The latest from the Labor Department
For the first time in seven years, U.S. Employment took a dip on the September jobs report. Nonfarm payroll decreased by 33,000 last month, according to the latest Bureau of Labor Statistics’ Employment Situation Report. This payroll drop is the first since September of 2010. Amid the damage caused by the hurricanes Harvey and Irma, displaced worker were left temporarily unemployed. Restaurants alone lost 105,000 positions to layoffs as a result of damage to the establishments. These natural disasters also caused hiring delays as businesses were impacted in Texas and Florida.
After 169,000 jobs were added in August (revised up from 156,000), the drop on the September jobs report is attributed to the hurricanes and a dip in the hospitality industry. Harvey and Irma did not, however, have an impact on the unemployment rate, which fell two-tenths of a percentage point to 4.2 percent, the lowest since February 2001.
Most economists agreed: this jobs report is one to take with a grain of salt. Scott Wren, senior global equities strategist for Wells Fargo Investment Institute, suggested that the market should view the report as “a blip on the radar.” He predicted that the September growth might see a negative hit of up to 100,000 jobs. Luckily, the actual figures came in lower than that.
Early economist predictions are suggesting that some industries (like construction) will see an immediate bump and then the overall jobs numbers will continue their upward trend within a few months. Following Hurricane Katrina, the number of U.S. jobs fell 35,000 in September 2005. The storm’s effects, specifically in New Orleans, led to lukewarm job growth of 56,000 people in October. However, the economy picked back up in November, creating 215,000 jobs.
This months report
Let’s break down the numbers from this month’s report.
In September, hourly wages increased by 0.12 to 26.55 per hour, following a 4 cent increase in August. This brings the year-over-year wage percentage increase to 2.9 percent. The unemployment rate saw a slight uptick to 4.2 percent.
- $26.55 September
- 0.12 month-over-month
- 2.9% year-over-year
- $26.43 August
- 4.2% September
- 4.4% August
In-Depth Look: Our Industries
Let’s dive right into a look at how our industries compare to the national numbers:
- Month-over-month change: -1,000
- 117,000 jobs added year-over-year
Administrative and support services
- Month-over-month change: 4,100
- 257,200 jobs added year-over-year
- Month-over-month change: 4,500
- 79,700 jobs added year-over-year
- Month-over-month change: 8,000
- 184,000 jobs added year-over-year
Professional and business services
- Month-over-month change: 13,000
- 528,000 jobs added year-over-year
Transportation and warehousing
- Month-over-month change: 21,800
- 109,500 jobs added year-over-year
Office administrative services
- Month-over-month change: 1,800
- 28,200 jobs added year-over-year
- Month-over-month change: 22,500
- 317,700 jobs added year-over-year
The market remains hot for job seekers looking for top HR, non-clinical healthcare and supply chain and logistics positions; therefore employers will need to stay competitive. Make sure you’re paying your people the right salary and doing everything you can to recruit and retain the best talent – check out our 2017 Salary Guide.