All Major Industries Add Jobs While Talent Shortage Continues
In April, the economy added 428,000 jobs, in line with many economists’ expectations. April’s numbers represent the continuation of an impressive stretch of growth. The economy has added an average of 555,000 jobs per month since January 2021 – nearly three times the average monthly gains for 2015 through 2019. With these strong numbers, all major industries added jobs in April, led by Trade, Transportation & Utilities with 104,000 jobs.
Key Takeaways & Trends to Watch
• Trade, Transportation & Utilities adds most jobs. The industry added 104,000 jobs and is 893,000 jobs above pre-pandemic levels.
• Leisure & Hospitality comes in second after months leading the way. The industry – which added 78,000 jobs in April – had consistently led in monthly job gains mostly because it had some of the biggest job losses at the outset of the pandemic. At 1.4 million jobs below pre-pandemic employment levels, Leisure & Hospitality is the farthest from recovery.
• No new industries recover to reach pre-pandemic employment levels. Five industries – Construction, Financial Activities, Information, Professional & Business Services and Trade, Transportation & Utilities – have recovered to reach pre-pandemic employment levels.
• Turnover continues amid a tight labor market. While April’s jobs report indicates the strength and resilience of the U.S. economy, the labor market remains incredibly tight. The unemployment rate held steady at 3.6%, just above the pre-pandemic level of 3.5%. And with a record 11.5 million job openings in March, there are nearly twice as many job openings as unemployed workers. Almost all available workers already have a job, so many companies are looking to poach talent, contributing to record turnover and the Great Resignation.
LaborIQ by ThinkWhy reports, forecasts and advises on employment conditions and the impact to jobs, industries and businesses across all U.S. cities.