Friday, December 5, 2014

JOBS | November Growth by Industry

Overall, the news is good. But well-paid government jobs at all levels declined
between 2010 and 2014. The fastest-growth private replacement jobs have
been lower-paid jobs in hospitality, retail and administrative/waste services.
The headline news about the November jobs report is that 321,000 new payroll jobs were created, seasonally adjusted, and the unemployment rate was steady.

Also, hourly wages rose 0.4 percent, double the expected rate.

A troublesome aspect of the recovery (see chart at left) is that wages have stagnated because jobs have been growing in lower-paid industry sectors–retail, hospitality (especially food services and drinking places), administrative and waste services.

So an interesting place to look in the monthly BLS job numbers is the industry-sector breakdown.

This information is in Summary Table B, which is provided below in slightly simplified format with comments attached to each sector. Interesting sectors in November were nondurable goods manufacturing, retail trade, information services (includes a lot of tech companies), financial activities (heavily concentrated in NYC), professional and business services, health care, leisure and hospitality and other services.

Sen. Randal ("Rand") Paul will be pleased that growth in government jobs is slow, but the loss in government jobs has been a drag on the economy, especially since government workers are paid above-average wages.

ESTABLISHMENT DATA Summary Table B.  EMPLOYMENT BY SELECTED INDUSTRY

(Over-the-month change, in thousands, seasonally adjusted)

Category Nov. 2013 Sept. 2014 Oct. 2014(p) Nov. 2014(p)
Comment, Nov. 2014
TOTAL NONFARM (Private+Govt)
274
271
243
321
Above expected
TOTAL PRIVATE (Goods+Services)
272
249
236
314

Goods-producing
68
36
28
48
Pickup from October
   Mining and logging
1
6
1
0

   Construction
32
18
7
20
Healthy growth
   Manufacturing
35
12
20
28
Picking up?
   Of which: Durable goods(1)
19
11
18
17
Steady
      [Of which: Motor vehicles, parts]
4.7
1.7
2.0
3.0
Recovery?
   Of which: Nondurable goods
16
1
2
11
Interesting
Private service-providing(1)
204
213
208
266
Very positive
   Wholesale trade
16.8
2.9
6.1
2.5
Reduced growth
   Retail trade
22.3
39.9
34.2
50.2
Great, but is some growth at expense of December?
   Transportation and warehousing
32.4
7.0
15.3
16.7
Continuing growth
   Information
1
3
-5
4
Turnaround
   Financial activities
-4
14
6
20
Good news for NYC
   Professional, business services(1)
73
66
52
86
Big jump
   Of which: Temp services
36.6
23.2
19.5
22.7
Continuing growth
   Education and health services(1)
25
35
37
38
Mostly health care
   Of which: Health, social care
24.4
24.8
31.5
37.2
Obamacare?
Leisure and hospitality
37
47
55
32
Fast growth, slowing down?
Other services
-1
0
7
15
Interesting
TOTAL GOVERNMENT
2
22
7
7
Constrained growth