Kansas City Jobs Report

3 Things to Know About the National Jobs Report

The Bureau of Labor Statistics (BLS) reported the U.S. unemployment rate remained unchanged at 3.7% in July. 164,000 jobs were added last month, only slightly below the 3-month average of 171,000, according to a Dow Jones survey. Although job gains are significantly less than they were in June, U.S. job growth is still considerably solid and doing little to bolster the Federal Reserve’s case for another interest rate cut next month.

Regionally, the Bureau of Labor Statistics breaks down the state and metro unemployment rates one month behind the national breakdown. Those numbers will be released mid-month every month.

Here are 3 other things to know about July’s jobs report:

The Labor Force Participation Rate: The labor force participation rate slightly increased to 63% in July and the employment population ratio sat at 60.7%. It’s no wonder employers are struggling to find the workers they need, leaving some to reexamine everything from their benefits offerings, to the requirements they list for worker positions. We’ve recently released a study observing how some companies are gaining access to larger talent pools to offset the tight talent market. The data in this report—gathered from surveying 500+ hiring managers in the U.S.—will help you decide if loosening temporary job requirements is right for your company.

Wage Growth Accelerating: In July, average hourly earnings rose by 8 cents, following an 8-cent gain from June. It’s no secret that wages have lagged behind job growth amid a recovering economy, and a common question has been the following: When will many companies’ newfound financial health, compared to their compromised financial health during the recession, trickle down to their employees in the form of pay? It looks like the answer is now. Read The New York Times’ article “Why Wages Are Finally Rising, 10 Years After the Recession” for a detailed breakdown of U.S. wage growth.

Slow and Steady Hiring: Although hiring has slowed this year to an average monthly pace of about 170,000 from 223,000 in 2018, the rate still remains solid and promising. Economists have said the fading effects of federal tax cuts and spending increases are to blame, which has diminished business confidence and investment. With the future uncertain, it makes sense to extend generous offers in order to hire quality talent when you do find it, focus on keeping skills up to date, and prioritize internal professional development.