Labor Market by the Numbers
The big number: The unemployment rate fell 0.1% to 4.2%, with 7,115,000 people unemployed, a slight decrease of 48,000.
- This is the first drop in the unemployment rate after four straight monthly increases, but the unemployment rate is up 0.7% from last year (3.5% in August 2023).
- The labor force level remains below its pre-pandemic trend. For the prime-age workforce (25 to 54 years old), labor force participation has surpassed its pre-pandemic level.
- However, older segments of the labor force (55 and up) decided to retire early during the pandemic and have not returned to the workforce.
From the MI and Deloitte: As more baby boomers and Gen X workers retire, the workforce will increasingly be made up of millennials and Gen Z, who have different expectations for work. In our study, Taking Charge: Manufacturers support growth with active workforce strategies, we share strategies manufacturers have used to respond to the desire for increased flexibility to better retain and attract employees.
Job postings: In July 2024, the total number of job openings in the manufacturing industry rose 31,000 from June to 505,000.
- Manufacturing job openings have fluctuated in recent months, reflecting the economic uncertainty of employers.
- Job openings have eased from pandemic highs (997,000 in April 2022) but remain above pre-pandemic levels (408,000 in January 2020).
- The rise in manufacturing job openings in July was almost entirely in durable goods manufacturing, which increased from 311,000 to 341,000. Meanwhile, nondurable goods job openings mostly stayed the same.
- Despite the uptick in quits (202,000 to 227,000 in June), churn has eased from pandemic highs as workers are less likely to quit their jobs, since the prospect of finding a new one is slimmer.
- This will relieve some of the pressure on manufacturers to replace talent.
- For every 100 job openings in the U.S. economy, there were 93.3 unemployed workers.
- There continued to be more job openings than people actively looking for work, although that ratio has narrowed notably. One year ago, there were only 67 unemployed workers for every 100 open jobs.
Manufacturing employment fell 24,000 in August yet remains well above pre-pandemic levels with 12,927,000 manufacturing employees.
- The labor force participation rate was stable at 62.7%.
Key takeaway: The labor market has cooled significantly over the past year.
- Job openings are down significantly over the past year and nonfarm payrolls hiring has slowed.
- Manufacturing employment has stayed level over the past two years, but the unemployment rate in manufacturing remains below the overall nonfarm rate.
Manufacturers continue to cite workforce challenges as their top concern.
