Jobs Report Summary For The Finance and Accounting Industry.
Based on the BLS report with June 2014 data.
The Bureau of Labor Statistics recently released that June added 288,000 jobs to the workforce, which is a substantial increase to what economists predicted. The unemployment rate dropped from a 6.3% to a 6.1%, the lowest it’s been since September 2008. Over the past five months, the economy has added over 200,000 jobs month over month. With the newly added June jobs as well as May’s reported numbers, it could very well be the spark that the economy needs.
While the reported numbers are a positive gain, one statistic does pose a bit of concern; the number of people working part time because they can’t find full-time work rose, and the share of population either not working or looking for work reflects no change. June’s labor-force participation rate directly reflected this, staying stagnant at 62.8%.
PROFESSIONAL & BUSINESS SERVICES AND TEMPORARY EMPLOYMENT
The professional and business services industry continued to flourish, adding 67,000 jobs in June, continuing it’s reign as one of the strongest sectors of job growth for this year.
Within the 67,000 newly added jobs, the financial activities sector added 17,000 jobs, which is a huge increase from the 3,000 added jobs in May. The financial activities sector may finally be ending it’s sluggish hiring numbers from the previous months with potential economic market growth.
The BLS also reported that the Temporary Help Services added roughly 10,000 jobs in June, which is steadily declining month after month. While it’s an encouraging sign that temporary services are declining, potentially indicating that more full time positions are being added to the workforce, the labor participation rate tends to disprove this theory currently.
PROFESSIONAL AND BUSINESS SECTOR WAGES
For the month of June, wages for the professional and business sector increased 3 cents from May. While the increase in wages is a positive note for the professional and business sector, the overall average hourly earnings are up just 2% over the past 12 months. This is discouraging for the American workforce as well as economists, and may be a direct correlation to an economy that truly does not reflect a growing workforce.
The workforce seems to be headed in the right direction. Almost halfway through the new year, even with a dreadful winter, the job market has fully recovered from 2008 and over the past five months has consistently added well over 200,000 jobs per month. The dichotomy between the growing workforce and slow economy should narrow within the second half of 2014 and potentially make great strides for the American workforce.
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