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S e p t e m b e r 6 , 2 0 1 3

U.S. EMPLOYERS HIRED

A TOTAL OF

169,000

WORKERS IN AUGUST

AVERAGE HOURLY EARNINGS

(ALL WORKERS)

$24.05

2.2% ABOVE LAST YEAR

THE UNEMPLOYMENT RATE

FELL TO

7.3%

8.1% LAST AUGUST

MODEST, DECEPTIVE LABOR MARKET INDICATORS IN AUGUST

• Employment gains and a decreasing unemployment rate appear positive, but

underlying data suggest a less rosy labor market picture.

• Labor force participation is at its lowest point in 35 years, and the pace of

employment creation appears to have lost some momentum.

• The mediocre jobs report may raise some doubts about the health of the U.S. labor

market and economy, as policymakers consider scaling back stimulus efforts.

Employers added 169,000 jobs in August, a figure that at first glance seems to be decent, if somewhat shy of most economists’

expectations. Revisions to employment figures for the previous two months were surprisingly negative, however, showing job gains

that were a combined 74,000 less than previously reported. With the downward revisions, job creation since May has averaged

just 155,000 per month, a substantial slowdown compared to over 205,000 per month in the first four months of 2013.

(Continued)


Employment (000s)

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan 13

Feb 13

Mar 13

Apr 13

May 13

Jun 13

Jul 13

Aug 13

Unemployment Rate (%)

Talent Market Monthly: September 6, 2013

The U.S. unemployment rate continues to inch lower, reaching

7.3%—but this improvement was largely a factor of a further

decrease in the labor force, rather than employment gains.

The labor force participation rate dropped to 63.2% in August,

a figure not seen since August 1978.

Job creation continues to be led by consumer-driven sectors.

Retail trade added 44,000 jobs in August, while employment in

accommodation and food services was up by 27,000. Nearly

33,000 health care jobs were added in the month, and

employment gains in professional and business services were

slower but still up by 23,000. Manufacturing job growth was

driven by the automotive industry, where employment rose

by 19,000 in August after layoff-related declines in July.

This month’s jobs report is expected to be a critical factor as

the Federal Reserve meets later in the month to decide on

tapering its asset purchase stimulus program. Although the

unemployment rate is edging closer to the Fed’s target, the

moderating pace of hiring and the underlying labor force

concerns may call into question whether the U.S. economy is

ready to stand on its own without the Fed’s intervention.

U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE

350

300

250

200

150

100

50

0

EMPLOYMENT OVERVIEW

Total non-farm employment growth

Unemployment rate

MAR APR MAY JUN JUL AUG

Total non-farm employment growth 142K 199K 176K 172K 104K 169K

Private sector employment growth 188K 157K 187K 194K 127K 152K

Unemployment rate 7.6% 7.5% 7.6% 7.6% 7.4% 7.3%

10.0

9.0

8.0

7.0

6.0

TIME OFF TRENDS

The past two decades have seen a shift in how U.S. employees are allotted time

off from work. American workers today are less likely to have paid vacation time,

but have seen their access to other forms of paid time off increase over the past

two decades, according to a recent report from the Bureau of Labor Statistics.

Vacation time has become less common for workers overall, but employers who

offer it have become slightly more generous. The percentage of private industry

workers with access to paid vacation days has fallen from 82% in 1992-93 to 77%

in 2012-13. But workers who are covered by paid vacation plans are eligible for 2

more days per year on average now than they were twenty years ago.

Source: Bureau of Labor Statistics

Other forms of paid time off have become much more prevalent. More than 60%

of U.S. workers now report having paid sick leave, compared to just half in

1992-93. Paid personal leave is available for 37% of workers today, up from 15%

twenty years ago. And although the number is still fairly small, 11% of U.S.

workers are now able to take some form of paid family leave, up from just 2%

two decades ago. In addition, more than a quarter of American workers are now

covered by consolidated leave plans, which provide a single bank of time off for

workers to use for any purpose.

Source: New York Times, 09/03/13; Beyond the Numbers, BLS, August 2013

An Equal Opportunity Employer ©2013 Kelly Services, Inc. W1093e

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