The
Labor Market Insights report provides a monthly overview of key labor market statistics.
As the changing workforce and economic conditions continue to be top of mind for workers compensation executives, this valuable resource delivers timely perspectives on what the latest jobs reports mean for the industry. The
data and insights shared in this monthly publication are designed to provide just-in-time information to help industry leaders make informed decisions.
Key Insights:
- The May employment report alleviated fears that the economy was already in a recession in April, showing solid employment growth of 177,000 overall and 167,000 in the private sector.
The previous two months did see downward revisions, leading to 58,000 fewer jobs added than initially reported. However, the three-month average for employment growth was approximately 155,000, indicating that the labor market remained in solid shape through early April.
At the industry level, employment growth was concentrated in health care and transportation and warehousing. Other industries saw little growth. Growth in transportation and warehousing may be related to increased logistics activity ahead of the coming implementation of tariffs. - Hourly wage growth remained solid and, combined with an uptick in hours worked, supported strong payroll growth in April. While overall payroll growth has remained solid, it has also become more concentrated at an industry level.
- Participation increased after dropping for a few months, a good sign that labor supply is not weakening.
Big Picture: The labor market remained solid through early April; however, significant uncertainty remains. The labor market is typically a lagging indicator for the overall economy. While this report was a good sign, we remain cautious overall on the economy at this time.
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Labor Market Insights report.
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