Actalent Labor Market and Economy Report: A Look at Trends in November 2024

Executive Summary

Job Growth

The U.S. economy added 227,000 jobs in November. Employment continued to trend up in health care (+53,600), leisure and hospitality (+53,000), government (+33,000) and social assistance (+18,700). This jobs report marks a return to normalcy after impacts from hurricanes in the southeast and an aerospace worker strike resulted in a weak report in October. October’s employment change was revised up from +12,000 to +36,000.

Other industries Actalent supports experienced the following job growth and loss last month: aerospace and defense (-36,400), architecture and engineering (+10,400), automotive (-400), construction (+10,000), manufacturing (+22,000), scientific research and development (+1,000) and utilities (-100).

Unemployment and Labor Force Participation

The unemployment rate increased slightly from 4.1% to 4.2% between October and November. The labor force participation rate fell slightly from 62.6% to 62.5%.

Unemployment rates specific to the industries Actalent supports were as follows for November: hospitals (1.6%), utilities (1.5%), professional and technical services (3.0%), manufacturing (3.4%), and construction (4.2%). 

Among skilled labor categories Actalent sources talent for, unemployment in software-IT-mathematics was 2.5%; architecture and engineering was 2.1%; and sciences (life, physical and social) was 2.1%.

Inflation

The year-over-year inflation rate increased by 2.7% between November 2023 and November 2024, slightly above October’s reading of 2.6%. “Core” inflation — the consumer price index for all items minus food and energy (two volatile categories) — increased by 3.3% year-over-year. Core inflation has remained above 3.0% throughout 2024, indicating that inflation may not be decelerating as quickly as policymakers would like. Federal Reserve Chair Jerome Powell has made it clear that the Fed is not in a rush to lower interest rates and will act carefully regarding future rate cuts.

Wage Growth

Average hourly earnings increased by 4.0% for the 12 months ending November, unchanged from the increases recorded in September and October. “Real” average hourly earnings (wages adjusted for inflation) increased by 1.3% between November 2023 and November 2024. In other words, average hourly earnings are keeping up with inflation, but consumers may still be feeling the pressure of higher prices.