December 2024 Market Trends Report
After a dramatic slowdown in October hiring (with only 12,000 jobs added), the U.S. labor market regained its momentum, adding 227,000 jobs in November, according to the U.S. Bureau of Labor Statistics’ (BLS) Employment Situation Summary.
October job gains were sparse due to downstream impacts from the hurricanes and labor strikes at Boeing and in the hospitality industries. Thankfully, those disruptions are behind us as evidenced by the rebound in November job gains.
Overall, the labor market has shown durability throughout the year. It has proven capable of weathering the many storms 2024 has brought — from extreme weather events and strike activity to geopolitical conflict and recession fears. However, both sides of the employer-employee coin must be weighed.
On the employee and job seeker side, unemployment has increased month over month — hitting 4.2% in November. (It’s worth noting that an unemployment rate around 4% is historically low.) Nonetheless, it has steadily climbed since its annual low of 3.7% in January, and the number of unemployed people (7.1 million) is greater than last year when 6.3 million were without jobs.
Although the labor market is relatively strong, it has produced a challenging environment for people to find work. In our recent Job Seeker Survey, 63% of the 1,677 people we polled say they feel the hiring process has slowed down, and 43% are needing to submit 26–100+ applications before getting hired.
“The labor market is healthy even though it is, in the long term, trending in an unhealthy direction,” Noah Yosif, chief economist for American Staffing Association stated in an interview with CNN. “What we’re seeing is really a K-shaped duality of outcomes for the labor market: It’s good if you have a job, but it’s very, very difficult if you don’t have a job.”
Jobs Market Overview: November 2024
4.2%
Overall unemployment rate
Unemployment increased a percentage point since last month and is up 0.6% since January's 3.7% rate.
227k
Jobs added
Last month’s job gains surpassed economists’ expectations and exceeded last year’s November hires.
62.5%
Labor force participation rate
Labor force participation decreased slightly month over month, remaining within its narrow range of 62.4%–62.8% since January 2023.
Industry Employment Trends
OVERALL ECONOMY
+227k
Monthly job change
(+2.3k year over year)
| Industry | Monthly Job Change | YoY Difference |
| Manufacturing | +22k | -61k |
| Automotive | -0.4k | +0.6k |
| Warehousing & Storage | -1.4k | -0.1k |
| Architectural & Engineering | +10.4k | +43.9k |
| Construction | +10k | +211k |
Source: Bureau of Labor Statistics' Economic News Release
Sector by Sector News: November 2024
Manufacturing Jobs Report
November Manufacturing PMI: 48.4%*
*A PMI reading below 50% suggests economic activity is contracting.
Manufacturing Monthly Employment Change: +22,000 jobs
2024 has brought a challenging business climate for the manufacturing industry. According to the Institute for Supply Management (ISM), economic activity contracted in November for the 24th time in the last 25 months.
This decline is reflected in the ISM’s Employment Index, which narrowed for the sixth consecutive month — and 13 times in the last 14 months.
Although the industry as a whole added 22,000 jobs in November, the month-over-month increase in employment did not replace the 48,000 jobs lost in September. (The vast majority of losses were due to Boeing strikes within the transportation equipment sector.)
Respondents to the ISM survey state cautious sentiment within manufacturing, highlighting weak demand. While some businesses express optimism about future growth, many report challenges such as decreased demand and hesitance to invest in inventory, reflecting a complex economic landscape.
Construction Jobs Report
Construction Monthly Employment Change (Overall): +10,000 jobs
Over the past year, construction employment has increased steadily (at nearly twice the rate of the broader economy), with year-over-year growth of 211,000 jobs.
According to Associated Builders and Contractors, all construction sectors saw employment increases in November (+10,000 jobs overall) with the exception of nonresidential building.
Construction Sector Monthly Employment Changes:
- Nonresidential: +6,800 jobs
- Nonresidential building: -1,700 jobs
- Nonresidential specialty trade contractors: +7,000 jobs
- Heavy and civil engineering: +1,500 jobs
- Residential: +3,100 jobs
Confidence in the industry remains high, with firms and general contractors hiring and raising pay rates (up 4.1% from last year) to keep projects on track and meet increased demand.
Warehousing & Storage Jobs Report
November Logistics Managers' Index (LMI): 58.4*
*A LMI above 50 indicates that logistics metrics are expanding.
Warehousing & Storage Monthly Employment Change: -1,400 jobs
Employment in warehousing and storage declined for the second consecutive month, with a loss of 1,400 jobs in November. However, the Logistics Managers' Index (LMI) shows growth within the industry for the past twelve months.
While job growth remains sluggish, there are signs of optimism for future growth (in spite of possible incoming tariffs that could impact global supply chains).
LMI survey respondents predict overall index expansion in the coming year thanks to positive consumer sentiment and favorable dynamics in the broader U.S. economy.
According to LMI:
Growth is increasing at an increasing rate for:
- Inventory costs
- Warehousing capacity
- Warehousing prices
- Transportation capacity
- Transportation utilization
Growth is increasing at a decreasing rate for:
- Inventory levels
- Warehousing utilization
- Transportation prices