United States Employment Situation

Written by Philip Rich, Chief Investment Officer,  June 6, 2022.

The Bureau of Labor Statistics' monthly jobs report indicates a slight easing in the extremely tight labor market. Demand for workers may have started to ease, or establishments may have started adapting to the labor shortages. Evidence suggests that employable persons are returning to labor force, but total employment is still below pre-pandemic conditions. Wage pressures are down slightly.

US unemployment rate held steady at 3.6% in May 390,000 new jobs added.

  • Robust employment gains, however slowest pace of growth in past 12 months

  • Gains have been averaging over 500,000 jobs per month

  • Total employment 0.5% below pre-pandemic

  • Jobs added in leisure and hospitality, professional & business services, transportation and warehousing

  • Wage growth slowed to 5.2%; down from 5.5%
  • ​Labor force participation ticked up to 62.3%; still below pre-pandemic
  • Job openings ticked down to 11.4 million in April, remain close to historic highs
  • ​6 million unemployed, almost two openings for every unemployed person


Source: U.S. Bureau of Labor Statistics, fred.stlouisfed.org

 

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Nora Bagby

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Ben Johnson, CFA

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Lance Hopegill, CFP

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Adam Martin, CFA

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Philip Rich

Chief Investment Officer

This information is for informational purposes only and does not constitute investment advice.

Sources:

  • GDP – Bureau of Economic Analysis
                            Employment & Inflation – Bureau of Labor Statistics
                            Interest Rates – Federal Reserve
                            P/E S&P 500 – multpl.com
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