Labor and Industry Trends for May 2019
WHERE THE JOBS ARE
April’s BLS total nonfarm payroll employment increased by 263,000, ultimately beating economist's consensus expectations. April’s data indicated a solid month of U.S. job additions and a continued strong labor market. Furthermore, the average 3-month job gains exceeded 169,000, which is generally viewed as a very healthy level.
The BLS report reinforces that the labor market improved exiting Q1 and entering Q2 and is consistent with the improvement seen in the ADP jobs report. This labor market improvement is not surprising as early Q1 concerns like the government shutdown have subsided and extreme weather conditions like the polar vortex have since improved.
As illustrated in the graph below, the most significant component of the job growth was in professional and business services, which increased by more than 76,000. Particularly, as it pertains to technology and finance talent, every industry and organization is confronted with the imperative to invest and rapidly adapt to changing business models and new competitors.
This adjustment has led to talent shortages in several skill sets. The imbalance in supply and demand has now rippled through the skilled labor market. Thus, to successfully identify and attract the talent needed for your organization to succeed, it may be necessary to rethink your hiring process by considering the following factors:
1. Is your compensation competitive? With a plethora of data-driven resources at their fingertips, today’s professionals are aware of their current value in the marketplace.
2. Is your organization viewed as a positive work environment? The current workforce wants to grow their expertise and expand their skill sets.
3. Is your hiring process efficient? The person YOU want to bring onboard is likely being sought out by other organizations as well. Therefore, it is imperative that your hiring process is efficient and timely.
About the Author, Michael Blackman
As Chief Corporate Development Officer at Kforce, Michael Blackman, a 25-year Kforce veteran, is the primary focal point for the firm with the Wall Street and financial communities. He is regularly sought out by leading economists for his perspectives on the economy and labor markets, and he contributes to a number of key proprietary economic publications.