Hickey Jobs Report Update - May 2023
Hickey Jobs Report Update – U.S. adds 339,000 jobs in May 2023
With an economy still facing major uncertainty, the U.S. sustained a hiring surge for yet another month by adding 339,000 new workers, according to the latest Jobs Report. However, the nation’s unemployment rate did tick back up above pre-pandemic levels to 3.7 percent, which is primarily driven by individuals leaving the gig workforce.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for May 2023 were seen in Professional + Business Services, Government, Health Care, Construction, Transportation + Warehousing, and Social Assistance, among others. Average hourly earnings for all employees on private nonfarm payrolls increased by 11 cents to $33.44, resulting in a 4.4 percent increase over the past 12 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 U.S. economy sustained its trend of employment growth, adding 339,000 jobs in May. This now marks 14 months of consecutive months the Jobs Report figure has exceeded economists’ predictions, an unprecedented trend.
In May, the Professional + Business Services sector once again led all industries with an increase of 64,000 jobs. Surprising to many was the addition of 25,000 jobs added in the Construction sector, a positive sign for growth and development projects across the country.
In May, the average hourly earnings for employees rose by 11 cents or 0.3 percent to $33.44. Coming in slightly below market predictions, the 12-month growth rate has slowed to 4.3 percent, which may prove critical to the Fed Reserve’s next decision on rate hikes.
Despite the surge of new hires, the overall unemployment rate ticked back above pre-pandemic levels. Key driver is a loss of 369,000 workers primarily from the gig workforce, which is tracked in a separate household survey, which is a continued trend over the previous three months.
Labor participation across workers in their prime years has reached a rate not seen since before the Great Recession. That age cohort, which is between 25- to 54- years old, are now participating the workforce at a rate of 83.4 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 - May 2023
Report Summary
With uncertainty still across the economy, according to the latest U.S. Jobs Report, American employers sustained another month of hiring by adding another 339,000 jobs in the month of May. This now marks at least 14 months that the Jobs Report figures have outpaced market predictions.
During April significant employment gains were observed in the Professional + Business Services, Government, Health Care, Construction, Transportation + Warehousing, and Social Assistance, among others
Reversing a trend of downward adjustments for previous months, the latest Jobs Report also ratcheted up the hiring estimates for March and April, respectively. The total nonfarm payroll employment for April was adjusted upward by 52,000 jobs, from 165,000 to 217,000. Further, the survey increased March numbers by 41,000 jobs, thus from 253,000 to 294,000. These shifts mark a total increase in estimated jobs over the previous months of 93,000, remarkable in light of the May results.
In May, the national unemployment rate slightly increased by 0.3 percent from the previous month to 3.7 percent. This change was mostly related to individuals leaving the gig workforce at heightened levels over the previous three months.
The labor force participation rate, 62.6 percent, and employment population ratio, 60.4 percent, have seen little to no change over 2022, which continued the trend in May.
The average hourly earnings for all employees on private nonfarm payrolls increased by 11 cents, or 0.3 percent, to reach $33.44 in May. Looking back over the past 12 months, these earnings have increased by 4.3 percent, a slowing trend and critical inflationary measure.
Key Industries
Leisure + Hospitality
In May, the Leisure + Hospitality sector maintained their return from seismic pandemic shifts with the addition of 48,000 jobs. Food Services and Drinking Places sector lead the way with 33,000 new jobs. The sector in entirety has added an average of 77,000 jobs per moth over the previous year, yet is still below pre-pandemic level by 2.1 percent.
Professional + Business Services
Over the previous month, the Professional + Business Services sector added another 64,000 jobs. This growth, which was similar to April, was led primarily by Professional, Scientific, and Technical Services by adding 43,000 jobs in May.
Health Care
Building on a strong April, the Health Care sector added another 52,000 jobs over the previous month. Ambulatory Health Care Services, Hospitals, and Nursing + Residential Facilities were the leaders across the expansive sector.
Construction
Positive sign for the economy overall with the Construction sector adding 25,000 jobs in May, which leads to an average monthly growth of 17,000 jobs during the previous year. The Heavy + Civil Engineering Construction sub-sector led the industry with 11,000 new jobs.
Government
Employment in Government is now within one percent of pre-pandemic levels with the addition of 56,000 jobs in May. This exceeded the average monthly trend over the past year of 42,000 new jobs.
Transportation + Warehousing
The most volatile sector for employment over previous months has certainly been Transportation + Warehousing. Following a month showing employment losses, the industry as a whole added 24,000 new jobs, led by Transit + Ground Passenger Transportation with 11,000 additional works on payroll.
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: