All eyes were on The Bureau of Labor Statistics this morning ahead of the release of their November jobs report. Industry insiders said a job growth number of close to 200,000 would signal the Fed to move forward with their first interest rate hike in nine years. November exceeded those predictions after adding nearly 211,000 jobs. The change in employment for September was revised from 137,000 to 145,000 and October’s numbers were revised from 271,000 to 298,000. With these revisions, the average job gains over the last three months now sit at 218,000 per month.
What the Fed is Watching:
This morning’s jobs report is one of the most anticipated employment reports of the year — the most important data the Fed will see before it meets to consider an interest rate hike. Besides job growth the Fed is also looking at:
The unemployment percentage is considered a big indicator for the fed. The unemployment rate remained the same at 5.0%, the lowest it’s been since April of 2008.
But an even more important stat to consider is the total number of people who are unemployed or underemployed, meaning they can only find part-time work. Nearly 15.6 million people fell into that category in October. In November, that number dropped to 14 million. While the number has continually fallen throughout the past several years, it’s still close to 3 million higher now compared to pre-recession lows.
In November, average hourly earnings for all employees rose by 4 cents to $25.25, following a 9-cent gain in October. Over the year, average hourly earnings have risen by 2.3 percent.
When wages rise quickly during unemployment rate plunges, companies struggle to attract or retain workers and often have to pay more or lose out on top talent. Make sure to offer the right pay for your location to stay ahead of this workplace trend.
The big interest rate hike decision will likely come following the Fed’s December 15-16 meeting and we will continue to keep a close eye on any movement coming from the organization. In the meantime, we are delving deeper into this morning’s jobs report and offering you our analysis of the tech job market and IT employment.
Top Performer: IT Industry
The tech industry was in the top five for job additions with 27,000 jobs added. The total jobs added in the last 12 months is 466,000.
Professional, Scientific and Technical Services, added 28,000 jobs last month. Job gains occurred in computer systems design and related services (+5,000) and Management and technical consulting services (+5,000). Over the year, professional and technical services has added 309,800 jobs.
While the national unemployment rate sits at 5.0%, the Professional, Scientific and Technical Services unemployment rate is significantly lower at 3.4%, unchanged from last month.
IT workers are now earning more but also working more hours. The average hourly earnings are $38.83, up $.23 from the month prior and the average weekly hours are now 36.8, up from 36.7 last month.
November 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!