July 2024 Talent Market Insights

By TERRA Staffing Group

Posted on July 15, 2024

The latest jobs report for June highlights a cooling labor market in line with expectations.  

Here are some of the key takeaways: 

• 206,000 jobs were added in June 
• Unemployment increased from 4% to 4.1% 
• Workforce participation increased from 62.5% to 62.6% 
• Wage growth increased by 0.3% month-over-month 

Some experts are feeling more hopeful of a potential September rate cut from the Fed, given the consistent cooling of job growth and uptick in unemployment.  

Let’s dive into the latest labor market trends and explore what this means for employers. 

Number of Jobs Available 

There was more job growth than anticipated in June, with economists initially forecasting gains of 190,000. 

Industries leading job growth were government (70,000), healthcare (49,000), and social assistance (34,00). 

In June, there was an increase of 19,000 goods-producing jobs, with growth in construction compensating for a drop in manufacturing jobs. 

However, many industries lost momentum, most notably businesses and professional services (-17,000), retail trade (-8,500) and manufacturing (-8,000). 

Overall, we’re seeing slow and steady job growth month over month, a cool-down from the hiring surge in 2021 and 2022.  

Unemployment 

Unemployment inched up for the second month in a row from 4% to 4.1%, breaking the 2-year record low streak of unemployment that started in December 2021. 

Among Asian American workers, unemployment increased for the fourth month in a row, from 2.5% in March to 4.1% in June.  

Employment for temporary workers declined by 49,000 in June, which could indicate businesses are slowing down.  

This drop in temporary employment is particularly noteworthy because June typically kicks off seasonal summer work. 

Workforce Participation 

While other economic data points have returned to their pre-pandemic levels, workforce participation has not. Workforce participation is 0.7 points behind its pre-pandemic level of 63.3%, currently sitting at 62.6%. 

The stagnant workforce participation data may correlate to data in the latest JOLTS report, which shows hires and separations for May. 

The rate of quits remained at 2.2% for the seventh month in a row and over the year, quits are down by 550,000.  

And the number of people who are not in the labor force that want a job declined by 483,000 in June, indicating there are fewer unemployed people that are actively looking for work. 

Wage Growth 

Wage growth has increased by 0.3% over the month and is up from 3.9% from one year ago. 

Average hourly earnings increased by 10 cents, a dip from last month’s increase of 14 cents. Wage growth is beginning to show signs of cooling, as anticipated.  

Winning Moves for Employers    

Investing in your workforce and improving operational efficiency isn’t just good business—it’s essential for staying ahead. Here are some winning moves to drive your business forward: 

• Simplify hiring: Make the hiring process faster and more efficient by reducing the number of interviews and using streamlined, consistent questions. Give candidates prompt feedback to keep them engaged and interested. 
• Focus on Retention: Regularly check-in with your best employees to understand their needs, challenges and goals. This not only maintains productivity, but it also helps boost morale and reduce turnover costs.  
• Invest in upskilling: Equip your team with effective training and resources to help them do their jobs better. Building skill and confidence in your teams enhances their ability to contribute to the business’s long-term success. 
• Identify “Value-Adders.” Acknowledge and celebrate those who consistently exceed expectations and contribute positively to team goals. Part ways with those who aren’t a good fit, to build a high-impact, successful team.  

If you’re looking for flexibility in your workforce or need talent quickly, consider exploring temporary staffing. It’s an affordable solution that allows businesses to scale up and down as needed. A staffing agency can help your business not only fill immediate roles, but also find long-term fits for your team. 

Interested in more resources? Check out our employer resource center. There you’ll find on-demand HR webinars, tools, and articles designed to assist you in navigating various workplace challenges. 

And if you’re looking for insights into market trends or require staffing support, don’t hesitate to contact us. 

Categories: Staffing Tips & Recruiting Trends

Tags: July 2024 Talent Market Insights, labor market trends, Talent Market Insights

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