October’s Employment Situation report from the Bureau of Labor Statistics (BLS) records a +638,000 pickup in U.S. total employment, not much different from September’s increase of +672,000.
The U.S. seasonally adjusted (SA) unemployment rate in the latest period improved to 6.9% from 7.9% in the prior period. The not seasonally adjusted (NSA) unemployment rate showed similar movement, downshifting to 6.6% from 7.7%.
Versus the huge drop in total employment from February to April of this year, the U.S. economy has now managed a jobs recovery ratio of 50.9%. That’s progress, but it certainly doesn’t warrant being called wonderful. At least with respect to the labor market, a V-shaped recovery has not materialized.
Total U.S. employment year over year presently stands at -6.1%, comprised of services at -6.7%; manufacturing, -4.5%; and construction, -2.6%.
The construction jobs jump in October was a noteworthy +84,000, leaning more towards to nonresidential work than residential. This runs counter to the expectation that it will be housing starts that will provide sustenance to the industry over the next little while.
Construction’s NSA unemployment rate is currently 6.8%, better than the previous month’s 7.1%, but considerably elevated from its year-ago level of 4.0%.
Earnings in construction are still notably lagging earnings for all jobs. Whereas the all-jobs compensation gains in October were +4.5% y/y hourly and +5.7% weekly, hard-hat workers made only +2.8% hourly and +1.5% weekly.
