It was a cool summer on the hiring front. Following meager gains of 118,000 and 89,000 in June and July, the season closed out with the addition of just 142,000 payrolls in August, according to the latest U.S. Bureau of Labor Statistics (BLS) monthly jobs report. Job gains were primarily attributed to construction, healthcare, and social assistance, while losses were suffered within manufacturing.
“The concentration of job gains in construction, healthcare, and social assistance suggests a sectoral shift towards more resilient industries or those experiencing higher demand,” Monster Economist Giacomo Santangelo says. “This uneven distribution of job gains reflects that the recovery is not uniform across all sectors, as industries like manufacturing still face significant challenges.”
Below, we shared our breakdown of these job numbers along with key takeaways to help employers plan for the months ahead.
Construction Hiring Continues to Develop
Building on last month’s gains of 25,000, the construction industry led the way in the BLS monthly jobs report with the addition of another 34,000 payrolls in August. Looking ahead, Monster data suggests this growth may continue with the number of active construction job postings up 6% over the past month. Top jobs hiring include those for skilled positions, such as:
- Electricians
- Construction laborers
- Plumbers
While other blue collar jobs, like auto mechanics and wind turbine technicians, are hurting for workers, Santangelo says, “The construction industry has been relatively successful in addressing the skills gap and talent acquisition challenges. One of the key strategies has been the adoption of technology and innovative practices, such as modular and prefabricated construction, which streamline processes. Additionally, the industry has proactively implemented training programs and apprenticeships to develop the necessary skills within the workforce.”
Healthcare Showed Weak Job Numbers
Reflective of the overall job growth experienced in August, the healthcare industry, while still a top driver of job creation in the BLS monthly jobs report, is beginning to lose steam. In August, the sector added 31,000 jobs — about half of its average monthly gain of 60,000 over the past 12 months.
“Given that healthcare has significantly contributed to job growth [previously], a slowdown in the sector can dampen the overall employment figures,” Santangelo says. “The slowdown in healthcare job gains can be attributed to several factors, including the sector’s recovery from the pandemic, which saw a surge in hiring to replace workers who left during the pandemic, and ongoing challenges, such as burnout and recruitment difficulties as well as a shift towards outpatient care.”
Despite a slowdown in healthcare hiring last month, Monster data suggests that it may pick back up in the months to come. From a candidate standpoint, the number of searches for healthcare-related positions grew 4% over the past month — a positive sign as employers strive to overcome the challenges mentioned above. Top healthcare job searches include:
- Registered nurse
- Physiatrist
- Medical assistant
Meanwhile, employers are continuing to up their efforts on Monster as well. Following a 9% increase in July, employers matched it with another 9% increase in active healthcare job postings in August. Jobs for registered nurses remain #1 overall on site, while other top healthcare positions hiring include:
- Critical care nurses (#4 overall)
- Physical therapists (#5 overall)
- Licensed practical and licensed vocational nurses (#8 overall)
- Dental hygienists (#9 overall)
- Medical and health services managers (#10 overall)
All Quiet on the Manufacturing Front
Not often talked about in recent BLS monthly jobs reports, the manufacturing sector hasn’t experienced much activity over the past few years. Little net job growth was reported in 2023, and so far, that has been the case in 2024 — that is, up until now. In August, manufacturers shed 24,000 payrolls, reflecting a decline in durable goods industries.
With this reduction in headcount, it’s not surprising to see the number of manufacturing-related job searches outpace the number of active jobs available within the category on Monster as well. Although the number of active job postings did increase 9% last month, as employers look to fill top positions including supervisors of production/operating workers, production workers, and machinists, Santangelo says, “The hiring outlook for the manufacturing sector for the rest of 2024 and into 2025 remains cautious. Some growth is expected in industries like semiconductor and clean technology manufacturing, but challenges such as economic uncertainty, shortage of skilled labor, and supply chain issues are likely to persist.”
Interest Rate Cuts Could Spark Job Growth
Along with the job market, inflation and wage growth continued to decelerate as well. Consumer prices increased 2.9% over the past year — a decline from a year ago when the cost of goods was up by 3.2%. Likewise, wage growth has slowed, up 3.8% compared to 4.3% last year, according to the BLS monthly jobs reports.
With the Federal Reserve meeting later this month, experts believe that these numbers will prompt lower interest rates. “Recent economic data, including cooling inflation and a slowing labor market, supports the case for a rate cut,” Santangelo says. “For employers, this could mean more favorable conditions for investment and expansion, which might lead to increased hiring in the coming months; however, the impact on hiring will depend on how businesses perceive the overall economic outlook and their specific industry conditions.”
What to Expect This Fall
Looking ahead, Monster data shows that employers are continuing to increase hiring efforts overall with the number of active job postings up 5% over the past month. However, as we head into autumn and approach the year’s end, a slower labor market may cause employers to take pause and reassess staffing needs.
“Employers may adopt a more cautious approach, focusing on critical roles and delaying non-essential hires to manage costs amid economic uncertainties,” Santangelo says. “There may also be an increased focus on employee retention with companies offering better benefits, training, and development opportunities to keep their workforce engaged and productive.”
One of the top benefits employers can offer right now is flexible and remote work arrangements. On Monster, the #1 job search since the onset of the Covid-19 pandemic has been and continues to be for “work from home” jobs. Other ways employers may consider not only keeping but attracting workers in today’s competitive labor market include offering unlimited paid time off and increasing employee pay.
Stay Tuned for the Next Monthly Jobs Report
Monster aims to provide employers with the insight needed to move forward. As you plan your hiring strategy over the next month, check out Monster’s 2024 Work Watch report for the latest hiring trends and insights.
We’ll see you here again in October when we will release our next take on the monthly jobs report.