June was the biggest month for hiring since February. According to the U.S. Bureau of Labor Statistics, the U.S. economy added 220,000 jobs in June, exceeding the expectations of many analysts.
"We saw tremendous signs of growth last month and we are very excited about the trend moving forward as we head into the 3rd quarter," says Dave Abdou, Division Manager for Beacon Hill's Technologies Division in Waltham. "Our candidates seem to have multiple positions they are considering, which overall is a good sign for the industry."
This continues a larger trend of positive job growth and should give hope to job seekers looking to make a career move in the second half of the year. While the economy added jobs for the 81st consecutive month, June also marked the first time in quite some time that the unemployment rate rose. Despite this increase, the unemployment rate has nevertheless been at historically low levels, unseen since the early 2000's.
A look at labor force participation
The Wall Street Journal reported that the rise in unemployment to 4.4 percent is likely due to more Americans entering the labor pool. And although rising unemployment carries ominous overtones, unemployment due to rising labor force participation is a sign of a healthy economy. Essentially, it means that many Americans have chosen to re-enter the workforce but just simply haven't found a position yet.
Indeed, the average job search takes over six weeks, according to Time Magazine. New job seekers may not have landed a position in June, but hopefully will do so in the coming months.
"We're seeing a surge of employment opportunities and believe it will continue into 2018," notes Trish Kellogg, Division Director of Beacon Hill's Associates Division in Atlanta. "Specific to Georgia, our state continues to land on 'top-10' lists for economic vitality. Much of the growth is due to corporate expansion projects, the state's fiscal soundness, and its predictable economic climate and workforce. To date, we have 18 Fortune 500 companies headquartered here, over 450 Fortune 500 companies operating in the state, and many film production companies now calling Georgia their home."
Local governments boost hiring
A significant portion of new jobs came from local governments. In fact, county-level governments added 35,000 jobs in June. This may come as a surprise, considering the federal government's push to trim the fat from agency payrolls.
However, The Wall Street Journal explained that a local government hiring surge in June is actually typical.
"June 30th is end of fiscal year for most states. Use-it-or-lose-it budgets bump up hiring," Andrew Zatlin of SouthBay Research told the Journal.
In May, the healthcare sector added an enormous number of jobs to the economy. Here are June's biggest winners:
- Healthcare: Once again, the healthcare industry generated a large portion of the month's new jobs. Ambulatory health care services added 26,000 jobs and hospitals added 12,000. In 2017, this sector has gained an average of 24,000 jobs each month.
- Social assistance: The individual and family services sector gained 12,000 jobs while child day care services added 8,000.
- Finance: Since January, the financial services sector has added 169,000 jobs to the economy. In June, 17,000 jobs were generated, with an additional 5,000 coming from commodity contracts, securities and investments.
- Professional and business services: One of the broadest categories, professional and business services added 35,000 jobs in June, for a total of 624,000 since January.
Wages going up
All of the good news isn't just for job seekers. In June, the average national wage increased to $26.25 per hour. CNN explained that this represents a 2.5 percent increase over last year. The rate of wage increases still hasn't returned to pre-recession levels, but that rate could increase as unemployment continues to shrink.
If you're on the hunt for your next job opportunity, contact the recruitment specialists at Beacon Hill Staffing today!
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