1. October 5, 2012
U.S. EMPLOYERS HIRED A AVERAGE HOURLY EARNINGS THE UNEMPLOYMENT RATE
TOTAL OF (ALL WORKERS) FELL TO
114,000
WORKERS IN SEPTEMBER
$23.58
1.8% ABOVE LAST YEAR
7.8%
9.0% LAST SEPTEMBER
UNEMPLOYMENT DROPS, BUT HIRING PACE IS UNIMPRESSIVE
• A positive note for the labor market as the unemployment rate fell to a three-year low
in September, even as more workers entered the labor force.
• Despite some encouraging trends, U.S. job creation remains somewhat sluggish as the
labor market struggles to achieve consistent, solid growth.
• Unresolved questions surrounding economic policies and conditions both in the U.S.
and abroad continue to weigh on employers’ hiring activity.
The U.S. economy created just 114,000 jobs in September, but the unemployment rate fell to 7.8%, a figure not seen since January
2009. Although some of the improvement in unemployment was attributed to a jump in part-time jobs, the drop came despite more
workers entering the labor force during the month – an encouraging sign for a labor market that has been stuck in low gear.
(Continued)

2. Talent Market Monthly: October 5, 2012
Strong upward revisions to prior months’ employment data U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE
(+40K in July and +46K in August) also suggest that the labor
300 11.0
market may be gaining strength, albeit slowly. Job creation
Unemployment rate (%)
has been a on rollercoaster ride thus far in 2012, with robust 10.0
Employment (000s)
200 9.0
growth in the first three months followed by a soft patch in
Q2, and edging back up in the third quarter. 8.0
100
7.0
Healthcare led the country’s job gains in September, adding
0 6.0
44,000 workers. Transportation and warehousing (+17,000)
Sep-10
Feb-11
Apr-11
Sep-11
Feb-12
Apr-12
Sep-12
Aug-10
May-11
Jun-11
Aug-11
May-12
Jun-12
Aug-12
Jul-10
Jul-11
Jul-12
Nov-10
Dec-10
Jan-11
Mar-11
Nov-11
Dec-11
Jan-12
Mar-12
Oct-10
Oct-11
and financial activities (+13,000) also saw solid growth. 5.0
Employment in the manufacturing sector edged down for a -100 4.0
second straight month, with a loss of 16,000 jobs.
Total non-farm emp. growth Private emp. growth Unemployment rate
The U.S. labor market has regained some momentum, but the
pathway to solid growth is far from clear. Uncertainties EMPLOYMENT OVERVIEW
ranging from the ongoing crisis in Europe and the slowdown in
China, to the presidential election and the “fiscal cliff” of tax SEPT AUG JUL JUN MAY
and spending measures that are scheduled to take effect in
2013, have made U.S. employers hesitant to add workers. Total non-farm employment growth 114K 142K 181K 45K 87K
Resolution, or at least progress, on these and other key issues
Private sector employment growth 104K 97K 163K 63K 116K
will be critical in sustaining the positive labor market
momentum in the final months of 2012.
Unemployment rate 7.8% 8.1% 8.3% 8.2% 8.2%
Source: Bureau of Labor Statistics
MIDDLE SKILLS LOSING GROUND
The labor market in the U.S. has become increasingly polarized, according to new Technological changes and globalization were identified as the key forces driving
research from the Federal Reserve Bank of New York. Employment has increased in the growing polarization. Automation and the accessibility of a global labor market
both high-skilled and low-skilled jobs over the past three decades, but job have decreased the need for a wide variety of jobs formerly held by middle-skill
opportunities for middle-skilled workers have declined significantly. workers in the U.S. At the same time, many lower-skilled positions that involve
The research shows that the largest gains were at the top of the skills spectrum: physical proximity or personal contact (such as food service workers and health
more than 25% of U.S. workers held high-skill jobs in 2010, up from 19% in 1980. support personnel) have been somewhat insulated from these forces. These same
Low-skill jobs also rose from 13% of U.S. employment in 1980 to 16% in 2010. At trends continue to create a wealth of job opportunities for higher skilled workers –
the same time, the share of middle-skill jobs, which includes occupations such as those in the science, technology, engineering and math (STEM) fields in particular,
administrative support, transportation, skilled production, and construction, fell by as well as legal, business/finance, and healthcare professionals.
ten percentage points, from 68% of all jobs in 1980 to 58% in 2010. Source: Federal Reserve Bank of New York, September 2012
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