U.S. employers added 390,000 jobs in May. This beat analyst expectations and shows continued strength despite the concerns of some economists. The unemployment remained at 3.6%. Year-over-year wage growth decreased slightly but remains high at 5.2%.
The Numbers
390,000: Employers added 390,000 jobs to the U.S. economy in May.
3.6%: The unemployment rate remained at 3.6%.
5.2%: Wages rose 5.2% over the past year.
The Good
After 12 straight months of greater than 400,000 monthly job growth, the 390,000 number is still good news. As CNBC reports, experts surveyed by Dow Jones had predicted just 328,000 new jobs. Despite concerns over an economic slowdown due to inflation, May’s numbers suggest that the job market continues to be strong. The labor force participation rate also increased to 62.3%, though it remains below pre-pandemic levels.
The Bad
While most sectors saw job growth in May, retail was the exception, shedding 61,000 jobs. The Washington Post reports that the shift comes as consumers have started spending less on goods and more on experiences like dining out and travel. (The leisure and hospitality sector again topped job growth with 84,000 new jobs.) The job market also remains tight, creating a tough market for employers. While wage growth has cooled slightly, it remains high.
The Unknown
As the Wall Street Journal reports, the Federal Reserve is now faced with the challenge of cooling inflation without tipping the economy into a recession. Federal Reserve Chair Jerome Powell told the publication last month, “There are pathways for us to be able to moderate demand, get demand and supply back in alignment, and get inflation back down while also having a strong labor market,” he said. “You’d still have quite a strong labor market if unemployment were to move up a few ticks.”
U.S. employers added 428,000 jobs in April, marking a full year with monthly job growth above 400,000. The unemployment remained at 3.6%. Year-over-year wage growth remained high at 5.5%.
The Numbers
428,000: U.S. Employers added 428,000 jobs in April.
3.6%: The unemployment rate remained at 3.6%.
5.5%: Wages grew 5.5% over the past year.
The Good
The New York Times reports that the U.S. economy has now regained 95% of the 22 million jobs lost at the start of the coronavirus pandemic. All major sectors saw growth, with the largest growth in trade, transportation and utilities, and leisure and hospitality. The unemployment rate remained near record low levels for the second straight month.
The Bad
Despite all of the good news in April’s report, the labor force contracted for the first time in seven months as the labor force participation rate fell from 62.4% to 62.2%. This accounts for an estimated 363,000 people.
However, as MarketWatch reports, it may be a fluke in the household survey, which can be volatile, and the results are often revised in later months. Before April’s report, the labor force has grown by an average of 315,000 people each month over the last year. Additionally, the decline in the labor force was most significant in workers under the age of 25.
However, the labor force participation rate is still below pre-pandemic levels, which creates an additional challenge for employers. There are currently more open jobs than there are unemployed people.
The Unknown
The jobs report is a bright spot for the economy as inflation continues to cause issues for American families. As the Washington Post reports, the Federal Reserve increased its benchmark rate by half a percentage point with the hope of curbing inflation. While wage growth remains high, workers are actually seeing decreasing purchasing power as the war in Ukraine and continued pandemic-related supply chain issues continue to drive prices higher. Experts will be watching closely to see how the economy responds.
U.S. employers added 431,000 jobs in March, which is slightly less than economists had predicted. It marks 11 straight months with job growth above 400,000. The unemployment fell to 3.6%. Year-over-year wage growth remained high at 5.6%.
The Numbers
431,000: U.S. employers added 431,000 jobs in March.
3.6%: The unemployment rate fell to 3.6%.
5.6%: Wages rose 5.6% over the past year.
The Good
March’s jobs numbers show that the economy remains strong despite challenges domestically and abroad. The unemployment fell to 3.6%, nearing the pre-pandemic low of 3.5%. And while the Wall Street Journal reports that economists had anticipated a gain of 490,000, the numbers for January and February were adjusted upward, accounting for the slight miss. Additionally, the labor force participation rate hit a new pandemic high of 62.4%, and 418,000 new workers joined the labor market, according to MarketWatch. The economy has now regained about 90% of the jobs lost at the height of the pandemic.
The Bad
Wage growth remained high in March, which can be seen as a positive by workers, but as the New York Times reports, it remains a worrying sign for inflation. The Federal Reserve raised interest rates in March, and officials have suggested rates may go up half a percentage point in May. The leisure and hospitality sector has seen the highest wage growth, with an 11.8% increase over the past year.
The Unknown
As CNBC reports, March’s jobs reports comes at a “critical juncture” in the pandemic recovery. There are currently five million more job openings than there are available workers. Inflation is at the highest rate since the mid-1980s. The war in Ukraine has created supply chain issues. Rising rates could dampen the housing market. Economists will continue to watch how all of these factors contribute to the country’s broader economic health in the coming months.
U.S. employers added an impressive 678,000 jobs in February, in the strongest jobs report since last summer. The unemployment rate fell to 3.8%. Year-over-year wage growth remained high at 5.1%.
The Numbers
678,000: Employers added 678,000 jobs to the U.S. economy in February.
3.8%: The unemployment rate fell to 3.8%.
5.1%: Wages rose 5.1% over the past year.
The Good
The headline number of 678,000 new jobs in February beat analyst expectations. Nearly a quarter of those jobs were in the leisure and hospitality sector, which includes the industries most impacted by coronavirus surges. Restaurants alone accounted for 124,000 new jobs, and no industries reported a decline in employment.
Additionally, labor force participation increased to 62.3%, though the number is still far below pre-pandemic numbers. However, the unemployment rate fell to 3.8%, only slightly higher than the 3.5% unemployment rate of February 2020. Though wage growth remains high, the Wall Street Journal reports that it has slowed enough to indicate that the nationwide labor shortage may be easing.
The Bad
There is very little bad news in February’s jobs report, though some challenges caused by the pandemic still remain. As the New York Times reports, the economy still has about 2 million fewer jobs it did before the pandemic, and the labor force is still about 3 million workers smaller.
The Unknown
February’s jobs numbers were collected before the Russian invasion of Ukraine, so they do not reflect any impact of the conflict. MarketWatch reports that the invasion is likely to worsen inflation. According to the New York Times, the U.S. will likely see less financial impact than Europe, but there will be repercussions that can be difficult to predict. Though experts do say that Americans are likely to see higher oil prices, which could curb household spending.
U.S. employers added 467,000 jobs in January, beating analyst expectations despite the surge in COVID-19 cases. The unemployment rate rose slightly to 4%. Year-over-year wage growth remained high at 5.7%.
The Numbers
467,000: Employers added 467,000 jobs in January.
4%: The unemployment rate rose slightly to 4%.
5.7%: Wages rose 5.7% over the past year.
The Good
Despite record numbers of COVID-19 cases across the country, employers beat analyst expectations to add 467,000 jobs to the U.S. economy in the first month of 2022. Additionally, the jobs numbers for November and December were revised up 700,000 over what was initially reported. According to MarketWatch, some experts had predicted an increase of only 150,000, while others had even expected a decrease in employment. Even the slight increase in the unemployment rate is good news, as it indicates more workers sidelined during the pandemic have reentered the labor market.
The Bad
There weren’t many downsides to January’s report. However, there may have been some impact due to the Omicron variant. The Wall Street Journal reports that nearly 2 million workers were prevented from looking for a job in January because of the pandemic. Additionally, 7.8 million said they missed some work because of Omicron.
The Unknown
Looking ahead to the rest of 2022, economists will be watching some factors still holding back the economy, according to the New York Times. Supply chain bottlenecks, labor shortages and high inflation have left Americans frustrated despite the fact that the unemployment rate has fallen faster than many experts predicted. Additionally, the strong recovery makes it likely that the Federal Reserve will raise interests rates in March, with traders predicting a half-point increase. Finally, employers and workers will be closely watching wages. Over the past year, wages have increased an average of 5.7%. While increasing wages are drawing more workers back into the labor market, they pose a challenge for employers.
Getting inclusivity and diversity right for talent acquisition teams means properly sourcing, interviewing and hiring candidates from underrepresented groups. What’s more, talent teams must understand not only where different candidates search for jobs, but also the factors important to those candidates.
To that end, a PeopleScout survey of job candidates focuses on inclusion and diversity, found important differences in how diverse groups find, research and apply for jobs, and employers can use these insights to make their recruitment process more equitable and inclusive. The survey focused on job candidates throughout the U.S. from a wide variety of backgrounds. However, due to the relatively small sample size, these survey results should be taken as purely directional. Below, we share the most important insights.
Talking Talent On-Demand Webinar
Data and Diversity: Using Technology to Achieve Your DE&I Goals
Inclusivity and Diversity: Candidates From Underrepresented Groups Find & Research Jobs Differently
Racial and ethnic minority candidates are more likely to hear about a job opportunity through word of mouth than white candidates. More precisely, nearly half of Black or African American candidates report learning about their most recent job through word of mouth, while only 35% of white candidates found their most recent job in the same way.
Black or African American candidates are also the most likely group to research an employer or job opportunity by talking to people in their communities—at more than double the rate of white candidates.
Inclusivity and Diversity: What This Means for Talent Acquisition
Your current employees from underrepresented backgrounds are important partners in sourcing and recruiting diverse talent; they understand your culture and values and can share both job openings and their experience at your organization with other candidates.
Women Rely on a Larger Range of Sources When Researching Employers
Notably, women in the workplace are more likely than men to research an employer through third-party channels, whereas men are more likely to rely on your careers site. For instance, while half of men report researching an employer through the employer’s careers site, only one-third of women do the same. Women are also twice as likely as men to use employer review sites, like Glassdoor.
What This Means for Talent Acquisition
Many candidates rely on your careers site for research. As such, your careers site should showcase your employer brand, but it cannot be your sole focus. Instead, also invest in improving your employer brand through employer review sites, like Glassdoor. Additionally, encourage your employees to share their positive experiences of working at your organization on social media sites, like LinkedIn.
The way you showcase diversity efforts also makes a difference to candidates, with the biggest gap between white and Black or African American candidates. For instance, when asked about the factors that candidates consider when applying to a job, Black or African American candidates were five times as likely as white candidates to consider your diversity efforts. Black or African American candidates were also more than four times as likely to consider whether your careers site features “people who look like me.”
What This Means for Talent Acquisition
Your diversity efforts are important to your candidates; they want to hear about what your organization is doing to improve diversity, equity and inclusion at your organization. And, in a competitive talent market, it’s important to feature those commitments, as they could be the deciding factor for candidates.
U.S. employers added 199,000 jobs in December, missing analyst expectations and providing mixed signals about the state of the economy. The unemployment rate fell to 3.9%. Year-over-year wage growth remained high at 4.7%.
The Numbers
199,000: The U.S. economy added 199,000 jobs in December.
3.9%: The unemployment rate fell to 3.9%.
4.7%: Wages rose 4.7% over the past year.
The Good
While the headline of 199,000 jobs added in December is disappointing, other numbers in December’s jobs report point to good news. The unemployment rate fell to 3.9% faster than the Federal Reserve had predicted. Additionally, the New York Times reports that the labor participation rate rose to 61.9% in November and December, the highest rate since the pandemic started.
Additionally, the U.S. economy added 6.4 million jobs in 2021, the highest yearly increase on record.
The Bad
As MarketWatch reports, December’s increase in employment was less than half of what analysts had projected. Experts say the lower numbers were caused, in part, by the tight job market. To compete for workers, employers have raised wages significantly over the past year, with year-over-year wage growth hitting 4.7% overall, though some sectors, like leisure and hospitality, have seen even larger increases. Because December’s numbers are based off the first two weeks of the month, before the latest COVID-19 surge began, the Omicron variant likely only had a small role in the month’s numbers.
The Unknown
Looking ahead to 2022, the Wall Street Journal reports that workers continue to quit their jobs at record rates, and experts predict a potential disruption caused by the surging Omicron cases followed by a strong year of job creation. Economists say that while businesses have gotten better at responding to waves of COVID-19 cases, Omicron has caused millions of sick workers to quarantine. The resulting labor shortage has already led to canceled flights and temporarily closed restaurants. However, as demonstrated by a rapid drop-off in cases in South Africa, Omicron is expected to cause only a short-term disruption.
Global RPO: Hiring Engineers with Niche Skills for a Global Manufacturer in LATAM and Europe
A multinational automotive components manufacturer at the forefront of electric driving technology engaged PeopleScout for a full-cycle, multi-country Recruitment Process Outsourcing (RPO) solution. To continue supplying automotive technology for millions of the world’s cars, they needed to source the next generation of engineering talent across 54 locations in 21 countries in Latin America, Europe and Asia.
100%New Hires Completed Ahead of Schedule
80%Candidate Submissions Invited to Interview
1300Applications Received for 150 Positions
Scope & Scale
A global automotive parts manufacturer partnered with PeopleScout to initially source 150 hires across locations in Poland, Spain, Italy, Germany and India as well as facilities in Latin America. They needed a global RPO provider who could handle sourcing for niche engineering roles in English, Polish, Spanish, Italian and Hungarian languages.
Challenge
As the client expanded manufacturing into new regions to support their global growth agenda, they turned to PeopleScout to partner with their in-house talent acquisition teams to drive their transformational change projects.
Hiring in Latin America had stagnated as the region became the go-to region for automotive manufacturing. With major car brands moving more of their operations into the region, competition for talent became more and more steep.
Meanwhile in Europe, a shortage of niche engineering skills was impacting operations in Poland. The talent war between organizations in the area hiring for similar roles was driving up salary expectations, but the manufacturer lacked the labor market data to make informed decisions to adjust their strategy.
Solution
Analyzing Labor Markets on Two Continents
Our Client Delivery team started by undertaking labor market and workforce analytics in each region. We worked with the client’s HR and operational teams to support their workforce strategy through a competitive analysis which led to recommendations on salary bands for each role and level of experience. For roles in Poland, we helped them explore the possibility of relocating new hires in order to widen their talent pool to other parts of the country where there was more access to experienced engineering professionals.
“PeopleScout has done a great job to support the project, showing high commitment and flexibility in this difficult and changing environment. We’ve had great collaboration together.”
Senior Director of Engineering
Sourcing Passive Candidates with Personalized Videos
Meanwhile, our multilingual teams in Bristol and Krakow began sourcing experienced Product Application Engineers in Latin America and across multiple European locations, as well as Design & Test Engineers in Poland.
Not satisfied with one outreach, we employed a different approach with candidates who were unresponsive after the first communication. Our recruiters created and sent personalized videos introducing themselves and the opportunity to the candidate. This personal touch drove higher engagement and interest from talent who hadn’t engaged initially.
Over 80% of applicants were identified via passive sourcing, with the remaining candidates coming from ongoing advertising campaigns across job boards and social media.
Leveraging Social Media to Boost Employer Brand Awareness
Through our Social Network Awareness Package (SNAP) we identified the best social channels to reach the manufacturer’s audience and created tailored posts, including imagery and headlines. We used this social media content to boost awareness of the client’s employer brand among relevant groups and individuals based on their locations, professional details and interests. Throughout each campaign, we provided a reporting dashboard and analyzed engagement which helped shape recruitment marketing activity going forward.
Testing Technical Skills with a Custom Assessment Center
These highly specialized engineers, regardless of region, needed to have a good command of English as well as technical aptitude. We assessed for both by designing and executing a technical testing program. Our assessors administered these exams virtually, freeing up hiring managers to focus on running their operations.
Once offers were made, our team continued to keep in contact with successful candidates during their notice periods and onboarding. We notified the client’s HR team of any potential concerns of dropouts, working together to mitigate risks.
Results
In just 10 months, we filled 100% of the manufacturer’s niche engineering headcount, including all openings in Poland—two months ahead of schedule. Our team reviewed over 1,300 applications and screened over 250 candidates, supporting hiring managers with initial phone screens, technical assessments and post-offer communications.
The hiring managers were thrilled with the quality of the candidates they saw, with over 80% of candidates put forward by our team being invited to interview.
Following this success, we expanded our engagement with the client to their India operation, taking over from local third-party agencies. This Recruiter on-Demand solution will support volume hiring challenges and drive cost savings.
“PeopleScout did really great work across hard-to-fill disciplines. We had a fantastic sense of partnership across the whole project.”
Global Head of Talent Acquisition
At a Glance
COMPANY Global automotive manufacturer
INDUSTRY Manufacturing
PEOPLESCOUT SOLUTIONS Recruitment Process Outsourcing
ANNUAL HIRES 150+
LOCATIONS 21 countries in Latin America, Europe and Asia
U.S. employers added 210,000 jobs in November, missing analyst expectations and providing mixed signals about the state of the economy. The unemployment rate fell to 4.2%. Year-over-year wage growth remained high at 4.8%.
The Numbers
210,000: The U.S. economy added 210,000 jobs in November.
4.2%: The unemployment rate fell to 4.2%.
4.8%: Wages rose 4.8% over the past year.
The Good
November’s jobs report is confusing, but there is good news. The labor participation rate, which has been largely flat, ticked up in November to 61.8%, the healthiest number since the pandemic began. As the New York Times reports, there was a large increase in labor force participation by both Hispanic men and Hispanic women, some of the hardest hit demographics. Additionally, the unemployment rate fell to 4.2%, despite the relatively weak jobs numbers.
The Bad
The headline number of 210,000 jobs significantly missed analyst expectations. As MarketWatch reports, economists had predicted a gain of 573,000 new jobs. The retail sector lost jobs, while the leisure and hospitality sector, which has led job growth in recent reports, showed a gain of only 23,000. Despite the strong growth in 2021, the economy still remains 4 million jobs short of pre-pandemic levels. Additionally, rising wages still point to a labor shortage, as wages in labor and hospitality soared 11.8% over the past year.
The Unknown
What makes November’s jobs report so confusing is the survey data used to come up with the 210,000 number. The Labor Department relies on two separate surveys to make those estimates, one of employers and another polling households. In November, employers reported 210,000 new jobs, but households reported that 1.1 million more people were working than the month before. Experts quoted in the New York Times say a gap that large is unprecedented, and it provides a much cloudier picture about the health of the economy.
[On-Demand]: Data and Diversity: Using Technology to Achieve Your DE&I Goals
Leading talent professionals understand that creating an inclusive, equitable and diverse workplace is more than just the “right” thing to do. In fact, implementing an effective diversity and inclusion program can change the game by challenging the status quo and creating a vibrant and more productive workplace culture. Positioning DE&I at the heart of your talent acquisition and management program now will equip your organization for long-term success.
But how do you know if you’re making progress against your goals? Do you have the data to fine-tune and optimize your recruitment process?
Join PeopleScout’s Elizabeth Karkula, associate product manager, and Jason Kaplan, business intelligence manager, for our on-demand webinar Data and Diversity: Using Technology to Achieve Your DE&I Goals.
Elizabeth and Jason will discuss practical and immediately applicable strategies that have the potential to transform your organization’s DE&I program.
This webinar will cover:
Three smart ways to leverage data for DE&I success
How to accurately measure your DE&I program’s progress and goals
How to optimize your sourcing channels for candidates from diverse groups
