Workspan Daily News Bytes for Nov. 1, 2024

U.S. Economy Added a Meager 12,000 Jobs in October

American jobs creation in October grew at its weakest rate since December 2020, according to employment data released Friday, Nov. 1, by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). Employers added 12,000 jobs, far below the 100,000 that economists had predicted for the month. Hurricanes in the Southeast and the Boeing labor impasse were primary factors impacting the jobs market.

The unemployment rate, though, held at 4.1%, which was in line with expectations. A broader measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons also was unchanged, at 7.7%.

In addressing Hurricane Helene (which made landfall on Florida’s Gulf Coast on Sept. 26) and Hurricane Milton (which struck Florida on Oct. 9), the BLS report called out the likely impacts of shuttered businesses and evacuations on payroll employment estimates, but added, “It is not possible to quantify the net effect on the over-the-month change in national employment, hours or earnings estimates because the establishment survey is not designed to isolate effects from extreme weather events.”

In addressing the Boeing strike, the BLS said the impasse likely subtracted 44,000 jobs in the manufacturing sector, which lost 46,000 positions overall during the month.

Across other industries, the BLS said:

Healthcare added 52,000 jobs, in line with the average monthly gain of 58,000 over the prior 12 months. Over the month, employment rose in ambulatory healthcare services (+36,000) as well as nursing and residential care facilities (+9,000).
Employment in government continued its upward trend in October (+40,000), similar to the average monthly gain of 43,000 over the prior 12 months. Over the month, employment continued to trend up in state government (+18,000).
Within professional and business services, employment in temporary help services declined by 49,000 in October. Temporary help services employment has decreased by 577,000 since reaching a peak in March 2022.
Employment in construction changed little in October (+8,000). The industry had added an average of 20,000 jobs per month over the prior 12 months. Over the month, nonresidential specialty trade contractors added 14,000 jobs.
Employment showed little or no change over the month in other major industries, including mining, quarrying, and oil and gas extraction; wholesale trade; retail trade; transportation and warehousing; information; financial activities; leisure and hospitality; and other services.

In October, average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents, or 0.4%, to $35.46. Over the past 12 months, average hourly earnings have increased by 4.0%. In October, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4%, to $30.48.

The average workweek for all employees on private nonfarm payrolls remained at 34.3 hours in October. In manufacturing, the average workweek was little changed at 39.9 hours, and overtime edged down by 0.1 hour to 2.8 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7 hours.

BLS: Compensation Costs Rose 0.8% During Most Recent Data Quarter

Compensation costs for U.S. civilian workers increased 0.8%, seasonally adjusted, for the three-month period ending in Sept. 2024, according to the latest Bureau of Labor Statistics (BLS) Employment Cost Index report, released on Thursday, Oct. 31. Wages and salaries increased 0.8% and benefit costs increased 0.8% from June 2024.

The BLS defines civilian workers as those working in private industry or state/local government.

During the 12-month period ending in Sept. 2024:

Compensation costs increased 3.9% (versus 4.3% for the 12-month period ending in Sept. 2023).
Wages and salaries increased 3.9% (versus 4.6%).
Benefit costs increased 3.7% (versus 4.1%).

For private-industry workers, during that 12-month span:

Compensation costs increased 3.6% (versus 4.3%).
Wages and salaries increased 3.8% (versus 4.5%).
The cost of benefits increased 3.3% (versus 3.9%).
Inflation-adjusted (constant dollar) wages and salaries increased 1.2%.

Within private industry by bargaining status, compensation costs increased 5.8% for union workers and 3.4% for non-union workers during that span. Breaking it down:

Wages and salaries increased 6.4% for union workers and 3.6% for non-union workers.
Benefit costs increased 4.9% for union workers and 3.1% for non-union workers.

Compensation costs for state and local government workers increased 4.7% for the 12-month period ending in Sept. 2024 (versus 4.8%). During that span:

Wages and salaries increased 4.6% (versus 4.8%).
Benefit costs increased 4.8% (versus 4.7%).

Hospital Price Increases Have Surged More Than 220% Since 2000

Hospital service prices surged more than 220% between 2000 and 2022, according to a recent report from Rice University’s Baker Institute for Public Policy. Institute data showed this surge in prices outpaced other medical services (130%) and overall inflation (74.4%).

While hospitals attribute rising prices to increased operating costs — particularly due to labor shortages from the pandemic — evidence pointed out hospital prices have consistently risen faster than other medical services since 2006, according to the report’s authors.

According to a press release, the report compared commercial operating costs, net patient revenue from commercial patients and commercial operating profits of hospitals with different price levels to examine if higher prices are charged to cover higher costs or to generate higher profits. It examined both outpatient and inpatient services across 1,715 hospitals.

Iceland Has Embraced Shorter Workweek

As reported by CNN, Iceland’s economy is outperforming most European peers after the nationwide introduction of a shorter working week with no loss in pay.

According to research released Oct. 25, between 2020 and 2022, 51% of workers in the country had accepted the offer of shorter working hours, including a four-day week.

In two large trials between 2015 and 2019, public-sector employees in Iceland worked 35 to 36 hours per week, with no reduction in pay. Many participants had previously worked 40 hours a week. The trials involved 2,500 people — more than 1% of Iceland’s working population at the time — and were aimed at maintaining or increasing productivity while improving work-life balance. Following the trials, Icelandic trade unions negotiated reductions in working hours for tens of thousands of their members across the country.

The Autonomy Institute in the United Kingdom and Iceland’s Association for Sustainability and Democracy noted that, in 2023, Iceland’s economy increased at a rate faster than most European countries in 2023 and its 3.56% unemployment rate was among the lowest in Europe.

Starbucks Tells Corporate Staff to Return to Office or Risk Getting Fired

Starbucks Corp. is telling its corporate staff they could be fired if they don’t come to work at the office three days a week, according to a report from Fortune and Bloomberg.

Starting in January, Starbucks will implement a “standardized process” to hold workers accountable if they don’t abide by the coffee chain’s return-to-office policy, according to a memo seen by Bloomberg. Consequences are “up to, and including, separation,” the email said.

Starbucks said its expectations for hybrid workers hadn’t changed and that vacation, sick time and business travel are excluded from the calculation. Workers can request an exemption from the mandate due to physical, mental, sensory impairment or another disability, the company said. The policy applies to about 3,500 corporate employees.

Report: 38% of Workers Have Never Asked for a Raise

FlexJobs recently surveyed more than 3,000 U.S.-based professionals to assess the state of their career goals and financial wellness and found 38% have never asked for a pay raise. Among workers who have requested raises:

57% only ask for a raise during performance reviews (31%) or once per year (26%).
Only 5% of survey-takers said they request a salary increase at least quarterly or every six months.

“Asking for a raise can be daunting, but it’s important to advocate for your worth in the workplace,” said Toni Frana, lead career expert at FlexJobs. “While there is no one-size-fits-all approach to how often to request a pay increase, remember that it is a critical part of any successful career strategy.”

As for wage growth versus wage stagnation:

43% of workers reported they did not get a raise or bonus last year.
Of the remaining 57% of respondents who did receive a pay raise, 41% said it was the same amount or less than what they normally receive.

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