After May’s sharp slowdown, June bolted back strong with the highest monthly figure seen in eight months.
Employment growth returns with strength after a very weak May
June saw 287,000 net new jobs added to the U.S. labor market, a return to healthy growth after a weak May that saw gains revised downward to just 11,000 jobs. This is the highest monthly figure in eight months and will be reassuring to decision makers such as the Federal Reserve.
Metro areas have minimal slack, which could hinder further gains in 2016 and 2017
Many metro areas are posting unemployment below 4.0 percent. As a result, we have seen and expect further gradual slowdowns in the rate of job growth in hot markets as employers run up against talent shortages. Accelerated job and office occupancy growth is likely in diversified markets before they too reach similar tightness.
Wage growth is up and benefits from continued low inflation
Annual wage growth rose by 10 basis points to 2.6 percent, led by information and a number of non-office industries. Wage growth has decoupled from job creation, with the rate of the former rising as the latter flatlines.
For a thorough analysis, click through the report on SlideShare.