The June jobs report showed the highest job gain in eight months.
The U.S. Bureau of Labor Statistics showed employment increased by 287,000 jobs in June, the highest job gain since October 2015. This is a positive increase from May’s revised low job gains from 38,000 to 11,000.
The unemployment rate increased from 4.7% to 4.9% in June.
Average hourly earnings increased by 2 cents to $25.61, following an increase of 6 cents in May. Over the year, average hourly earnings have risen by 2.6%.
Healthcare employment increased by 39,000 jobs in June, with 19,000 of the job gains occurring in ambulatory healthcare services and 15,000 of the job gains in hospitals. This is in line with the average monthly gains over the past year.
Amber Trask, Account Manager of the Healthcare Division in Las Vegas, commented on the high demand for healthcare positions. “As the unemployment rate continues to drop, more and more individuals have access to and are using their medical benefits and seeking healthcare. To accommodate the increase in demand for healthcare, it is important for companies to keep a continuous pipeline of talent to fill their open positions and avoid becoming understaffed when the healthcare facilities are busy.”
Professional Business Services Employment
Professional and business services added 38,000 jobs in June, in line with the monthly average of 30,000 jobs in 2016. This year’s monthly average thus far falls short compared to the average monthly gain of 52,000 jobs in 2015.
“Companies have been creating positions and offering lucrative pay and benefits packages to entice candidates with in-demand technical skills. With the shrinking talent pool, these skilled candidates are receiving competitive offers.
Companies that are looking to fill positions with skilled talent need to be aware of and be ready to compete with what their competitors are offering in order to attract the right candidates.”
Financial Activities Employment
Employment in financial activities rose by 16,000 in June and has risen by 163,000 over the year.
Evan Levine, Executive Recruiter of the Finance & Accounting Division in San Diego, commented on the increase, “Continued low unemployment consistently drove wages up in the Finance and Accounting industry.
For example, we recently experienced a 17% base salary increase for a Staff Accountant and a 20% base salary increase for Sr. Accounts Payable Specialist. These are significant numbers when compared to the traditional 10-15% increase when changing jobs just last year.
Employers need to stay educated and be conscious of what is happening around them to remain competitive in attracting and retaining their top talent.”
What Companies Need To Do
Employment gains of 287,000 jobs in June is a significant increase from May’s revision from 38,000 to 11,000 jobs.
The strong employment gains, however, are offset by the increase in the unemployment rate.
As the talent pool continues to grow as more people start their job search and join the labor market, companies need to be mindful of their methods to attract and retain skilled workers.
With the labor market tightening, it is imperative that employers start considering making changes to existing benefits and compensation packages in order to remain competitive.
How Eastridge Can Help
Companies who want to stay ahead of the competition need to know what parts of their hiring process show room for improvement.
Assess how effective your current hiring processes and recruitment technology are to finding top talent with our Talent Acquisition Assessment results.
Contact us today to learn how Eastridge can help you stay ahead.