U.S. employers added only 74,000 jobs in December, the weakest monthly gain since 2011. While the unemployment rate fell to 6.7%, nearly 350,000 workers left the labor force, accounting for most of the decline. Overall job growth in 2013 averaged 182,000 per month, similar to 2012 but below expectations of stronger growth. The disappointing December figures may suggest the economy and labor market remain fragile.

1. January 10, 2014
U.S. EMPLOYERS HIRED
A TOTAL OF
74,000
WORKERS IN DECEMBER
AVERAGE HOURLY EARNINGS
(ALL WORKERS)
THE UNEMPLOYMENT RATE
FELL TO
$24.17
6.7%
1.8% ABOVE LAST YEAR
7.9% LAST DECEMBER
LABOR MARKET DIPS TO END THE YEAR
• Disappointing end to 2013 as payrolls only grew by 74,000 in December, the weakest
monthly job gain since January 2011.
• Unemployment fell significantly, reaching its lowest point in more than five years,
but the decline was largely due to lower labor force participation.
• Job creation did not accelerate as expected in 2013, suggesting that the U.S.
economy and the labor market remain in a fragile state.
After four consecutive months of strong employment gains, U.S. hiring trends plunged in December, possibly showing some effects of poor
winter weather. Employers added just 74,000 workers to their payrolls, the lowest monthly job gain figure in nearly three years and well
below consensus forecasts. With December’s figure, and despite a net 38,000 jobs added to prior months’ totals from revisions,
employment creation averaged only 182,000 per month in 2013—roughly the same as 2012’s figure of 183,000 jobs created per month.
(Continued)

2. Talent Market Monthly: January 10, 2014
The dismal labor market figures in December are both a
disappointment and somewhat of a surprise. Experts
were predicting a strong finish to 2013, as most
indicators suggested that the economy was, at last,
showing signs of strength. The year-end slump may be
an anomaly—or it may mean that the U.S. economy and
labor market are not quite as healthy as they seemed.
10.0
9.0
8.0
7.0
6.0
Total non-farm employment growth
Unemployment rate
EMPLOYMENT OVERVIEW
JUL
AUG
SEP
OCT
NOV
DEC
Total non-farm employment growth
89K
238K
175K
200K
241K
74K
Private sector employment growth
100K
207K
168K
217K
226K
87K
Unemployment rate
THE RISE OF ONLINE STAFFING
Unemployment Rate (%)
350
300
250
200
150
100
50
0
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan 13
Feb 13
Mar 13
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13
The unemployment rate dropped from 7% in November
to 6.7%, but unlike last month, this time it was mostly
for the wrong reasons. Nearly 350,000 workers left the
labor force in December and the participation rate
retreated back to its historic low of 62.8%, erasing the
gains that were made in November.
U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE
Employment (000s)
Retail trade hiring led the way again in December,
adding 55,000 jobs. Temporary help services also posted
a strong monthly gain (+40,400). However, employment
was down in the construction industry (-16,000) and in
government (-13,000). Surprisingly, for the first time in
more than ten years, the health care/ social assistance
sector failed to create jobs in December (-1,000).
7.3%
7.2%
7.2%
7.2%
7.0%
6.7%
Source: Bureau of Labor Statistics
Just as online exchanges have revolutionized industries such as music and retail,
online staffing—using virtual talent exchanges to match freelancers with
potential employers—may have a transformative effect on the way organizations
find and manage workers. According to Staffing Industry Analysts, online staffing
is currently a $1.5 billion industry, with annual projected growth rates that could
exceed 60% in the coming years as employers and workers alike continue to
embrace more flexible and virtual work models.
And like many emerging industries, the online staffing world is dynamic. The
leading firms, oDesk and Elance, merged in December 2013, creating a large-scale
platform that will greatly expand access to both freelance job opportunities and
talent. The combined entity will offer a global community of more than 8 million
freelancers and 2 million potential employers in more than 180 countries.
Kelly Services recently announced a partnership with oDesk. Through the
alliance, the first between a workforce solutions company and an online
platform, oDesk will become a component of the talent supply chain for
KellyOCG, the Outsourcing and Consulting Group of Kelly Services. “Integrating
oDesk into our supplier network helps our clients access the rapidly growing
online workforce, increasing their agility and access to key talent in their
outsourced program,” said Teresa Carroll, SVP and General Manager, KellyOCG.
An Equal Opportunity Employer ©2013 Kelly Services, Inc. W1093e. Kelly Services, Inc. makes no representation or warranty with respect to the material contained in this report.
Sources: Press Releases, 12.12.13 and 12.18.13; Staffing Industry Analysts, 01.02.14