Hickey Jobs Report Update March 2023
Hickey Jobs Report Update – U.S. adds 236,000 jobs in March 2023
The economy slightly missed economic forecasts by only adding 236,000 jobs in March, according to the latest U.S. Jobs Report. Showing signs of cooling in the nation’s labor markets, the latest figures track closely with economic metrics seen across other key workforce measures, including the Job Openings and Labor Turnover Survey (JOLTS). Along with the new jobs, the unemployment rate ticked back down to 3.5 percent.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the largest job gains for March 2023 were seen in the Leisure and Hospitality, Professional and Business Services, Government, and Health Care sectors. Manufacturing and Retail Trade were among those industries that saw a decline in hiring the past month, reversing a positive trend through the start of the year. Similarly, average hourly earnings for all employees on private nonfarm payrolls only increased by 9 cents to $33.18, resulting in a 4.2 percent increase over the past 12 months, the lowest mark since June 2021.
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 labor market may be finally showing signs of cooling as the economy only added 236,000 jobs in March. This marks the lowest level of job creation since December 2020 as the Federal Reserve has been making efforts to ease inflation.
Leisure and Hospitality once again was among the leading industries in job growth adding 72,000 jobs, which is lower than the average monthly gain of 95,000 over the previous six month period. Food Services and Drinking Place led the industry with 50,000 job additions, leaving the total industry still below pre-pandemic levels by 2.2 percent.
In March, the average hourly earnings for employees only rose by 9 cents or 0.3 percent to $33.18. At the lowest mark since June 2021, average hourly earnings have only increased by 4.2 percent over the past twelve months, a critical metric being watched by the Federal Reserve and Wall Street.
Transportation and Warehousing added 10,000 jobs in the previous month, which was challenged by a continued downward trend from the Warehousing and Storage industry that lost another 12,000 workers.
The labor force participation rate did see a slight increase to 62.6 percent in March, a key sign of Americans returning to the workforce. There was a slight uptick of 0.1 percent in the labor force participation rate, which reached 62.5 percent in February. While still remaining below pre-pandemic levels, the employment population ratio also improved to 60.4 percent.
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 - March 2023
Report Summary
The latest U.S. Jobs Report showed potential cooling in the American labor market as the economy slightly missed expectations by only adding 236,000 jobs in March. This previous month mark was the lowest gain seen since December 2020.
During March, significant employment gains were observed in the Leisure and Hospitality, Professional and Business Services, Government, and Health Care sectors. Manufacturing and Retail Trade were among those industries that saw a decline in hiring the past month.
The number of unemployed persons in the United States saw little change in March at 58 million, as the national unemployment rate slightly decreased by 0.1 percent to 3.5 percent, and it has shown little change since early 2022, which brings the critical metric back to pre-pandemic levels.
The labor force participation rate continued to increase – albeit marginally – as the key indicator reached 62.6 percent in March. Meanwhile, the employment population ratio also improved to 60.4 percent. While on a positive trend, these figures are still below pre-pandemic levels.
The average hourly earnings for all employees on private nonfarm payrolls increased by 9 cents, or 0.3 percent, to reach $33.18 in March. Looking back over the past 12 months, these earnings have increased by 4.2 percent, a slowing pace that should prove to be critical as the Federal Reserve approaches their efforts to cool inflation..
Key Industries
Leisure & Hospitality
The Leisure & Hospitality sector added 72,000 jobs in March, which is lower than the average monthly gains of 95,000 since last fall. The Food Services and Drinking Places sector led the industry with 50,000 new jobs. Despite continued gains, the Leisure & Hospitality industry is still below its pre- pandemic February 2020 levels by 2.2 percent, or 368,000 jobs.
Government
In March, Government industry employment increased by 47,000 jobs. Overall, the wider sector is still below pre-pandemic levels by 1.4 percent, or 314,000 jobs.
Retail Trade
In March, as seasonal trends shifted, employment in the Retail Trade industry decreased by a total of 15,000 jobs. The industry was buoyed by a gain of 15,000 jobs in department stores over the previous month.
Professional & Business Services
Staying in line with previous months, the Professional and Business Services industry added 39,000 jobs in March. Employment in professional, scientific, and technical services led the industry with 26,000 jobs over the previous month.
Health Care
In March, the Health Care industry added another 34,000 jobs, which may show signs of cooling in the industry after monthly average gains of 54,000 since late last year. Leading sectors were home health care services and hospitals, which added 15,000 and 11,000 jobs, respectively.bruary.
Other Notable Industries
In other notable industries, the Construction industry experienced a decrease of 9,000 jobs following a strong growth month. The dynamic Manufacturing industry saw little change, with the motor vehicles and parts sector as a significant leader with nearly 4,000 new jobs added in March.
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: