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U.S. employment situation: September 2013
Release date: October 22, 2013
Consistent monthly gains bring
annual job creation to 3.0 million
U.S. employment situation: December 2014 January 9, 2015
December 2014 employment summary
• After a phenomenal November, the U.S. labor market reverted back to its 2014 rate of
growth and added 252,000 net new jobs. As a result, 2014 overall saw 3.0 million new jobs
and every month except January posted more than 200,000 new jobs.
• Unemployment dropped by 20 basis points to a recovery low of 5.6 percent. This decline has
been bolstered by consistent job growth and labor force participation falling to a record low of
62.7 percent.
- Total unemployment declined to 11.2 percent, also a drop of 20 basis points, as the
number of marginally detached workers slowly falls.
- Unemployment for college and high-school grads both dropped as well (to 2.9 and 5.3
percent, respectively), but labor force participation for both groups is at record lows with
little sign of increase.
• Like total non-farm employment, the office-using industries reverted back to normal levels of
growth in December, adding 64,000 jobs over the course of the month.
- Due to strong performance in education, health, leisure and construction, the office-using
industries contributed only 25.4 percent of December’s job creation. Source: JLL Research, Bureau of Labor Statistics
December 2014 employment summary
• Consumer confidence is back up, hitting 91.6 points on the back of sustained employment
increases throughout the year. This has had a positive effect on other indicators: personal
consumption expenditures surpassed $12.0 trillion during the third quarter and are on track
for another record three months.
• Texas, the Sunbelt and the West Coast continue to lead job growth: Austin, Dallas, Houston,
Miami, Raleigh-Durham, San Francisco, Seattle and Silicon Valley, among other markets, all
posted in excess of 3.0 percent year-on-year job creation.
• Improvements in the labor market have finally had a significant effect on the office sector.
Over the course of 2014, occupancy growth has surpassed 54.7 million square feet (highest
in more than five years), pushing vacancy to 15.6 percent and placing upward pressure on
rents across markets.
Source: JLL Research, Bureau of Labor Statistics
December saw 252,000 net new jobs, bringing gains over the
course of the year to 3.0 million 22
0,00
0
121,
000
120,
000
360,
000
226,
000
243,
000
96,0
00
110,
000
88,0
00
106,
000
122,
000
221,
000
183,
000
164,
000 19
6,00
0
360,
000
226,
000
243,
000
96,0
00
110,
000
88,0
00
160,
000
150,
000
161,
000
225,
000
203,
000
214,
000
197,
000
280,
000
141,
000
203,
000
199,
000
201,
000
149,
000
202,
000
164,
000
237,
000 27
4,00
0
84,0
00
144,
000
222,
000
201,
000
304,
000
202,
000
267,
000
243,
000
203,
000
271,
000
261,
000
353,
000
252,
000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Oct
-10
Dec
-11
Feb
-11
Apr
-11
Jun-
11
Aug
-11
Oct
-11
Dec
-11
Feb
-12
Apr
-12
Jun-
12
Aug
-12
Oct
-12
Dec
-12
Feb
-13
Apr
-13
Jun-
13
Aug
-13
Oct
-13
Dec
-13
Feb
-14
Apr
-14
Jun-
14
Aug
-14
Oct
-14
Dec
-14
1-m
onth
net
cha
nge
Source: JLL Research, Bureau of Labor Statistics
4
Consistent employment growth and upward revisions in
previous months pushed unemployment down to 5.6 percent
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Une
mpl
oym
ent r
ate
(%)
1-m
onth
net
cha
nge
(tho
usan
ds)
Monthly employment change Unemployment rate
Source: JLL Research, Bureau of Labor Statistics
5
Job openings are up consistently in recent months, settling at
4.8 million and currently at their highest level in 13 years
Source: JLL Research, Bureau of Labor Statistics
6
0
1,000
2,000
3,000
4,000
5,000
6,000
Job
open
ings
(th
ousa
nds)
1.8
1.9
2.0
2.0
2.0
3.1
4.0
7.7
10.0
10.0
12.0
13.0
14.7
17.0
36.0
43.7
48.0
48.0
52.0
0 10 20 30 40 50 60
Motor vehicles and parts
Utilities
Mining and logging
Information
Other services
Transportation and warehousing
Nondurable goods
Retail trade
Wholesale trade
Financial activities
Government
Durable goods
Temporary help services
Manufacturing
Leisure and hospitality
Health care and social assistance
Construction
Education and health services
Professional and business services
1-month net change (thousands)
All subsectors registered growth over the month, with
construction, in particular, making significant headways
Source: JLL Research, Bureau of Labor Statistics
7
PBS
Education and health
Construction
All other subsectors
Top three
subsectors
responsible for
58.7 percent of
monthly
growth.
6.9
10.0
15.0
45.5
49.0
58.0
91.0
110.7
121.0
139.3
176.0
186.0
216.6
249.6
290.0
421.0
426.0
482.0
732.0
0 200 400 600 800
Utilities
Nondurable goods
Information
Motor vehicles and parts
Mining and logging
Other services
Government
Wholesale trade
Financial activities
Transportation and warehousing
Durable goods
Manufacturing
Temporary help services
Retail trade
Construction
Leisure and hospitality
Health care and social assistance
Education and health services
Professional and business services
12-month net change (thousands)
PBS
Education and health
Leisure and hospitality
Retail trade
Manufacturing
Financial activities
All other jobs
Over the course of 2014, PBS, education, health, leisure,
hospitality and construction were the leaders in job creation
Source: JLL Research, Bureau of Labor Statistics
8
Core subsectors added 74.2 percent
of all jobs over the past 12 months.
-1,000
-800
-600
-400
-200
0
200
400
2008 2009 2010 2011 2012 2013 2014
Change in '000s jobs
Boosts in state and local government hiring are slowly pushing
up public sector two-year growth figures
Private sector hiring up 5.2
million since December 2012
Public sector hiring up 57,000
workers since December 2012
Source: JLL Research, Bureau of Labor Statistics
9
0
2
4
6
8
10
12
Une
mpl
oym
ent (
%)
Bachelor's degree and higher High school graduates, no college
White-collar unemployment dips to a mere 2.9 percent, while
high-school-graduate unemployment falls to 5.3 percent
2.9%
5.3%
Source: JLL Research, Bureau of Labor Statistics
10
Labor force participation in both segments has remained
largely flat and at record lows
Source: JLL Research, Bureau of Labor Statistics
11
54.0%
55.0%
56.0%
57.0%
58.0%
59.0%
60.0%
61.0%
62.0%
63.0%
64.0%
70.0%
71.0%
72.0%
73.0%
74.0%
75.0%
76.0%
77.0%
78.0%
79.0%
80.0%
2007 2008 2009 2010 2011 2012 2013 2014
Hig
h sc
hool
gra
duat
e la
bor
forc
e pa
rtic
ipat
ion
rate
(%
)
Col
lege
gra
duat
e la
bor
forc
e pa
rtic
ipat
ion
rate
(%
)
Bachelor's degree High school, no college
Goods-producing job growth increased by 90.1 percent in 2014
compared to 2013
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
2008 2009 2010 2011 2012 2013 2014
1-m
onth
net
cha
nge
(tho
usan
ds)
Goods-producing Service-providing
Source: JLL Research, Bureau of Labor Statistics
12
Energy slows, but office-using growth rises to 3.0 percent on the
back of improved performance
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
2008 2009 2010 2011 2012 2013 2014
High-tech Energy, Mining, and Utilities Office-using industries Total non-farm
Source: JLL Research, Moody’s. Note: Due to data lags, high-tech employment only available through November 2014.
13
12-m
onth
% c
hang
e (jo
bs)
Tech still leading; energy demonstrating first signs of decline in
response to falling prices Year-on-year percent employment growth
Source: JLL Research, Bureau of Labor Statistics
14
Heading into 2015, initial unemployment insurance claims
remain steadfastly below 300,000 per week
Source: JLL Research, U.S. Department of Labor
15
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
Cla
ims
Initial claims 4-week moving average
0%
2%
4%
6%
8%
10%
12%
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013 2014
Une
mpl
oym
ent r
ate
(%)
Con
sum
er c
onfid
ence
inde
x
Consumer confidence index
Unemployment rate
Falling unemployment is helping to boost consumer confidence
(91.6 points), resulting in greater retail spending and output
Source: JLL Research, Conference Board, Bureau of Labor Statistics
16
Quits are slowly rising as worker sentiment about the job
market bounces back, while hires are also on the up
Source: JLL Research, Bureau of Labor Statistics
17
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Qui
ts (
thou
sand
s)
Quits Hires
Texas, Sunbelt and West Coast markets continue to post fastest
job growth, led by Houston
Source: JLL Research, Bureau of Labor Statistics
18
Miami
3.5%
San
Francisco
3.5%
Silicon Valley
3.6%
Raleigh-
Durham
3.2%
Seattle-
Bellevue
3.2%
Houston
4.3%
Dallas
3.6%
Austin
3.4%
Some East Coast and Midwestern markets are still posting
job growth below 1.0 percent year-on-year, however
19
Source: JLL Research, Bureau of Labor Statistics
Washington,
DC
0.6%
Pittsburgh
0.9%
Westchester
County
0.2%
Philadelphia
0.3%
Kansas City
0.7%
New Jersey
0.4%
Chicago
0.9%
Detroit
0.9%
The labor force participation rate stayed flat recovery low of
62.7 percent, contributing to declines in unemployment
Source: JLL Research, Bureau of Labor Statistics
20
60.0%
61.0%
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
2008 2009 2010 2011 2012 2013 2014
Labo
r fo
rce
part
icip
atio
n ra
te (
%)
As with the official unemployment rate, total unemployment
dropped by 20 basis points; currently stands at 11.2 percent
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Total unemployment U-6 10-year average
Source: JLL Research, Bureau of Labor Statistics
21
Strong performance in construction, education, health and leisure
pushed down office-using industries’ share of monthly growth
Source: JLL Research, Bureau of Labor Statistics
22
After November’s sharp uptick in additions, job growth in the
office-using industries reverted back to normal in December
-300
-250
-200
-150
-100
-50
0
50
100
150
2009 2010 2011 2012 2013 2014
Information Professional and business services Financial activities
PBS represented 78.2 percent of office jobs lost in February 2010.
In December 2014, it represented 81.2 of monthly growth.
Source: JLL Research, Bureau of Labor Statistics
23
Slower monthly growth in temporary help services keeps
subsector below 3.0 million jobs
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
2009 2010 2011 2012 2013 2014
Mon
thly
net
cha
nge
in jo
bs (
ths)
Temporary employment monthly net change Temporary employment
Temporary em
ployment (ths)
Source: JLL Research, Bureau of Labor Statistics
24
Utilities, mining and logging and information continue to top
weekly earnings in the private sector
$1,509.71
$1,374.39
$1,253.41
$1,160.15 $1,095.81
$1,059.57 $1,057.10 $1,021.31
$896.17
$813.90
$702.46
$536.76
$370.30
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Ave
rage
wee
kly
earn
ings
Source: JLL Research, Bureau of Labor Statistics
Both overall and PBS wages have grown at a largely steady
rate; uptick in hiring could result in faster wage growth
$700
$750
$800
$850
$900
$950
$1,000
$1,050
$1,100
2007 2008 2009 2010 2011 2012 2013 2014
Ave
rage
wee
kly
earn
ings
Total non-farm PBS
©2014 JLL Research IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
For more information, please contact:
Ben Breslau
Managing Director - Americas Research
John Sikaitis
Managing Director - Office and Local Markets Research
Phil Ryan
Research Analyst
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