US labour market weakens again as job losses continue in November
Further cooling in US employment and slowing demand.
The US labour market registered another month of contraction in November, according to new figures from workforce analytics firm Revelio Labs, with job losses concentrated in consumer facing and goods producing sectors and continued signs of easing demand across the economy.
Revelio Labs Public Labor Statistics shows the US economy shed 9,000 jobs in November, matching October’s decline and pointing to a further softening in labour demand. Losses were led by Leisure and Hospitality, Retail Trade, Transportation and Warehousing and Manufacturing. Education and Health Services continued to add roles and Public Administration recorded a rebound after a sharp fall in October.
Large US employers in consumer sectors accounted for much of the contraction. Starbucks and McDonald’s reduced headcount in Hospitality, Target and Walmart saw falls in Retail and AstraZeneca and Intel posted the steepest cuts in Manufacturing. Revelio notes that the downturn in Manufacturing spans both blue collar and white collar work, with pharmaceutical and computer hardware producers reducing professional and production staff.
Some major public institutions helped counterbalance the decline, with the Universities of California and Texas and the States of California and New York adding the greatest number of jobs.
Indicators of labour market churn point to further cooling. WARN layoff notices fell markedly, with the number of employees notified of redundancy dropping from 53,800 in October to 28,100 in November, a fall of 48 percent. Formal notices declined from 723 to 281.
Hiring and attrition continued to slow, although the rate of deceleration moderated. Revelio reports an annualised hiring rate of 21.59 percent in November and an attrition rate of 21.52 percent, with the sharpest falls in hiring seen in Wholesale Trade, Utilities and Professional and Business Services.
Forward looking measures suggest labour demand will remain subdued. Active job postings fell by 0.3 percent month on month, with notable declines in Leisure and Hospitality and Public Administration. Construction was one of the few sectors to see a modest rise in openings.
Despite waning demand, advertised salaries rose. Pay attached to new job postings increased by 0.9 percent, driven by higher wages in Mining and Transportation and Warehousing. Salaries fell in Education and Health Services, Utilities and Leisure and Hospitality.