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 declined to 3.5%, a rate we haven’t seen since December 1969. 136,000 jobs were added in September, just slightly above August figures. While monthly jobs adds are slightly decreasing, experts aren’t expressing much concern. In fact, the economy only needs to add about 100,000 jobs a month to absorb up all the new people entering the labor force.

According to Amy Glaser, Senior Vice President at Adecco Staffing U.S.A, one of the largest contributors to the lack of increased jobs number relates to how difficult it is to find labor in the market. She told Fox Business, “At 3.5 percent, we’re basically at full employment, and it’s truly a challenge to find workers for the open jobs.”

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 September’s jobs report:

The Labor Force Participation Rate: The labor force participation rate held at 63.2% during September and the employment population ratio edged up to 61%. 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. Recently, we’ve found that the rewards of loosening hiring requirements outweigh the risks so much so that we released a study about it. 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 September, average hourly earnings were little changed (-1 cent) following an 11-cent gain during August. 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.

Manufacturing Struggles: Ongoing trade tensions with China are causing disruptions with supply chains, increases in supplies, and attributing to decreased hiring rates. While a decline in manufacturing hires may fuel anxieties about the economy,  experts are also keeping their eyes on restaurants and leisure and hospitality industries. A drop in job gains in these industries could indicate that consumers aren’t feeling as free to spend.