The fevered “will they, won’t they” speculation surrounding the Fed’s intentions on interest rates cooled today as the August jobs report showed hiring coming back down to earth after a stellar July showing, seemingly taking an interest rate hike off the table for the time being.
The economy added 151,000 jobs last month which, while solid, dampens hopes that we’ve reached some sort of hiring escape velocity which would rocket us to consecutive months of hiring in the 250,000 jobs a month range.
That seems unlikely to happen anytime soon. As we’ve essentially reached full employment (as indicated by strong hiring demand, low unemployment rate, and rising wages), unless we see an influx of workers the number of actual hires will remain solid but relatively modest.
Whether that infusion of labor could come from long-term unemployed workers coming off the bench and back into the workforce, retrained workers helping to bridge the skills gap, or even immigration, remains to be seen.
In the meantime, it’s good to be on the job seeker side of the equation. Tight labor markets mean higher wages and more choice for workers. For those currently looking, or thinking about looking for a new job, here are the key insights from our August data, including the top industries and jobs, and the three California cities with smoking hot job markets:
Top 5 industries in August by demand growth
- Financial services
- Top jobs: Accountant, Controller, Branch Manager
- Top jobs: Electrician, Project Manager, Carpenter
- Education Services
- Top jobs: Teacher, Behavior Therapist, Preschool Teacher
- Motor vehicle parts and dealers
- Top jobs: Automotive Service Technician, Auto Glass Technician, Mechanic
- Repair and Maintenance
- Top jobs: Maintenance Technician, Service Technician, Apartment Maintenance Technician
Top 10 cities for hiring demand in August
- Los Angeles, CA
- Dallas, TX
- Phoenix, AZ
- Miami, FL
- San Diego, CA
- Houston, TX
- Riverside, CA
- Denver, CO
- Atlanta, GA
- Columbus, OH