HICKEY Jobs Report Update May 2022
Hickey Jobs Report Update – U.S. adds 390,000 jobs in May 2022
With significant inflationary challenges and recession concerns, the U.S. added 390,000 jobs in May. Beating expectations, the hiring pace is above economist predictions despite economic issues across industries. The nation’s unemployment rate was relatively unchanged at 3.6 percent, per the latest U.S. Bureau of Labor Statistics Jobs Report.
Leading industries seeing upward hiring trends in May were Leisure & Hospitality, Manufacturing, Professional and Business Services, and in Transportation & Warehousing, the continued darling of the post-COVID job surge. Hourly wages increased by 10 cents, or 0.3 percent in May to $31.95. Over the previous 12 months, the hourly wage increase slightly ticked down to 5.2%.
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 concerns across the global economy, American companies continued to hire workers at a blistering pace, beating economist expectations. In May, the U.S. economy added another 390,000 jobs, which results in more than 2.5 million new workers since the beginning of 2022.
Continuing to be the darling of the economy, the Transportation & Warehousing sector added another 47,000 jobs in May. As a whole, the industry has 709,000 more workers than pre-pandemic levels. While strong for the overall economy, this hypergrowth will continue the strain on wage inflation and talent recruitment for sector businesses. Strong signs out of the industry also included robust hiring in the challenged trucking and air sectors.
Hourly wages once again rose across the economy in May with a 10-cent increase or 0.3 percent. This increase does result in a slight slowdown in overall wage inflation, which is now at 5.2 percent over the past twelve months. Tracking to a key inflationary measurement, the consumer price index, hourly compensation is trailing, which is now at 8.3 percent.
Entering the summer months, the Leisure & Hospitality industry continued to add more jobs to the economy. Being led the pandemic-decimated by Food Services & Drinking Places and Accommodations sectors, total job counts remain 7.9 percent below February 2020 levels.
The jobless rate remained at the same levels seen in April at 3.6 percent, which is just slightly above pre-pandemic levels of 3.5 percent. On a positive note, another core metric tracking economic health, the total Labor Participation Rate, increased slightly in May.
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 June 2022 Employment Situation Summary, U.S. Bureau of Labor Statistics Jobs Report, American businesses once again added jobs, despite warnings of an impending recession. Adding another 390,000 jobs in May, the U.S. economy added more than 2.5 million jobs since the beginning of 2022.
Totaling for the year to date, the federal labor agency did reduce estimated job counts for March and April by a combined decrease of 22,000 than previously reported.
Strongest gains were in Leisure & Hospitality, Manufacturing, Professional and Business Services, and in Transportation & Warehousing, among others.
The nation’s unemployment rate remained at the previous month’s level of 3.6 percent. Overall labor force participation slightly increased to by 0.1 percent to from April to 62.3 percent. Altogether, the jobless rate in America is just above pre-pandemic levels of 3.5 percent.
Per today’s data release, hourly wages rose by ten cents in May, which puts the national average at $31.95. Total wage inflation over the previous 12 months narrowly decreased to 5.2 percent, a decline year-over-year by 0.3 percent. According to another Bureau of Labor Statistics survey, the consumer price index continued to increase in May by 0.3 percent, which is a total increase of 8.3 percent over the previous year, when seasonally adjusted.
Key Industries
Leisure and Hospitality
The Leisure & Hospitality sectors maintained a torrid hiring streak by adding 84,000 jobs in May. Altogether, the largest gains came from Food Services & Drinking places at 46,000 new jobs, with Accommodations adding 21,000 workers. Overall, industry employment is still down by 1.3 million, or 7.9 percent.
Professional and Business Services
Building on last month’s growth, the dynamic Professional & Business Services sectors added 75,000 jobs in May and are now 821,000 above pre-pandemic levels. Biggest gains came from Accounting and Bookkeeping Services with 16,000 new hires, and Computer Systems Design and Related Services adding 13,000 jobs nationwide.
Manufacturing
Manufacturing added another 18,000 jobs in May. Job growth was primarily seen in Fabricated Metal Products with 16,000 new additions to their payrolls, and 4,000 jobs added to the Wood Products sector. In all, Manufacturing employment has nearly returned to pre-pandemic levels by only being 0.1 percent, or 17,000 jobs, from February 2020.
Retail Trade
Retail Trade did see a loss in employment as we enter the summer declining by 61,000 jobs in May. Nevertheless, the industry is still above pre-pandemic levels by 159,000 jobs.
Transportation and Warehousing
Keeping up their incredible job creation momentum, Transportation & Warehousing increased payrolls by 47,000 jobs in May. Warehousing and Storage added 18,000 more jobs, Truck Transportation brought on 13,000 new employees, and Air Transportation hired 6,000 more workers. The latter two sectors are strong signs for the nation’s challenged supply chain. Overall, the industry has 709,000 more workers today than levels seen in February 2020.
Other Notable Industries
In other notable industries, Construction added 36,000 jobs, Healthcare employment rose by 28,000, and the Education sector brought on 69,000 jobs during the previous month.
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: