Labor and Industry Trends

Sometimes Slowing is a Good Thing

The U.S. economy continued to create jobs in November, suggesting there is still growth left in a labor market that has been slowing almost imperceptibly since 2022's sharp pandemic rebound. This month, the increase in employment includes tens of thousands of autoworkers and actors who returned to their jobs after strikes, meaning underlying job growth is slightly weaker. Why is this a "good thing"? It is another positive indicator that the Federal Reserve's policy of interest rate hikes to bring down inflation is working. This has led to widespread speculation among economists that further rate increases from the Fed are now on-hold, and indeed we may see some loosening in 2024. While many outcomes remain possible given geo-political risks (among others), we are again hearing widespread speculation that a "soft landing" for the economy is a possibility in 2024.

What Does this Mean for Clients?

Beyond the headline labor numbers, the reality remains that highly skilled technologists are in demand and can still choose among multiple opportunities. Top skills include software developers and engineers, IT project management, data analysts, systems analysts, cloud infrastructure and system design. Tech job openings in emerging areas like AI continue to trend up, with about two in five tech job postings seeking these skills according to data from CompTia. Clients and consultants will be well served partnering with Kforce to make the right match to attain your business and career goals.

by Michael Blackman

CURRENT LABOR INDICATORS

February Jobs One-Month Net Change

3.7

Total Unemployment

199,000

Total Job Gains

4.0

Wage Growth (YoY)

77.8K

74K

67K

35.5K

29K

25K

16.4K

15.4K

13K

1.1K

-9K

Source: U.S. Bureau of Labor Statistics

Leisure + Hospitality

Health care + Social assistance

Retail trade

Government

Professional + Business services

Construction

Mining + Logging

Financial activities

Manufacturing

Transportation + Warehousing

Information

Chart: Gabriel Cortes / CNBC

Published DECEMBER 13, 2023

Source: U.S. Bureau of Labor Statistics

NOVEMBER 2023

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This Ruler is for the Space Between the Bottom of the Hero/Header Text and the Subheader Copy. Check Your Spacing for Consistency.

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by Michael Blackman

Labor and Industry Trends

May 2023

Beyond the Headlines

Business and professional services led the unexpectedly strong job gains in May. This is yet another indication that the market for highly skilled talent remains intact, despite all the headline layoff news. Total nonfarm payroll employment increased by 339,000 in May—almost double the Wall Street consensus of +195k. Meanwhile, the unemployment rate remains low at 3.7%. In times of economic uncertainty, many companies have turned to flexible resources to minimize economic risk.

Source: U.S. Bureau of Labor Statistics

4.3

Wage Growth (YoY)

Total Job Gains

339,000

3.7

Total Unemployment

CURRENT LABOR INDICATORS

What Does this Mean for Clients?

Beyond the oft confusing headlines, tech job openings across industries remain solid at 234,000+, according to market research from CompTIA. Top skills are still very much in demand, including software developers and engineers, IT project managers, data analysts and IT support specialists. Interestingly, about one in five tech job openings are in emerging areas like AI. Historically, large-scale innovation increases the demand for technologists, who are often the drivers and architects behind transformative projects. Clients, your Kforce partner is well equipped to help you structure the best solution for your organization. Particularly in technology, which tends to be project driven, a time and materials solution can be very appealing. If you are a highly skilled technologist, Kforce works with a significant majority of Fortune 100 companies and can put you in exciting career-building opportunities.

339K

904K

414K

254K

364K

370K

568K

352K

350K

324K

290K

239K

472K

248K

165K

253K

Monthly Job Creation in the U.S.

February 2022 Through May 2023

Source: U.S. Bureau of Labor Statistics

200K

400K

600K

800K

Feb 2022

Mar 2022

Apr 2022

May 2022

Jun 2022

Jul 2022

Aug 2022

Sep 2022

Oct 2022

Nov 2022

Dec 2022

Jan 2022

Feb 2023

Mar 2023

Apr 2023

May 2023

Published June 8, 2023

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SPACE IN BETWEEN HEADER AND SUBHEAD + Subhead & Body

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Michael Blackman

Learn More About Kforce

As Chief Corporate Development Officer at Kforce, Michael Blackman, a 32-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.

CHIEF CORPORATE DEVELOPMENT OFFICER

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Meet the Author

Learn More About Kforce

As Chief Corporate Development Officer at Kforce, Michael Blackman, a 30-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.

Michael Blackman

CHIEF CORPORATE DEVELOPMENT OFFICER

Meet the Author

Monthly Job Creation in the U.S.

AUG 2022 Through NOV 2023

150K

199K

352K

350K

324K

290K

239K

472K

248K

217K

281K

105K

236K

165K

297K

800K

600K

400K

200K

Nov 2023

Aug 2022

Sep 2022

Oct 2022

Nov 2022

Dec 2022

Jul 2023

Aug 2023

Sep 2023

Oct 2023

Jan 2023

Feb 2023

Mar 2023

Apr 2023

May 2032

Jun 2023

Source: U.S. Bureau of Labor Statistics