Job growth continues to accelerate into the fall and winter as November 2014 saw 321,000 net new jobs (preliminary) added on a seasonally-adjusted annualized rate. That was the seventh best month of job growth in the past 10-years. The last time there was a greater number of new jobs created in a month was March 2009, which was effectively an artificially unsustainable gain driven by a temporary stimulus package totaling almost $1 trillion.
The following graph shows the monthly change in the number of jobs since 2004.
The country has created an average 228,000 net new jobs per month in the prior 12 months. This is the best level of job growth since March 2006 (239,000 average monthly job gain) and the second highest monthly average in the past 10 years. The following graph shows the 12-month moving average change in jobs.
Other details in the November job release include:
- U.S. added 2.734 million net new jobs in the prior 12 months, the most since March 2006
- U.S. job growth rate in the prior 12 months was 1.99 percent
- Long-term unemployed (jobless for 27 or more weeks) totaled 2.8 million in November and made up 30.7 percent of total unemployment
- Number of Americans classified as Not in the Workforce has increased by 13.209 million since January 1, 2008 (the start of the last recession)
- 27.77 million people are employed part-time and typically work less than 35 hours per week
- 6.9 million workers in November were employed part-time and are known as Involuntary Part-Time Workers since they prefer full-time jobs but either had their hours cut or cannot find a full-time job
- 2.1 million people were classified as Marginally Attached to the Labor Force – they have looked for a job in the prior 12 months, are available to work, want work, but are not counted as unemployed since they have not searched for a job in the prior four weeks
- 698,000 of those classified as Marginally Attached to the Labor Force are further delineated as Discouraged Workers – they no longer look for a job since they believe no jobs are available for them
- Manufacturing added 28,00 jobs in November totaling 171,000 new jobs in the past 12 months
- Health care gained 29,000 jobs in the month and 261,000 in the past full year
- Jobs in retail trade were up 50,000 in November and have averaged 22,000 per month in the past year
- Professional and business services added 86,000 jobs in November with an average gain of 57,000 per month in the prior 12 months
- Transportation and warehousing has added 143,000 jobs in the past 12 months with 17,000 in November
- The leisure and hospitality segment grew by 32,000 last month and 377,000 in the past year
- Food services and drinking places jobs were up 27,000 in November with a net 321,000 increase in the prior 12 months
- Construction employment, up 20,000 in November, has grown by 213,000 in the past year
- Government employment (local, state and federal) was up 7,000 in November and 77,000 for the full year
This adds up to a material increase in the demand for all types of real estate heading in to 2015. No place but up for rents, real estate prices and interest rates.