Last month, for the first time since February 2008, the unemployment rate fell below 5%. The Bureau of Labor Statistics’ employment report for January showed an unemployment rate of 4.9% and a jobs creation total of 151,000. While the unemployment rate hitting an eight-year low is certainly noteworthy, the drop off in the total number of positions created from December to January makes January’s employment report a mixed bag. According to a report from MarketWatch, the smaller-than-expected increase in jobs could add to the growing concerns about the U.S. economy. However, the January report also offered several pieces of good news that signaled a healthy state for the labor market.
With the overall hiring pace decreasing slightly from 2015’s robust finish, all eyes will be on next month’s report to gain some clarity as to the projected state of 2016’s labor market.
In January, the average wage paid to U.S. workers increased to $25.39 an hour, up 0.5% from December. This increase continues a trend of accelerating wage growth at the end of 2015, and economists are predicting that wages will increase even faster throughout the remainder of 2016. Since January 2015, wages have climbed an impressive 2.5%.
IT Industry Sees Solid Start to 2016
The Professional, Scientific, and Technical Services sector mirrored the overall state of the job market to an extent for the month of January, with mixed news coming from the Bureau of Labor Statistics’ report. The unemployment rate for the sector saw a 0.5% increase from December, rising to 3.0%.
While the unemployment rate increase is slightly discouraging, the January report did bring good news in the form of job creations in the tech sector. The Professional, Scientific, and Technical Services created 25,300 new positions, up from 11,100 from the month of December. 3,4000 positions were added in Computer systems design and related services, and Management and technical consulting services gained 2,200 positions.
Overall, with the very impressive finish to 2015 and January’s job creation totals, the tech industry is off to a rock solid start in 2016. Additionally, the IT sector received some good news from other sources besides the BLS Report during the month of January. Glassdoor released its second annual list of the 25 Best Jobs in America and the IT industry accounted for 4 of the top 10 jobs, with Data Scientist being named the top overall position.
January Jobs Report Fast Facts
Hire Top Tech Talent in 2016
While the IT industry continues to add jobs, the competition to hire the best talent will continue to heat up. Modis can help you stay ahead in 2016 and connect your business with the very best tech professionals. Learn more about how we can move your business forward or contact us today!