Jobs report summary for the legal industry. Based on the BLS report with April 2014 data.
The Bureau of Labor Statistics revealed that April employment rose by 288,000 jobs. Almost 96,000 more jobs than the month of March, and 70,000 more jobs than economists predicted. The influx of new private sector jobs can be directly attributed to the end of the stagnant winter hiring; as the weather improves in the next few months, jobs should continue to hit the 200,000 mark month over month.
With the newly added jobs, the unemployment rate decreased from a 6.7% to a 6.3%, the lowest since before the financial crisis. While this seems like a huge workforce milestone, the labor force participation rate, however, came in at 62.8% its lowest point in decades, down from 63.2% in March. The decrease in participation rate directly correlates as to why the unemployment rate decreased, it’s not because workers left the workforce, it’s because re-entrants and new entrants into the workforce never happened.
Professional and Business Sectors Flourish, Legal Services Jobs Stagnant
With 75,000 jobs added in April, the Professional and Business Sectors had the largest growth for private sector jobs. The increase was 18,000 more jobs than March’s reported numbers, and a substantial jump from the 56,000 monthly average. Legal Services only declined by 1,200 jobs for the month, remaining fairly stagnant.
Temporary Help Services continued to grow in April, adding roughly 24,000 jobs. With a slight decrease from March (28,500 jobs), the decline may be a positive indicator that current temporary positions are in transition to full time employees.
Wages Set To Grow In Second Quarter
With the disappointing news of the labor participation rate, employers find no incentives to raise wages. According the to the BLS, wages decreased by 3 cents in April from March, but are still up 43 cents from last year. With a higher predicted growth in the second quarter, America should see a growth not only within wages, but with economic growth as well.
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