August 2024 Jobs Recap: Job growth gains momentum despite economic challenges.

Key Takeaways:

• Moderate Job Growth in August: The U.S. labor market in August showed moderate growth, reflecting ongoing challenges but also some signs of resilience. The latest data from the Department of Labor reported an addition of 142,000 jobs, falling slightly short of the 161,000 jobs economists had forecast. This represents a notable improvement from July's job growth of 89,000, indicating that despite missing expectations, the job market is gaining momentum.
  

• The unemployment rate saw a slight dip, moving from 4.3% in July to 4.2% in August, signaling some improvement in the employment situation. However, labor market conditions remain mixed, as businesses continue to navigate inflationary pressures and higher borrowing costs.

• Data from LinkUp shows a strong recovery in new job listings, an increase of 143,000 new jobs added in August from July.

• Active job listings jumped by 83,000 from July to August, signaling that businesses are looking to expand their workforce after a summer slowdown, and indicating cautious optimism in the labor market.

U.S. Job Listings by Month | January 2020 - August 2024

The graph illustrates monthly job listing trends in the U.S., comparing new and removed job postings alongside total active listings.

LinkUp 10,000

The LinkUp 10,000 is an analytic published daily and monthly that captures the total U.S. job openings from the 10,000 global employers in LinkUp’s jobs dataset with the most U.S. openings.

August saw a modest uptick in the job market, with the LinkUp 10,000 index rising 1.8% from the prior month. This slight improvement comes on the heels of record lows in July, suggesting a potential stabilization in hiring trends. However, the broader picture remains challenging, as the index is still down 12.8% compared to the same period last year.

Overall, while the labor market continues to add jobs and show resilience, concerns about inflation remain. Officials are being cautious about introducing interest rate cuts too quickly to avoid reigniting inflationary pressures, even though rate cuts could further stimulate business growth. The balance between fostering job creation and managing inflation will be critical in the coming months.

In summary, the August job market saw a steady rebound in job creation and active job postings, indicating cautious optimism amid broader economic challenges.

Monthly LinkUp 10,000 | January 2021 - August 2024

Jobs Data By Industry (NAICS)

We're seeing an increase in open jobs across 56% of industries this month, with the largest gains observed in:

• Professional, Scientific and Technical Services (+39.1k)

• Admin and Support (+19.2k)

• Retail (+16.8k)

• Healthcare (+11.6k)

• Finance and Insurance (+10.5k)

Industries that experienced the largest drops:

• Other Services (-15.8k)

• Public Administration (-8.8k)

• Manufacturing (Food, Bev, Clothing) (-3.1k)

Job Listings by Industry (NAICS) | August 2024

This chart displays the change in job listings across various industries, categorized by NAICS codes.

Industry Spotlight:

Finance and Insurance

From LinkUp data we see that there has been a rise in job openings across the Finance and Insurance industry in August. The Daily Active Jobs Index for top companies within the industry shows a gradual upward trend, signaling slight growth in hiring. However, there are some exceptions. JP Morgan Chase & Co. and Wells Fargo & Company exhibit a downward trend in their active jobs index over the month, indicating a reduction in hiring activity. These companies have shown noticeable dips toward the end of August, potentially signaling a more cautious approach to staffing during this period.

Overall, while most companies in the Finance and Insurance sector are seeing growth in job openings, a few key players are taking a more conservative stance, likely responding to specific organizational or market conditions.

Daily Job Listings of the Finance and Insurance Industry on the rise.

Company Comparison: Daily Active Jobs Index of Top Finance and Insurance Companies in August.

Jobs Data By Occupation (O*NET)

Reflecting the increase in job postings across U.S. industries this month, 85% of occupational groups saw a rise in hiring.

Occupations with a rise in demand:

• Business and Financial Operations (+25k)

• Sales and related (+15.8k)

• Computer and Mathematical (+15.7k)

Occupations with a drop in demand:

• Education Instruction and Library (-17.7k)

• Personal Care and Service (-15.6k)

Job Listings by Occupation (O*NET) | August 2024

This chart displays the change in job listings across various occupations, categorized by O*NET codes.

Occupation Spotlight:

Utilizing LinkUp data through Compass, we observed the most substantial increases in job openings within the Business and Finance, Sales, and Computer and Mathematical sectors, while the largest decline occurred in Education Instruction and Library positions.

Computer and Mathematical

Hiring in Computer and Mathematical occupations saw a notable rise from July to August 2024, driven by the expanding demand for skills in areas like artificial intelligence (AI), cloud computing, and cybersecurity. This surge reflects the growing importance of technology in various sectors. However, despite the increase in job listings, the unemployment rate for information technology workers rose to 6% in August, up from 5.6% in July.

Computer and Mathematical roles Active Job Listings since June

Education Industry and Library

Hiring for Education and Library roles dropped by 10% in August. Many universities and educational institutions finalize their staffing needs by the summer to prepare for the new academic year, leading to a seasonal decline in job postings. However, despite the ongoing financial struggles, some colleges are reporting record enrollments for the fall 2024 semester. This surge in student numbers may signal potential hiring increases in the coming months as schools adjust staffing levels to meet demand.

Education and Library roles Active Job Listings in August

Closed Duration

Closed duration, or the average number of days job listings are posted on company websites before they are removed, tracks hiring velocity across the entire U.S. economy. As the average number of days a job listing remains live increases, hiring velocity slows.

The closed duration remained nearly unchanged in August, rising by just one day from July's figure to a total of 44 days.

Closed Duration of U.S. Jobs | January 2020 - August 2024

Jobs Data By State

During the month of August, 82% of the United States saw an increase in job listings from July. The states that saw the largest increases:

• Vermont (+6.7%)

• North Dakota (+5.5%)

• Pennsylvania (+4.6%)

The states with largest drops in labor demand in August were:

• South Dakota (-3.4%)

• Alaska (-3.2%)

• Oklahoma (-2.4%)

Percent Change in Active Job Listings by State (Month-Over-Month) | August 2024

Companies Added

Every month, LinkUp indexes new companies to our database. In August, LinkUp added 780 additional employer websites.

DATA DISCLAIMERS

LinkUp’s monthly data recaps incorporate revisions to previously-reported monthly data with the purpose of reporting the most accurate and up-to-date data points. For more information on what circumstances may impact data revisions, visit our Data Support Center.