Job Market Review

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JOB MARKET REVIEW for DECEMBER 2016

SUMMARY

Hiring rates will be mixed in December compared with a year ago: A net of 36.7 percent of manufacturers and a net of 35.9 percent of service-sector companies will add jobs in December, according to SHRM's Leading Indicators of National Employment (LINE) report for December 2016. The manufacturing hiring index will rise by 3.8 points and the service index will fall by 6 points compared with a year ago.

Elsewhere, the U.S. Bureau of Labor Statistics (BLS) reported that the U.S. labor force added 178,000 jobs in November, and the nation’s unemployment rate was 4.6 percent, down from 4.9 percent in October. Some of the biggest job gains were in professional and business services (+63,000 jobs), health care (+28,000 jobs) and construction (+19,000 jobs).

Job openings remain at high levels: The most recent BLS Job Openings and Labor Turnover (JOLTS) report showed there were 5.5 million job openings on the last business day of September, little changed from August. There were 1.5 million layoffs and discharges in September, a decrease of 218,000 from August.

Results varied for recruiting difficulty and new-hire compensation in November: Recruiting difficulty fell slightly in November for manufacturing HR professionals and was virtually unchanged for service-sector HR professionals compared with November 2015. The index for new-hire compensation rose in manufacturing and fell in services in November compared with a year ago, according to the LINE report.

SHRM JOB MARKET DATA AND RESOURCES

GOVERNMENT DATA

U.S. BUREAU OF LABOR STATISTICS

Employment Situation: November 2016
'The unemployment rate declined to 4.6 percent in November, and total nonfarm payroll employment increased by 178,000.'

Job Openings and Labor Turnover: September 2016 
'On the last business day of September, there were 5.5 million job openings. The job openings rate was 3.7 percent. The number of job openings was little changed for total private and for government.'

Metropolitan Area Employment and Unemployment: October 2016
'Unemployment rates were lower in October than a year earlier in 231 of the 387 metropolitan areas, higher in 127 areas and unchanged in 29 areas. Thirty areas had jobless rates of less than 3.0 percent and three areas had rates of at least 10.0 percent.'

Real Earnings: October 2016
'Real average hourly earnings increased 1.2 percent, seasonally adjusted, from October 2015 to October 2016. This increase in real average hourly earnings combined with a 0.3-percent decrease in the average workweek resulted in a 0.9-percent increase in real average weekly earnings over this period.'

U.S. BUREAU OF ECONOMIC ANALYSIS

Personal Income and Outlays: October 2016
'Personal income increased $98.6 billion (0.6 percent) in October. Disposable personal income increased $86.5 billion (0.6 percent) and personal consumption expenditures increased $38.1 billion (0.3 percent).'

Gross Domestic Product: Q3 2016, Second Estimate
'Real gross domestic product increased at an annual rate of 3.2 percent in the third quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.4 percent.'

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