Job growth surged in January as employers added 304,000 positions. That number is well above what most economists had expected. It also marks the 100th straight month of payroll expansion.
The following industries led job growth in January, according to the BLS:
- Leisure and hospitality — 74,000 jobs added
- Education and health services — 55,000 jobs added
- Construction — 52,000 jobs added
- Professional and business services — 30,000 jobs added
- Transportation and warehousing — 26,600 jobs added
Revised numbers from the Bureau of Labor Statistics (BLS) show that overall job growth in 2018 was more than 2.6 million.
Unemployment at 4.0 percent
The national unemployment rate rose to 4.0 percent in January, up from 3.9 percent in December. The recent federal government shutdown contributed to the increase, according to the BLS. Nevertheless, the unemployment rate remains near historic lows.
The unemployment rate for college-degreed workers who are 25 or older — the professionals who are in the highest demand by employers — also rose last month. It was 2.4 percent in January, up from 2.1 percent in December.
What employers need to know
If your business is falling short of its recruitment goals, the tight employment market may only be partly to blame. Another possibility is that your hiring requirements are too stringent.
You should apply high standards when hiring talent for your firm, of course. But you must be careful not to set the bar so high that you overlook promising applicants who could do the job but may not meet all your must-have requirements. You also risk deterring skilled candidates from even applying.
When creating your job posting and evaluating applicants, carefully select the skills and attributes that a professional absolutely needs to perform the job well. Remain flexible on everything else. This can help shorten how long it takes to hire.
It’s also worth enlisting the help of a recruiter, who can dig deep into a candidate’s qualifications and assess other important hiring factors, like organizational culture fit.
Recruiters may also know of professionals who would be ideal for your team but whom you might have overlooked. These candidates may need only a little training and extra ramp-up time to succeed.
