After months of job creation greater than 200,000, August posted the slowest addition in eight months as sectors across the board registered a summer slowdown of sorts. This may look discouraging, but improved consumer confidence, job openings that match pre-recession peaks, slowly-but-surely growing quits and a host of other indicators are all pointing in an upward direction—signaling that this is likely an aberration rather than a new normal. See more real estate and economic research at http://bit.ly/1qHcQQR

1. U.S. employment situation: September 2013
Release date: October 22, 2013
Summer slowdown hits the economy
as job growth stalls
U.S. employment situation: August 2014 September 5, 2014

2. August 2014 employment summary
•Total non-farm employment increased by 142,000 jobs in August, the lowest number in eight months and breaking the string of 200,000+ monthly additions seen in 2014. This represents a 1.8-percent year-on-year increase.
-Some of this can be accounted for a summer slowdown in employment, as well as contractions in retail trade and educational services. Retail trade in particular is usually a core driver of job growth, and its absence exacerbated slowing growth seen in many sectors.
•Unemployment fell by 10 basis points to 6.1 percent due to a combination of persistent labor force participation declines (down to 62.8 percent in August) and steady employment gains.
-Total unemployment fell to 12.0 percent, matching its 10-year average. It is still elevated, however.
-Unemployment for college and high-school grads increased by 10 basis points, however, but both are nearing historic norms at 3.2 and 6.2 percent, respectively.

3. August 2014 employment summary (con’t)
•Office-using industries remained in neutral, but accounted for more than one-third of payroll increases in August as other sectors faltered. On the other hand, health care and construction, as well as leisure and hospitality, posted improved hiring conditions. Construction in particular added 20,000 jobs in August, or 14.1 percent of monthly growth.
•Confidence is improving. Job openings matched March 2007’s high of 4.7 million this month, while quits are slowly but surely rising. The Consumer Confidence Index jumped to 92.4 points on the back of record personal consumption expenditures, which have been fueling GDP growth of late.
•From a geographic perspective, Texas and the Sunbelt are the definite leaders, with markets consistently reporting 3.5 percent or greater year-on-year employment growth. While most major markets are now in the 2.0+ percent range (with the notable exceptions of Chicago and Philadelphia), they have yet to keep up with Austin, Dallas, Houston, Raleigh-Durham and South Florida in percentage terms, among other high-growth areas.

4. Summer slowdown in August breaks 200,000+ job growth streak earlier in 2014, but still above previous years
220,000
121,000
120,000
360,000
226,000
243,000
96,000
110,000
88,000
106,000
122,000
221,000
183,000
164,000
196,000
360,000
226,000
243,000
96,000
110,000
88,000
160,000
150,000
161,000
225,000
203,000
214,000
197,000
280,000
141,000
203,000
199,000
201,000
149,000
202,000
164,000
237,000
274,000
84,000
144,000
222,000
201,000
304,000
202,000
267,000
212,000
142,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Oct-10
Dec-11
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
1-month net change
Source: JLL Research, Bureau of Labor Statistics
4

5. Unemployment continues to nudge down, in August to 6.1 percent, as job gains maintain slow-but-steady pace
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Unemployment rate (%)
1-month net change (thousands)
Monthly employment change
Unemployment rate
Source: JLL Research, Bureau of Labor Statistics
5

6. On the other hand, job openings are rising steadily and neared 4.7 million in August, the highest figure since March 2007
Source: JLL Research, Bureau of Labor Statistics
6
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
Job openings (thousands)

7. -8.4
-3.0
-2.0
0.0
1.2
1.6
2.0
2.0
4.6
6.5
7.0
8.0
8.0
13.0
15.0
20.0
37.0
42.7
47.0
-40
-20
0
20
40
60
Retail trade
Information
Nondurable goods
Manufacturing
Transportation and warehousing
Utilities
Mining and logging
Durable goods
Motor vehicles and parts
Wholesale trade
Financial activities
Other services
Government
Temporary help services
Leisure and hospitality
Construction
Education and health services
Health care and social assistance
Professional and business services
1-month net change (thousands)
Contractions in retail trade pushed down August’s growth figures, although construction saw a sharp increase
Source: JLL Research, Bureau of Labor Statistics
7
PBS
Education and health services
Construction
All other subsectors
Top three subsectors responsible for 73.2 percent of monthly growth.

8. -2.0
3.6
14.0
44.0
46.0
48.0
64.8
66.0
125.4
151.6
154.0
168.0
214.9
232.0
248.2
336.9
345.0
367.0
639.0
-100
0
100
200
300
400
500
600
700
Information
Utilities
Nondurable goods
Government
Other services
Mining and logging
Motor vehicles and parts
Financial activities
Wholesale trade
Transportation and warehousing
Durable goods
Manufacturing
Temporary help services
Construction
Retail trade
Health care and social assistance
Leisure and hospitality
Education and health services
Professional and business services
12-month net change (thousands)
PBS
Education and health
Leisure and hospitality
Retail trade
Manufacturing
Financial activities
All other jobs
Almost 2.5 million jobs have been created over the past year as only information posts a negligible contraction
Source: JLL Research, Bureau of Labor Statistics
8
Core subsectors added 73.4 percent of all jobs over the past 12 months.

9. -1,000
-800
-600
-400
-200
0
200
400
2008 2009 2010 2011 2012 2013 2014
Change in '000s jobs
Both private and public hiring slow; revisions slightly lower
gains earlier in 2014
Private sector hiring up 4.9
million since August 2012
Public sector hiring up 11,000
workers since July 2012
Source: JLL Research, Bureau of Labor Statistics
9

10. 0
2
4
6
8
10
12
Unemployment (%)
Bachelor's degree and higher
High school graduates, no college
Unemployment for white-collar and high-school grads both up by 10bp, but still nearing cyclical lows
3.2%
6.2%
Source: JLL Research, Bureau of Labor Statistics
10

11. After months of improvement, goods-producing payroll increases falter once again
-1,000.0
-800.0
-600.0
-400.0
-200.0
0.0
200.0
400.0
600.0
2008
2009
2010
2011
2012
2013
2014
1-month net change (thousands)
Goods-producing
Service-providing
Source: JLL Research, Bureau of Labor Statistics
11

12. Energy’s volatility sees gains reduced to 2.4 percent,
comparable with office-using industries
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
2008 2009 2010 2011 2012 2013 2014
High-tech Energy, Mining, and Utilities Office-using industries Total non-farm
Source: JLL Research, Moody’s. Note: Due to data lags, high-tech employment only available through July 2014.
12
12-month % change (jobs)

13. Tech still leading but slightly slower in line with national trends, while energy remains up-and-down
Year-on-year percent employment growth
Source: JLL Research, Bureau of Labor Statistics
13

14. For the first time during the recovery, the 4-week moving average for initial claims has fallen below 300,000
Source: JLL Research, U.S. Department of Labor
14
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
Claims
Initial claims
4-week moving average

15. 0%
2%
4%
6%
8%
10%
12%
0
10
20
30
40
50
60
70
80
90
100
2008
2009
2010
2011
2012
2013
2014
Unemployment rate (%)
Consumer confidence index
Consumer confidence index
Unemployment rate
Consumer confidence continues its upswing, jumping yet again to 92.4 points and surpassing 2008 levels
Source: JLL Research, Conference Board, Bureau of Labor Statistics
15

16. Quits are slowly rising as worker sentiment about the job market slowly grows
Source: JLL Research, Bureau of Labor Statistics
16
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006
2007
2008
2009
2010
2011
2012
2013
2014
Quits (thousands)

17. Sunbelt and Texas remain dominant, with Raleigh-Durham year- on-year growth at a whopping 4.7 percent
Source: JLL Research, Bureau of Labor Statistics
17
Austin
3.8%
Dallas
3.9%
Houston
4.0%
Raleigh-Durham
4.7%
South Florida 3.3%
Charlotte
3.2%

18. Some East Coast and Midwestern markets are still posting job growth below 1.0 percent year-on-year, however
18
Source: JLL Research, Bureau of Labor Statistics
Detroit
0.9%
Hampton Roads
0.5%
New Jersey
0.8%
Washington, DC 0.6%
Columbus
0.7%

19. The labor force participation rate declined by 10bp to 62.8 percent, partially contributing to falling unemployment
Source: JLL Research, Bureau of Labor Statistics
19
61.0%
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
2008
2009
2010
2011
2012
2013
2014
Labor force participation rate (%)

20. Although high at 12.0 percent, total unemployment has reached its 10-year average
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total unemployment U-6
10-year average
Source: JLL Research, Bureau of Labor Statistics
20

21. Office-using jobs are still in slower-growth mode, but slowdowns in retail and education push up office-using share
Source: JLL Research, Bureau of Labor Statistics
21

22. Office-using payroll growth hampered by stagnancy across the board and below levels seen earlier in the recovery
-300
-250
-200
-150
-100
-50
0
50
100
150
2009
2010
2011
2012
2013
2014
Information
Professional and business services
Financial activities
PBS represented 75.0 percent of office jobs lost in February 2010.
In July 2014, it represented all 92.2 percent of new office jobs.
Source: JLL Research, Bureau of Labor Statistics
22

23. Like the overall economy, labor force participation for white- collar workers and high school grads is anemic
Source: JLL Research, Bureau of Labor Statistics
23
54.0%
55.0%
56.0%
57.0%
58.0%
59.0%
60.0%
61.0%
62.0%
63.0%
64.0%
70.0%
71.0%
72.0%
73.0%
74.0%
75.0%
76.0%
77.0%
78.0%
79.0%
80.0%
2007
2008
2009
2010
2011
2012
2013
2014
High school graduate labor force participation rate (%)
College graduate labor force participation rate (%)
Bachelor's degree
High school, no college

24. Temporary help services nears 2.9 million jobs, although its rate of growth is slowing somewhat
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
2,200.0
2,400.0
2,600.0
2,800.0
3,000.0
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
2009
2010
2011
2012
2013
2014
Monthly net change in jobs (ths)
Temporary employment monthly net change
Temporary employment
Temporary employment (ths)
Source: JLL Research, Bureau of Labor Statistics
24

25. ©2014 JLL Research IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
For more information, please contact:
Ben Breslau
Managing Director - Americas Research
Benjamin.Breslau@am.jll.com
John Sikaitis
Managing Director - Office and Local Markets Research
John.Sikaitis@am.jll.com
Phil Ryan
Research Analyst
Phil.Ryan@am.jll.com
Or, find more employment, business and real
estate research at jll.com.
>>> Click here to check it out.