1. August 3, 2012
U.S. EMPLOYERS HIRED A AVERAGE HOURLY EARNINGS THE UNEMPLOYMENT RATE
TOTAL OF (ALL WORKERS) ROSE TO
163,000WORKERS IN JULY
$23.52
1.7% ABOVE LAST YEAR
8.3%
9.1% LAST JULY
U.S. EMPLOYMENT RISES – BUT SO DOES UNEMPLOYMENT
• The U.S. labor market showed some signs of strength in July as hiring increased amid
uncertain economic conditions both at home and overseas.
• The uptick in job creation was not enough to drive down unemployment, which remains
at a frustratingly high level.
• Whether the economy can sustain the positive employment momentum is uncertain, as
the outlook for the rest of 2012 is less than robust.
The U.S. economy added a better-than-expected 163,000 jobs in July, a marked improvement from the revised figure of 64,000 in
June and more than double the rate of job creation in the prior three months. The healthy job gains are encouraging, signaling that
employers are adding to their payrolls despite broader macroeconomic uncertainty both in the U.S. and overseas.
(Continued)

2. Talent Market Monthly: August 3, 2012
The job gains were at odds with July’s unemployment data, U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE
which painted a less positive picture. The unemployment
Unemployment Rate (%)
rate rose slightly in July to 8.3%, as the number of people 600 11
Employment (000’s)
looking for work increased. Unemployment has not shown 10
300
any convincing signs of improvement thus far in 2012, but 9
the rate remains well below the 9% average seen in the first 0 8
7
half of 2011. -300
6
The professional and business services sector led -600 5
Apr-10
Apr-11
Apr-12
Jan-10
Jan-11
Jan-12
Oct-09
Oct-10
Oct-11
Jul-09
Jul-10
Jul-11
Jul-12
employment growth in July, adding 49,000 jobs. Temporary
help services employment continued to trend upwards
(+14,000), as did health care jobs (+12,000). Manufacturing
Non-Farm Employment Private-Sector Employment Unemployment Rate
employment grew by 25,000 in the month, boosted by fewer
seasonal layoffs in the automotive industry. EMPLOYMENT OVERVIEW
Much like the country’s economic conditions, employment
JUL JUN MAY APR MAR
gains have been volatile in 2012, slowing in the second
quarter after posting solid growth in the first three months Total non-farm employment growth 163K 64K 87K 68K 143K
of the year. Current forecasts call for the U.S. economy to
continue on a modest pace in the second half of the year, Private employment growth 172K 73K 116K 85K 147K
suggesting that the labor market may see some progress,
but will likely stay in low gear. Unemployment rate 8.3% 8.2% 8.2% 8.1% 8.2%
Source: Bureau of Labor Statistics
SERVING UP EMPLOYMENT GROWTH
Despite encouraging growth in U.S. manufacturing, the service sector is leading the In the retail field, for example, warehouse-club stores have regained 92% of
employment recovery. Three years after the recession’s end, more than 70% of the positions lost during the recession as consumers increasingly look for bargains on
jobs lost in service industries have returned, while only 15% of the jobs lost in bulk items, while department stores have regained just 41% of their jobs.
manufacturing and construction have come back. Part of the discrepancy can be Among professional sectors, accounting firms have gained back 87% of the jobs
explained by broader trends, as the service sector has been outperforming they lost in the recession, boosted by growth in start-up businesses, new financial
manufacturing for years, and many service jobs are hard to automate or outsource. rules, and company expansions. Legal services have seen only 17% of lost jobs
But even within the service industry, growth is uneven. Some sectors are near or at return, however, as the recession brought structural and operational changes to
their pre-recession employment levels, while others are lagging behind. Changes in law firms that continue to weigh on employment and profitability levels.
technology, business and economic trends, and cultural shifts have benefitted
some fields, leading to a more robust employment recovery in those areas. Sources: USA Today, July 16, 2012; Dow Jones, 07.19.12
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