Labor Market Analysis (October-September)

With the September labor market analysis report showing a decrease in the unemployment rate, investors and analysts are predicting the same trend to continue for October. It is interesting to see how the employment situation has been this month. 

Especially because market analysts feared that the job market might turn cold. This assertion was based on the fears of an economic downturn caused by the pandemic and the reinvigorated Russo-Ukrainian war.

What is Labor Market Analysis?

A labor market analysis report provides essential information concerning the supply and demand for labor in a select market. It is used by businesses to make decisions about hiring, wages, and other factors affecting the labor market. And by analysts to predict the future of economies. 

In this job analysis report, we have aggregated employment data from the month of October, to identify employment trends in different job niches. Our analysis includes a comparison of statistics from October and September based on multiple criteria. In addition to this, the report also discusses the type of jobs available in different parts of the country. 

labor market analysis infographic

States With The Highest And Lowest Employment Growth

According to the Bureau of Labor Statistics, in the preceding month of September, the unemployment percentage showed a decline. With around 40 states reporting an increase in hiring, it can be safely assumed that this trend will continue in October. This will come as joyous news for the 5.8 million unemployed job-seekers. 

Although it is expected that there will be net positive growth, the employment statistics remain mixed throughout the country. 

  1. Some states like Minnesota, Pennsylvania, and Missouri show an increase in hiring, whereas markets in Massachusetts, Nevada, and Mississippi are experiencing a decline. 
  2. Minnesota, Florida, and Indiana lead the pack in terms of job growth. These 3 states indicate a 7% increase in job openings, with +8,814, +28,344, and +9,953 new jobs coming in as compared to September respectively. 

On the other end of the spectrum are New Hampshire, Mississippi, and South Dakota; all three of which report a negative 1% decrease in employment rates. These states have 385, 373, and 172 lesser jobs as compared to September respectively.

Overall, around 10 states saw a decrease in employment rates. There could be multiple underlying factors due to which this happened. But, an interesting observation to be made here is that of Florida, which was hit by Hurricane Ian. 

Appropriate labor market information shows that there was no material impact that the hurricane caused to the job market. The markets remained stable, in fact, Florida was among the top gainers in terms of a rise in employment rates.

Candidates and Vacancies on October Labor Market

Historically, there has always been a disparity between the number of vacancies created in the market, and the number of candidates applying for them. This job market analysis report indicates similar realities for October.

The data aggregated through Indeed reveals that 6,322,814 have been created in October. The number of candidates seeking these vacancies stood at a whopping 17,572,624. This means that for every vacancy created, more than 2 candidates were applying.

If we compare this to the September labor market analysis example, this is a continuing trend that can be expected to remain throughout this year. A complete post-pandemic recovery is in order which can lead to a substantial change in these numbers.

The Most Competitive Vacancies by Industry 

Among the 83 odd industries analyzed by us while working on the October job market analysis, almost all barring two industries showed an increase in the number of candidates seeking jobs. 

The ​​Retail, Sales, and Customer Service industries were the most competitive vacancies in October. There were 1,116,916, 1,174,240, and 1,652,178 candidates seeking employment in these industries respectively. They also witnessed growth in the number of resumes as compared to September. The number of searches on the Internet for the query “resume format 2023” reached tens of thousands.

The general increase in vacancies could be explained by the large number of layoffs that happened during the pandemic. According to the JOLTS survey by the U.S. Bureau of Labor Statistics, the job market saw record growth in 2021 after the 13.0 million layoffs that happened in 2020.

Most Popular Employment Sectors in October

Except for the Aviation and Banking industry, all industries saw an increase in candidate interest. If this trend is to continue, then the job market will keep getting competitive. In October, Maintenance, Administrative, and Customer Service sectors saw the highest candidate interest.

There was a +10,786 increase in candidates in the Maintenace sector and the number stood at 737,741, the Administrative sector saw a +20,231 increase and the total number of candidates was 449,575. The Customer Service sector, which saw the highest comparative increase, saw a +20,446 increase with 1,652,178 being the total candidates. 

Many reports including a Forbes 2010 report, predict that sectors like the Customer Service industry are set for continuing high growth as more and more businesses get online. This is explained through the high industry standards for customer service in an increasingly digital world.

In general, most sectors have seen an increase in candidate interest against the backdrop of a reviving economy. Many small businesses that had seen a decline in customer revenue are now slowly limping toward their pre-covid levels, and hence hiring labor is one of their prime focuses.

What Job Types Employers Offer to Labor Market

The COVID-19 pandemic induced remote work culture is on a decline with the general trend favoring in-office jobs. According to BLS’s September labor market report, 5.2% of employed people worked from home or teleworked. This number was down from 6.5% in the month of August. 

In October there were 161,851 remote job openings in the country. This represents 2.5% of the total number of jobs that were open this month. Illinois, Florida, New York, Texas, and California were the states that show the most job openings for remote work. 

These states have 7,477, 8,853, 10,221, 13,700, and 20,108 remote job openings respectively. This represented 3%, 2%, 3%, 3%, and 3% of the total job opening in these states respectively.

Around 4 million vacancies in October were for full-time work as compared to 1.6 million vacancies for part-time work. This indicates a strong inclination towards permanent employment in the labor market.

California, Texas, Florida, and New York have the most number of full-time job vacancies, with Canada’s being almost double of New York’s at 404,974. These 4 states are also leading in terms of vacancies for part-time work. With similar trends being followed in this category.

Expected Candidates’ Experience and Vacancies

Vacancies in October varied between requiring no experience to some experience. The statistics show that the labor market is welcoming to new job-seekers which is a positive sign for the economy.

The biggest chunk of jobs created was in the entry-level division with 45 states having more than 80% of jobs classified as requiring no experience. October labor analysis report shows that 92% of the vacancies in Oklahoma and Maine were at the entry level. 

New York, Maryland, and Massachusetts are among the states that have more than 20% of the total openings requiring more than 2 years of work experience. Countrywide 82.5% of vacancies were at the entry level whereas 18.6% of jobs required more than 2 years of experience.

It goes without saying that depending on the industry, jobs requiring work experience are higher paying than entry-level jobs in general. But, considering a weak labor market during and after the pandemic, the current statistics are encouraging. 

This statistic too is in line with the JOLTS labor market analysis example. Layoffs and hiring freeze primarily happened in the lower-rung of the employment strata. Now as the pandemic slowly passes us, these vacancies are ripe to be filled.