The August jobs report has officially been released, revealing insightful and beneficial information for employers and candidates alike. Some highlights include overall increases in hiring and decreases in unemployment.
U.S. companies added 195,000 jobs to the market this August—the most jobs it has added in four months, according to a new report from the ADP Research Institute. Unemployment claims were also low this month, suggesting an increasingly healthy labor market despite a slowing economy.
Here's a summary of everything you need to know about the latest in the job market this August:
A Record Number of Opportunities
In May, private employers added only 46,000 jobs to the market—the lowest amount of jobs added year to date. Fast forward to August, 195,000 jobs were added, exceeding economists’ expectations of 140,000 and reaching a record high in four months. This bodes well for the private sector and the overall economy as the unemployment rates remain relatively low and new jobs are continuously added to the market.
Significant Growth in the Private Sector
By business size, the private sector saw the highest job additions from mid-sized companies. This August, hiring at mid-sized businesses increased by 77,000, at small businesses increased by 66,000, and at large corporations by 52,000.
When it comes to changes by industry, the service-providing sector saw the highest increase with 184,000 jobs added in this sector alone. Jobs leading the industry growth include education and health jobs as well as leisure and hospitality positions. Here's the specific growth performance of each field in the service-providing sector:
- Education and health added 58,000 jobs.
- Leisure and hospitality saw a 42,000 job increase.
- Trade, transportation, and utilities increased by 39,000 jobs.
- Professional and business jobs increased by 35,000.
- There were 11,000 jobs added in other services.
- In financial activities, 5,000 jobs were added.
- Information jobs decreased by 6,000.
The goods-producing sector also contributed to overall job growth by adding 11,000 new jobs to the market. The sector saw a loss of 2,000 jobs in natural resources and mining. However, construction jobs increased by 6,000, while 8,000 jobs were added in manufacturing.
Unemployment Remains Low
While hiring has reached a moderate pace, layoffs remain low, which is a good sign that a recession is unlikely in the near future. Instead of letting go of employees, many business owners have chosen to remain firm on their payrolls by retaining employees and adding new jobs to the market.
Furthermore, economists do not foresee an imminent increase in the unemployment rate for August. Rather, they expect to see a 3.7% overall unemployment rate. The same economists who were polled by the Wall Street Journal also expect 150,000 additional jobs to be added to the market in the remainder of 2019.
Although we now know how many jobs were added in the nonfarm private sector, there is still more data needed to paint the bigger picture. Let's wait and see the August job numbers that the U.S. Department of Labor’s Bureau of Labor Statistics will release this Friday.
What Does This Mean For You?
With the positive path that the job market is heading, especially in the private sector, companies are expected to keep the momentum going in expanding opportunities and extending new job openings to candidates. Whether you are in IT, finance, compliance, or corporate support space, Infinity Consulting Solutions (ICS) can help you find top talents that can contribute to your unstoppable growth. Begin your search for the right candidate today by clicking the link below!