JOBS DAY: Healthy Job Growth Returns While Wage Growth Remains Slow

May 8, 2015

The latest jobs numbers from April are out from the federal government. What do they mean for job seekers and employers? Here’s a quick take from Glassdoor’s Chief Economist Dr. Andrew Chamberlain:

Today’s positive jobs report shows that the slowdown in March was a bump in the road during a long journey to recovery. With 223,000 new jobs created in April and the unemployment rate down to 5.4 percent—the lowest jobless rate in seven years—the April jobs report indicates we’re still on track toward the strongest job market in a generation.

Earlier this week, we predicted a return to healthy job growth and a drop in unemployment, both of which were evident in today’s jobs report. One lingering concern is the slow pace of wage growth. This month, there was mild evidence of wage gains, with average hourly wages up 2.2 percent from a year ago. As labor markets continue tightening in the coming months, be on the lookout for a pick up to 2.5-2.8 percent wage growth by the end of 2015.

The fastest growing job markets last month were in three sectors: professional services (+62,000 jobs), education and healthcare (+61,000 jobs), and construction (+45,000 jobs). These gains in construction jobs are especially good news, as they indicate strong optimism for the economy’s prospects over the next year. In the coming months, we’ll be keeping our finger on the economy’s pulse using Glassdoor’s unique database of real-time jobs data.

To speak with Dr. Chamberlain about today’s jobs report or to discuss labor market trends, contact pr@glassdoor.comWant more economics and labor market updates? Follow @adchamberlain for the latest.