US service sector business activity grew at fastest pace in >1 year. US Services Business Activity Index registered 54.9 in 5/23, +1.3 from 4/23 - 4th consecutive monthly increase & fastest growth since 4/22. Job gains consistent between 4/23-5/23 & the fastest pace since 8/22.
Private sector job annual pay +6.5% YOY in May according to May ADP National Employment Report. Pay increased, but it’s the 2nd consecutive monthly decline. Pay at medium-sized orgs (50-249 staff) increased most (6.8%); small orgs (1-19 staff) increased least (5.4%). #employtemps
Private sector added 278K jobs during May according to the May ADP National Employment Report. Small businesses added the most jobs (+235K) while large corporations experienced job contraction (-106K). Most added: Leisure/hospitality (+208K). Most lost: Mfg (-48K). #employtemps
Small business jobs growth rate stayed at 99.45 between April & May '23 per Paychex/IHS Markit Small Business Employment Watch. National hourly earnings growth declined to 4.33%. Weekly earnings growth was reported at 3.96%. Construction had highest earnings growth. #employtemps
Consumer confidence down in May, KPIs indicate a recession within 1 year according to Conference Board stats. Consumer Confidence Index dropped to 102.3, down 1.4. pts. Many becoming more pessimistic about the job market, future business conditions - especially those age +55.
Almost 70% of 2023 college graduates state they are well prepared to enter the labor market according to a recent survey of 2,000 college seniors by ZipRecruiter. 85% report having already accepted a position. 90% state they plan to work a "side-hustle". #employtemps
Per the ADP 4/2023 National Employment Report - private sector jobs +296K and annual pay +6.7% YOY. Employers still hiring aggressively - SMBs reported most hiring activity. Hospitality & Leisure posted most jobs added. Mfg & Financial Svcs reported most job losses. #employtemps
US mfg slightly improved in 04/23 with production increasing at fasted pace since May 2022. Inflation concerns remain – supplier prices increased, but increased employment, supply chain normalization, and some improved demand led to growth conditions. #employtemps
Prospective employee background checks will get challenging in ‘23. Fed agencies are focused on automated background check accuracy. Some states have new laws limiting access to criminal records & have legalized marijuana, causing employers to rethink drug testing. #employtemps
According to a survey by The Harris Poll, 70% of hiring managers responded they prefer to train current staff for different roles rather than recruit new hires. The majority of hiring managers & employees agree employers should provide/pay for retraining/upskilling. #employtemps
Employment Scene Quick-Takes – According to US Bureau of Labor, the number of people working >1 job is increasing. In 3/2023, multiple jobholders increased ~600K compared to STLY. Contributing factors: high cost of living/inflation, job uncertainty/layoff protection. #employtemps
Employment Scene Quick-Takes – According to Q1 '23 Conf. Board CHRO Confidence Index results, 75% of CHROs expect hiring to remain steady/increase through the next 6 months. To retain staff, 34% are prioritizing strengthening culture and 30% workforce development.
#employtemps
Employment Scene Quick-Takes – The National Association of Manufacturers’ Mfg Outlook Index was 49.7 in Q1 '23, up from 45.8 in Q4 '22. Respondents expect full-time employment to rise 1.6% over the next 12 months, ~43% anticipate an increase in full-time hiring.
#employtemps
Employment Scene Quick-Takes – According to a Rockbridge Associates survey, 75% of workers stated it's important to set work boundaries to avoid interference with personal lives. 66% stated they want employers to accommodate the way they want to live their lives.
#employtemps
Employment Scene Side Notes – National Federation of Independent Business says small businesses are still having difficulties providing medical coverage. Of those surveyed, 98% are concerned that health insurance costs will become unsustainable in 5-10 years. #employtemps