September 2024 Talent Market Insights

By TERRA Staffing Group

Posted on September 16, 2024

August’s jobs report indicates a labor market performing exactly as the Federal Reserve intended—a measured slowdown. 

Here are some of the key takeaways: 

• 142,000 jobs were added in August 
• Unemployment decreased from 4.3% to 4.2% 
• Workforce participation held steady at 62.7% 
• Wage growth increased by 0.2% month-over-month. 

Currently, the Fed is facing the challenge of making data-dependent decisions. Since last month, they’ve been under increased pressure to cut rates in September. But with the most recent jobs report, it’s unclear how aggressive a rate cut, if there is one, will be.  

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

Number of Jobs Available 

Job growth fell below their expected gains of 161,000 in August.  

Industries leading in job growth were construction (+34,000) and healthcare (+31,000).  

Job growth declined in manufacturing (-24,000), and in all other major industries, employment showed little change.  

Job gains for July were revised down from 112,000 to 89,000 and gains for both June and July were revised down by a total of 86,000. While downward revisions are consistent with jobs reports throughout the year, 89,000 is a notably smaller number than the average gains of 202,000 over the last 12 months.   

Unemployment 

The unemployment rate ticked down a decimal point from 4.3% in July to 4.2% in August.  

Although last month’s rise in unemployment raised some concerns, much of the increase in July’s rate was due to temporary layoffs, with many of those workers returning to their jobs in August. 

Additionally, according to the Federal Reserve’s Beige Book report, many businesses across the U.S. aren’t planning layoffs any time soon. 

Per the report, employers “reduced shifts and hours, left advertised positions unfilled, or reduced headcounts through attrition—though accounts of layoffs remained rare.” 

While hiring has slowed, the current job market reflects the intended cooling effect of higher interest rates. 

Workforce Participation

Workforce participation remained unchanged, at 62.7% and has changed little over the year.  

The number of people working part-time for economic reasons changed little at 4.8 million in August, and the number of people not in the labor force who want a job changed little, at 5.6 million.  

In the JOLTS report, which shows hires and separations for July, the number of separations increased to 5.4 million (+336,000), healthcare and social assistance being the leading contributors. 

Overall, workforce participation has remained within 62% since December 2021. And while it may appear stagnant, it is slowly inching toward its pre-pandemic level of 63%. 

Wage Growth 

Wages grew by 0.4% this month and are up from 3.8% compared to a year ago.  

Average hourly earnings rose by 14 cents, nearly twice the 8-cent increase from last month. This rise in wage growth boosts workers’ spending power, which could contribute to higher inflation. 

Winning Moves for Employers   

To stay ahead in today’s market, focus on strategies that strengthen your workforce and improve efficiency. Here are some key moves to help you attract top talent and drive your business forward: 

• Simplify your hiring process: Streamline the way you recruit by reducing the number of interviews and using clear, consistent questions. Quick feedback helps keep candidates engaged. 
• Enhance employee engagement: Regularly connect with your team to understand their challenges and aspirations. This approach boosts morale and helps retain top talent. 
• Invest in ongoing training: Provide continuous learning opportunities and resources to keep your team’s skills sharp and their confidence high. 
• Build a supportive culture: Create a work environment that fosters collaboration and recognizes achievements. A positive culture helps drive performance and employee satisfaction. 

Looking for workforce flexibility? Temporary staffing is a smart, cost-effective solution. It can help you meet fluctuating needs, fill immediate openings, and find long-term fits for your business. 

If you’re interested in more resources, visit our employer resource center. There you’ll find an archive of on-demand HR webinars, tools and articles to help you address a variety of workplace challenges.  

For additional insights into market trends, or if you need staffing support, don’t hesitate to contact us. 

Categories: Staffing Tips & Recruiting Trends

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

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