Job Growth Tempers in September; Industrial Sector Continues to Outperform
- Hiring slows again in September. The complete expiration of federal unemployment insurance did not translate into accelerated job growth last month as the health crisis continued to present
- Demand for industrial spaces and employees to fill them rises. In contrast to other segments of the economy, the trade, transportation and utilities sector has already surpassed its pre-pandemic
headcount and continues to grow.
- Vaccine requirements constrain onboarding. After previous strong growth, hiring at bars and restaurants shifted minimally in September. Despite reopenings, some people continue to be wary
of dining out, while New York and Los Angeles now require proof of vaccination from patrons, limiting visits.
- Decisions to not work shrink labor force. While the unemployment rate fell to a new pandemic period low of 4.8 percent, part of the decline can be attributed to a contraction in the size of the
civilian labor pool.
- Higher wages and other costs impacting company operations. Although hiring slowed last month, shortages in many key positions remain, adding upward pressure to wages.
Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics