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 was unchanged at 3.5% during December. 145,000 jobs were added, with notable gains occurring in health care and retail trade. While job growth has slowed since November, the pace of hiring is most likely more than enough to keep the longest economic expansion in history on track.

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 December’s jobs report:

The Labor Force Participation Rate: The labor force participation rate remained at 63.2% during December and the employment population ratio held at 61% for the fourth consecutive month. Today, with employers’ hands forced by a candidate-driven labor market in which it’s difficult to find sufficient candidates, most of America’s companies face a crucial decision: to loosen—or to not loosen—their hiring requirements for temporary workers— requirements such as education, experience, background checks and drug screening. We’ve released a report surveying 500+ hiring managers in the U.S. which will help you decide if loosening temporary job requirements is right for your company.

Wage Growth Accelerating: In December, average hourly earnings rose by 3 cents. 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.

A Candidate-Driven Market: As highly sought-after job seekers enter the new decade, many employers are having to rethink their candidate attraction methods. While this may mean pay raises in some industries, other companies are planning to convert as many as 20% more holiday workers to permanent employees. “In this tight job market, with unemployment so low, companies are having to get creative about exploring more sources of talent, and this is part of that effort.” says Amy Glaser, a senior vice president at Adecco.

With these conditions—and this buyer’s market continuing for job seekers—employers need to be thinking right now about executing on recruiting strategies in a market where competition for talent is fierce. Now is the time to make the resolution to develop a plan that will enhance your opportunity to land strong candidates that can take your organization to the next level.