Unemployment at 18 Year Low

April’s employment report saw 164,000 jobs created, slightly below economists' expectations. In April, the unemployment rate fell to 3.9 percent, the lowest rate since December 2000. Prior to that, January 1970 was the last time the jobless rate in the United States started with a “3.”

This data may signal that we are in a new phase where access to labor has become an increasingly difficult challenge for our clients. It is especially evident amongst highly skilled labor, with professional and business services comprising the strongest growth component of the April BLS data at +54,000, with college-educated unemployment at a cycle low of 2.1 percent. Temp growth was again solid at 3.9 percent YoY and the temp penetration rate holding at a near record 2.4 percent.

Together with modest wage growth, many on Wall Street are saying that this month’s BLS data is a continuation of a ‘Goldilocks' scenario – not too hot to suggest an overheating economy (and interest rate hikes) and not too cold to suggest a slowing economy.

For Kforce clients, the message could not be clearer. Highly skilled technology and finance/accounting candidates are likely receiving multiple job offers. In this competitive marketplace, organizations need to secure talent by offering competitive compensation, streamlined hiring processes and attractive job opportunities.

About the Author, Michael Blackman

As Chief Corporate Development Officer at Kforce, Michael Blackman, a 25-year Kforce veteran, is the primary focal point for the Firm with the Wall Street and financial communities. He is regularly sought out by leading economists for his perspectives on the economy and labor markets, and he contributes to a number of key proprietary economic publications.