From Today's Jobs Report: Demand for Temporary, Manufacturing, and Oil/Gas Jobs Remains Strong
1. The number of "temporary help services jobs" increased by 14,100 in July to the highest employment level since January of 2008 when the recession was just getting started (see chart above). This part of the labor market has now made almost a complete recovery from the effects of the recession, and suggests that the overall labor market will continue to gradually improve because the demand for temporary employment is generally considered to be a leading indicator of future, broader-based labor demand. The increased hiring of temporary workers also suggests that many U.S. firms are probably cautiously hiring new workers on a temporary basis to meet increasing demand for output and production, and will gradually switch to more permanent hiring as the overall economy improves and uncertainty about future tax policy and pending fiscal issues are resolved.
2. Manufacturing employment increased in July for the tenth consecutive month, which brings the total number of new manufacturing jobs added over the last year to 222,000, and the total number of new factory jobs created since 2010 to 524,000.
3. For the tenth straight month, the manufacturing jobless rate in July (7.2%) was less than the national rate.
4. "Oil and gas extraction" employment increased in July to the highest level in almost 24 years, since August 1988. Compared to a year ago, the number of oil and gas jobs in the U.S. has increased by 11.6% and by 27.4% compared to the onset of the recession in December 2007.
MP: Several of the bright spots in the labor market in July include strong demand for temporary workers, factory workers, and workers in the oil and gas industry. Here's some additional commentary on today's employment report: