Posted by Abby Alger on June 18, 2015
May added 280,000 jobs, above the average monthly gain of 251,000, according to the U.S. Bureau of Labor Statistics. Unemployment edged up a notch to 5.5 percent.
May was a strong month for the United States economy. Many different industries contributed to job creation, with the professional and business services sector, retail trade, food services, construction, health care, transportation and warehousing led the way. The professional and business services sector added 63,000 jobs last month and has added total of 671,000 jobs over the year.
Some sub sectors that also saw increases in employment include computer systems design and related services (+10,000), management and technical consulting services (+7,000), and architectural and engi¬neering services (+5,000). Employment with temporary help services continued to rise and brought an additional 20,000 jobs to the economy last month.
In fact, Mark Zandi, chief economist at Moody’s Analytics, suggests that average monthly job gains indicate we’re closing in on full employment. In an Accounting Today article, he explains:
“That pace is double the rate necessary to absorb the growth in the working age population,” he said in a confer¬ence call with reporters Wednesday. “If labor force partici¬pation just remains constant and the labor force grows at the rate of the working age population, the current rate of job growth will continue to push down unemployment and underemployment. And if we maintain the current rate of growth—which I think is likely—the economy will be back to most estimates of full employment, including my own, by this time next year. I think the economy is quickly closing in on full employment now.”
While employers are clearly hiring, (there were 5 million job openings on the last business day of March) employment growth is not the only source of future job openings. Job openings will also result from the need to replace workers who retire or otherwise permanently leave an occupation. The BLS reports that job openings due to replacement needs are expected in every occupation, even in those projected to decline in employment. Over the 2012-22 decade, 50.6 million total job openings are expected.
These numbers are encouraging and indicate that the economy is improving, and perhaps turning in favor of job seekers. As more jobs are added, opportunities will present themselves for those who know how to take advantage of them.
The job market is improving and employers will need to prepare to compete for talent as demand increases. Do you have your recruiting and hiring strategy in place?
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