Jobs report summary for the Finance and Accounting industry. Based on the BLS report with May 2014 data.
The Bureau of Labor Statistics recently released that employment in May added 217,000 jobs, which has finally ended the recovery from 2008’s crash. While the reported numbers for May are 60,000 jobs less than April’s unprecedented numbers, the unemployment rate continues to hold at 6.3%. With a full recovery of 2008, will we start to see positive gains for the economy?
While the newly reported May jobs are somewhat refreshing, the unemployment rate still causes a bit of concern. In April, the unemployment rate decreased from 6.7% to 6.3%, but not from an influx of jobs; the unemployment rate drop was due to the labor force participation rate, which came in at 62.8%; its lowest point in decades, down from 63.2% in March.
While the May jobs report reflects a decrease from April’s report, the long road to a 2008 recovery is finally behind us. Will the unemployment rate drop in the upcoming months and surge an economic growth?
PROFESSIONAL & BUSINESS SERVICES AND TEMPORARY EMPLOYMENT
The professional and business services industry added 55,000 jobs in May, making it one of the strongest sectors for job growth. In the last two months, the sector has added over 130,000 jobs!
Within the 55,000 newly added jobs, the financial activities sector added 3,000 jobs, which is a slight decline from 6,000 added in April. The financial activities sector continues to be sluggish since the start of the year. While the last two months of newly added jobs have been promising, the financial activities sector will only flourish when the economy picks up.
The BLS also reported that the Temporary Help Services added 14,300 jobs. While a decline from April (24,000 jobs), it could potentially foreshadow current temporary positions are in transition to full time employees.
PROFESSIONAL AND BUSINESS SECTOR WAGES
For the month of May, wages for the professional and business sector increased 6 cents from April. The increase of wages comes as a surprise seeing there was a decrease in number of newly added jobs for May. Are employers compensating more for hiring less? Or is the influence of potentially increasing the minimum wage affecting salary requirements?
The US job force can now put 2008 in the rearview mirror, as the jobs market has fully recovered. Moving forward, will we see a decrease in the unemployment rate if hiring continues to add an average of 200,000 new jobs month over month?
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