June 2024 Talent Market Insights

By TERRA Staffing Group

Posted on June 14, 2024

 

Despite expectations for a cooler month, employment showed strong growth in May. 

Here are some of the key takeaways from the latest jobs report: 

• 272,000 jobs were added in May 
• Unemployment increased from 3.9% to 4% 
• Workforce participation decreased from 62.7% to 62.5% 
• Wage growth increased by 0.4%  

Below we’ll review the latest labor market trends and what this means for employers. 

Number of Jobs Available 

Industries leading job growth were healthcare (68,000), government (43,000) and leisure & hospitality (42,000), which accounted for more than half the gains overall.  

Job gains for March and April were revised down. March’s job gains dropped by 5,000 to 310,000 and April’s job gains decreased by 10,000 to 165,000. 

While the high number of overall jobs added exceeds the forecast of 180,000, job gains in May are in line with gains this time last year.  

With the number of new jobs ramping back up after a cool spring, the Fed decided against implementing an interest rate cut in their June meeting. 

Unemployment 

Unemployment increased slightly from 3.9% in April to 4% in May. While some may view reaching 4% as a cause for concern, this is still a landmark win for the economy.  

Since December 2021, unemployment has remained at or below 4%, the longest stretch of time since the 1950s and 1960s.  

In the latest JOLTS report, which shows hires and separations for April, the number of total separations increased in durable goods manufacturing (+49,000).  

That said, unemployment among professional and business services is over 80% higher than unemployment in manufacturing.  

Right now, we’re seeing a higher demand for skilled labor, and less demand for white-collar workers. 

Workforce Participation 

Yet again, workforce participation has wavered by decimals within 62%. This time, it decreased slightly from 62.7% in April to 62.5% in May.  

Workforce participation is the highest ever for prime working age women, which beat their July 2023 record of 77.8% to 78% in April, and has increased once again to 78.1% in May.  

Employment for workers between ages 16-24 is the highest since 2008. That could be correlated with the increase of 286,000 in people holding part-time jobs.  

The labor force participation has been declining as Baby Boomers retire, but there may be an uptick on the horizon given the increase in workforce participation in younger demographics.  

Wage Growth 

Wage growth has increased by 0.4% over the month, and is up from 4.1% from one year ago, which is higher than estimates of 0.3% and 3.9% respectively.  

Average hourly earnings increased by 14 cents, double last month’s increase by 7 cents.  

Interestingly, immigration may be playing a role in wage growth. Some are attributing the rise in immigration to the strength of the economy, as many employers have been filling roles at pay levels that have allowed them to keep their prices at bay. 

Winning Moves for Employers    

In any market, the companies with the best talent win.  

And while attracting high performers is crucial, it is equally important to look within at the talent you already have. 

Here are some winning moves to ensure you have top talent on your team: 

• Prioritize Retention: Keeping your top performers isn’t just about keeping the team together; it’s a strategic, cost-saving move. Happy employees stick around and boost your bottom line. 

• Invest in Upskilling. Empower your team by investing in their professional development. Give them the tools and training they need to thrive in their roles. A skilled workforce not only bolsters productivity but also sets your business up for success. 

• Identify “Value-Adders.” Recognize and celebrate top contributors, while providing support to those who need a little help. Sometimes it may mean parting ways with those who aren’t a good fit—allowing you to build a high-impact, winning team.  

If you’re in need of additional support or need talent quickly, consider leveraging temporary staffing. It’s a budget-friendly solution that offers flexibility, allowing you to scale up and down as needed. Besides helping you fill immediate needs, a staffing partner can also help you find and evaluate potential long-term fits, so that you always have the right people on your team.  

Want 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: June 2024 Talent Market Insights, labor market trends, Talent Market Insights

Related Posts