1. June 1, 2012
U.S. EMPLOYERS HIRED A AVERAGE HOURLY EARNINGS THE UNEMPLOYMENT RATE
TOTAL OF (ALL WORKERS) ROSE TO
69,000
WORKERS IN MAY
$23.41
1.7% ABOVE LAST YEAR
8.2%
9.0% LAST MAY
JOB CREATION REMAINS SLUGGISH
• Weak employment gains, downward revisions to prior months’ numbers, and an uptick in the
unemployment rate signal a slowdown in the fitful U.S. labor market.
• Subdued economic growth in the U.S. and cooling trends across the globe are keeping employers
cautious and hiring levels muted.
• Manufacturing employment growth represents a bright spot in the tepid job market, with nearly
150,000 manufacturing jobs created this year and almost 500,000 added since the low point in 2010.
The U.S. labor market continued to lose steam in May, as job creation slowed further amid broader economic malaise. Employers
added only 69,000 jobs over the month, the lowest job creation figure in a year. Employment figures for April and March were also
revised downward by nearly 50,000 combined, bringing average employment creation for the past three months to less than 100,000
a month. In the prior three months, U.S. employers added an average of more than 250,000 jobs per month. (Continued)

2. Talent Market Monthly: June 1, 2012
The unemployment rate ticked up slightly to 8.2% in May, U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE
following a nine-month declining trend, as more workers re-
Unemployment Rate (%)
entered the labor market. Recent weakness in both jobless 600 11
Employment (000’s)
claims and employment demand also suggest that the 300 10
momentum in lowering unemployment may be stalling. 0 9
8
-300 7
Transportation and health care drove employment gains in May,
-600 6
with each sector adding more than 30,000 jobs. Employment in
the manufacturing sector also continued to climb, with a gain of -900 5
Aug-09
Aug-10
Aug-11
Feb-10
Feb-11
Feb-12
May-09
May-10
May-11
May-12
Nov-09
Nov-10
Nov-11
12,000 in May, and temporary help services also added more
than 9,000 jobs. The construction industry lost 28,000 jobs in
May, and government employment continued on a downward
Non-Farm Employment Private-Sector Employment Unemployment Rate
trend, with a decline of 13,000.
After a robust start to the year, labor market gains have been EMPLOYMENT OVERVIEW
sluggish and slowing in recent months. U.S. economic growth
MAY APR MAR FEB JAN
has been similarly tepid, and the continuing crisis in Europe
threatens to keep growth rates subpar across much of the globe. Total non-farm employment growth 69K 77K 143K 259K 275K
Economic conditions are expected to improve as the year
progresses, but thus far in the recovery, sustained momentum Private employment growth 82K 87K 147K 254K 277K
and strength in the U.S. labor market continue to be elusive.
Unemployment rate 8.2% 8.1% 8.2% 8.3% 8.3%
Source: Bureau of Labor Statistics
MANUFACTURING RENAISSANCE
One of the bright spots in an otherwise lackluster jobs recovery following the Growth in manufacturing is critical to the health of the overall labor market.
recession has been the reemergence of U.S. manufacturing. The manufacturing Manufacturing jobs provide decent wages and benefits to a wide range of workers,
sector has seen steady growth in employment over the last two years, creating particularly those at the lower end of the skills and education spectrum. It also
nearly 500,000 jobs since its most recent low in January 2010. spurs creation of service jobs, as well as providing an impetus to high-level research
The U.S. has become a more attractive location for manufacturing employers as and innovation activity. Preparing workers with the skills needed to sustain the
wages have begun to grow in offshore markets. Firms have also come to realize the momentum in U.S. manufacturing will require cooperation from companies,
benefits of being able to access experienced and skilled workforces in many governments, and educational institutions.
locations across the country. And manufacturing productivity in the U.S. has seen
tremendous gains in recent years, averaging 13% more in output per hour in the
past five years. Sources: LA Times, 05.09.12; Wall Street Journal, 05.28.12; BLS
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