The May jobs report showed the lowest job gain in over 5 years.
The U.S. Bureau of Labor Statistics showed employment increased by 38,000 jobs in May, the lowest monthly job gain since 2010. This is a significant decrease from April’s revision from 160,000 to 123,000 jobs.
The unemployment rate declined from 5% to 4.7% in May, the lowest rate since 2007.
Average hourly earnings increased by 5 cents to $25.59, following an increase of 9 cents in April. Over the year, average hourly earnings have risen by 2.5%.
Healthcare employment increased by 46,000 jobs in May, with 24,000 of the jobs gains occurring in ambulatory healthcare services, 17,000 in hospitals, and 5,000 in nursing care facilities. Over the year, healthcare employment has increased by 487,000 jobs.
Kristin Carpenter, Director of Operations in San Diego, commented on the increase, “We have seen an increase in administrative healthcare positions, including Medical Receptionist, Front Office Medical Assistants, Medical Billers, and Appointment Schedulers.
As we continue to see job growth in the Healthcare market, we encourage companies to promote from within and train their entry level employees for advancement.
As a result, we are seeing a reduction in turnover in higher level positions and more vacancies in the entry level and administrative based positions.
Miriam Romero, Account Manager of the Healthcare Division in Las Vegas has seen an increase in high-level specialty positions over the past month. “There has been an overwhelming demand for Physician Assistants, Registered Nurses, and Nurse Practitioners across multiple specialties, including urology, allergy, radiology, and out-patient surgery.
Candidates of this caliber are difficult to find in a regular market. With the lowered unemployment rate, employers need to offer competitive salary and benefits packages to attract top talent.”
Professional and Business Services Employment
Professional and business services added 10,000 jobs in May, following an increase of 55,000 jobs the month prior. Within the industry, professional and technical services added 26,000 jobs in May.
Ran Zookin, Director of Operations for the Convention Division, commented on the increased demand for candidates with strong technical abilities. “Conventions have always been a customer service focused industry. Over the past month, more and more clients are requesting candidates who are able to learn new software and databases quickly to keep up with the technology trends of the industry.
Previously, candidates only needed strong typing skills. Now, companies are looking for strong typing skills and a computer-savvy mindset.
As the data analytics improve for the event and expo industry, we will continue to see the increased demand for candidates who can adapt to the new software.”
Manufacturing & Distribution Employment
Manufacturing employment in durable goods declined by 18,000 in May, with 7,000 of the job losses occurring in machinery.
Laura LaManna, Area Manager of the Manufacturing & Distribution Division in San Diego, commented on the change. “We are seeing more of a demand for technical skill as companies are now required to produce more with less time and focus on becoming lean.
With unemployment continuing to decrease, there has been an increased demand for experienced Assemblers, Warehouse, Operators, and General Labor candidates."
Unemployment At A Glance
Despite the low unemployment rate, job creation has become weaker as workers continue to drop out of the labor force. Rather than being hired, more and more people are becoming discouraged and halting their search for jobs.
Compared to last year’s monthly average of 200,000 jobs, job creation in the past two months has been considerably lower. As the job gain this month marked the lowest job gain since 2010, it is likely that Federal Reserve policymakers will hold off on increasing a key interest rate until job creation is boosted.
What Companies Need To Do
Companies should consider the low job gains in May as a sign to focus on raising wages. Rather than hiring new employees, companies need to prioritize their efforts for retaining their current employees.
How Eastridge Can Help
Companies need to take the steps necessary to reach their contingent workforce goals. This includes retaining current employees and managing their workforce.
Let Eastridge provide you with solutions to reduce cost, increase efficiency, and mitigate risk. See how our Workforce Management solutions can help you develop and maintain a high-performing contingent workforce program.