Labor line has job news and commentary with a one stop short cut for America's job markets and job related data including the latest data from the Bureau of Labor Statistics.
This month's job and employment summary data are below. This month's inflation data is below.
The Establishment Job Report and Establishment Job Details for data released January 4, 2019.
American Job Market The Chronicle
Current Job and Employment Data
Total Non-Farm Establishment Jobs up 312,000 to 150,263,000
Total Private Jobs up 301,000 to 127,858,000
Total Government Employment up 11,000 to 22,405,000
Civilian Non-Institutional Population up 180,000 to 258,888,000
Civilian Labor Force up 419,000 to 163,240,000
Employed up 142,000 to 156,945,000
Employed Men down 153,000 to 83,041,000
Employed Women up 295,000 to 73,904,000
Unemployed up 276,000 to 6,294,000
Not in the Labor Force down 237,000 to 95,649,000
Unemployment Rate went up .2% to 3.9% or 6,294/163,240
Labor Force Participation Rate went up .2% to 63.1%, or 163,240/258,888
Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was up by a monthly average of 2.44 percent for 2018.
The January CPI report for the 12 months ending with December, shows the
CPI for All Items was up 1.9%
CPI for Food and Beverages was up 1.6%
CPI for Housing was up 3.0%
CPI for Apparel was down .1%
CPI for Transportation including gasoline was up .7%
CPI for Medical Care was up 2.4%
CPI for Recreation was up 1.2%
CPI for Education was up 2.6%
CPI for Communication was down 1.8%
This Month's Establishment Jobs Press Report
FROM A SO-SO MONTH, BACK TO A GOOD MONTH
The Bureau of Labor Statistics published its January 2019 report for jobs in December 2018. The employed increased by 142 thousand but the unemployed increased by 276 thousand as a result of a large increase of people returning to the labor force who did not find employment. Since the unemployed went up by a much larger percent than the employed the unemployment rate increased by .2 percent to 3.9 percent. The labor force participation rate went up .2 percent to 63.1 percent as a result of so many people returning to the labor force.
The seasonally adjusted total of establishment employment was up 312 thousand for December. The increase was 227 thousand more jobs in the private service sector combined with a 74 thousand increase in jobs from goods production. The total of 301 thousand more private sector jobs combined with an increase of 11 thousand government service jobs accounts for the total increase.
The total goods production gain of 74 thousand jobs for December included job gains for all three sub sectors. Natural Resources had 4 thousand more jobs. Construction added a net of 38 thousand jobs with 16.3 thousand jobs in heavy and engineering construction. Manufacturing added 32 thousand new jobs, more than last month. Durable goods accounted for 19 thousand of the jobs with 13 thousand new jobs for non-durable goods. Fabricated metal products added 6.7 thousand jobs, machinery manufacturing 3.3 thousand and another 3.6 thousand jobs in computer and electronic manufacturing. Motor vehicle and parts manufacturing had a small gain of 1.8 thousand jobs after last month's decline. In non-durable goods food processing did the best adding 3.7 thousand jobs.
Government service employment was up a net of 11 thousand jobs for December, although federal government employment was down 3 thousand jobs, entirely from a decrease in postal service jobs. State government added 5 thousand jobs and local government 9 thousand jobs. Public education added a modest 2.3 thousand jobs, but seasonally adjusted private education reported an unusually large increase of 24.1 thousand jobs.
Health care took first place among service sectors in December with 58 thousand new jobs. Job gains came in all four health care sub sectors. The growth rate in health care employment this month was 3.46 percent, far above the long-term trend of 2.32 percent. Ambulatory care added 37.8 thousand of the new jobs, up from last month and a bigger than usual gain. Hospital jobs added 7.4 thousand; nursing and residential care another 5 thousand jobs. Social assistance added a net of 7.7 thousand jobs for December, with another month with 8.3 thousand new jobs in individual and family services. Family services gains were offset by other small job losses in emergency and vocational services.
Professional and business services had a more typical job gain of 43 thousand for December. The professional and technical service sub sector added 17.6 thousand of the jobs, nearly the same as last month. Management of companies added another 400 while administration and support services including waste management had the big gain adding 25.2 thousand jobs with 10.3 thousand of the jobs in seasonally adjusted temporary help services.
Among professional and technical services, management and technical consulting services added 4.2 thousand jobs; scientific research and development services had an unusual increase of 3.6 thousand jobs while computer systems and related services had an off month with only 2.2 thousand new jobs. Legal services lost 600 jobs and no other professional services did well.
Leisure and hospitality added 55 thousand jobs for December, a good month after a string of poor to so-so months. The arts, entertainment and recreation sub sector added 7 thousand jobs with gains in all three sub sectors, although amusements, gambling and recreation did the best with 6.3 thousand of the jobs. Restaurants had a healthy gain of 40.7 thousand jobs, the best performance in months. Accommodations had a good month with 8 thousand new jobs, more than making up for last month's losses.
Trade, transportation added 34 thousand new jobs in December, way down from last month but still a decent increase. Wholesale trade had 8.4 thousand new jobs; retail added a healthy 23.8 thousand more. In retail, general merchandise stores had 15 thousand of the jobs in a generally good month for retail jobs. Transportation and warehousing had few changes adding just 2.2 thousand jobs. Utilities added 500 jobs, more than a usual gain.
Information services lost a thousand jobs for December, the only sector with a job loss for November. Motion picture and sound recording lost 1.6 thousand jobs partially offset by other small gains. Finance and insurance lost 3.1 thousand jobs, but real estate and rental services more than made up the difference with 8.3 thousand new jobs. In finance and insurance the credit intermediation - banking - sub sector dropped 5.6 thousand job, a second month of decline. Other services had gains in all three sub sectors with a total gain of 8 thousand jobs. Personal and laundry services did the best with 3.2 thousand jobs.
Establishment employment in December increased by 312 thousand to 150.263 million, the first time establishment employment has cracked the 150 million mark. This month's annual growth rate of 3.46 is almost three times last month. Over the last 12 months jobs are up 2.638 million with a good annual growth rate of 1.79 percent. Only one sector had year over year job losses: information services. Business and professional services contributed 583 thousand of the new jobs, health care another 460 thousand and leisure and hospitality another 306 thousand, which means these three sectors contributed just over half the new jobs for the year. While leisure and hospitality have just over 16 million jobs and retail just under 16 million jobs, retail trade contributed only 91.6 thousand jobs. These monthly gyrations make month to month predictions hard to make, but there is no sign of a recession in employment.
Non Farm Total +312
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from November by 312 thousand jobs for a(n) December total of 150.263 million. (Note 1 below) An increase of 312 thousand each month for the next 12 months represents an annual growth rate of +2.50%. The annual growth rate from a year ago beginning December 2017 was +1.79%; the average annual growth rate from 5 years ago beginning December 2013 was +1.81%; from 15 years ago beginning December 2003 it was .94%. America needs growth around 1.5 percent a year to keep itself employed.
Sector breakdown for 12 Sectors in 000's of jobs
1. Natural Resources +4
Natural Resources jobs including logging and mining were up 4 thousand from November at 758 thousand jobs in December. An increase of 4 thousand jobs each month for the next 12 months would be an annual growth rate of +6.73 percent. Natural resource jobs are up 60 thousand for the 12 months just ended. Jobs in the 1990's totaled around 770 thousand. Job growth here will be small compared to America's job needs. This is the smallest of 12 major sectors of the economy with .5 percent of establishment jobs.
2. Construction +38
Construction jobs were up 38 thousand from November with 7.352 million jobs in December. An increase of 38 thousand jobs each month for the next 12 months would be an annual growth rate of +6.23 percent. Construction jobs are up 280 thousand for the 12 months just ended. The growth rate for the last 5 years is +4.36%. Construction jobs rank 9th among the 12 sectors with 4.9 percent of non-farm employment.
3. Manufacturing +32
Manufacturing jobs were up 32 thousand from November with 12.842 million jobs in December. An increase of 32 thousand jobs each month for the next 12 months would be an annual growth rate of +3.00 percent. Manufacturing jobs were up for the last 12 months by 284 thousand. The growth rate for the last 5 years is +1.22%; for the last 15 years by -.71%. In 1994, manufacturing ranked 2nd but now ranks 6th among 12 major sectors in the economy with 8.6 percent of establishment jobs.
4. Trade, Transportation & Utility +34
Trade, both wholesale and retail, transportation and utility employment was up 34 thousand from November at 27.963 million jobs in December. An increase of 34 thousand each month for the next 12 months would be an annual growth rate of +1.46 percent. Jobs are up by 370 thousand for the last 12 months. Growth rates for the last 5 years are +1.36 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 18.6 percent of total establishment employment.
5. Information Services -1
Information Services employment was down by 1 thousand from November at 2.760 million jobs in December. A decrease of 1 thousand each month for the next 12 months would be an annual growth rate of -.43 percent. (Note 2 below) Jobs are down by 16 thousand for the last 12 months. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004, but has stayed in the 2.7 million range for a decade. Information Services is a small sector ranking 11th of 12 with 1.8 percent of establishment jobs.
6. Financial Activities +6
Financial Activities jobs were up 6 thousand from November at 8.621 million in December. An increase of 6 thousand each month for the next 12 months would be an annual growth rate of +.84 percent. Jobs are up 110 thousand for the last 12 months. (Note 3 below)This sector also includes real estate as well as real estate lending. Financial Services has been growing slowly with many months of negative growth. The long term growth rates are now at a 5 year growth rate of +1.73 percent, and a 15 year growth rate of +.44 percent. Financial activities rank 8 of 12 with 5.7 percent of establishment jobs.
7. Business & Professional Services +43
Business and Professional Service jobs went up 43 thousand from November to 21.260 million in December. An increase of 43 thousand each month for the next 12 months would be an annual growth rate of +2.43 percent. Jobs are up 583 thousand for the last 12 months. Note 4 The annual growth rate for the last 5 years was 2.58 percent. It ranks as 2nd among the 12 sectors now. It was third in May 1993, when manufacturing was bigger and second rank now with 14.2 percent of establishment employment.
8. Education including public and private -15
Education jobs went up 15 thousand jobs from November at 14.166 million in December. These include public and private education. An increase of 15 thousand jobs each month for the next 12 months would be an annual growth rate of +2.24 percent. Jobs are up 49 thousand for the last 12 months. (note 5) The 15 year growth rate equals +.73 percent, slower than the national average. Education ranks 4th among 12 sectors with 9.4 percent of establishment jobs.
9. Health Care +58
Health care jobs were up 58 thousand from November to 20.145 million in December. An increase of 58 thousand each month for the next 12 months would be an annual growth rate of +3.46 percent. Jobs are up 460 thousand for the last 12 months. (note 6) The current month was above long term trends and greater than growth from a year ago when the annual growth rate was +2.34 percent. Health care has been growing at +2.32 percent annual rate for the last 15 years, a rate greater than the national rate. Health care ranks 3rd of 12 with 13.4 percent of establishment jobs.
10. Leisure and hospitality +55
Leisure and hospitality jobs went up +55 thousand from November to 16.413 million in December. An increase of 55 thousand each month for the next 12 months would be an annual growth rate of +4.01 percent. Jobs are up 306 thousand for the last 12 months. (note 7) The 5 year growth rate is 2.69%. More than 80 percent of leisure and hospitality are accommodations and restaurants assuring that most of the new jobs are in restaurants. Leisure and hospitality ranks 4th of 12 with 11.0 percent of establishment jobs. It moved up from 7th in the 1990's to 5th in the last few years.
11. Other +8
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up +8 thousand from November to 5.892 million in December. An increase of 8 thousand each month for the next 12 months would be an annual growth rate of 1.63 percent. Jobs are up 70 thousand for the last 12 months. (note 8) Other services had +.58 percent growth for the last 15 years. These sectors rank 10th of 12 with 3.9 percent of total non-farm establishment jobs.
12. Government, excluding education +11
Government service employment was up 11 thousand from November to 11.991 million jobs in December. An increase of 11 thousand each month for the next 12 months would be an annual growth rate of +.86 percent. Jobs are up 61 thousand for the last 12 months. (note 9) Government jobs excluding education tend to increase slowly but surely with a 15 year growth rate of +.22 percent. Government, excluding education, ranks 7th of 12 with 8.0 percent of total non-farm establishment jobs.
(1) The total cited above is non-farm establishment employment that counts jobs and not people. If one person has two jobs then two jobs are counted. It excludes agricultural employment and the self employed. Out of a total of people employed agricultural employment typically has about 1.5 percent, the self employed about 6.8 percent, the rest make up wage and salary employment. Jobs and people employed are close to the same, but not identical numbers because jobs are not the same as people employed: some hold two jobs. Remember all these totals are jobs. back
(2) Information Services is part of the new North American Industry Classification System(NAICS). It includes firms or establishments in publishing, motion picture & sound recording, broadcasting, Internet publishing and broadcasting, telecommunications, ISPs, web search portals, data processing, libraries, archives and a few others.back
(3) Financial Activities includes deposit and non-deposit credit firms, most of which are still known as banks, savings and loan and credit unions, but also real estate firms and general and commercial rental and leasing.back
(4) Business and Professional services includes the professional areas such as legal services, architecture, engineering, computing, advertising and supporting services including office services, facilities support, services to buildings, security services, employment agencies and so on.back
(5) Education includes private and public education. Therefore education job totals include public schools and colleges as well as private schools and colleges. back
(6) Health care includes ambulatory care, private hospitals, nursing and residential care, and social services including child care. back
(7) Leisure and hospitality has establishment with arts, entertainment and recreation which has performing arts, spectator sports, gambling, fitness centers and others, which are the leisure part. The hospitality part has accommodations, motels, hotels, RV parks, and full service and fast food restaurants. back
(8) Other is a smorgasbord of repair and maintenance services, especially car repair, personal services and non-profit services of organizations like foundations, social advocacy and civic groups, and business, professional, labor unions, political groups and political parties. back
(9) Government job totals include federal, state, and local government administrative work but without education jobs. back
Jobs are not the same as employment because jobs are counted once but one person could have two jobs adding one to employment but two to jobs. Also the employment numbers include agricultural workers, the self employed, unpaid family workers, household workers and those on unpaid leave. Jobs are establishment jobs and non-other. back