Recruiting continued to rise in November with 228,000 new jobs being created and the unemployment rate continuing at a 17-year low last month at 4.1%, its lowest level since December 2000!
Additionally, the Labor Department revised past job recruitment figures upward to add 3,000 more jobs than previously estimated in October and September.
These job recruiting figures were better than most economists predictions of 195,000 new jobs and a 4.1% unemployment rate last month. For example, Jed Kolko, chief economist at job search site Indeed said, “The labor market enters 2018 on a high note. Still, there might be room to improve. While the headline unemployment rate is back to its late-2000 level, broader employment measures aren’t there yet—and wage acceleration remains limited.”
Unfortunately, Wage Growth Lags Job Recruiting
Regrettably, average hourly earnings for private-sector workers increased by only about five cents last month after declining in October. Wages rose just 2.5% from a year earlier in November; near the same lackluster pace maintained since late 2015, despite a much lower unemployment rate.
U.S. And Global Job Recruiting Both Expanding
November marked the 86th straight month employers added to payrolls. The U.S. labor market is maintaining its strength at a time when other aspects of the global economy are on the upswing. Economic growth in the U.S. and Europe accelerated during the summer months and Japan is experiencing its longest sustained expansion in 16 years.
Global economic expansion makes it difficult for firms to find available workers. This is especially true for the IT, engineering, technical, scientific and manufacturing technology talent that my executive recruiting firm specializes in.
Friday’s Labor Department report showed the employers added jobs in most major categories, including construction, manufacturing, retail and health care. Leisure and hospitality, the sector most impacted by recent hurricanes, grew by 14,000 jobs last month, a somewhat weaker gain compared to average monthly growth this year before hurricanes Harvey and Irma struck the southern U.S. in late summer.
All levels of government added 7,000 jobs to payrolls last month.
The share of Americans participating in the labor force held steady at 62.7% in November. Participation has largely moved sideways the past two years, a positive sign that some Americans are being drawn in off the sidelines and helping to counter the trend of baby boomers retiring.
Jobs And Wages Need An Entrepreneurial Boost!
A broad measure of unemployment and underemployment that includes Americans stuck in part-time jobs or too discouraged to look for work ticked up to 8.0% in November from 7.9% the prior month. The October reading was the lowest since 2006.
Unfortunately, as I reported in my last article much of the current job creation has been in the service sector. For example, two of the fastest growing American job categories are only paying about $22,000 per year. The Bureau of Labor Statistics predicts that in the next ten years there will be 1.2 million new jobs for home health and personal care workers.
Because entrepreneurship is still alive and well in America and most of the net new jobs created over the past several decades have been recruited by smaller, entrepreneurial firms, a lot more needs to be done to cultivate entrepreneurship. I recommend three solutions to grow entrepreneurial ventures and the job recruiting that comes from them.
One solution is expanding successful established programs like Service Corps of Retired Executives or SCORE which provides inexpensive mentors, tools and workshops dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship.
A second solution is reformulating government efforts to help and NOT hurt entrepreneurs. For example, lower taxes and reduced government regulations to encourage entrepreneurship.
Third is doing a lot more to improve our country’s STEM education programs because tomorrow’s engineers, scientists and technical talent will create future technology businesses that will recruit the most jobs and highest wages for our country!
In Summary: Entrepreneurial Ventures Recruit High Paying Jobs!
Our government should focus on time proven strategies to grow entrepreneurial ventures. Over the past several decades, these small businesses have exponentially increased job recruiting more than any other employment measure! To that end, do not engage in measures that will hinder entrepreneurship, like higher taxes and more regulations. Instead, investing more in proven programs like SCORE.
Finally, more efforts need to be employed for recruiting of better STEM teachers and programs. The results will be exponentially higher wages and more jobs for U.S. workers!
