Private Employment Still Strong

The U.S. labor market is still strong, exhibiting no apparent signs of a recession.

According to the Bureau of Labor Statistics, private-sector employment in September stood at 130.7 million, up 5,264,000 or 4.2 percent since September last year. Percentage-wise, this is the second-highest increase in private sector employment in at least 15 years. The only higher figure for September was in 2021.

September employment is 1,869,000 or almost 1.5% above where it was in 2019, the last year before the pandemic-related economic shutdown.

In total, private-sector employees earned $146.1 billion per week in September, $13.5 billion or 9.3 percent higher than in  September 2021. This is also the second-highest increase in at least 15 years, surpassed only by the 9.6-percent increase in September last year. 

For comparison, the strongest total weekly earnings number for the month of September during the recovery from the Great Recession, was in 2012 when they increased by 6.3 percent. 

With work hours remaining unchanged at 34.5 per week for the third consecutive year (month of September), the increase in per-employee weekly earnings is entirely due to rising hourly wages. In September this year, that number stood at $32.40, up by 4.9 percent from last year's $30.88.

The increase in the hourly rate is the highest in at least 15 years, again for September. With last year's figure at 4.8 percent, it is unlikely that this year's increase is motivated primarily by inflation. It likely reflects attempts by employers to attract more workers; it appears to be out of reach for many employers to also compensate their workers for inflation.