5 percent, and the total number of unemployed individuals, which amounted to 5.8 million. Worth highlighting is the unemployment rate's steady span between 3.4 percent and 3.7 percent since March 2022, indicating a pattern of stability during this timeframe.
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 - June 2023
Report Summary
According to the latest U.S. Jobs Report, during the month of July, there was an uptick of 187,000 in Total Nonfarm Payroll employment, a figure that fell short of the average monthly increase of 312,000 jobs witnessed over the course of the previous 12 months. This slight deceleration in job growth, while still positive, reflects a temporary deviation from the more robust employment expansion observed in recent times.
During July, significant employment gains were observed in the Health Care, Social Assistance, Financial Activities, Construction, and the Leisure and Hospitality sectors. However, the Professional Business services, as well as the Temporary Help sector experienced employment declines.
The change in total nonfarm payroll employment for May was adjusted downward by 25,000 jobs, from 306,000 to 281,000. Additionally, the change for June was also revised downward by 24,000 jobs, from 209,000 to 185,000. These revisions indicate that the combined employment for May and June is now 49,000 jobs lower than the previous report.
In the month of July, there was little variation in the unemployment landscape. The unemployment rate held steady at 3.5 percent, and the count of individuals without jobs remained at 5.8 million. At a national level, the unemployment rate experienced a minor decline of 0.1 percent compared to the previous month, settling at 3.5 percent. It's worth highlighting that the unemployment rate has exhibited a relatively stable pattern, oscillating within the range of 3.4 percent to 3.7 percent since March 2022.
The average hourly earnings for all employees on private nonfarm payrolls increased by 14 cents, or 0.4 percent, to reach $33.74 in July. Looking back over the past 12 months, these earnings have increased by 4.4 percent, which is on trend with 2023 so far.
For the fifth consecutive month in a row, the labor force participation rate remains the same at 62.6 percent. The employment population ratio saw little change of 0.1 percent over the month at 60.4 percent.
Key Industries
Health Care
In the month of July, there was substantial expansion within the Health Care industry, marked by the incorporation of 63,000 new positions. This remarkable surge in employment was evident across multiple domains. Ambulatory Health Care services contributed 35,000 fresh jobs, while Hospitals saw an increase of 16,000 new workers, and nursing and residential care facilities saw an addition of 12,000 jobs. Over the course of this year, the Health Care sector has consistently achieved an average monthly growth of 51,000 jobs.
Social Assistance
During the month of July, the Social Assistance sector encountered a rise of 24,000 jobs, primarily propelled by a substantial influx of 19,000 new roles within Individual and Family Services. Throughout 2023, the sector has consistently displayed a monthly average increase of 23,000 jobs, aligning closely with the 2022 average of 19,000 jobs per month.
Financial Activities
The Financial Activities sector saw a growth of 19,000 jobs in the month of July. Following a relatively stagnant first quarter, where employment remained mostly unchanged, the industry witnessed a notable uptick, averaging the addition of 16,000 jobs per month throughout the second quarter. Notably, real estate, rental, and leasing experienced a substantial gain of 12,000 jobs during the month, although this positive momentum was partly counterbalanced by a decrease of 3,000 jobs in the commercial banking segment.
Leisure and Hospitality
Employment in the Leisure and Hospitality sector experienced little change as it added 17,000 new jobs. This industry has now witnessed four consecutive months of minimal employment fluctuations. However, it is important to note that employment in the sector remains 352,000 jobs below its pre-pandemic level in February 2020, representing a decline of 2.1 percent
Construction
In July, the Construction sector showcased a steady and continuous rise in employment, witnessing the incorporation of 19,000 fresh job roles. Over the course of the year, this particular industry has showcased a consistent monthly average augmentation of 17,000 positions. Notably, within this context, Residential Specialty Trade Contractors have notably fueled the sector's expansion by creating 13,000 new job prospects, while Nonresidential Building Construction contributed an additional 11,000 jobs to this positive employment trajectory.
Other Notable Industries
During the month of July, Wholesale Trade recorded a growth of 18,000 jobs, breaking away from the previous trend of minimal fluctuations in recent times. In the Other Services sector, the upward employment trajectory persisted, as July witnessed the inclusion of 20,000 new positions. This increase outpaced the average monthly gain of 15,000 jobs observed in the preceding 12 months.
In the month of July, the Professional and Business Services sector experienced a minor fluctuation in employment, witnessing a reduction of 8,000 jobs. This comes after the industry had maintained a robust average monthly job growth of 38,000 over the preceding 12 months. In particular, the Temporary Help Services segment of this industry saw a continued decline in employment during the same period, with a loss of 22,000 jobs. Notably, this sector has experienced a cumulative decrease of 205,000 jobs since its peak in March 2022.
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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