Unemployment Rate 3.7%
The U.S. economy added 263,000 nonfarm jobs in November, as the unemployment rate remained unchanged at 3.7%. The Leisure and Hospitality industry had the largest increase in employment in the private sector, adding 88,000 positions, while Government jobs increased by 42,000. Learn more from the recent employment report compiled by the U.S. Bureau of Labor Statistics and view the unemployment rate in your state.
Major Industry Employment:
- Construction: +20,000
- Manufacturing: +14,000
- Retail Trade: -29,900
- Transportation and Warehousing: -15,100
- Information: +19,000
- Professional and Business Services: +6,000
- Education and Health Services: +82,000
- Health Care and Social Assistance: +68,100
- Leisure and Hospitality: +88,000
- Government: +42,000
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Workforce
82% of Companies Plan to Continue Offering Remote Work
ExpressPros.com — December14, 2022
Impacted by the current labor shortage, 82% of U.S. hiring managers at companies where employees worked remotely during the COVID-19 pandemic say they plan to allow staff to continue their duties offsite, according to a survey from The Harris Poll commissioned by Express Employment Professionals.
For nearly three in five businesses (59%), remote work has had a positive impact on their company as a whole — with a third citing a very positive impact (33%). And despite the possibility of increased distractions while working remotely, productivity appears unharmed for many companies.
Nearly 70% of those businesses that allow/plan to allow employees to continue working remotely do so in the hopes of retaining current employees/attracting new employees. The safety and health of their employees (41%) and employee preference (35%) are also among the motivators for continuing to allow remote work.
Employee Turnover Continues to Increase with an Average Annual Cost of $57,150
ExpressPros.com — November 30, 2022
Employee departures continue to plague the workforce as 48% of U.S. hiring managers say their company is experiencing increased turnover, up from 44% in late 2021, according to a survey from The Harris Poll commissioned by Express Employment Professionals.
Each year, employee turnover costs companies an average of $57,150 (e.g., cost to rehire, lost productivity) overall. Nearly a quarter of hiring managers (23%) say it costs their company $100,000 or more per year.
Turnover does more than simply affect a company’s finances; it can also impact its other employees. Slightly more than seven in ten (71%) hiring managers agree employee turnover places a heavy burden on existing employees, specifically in companies with 100-499 employees (76%) and those with 500 or more employees (78%). With the added complexity of the current labor shortage, companies are having to lean heavily on their current employees.
A majority of hiring managers (78%) say their company has been affected in some way by the departures, namely having to increase workloads for existing employees (38%). As a result of the heightened turnover, around four in five (82%) plan to rehire former employees, generally either to increase their overall headcount (43%) or keep the same level of personnel (32%).
Staffing
Temporary Employment Down in November
Staffing Industry Analysts — December 2, 2022
After a downwardly revised loss in October, the U.S. temporary help industry declined sharply in November losing 17,200 jobs, significantly less from the downwardly revised 6,100 jobs lost in October, according to the Bureau of Labor Statistics. The gains in September were also revised from adding 12,600 to a loss of 22,500. With the revisions in September and October, temporary jobs were 53,000 lower than previously reported. The total temporary jobs reached 3.1 million.
The number of temporary jobs as a percentage of overall employment (temporary penetration rate) dropped from 2.04% in October to 2.02% in November.
“Despite the surprisingly buoyant headline about the number of jobs created in November, the latest data reflects a gradual softening in the labor market,” said SIA President Barry Asin. “With temporary help employment growth now at 2.4% year over year, down from double-digit growth earlier in 2022, we continue to expect slower growth ahead. All of this will be moderated by the intense labor shortage that is likely to continue for the foreseeable future.”
Business
Employment Trends Index Decreased in November
The Conference Board — December 5, 2022
After decreasing in October, The Conference Board Employment Trends Index (ETI) decreased from a downwardly revised 118.74 in October to 117.65 in November. The decrease can be attributed to negative readings from six out of eight index components: Initial Claims for Unemployment, Percentage of Firms with Positions Not Able to Fill Right Now, Industrial Production, Number of Employees Hired by the Temporary-Help Industry, Ratio of Involuntarily Part-time to All Part-time Workers and Real Manufacturing and Trade Sales.
“The ETI decreased in November 2022 for the second consecutive month. While the Index remains at a high level, its downward trend signals slower job growth ahead,” said Frank Steemers, senior economist at The Conference Board. “The labor market is currently still robust. However, the fourth consecutive decline in the number of temporary help services jobs — a component of the ETI and an important leading indicator for hiring — is a warning sign that job growth may slow going into 2023.”
Consumer Confidence Declines in November
The Conference Board — November 29, 2022
After declining in October, U.S. consumer confidence continued to fall in November. The Conference Board’s Consumer Confidence Index decreased from a downwardly revised reading of 102.2 in October to 100.2 in November. The short-term outlook of consumers decreased as the Expectations Index was down from 77.9 in October to 75.4 in November. The Present Situation Index, which shows current views on business and labor conditions, was down from 138.7 in October to 137.4 in November.
The report also found that 45.8% of respondents felt jobs were currently plentiful, up from 44.8% in October; while the amount of those who said jobs were hard to get was unchanged in November at 13%.
Economy
U.S. Retail Sales Cool as Holiday Shopping Season Began
Wall Street Journal — December 15, 2022
After experiencing strong gains in October, U.S. retail sales declined sharply in November as the holiday shopping season got underway. According to the Commerce Department, consumer spending at retailers, online sellers and restaurants dropped by a seasonally adjusted 0.6% month over month, down from strong growth of 1.3% in October. While consumers spent more on food and health-care needs, sales of electronics, clothing and sporting goods were down. The month-over-month decrease may be attributed to inflation easing slightly in November to 7.1%, down from the 9.1% peak in June. Due to the unpredictable economic climate, many consumers are shifting their purchases toward food and necessities, foregoing discretionary and big-ticket item spending. According to the National Retail Federation, retail sales in November and December represent approximately a fifth of overall annual sales.
