Employment in the Cleveland-Akron metropolitan area was up by 8,017 jobs in January, recovering from a decline in December, according to an estimate from the Ahola Crain’s Employment (ACE) Report.
Seasonally adjusted, the region saw employment rise to 1,179,851 from 1,171,834 a month earlier, a 0.68% increase. Most of the growth, 6,900 jobs, was in the service sector, though the goods producing sector saw a rise of 1,196 jobs. In December, the region lost 1,879 jobs.
The estimates also show a 0.35% increase over the number of people working a year earlier, an increase of 4,102 jobs.
“January’s employment estimates exceeded both the three-month and six-month average,” said Jack Kleinhenz, the Cleveland Heights economist who created the ACE model. “The pace of job creation suggests that growth in regional economic activity appears to be at a modest pace early in 2017.”
Kleinhenz attributed that optimism to key regional and national trends affecting the estimates. He said unemployment claims for the region decreased by 20% compared with the like month a year ago, and, nationally, construction and retail sales both show growth.
Despite the occasional month-to-month wobble, employment in the region has been rising steadily, if slowly. Since January 2013, the region’s seasonally adjusted employment has grown by 30,654 jobs, a 2.67% increase. During the same time period, the unemployment rate has dropped from 7.8% to 5.1%, according to the Ohio Department of Jobs and Family Services.
That labor market tightening may be putting pressure on wages to rise. Wal-Mart Stores Inc., for example, said in late January that it would shrink a training program that new employees must complete to earn $10 an hour to three months from six months. Two years ago, the company increased its minimum wage to $9 an hour.
More broadly, the Society for Human Resource Management reported at the end of January that wages are forecast to grow by an average of 3.2% year over year during the first quarter of 2017. Over 2016, the federal Bureau of Labor Standards reported, the average hourly wage grew by 2.9%.
Glassdoor, the online job site, reported on Jan. 31 that annual median base pay hit 3.2%.“The tight U.S. labor market continues to drive wages up in many cities across the country,” said Glassdoor chief economist Andrew Chamberlain in a news release. Glassdoor labor market reports, he said, “show a picture of a strong labor market.”
SEASONALLY ADJUSTED DATA
Month | Non-Farm | Small (1-49) | Mid-Sized (50+) | Goods-producing | Service Producing |
---|---|---|---|---|---|
June 2016 | 1,167,272 | 475,237 | 692,035 | 211,159 | 956,113 |
July (est) | 1,175,426 | 478,218 | 697,208 | 217,488 | 957,938 |
Aug (est) | 1,171,406 | 476,740 | 694,667 | 214,497 | 956,909 |
Sept (est) | 1,170,029 | 476,266 | 693,763 | 213,003 | 957,026 |
Oct (est) | 1,173,327 | 477,567 | 695,759 | 214,185 | 959,142 |
Nov (est) | 1,174,185 | 477,878 | 696,306 | 214,891 | 959,294 |
Dec (est) | 1,171,834 | 476,901 | 694,934 | 214,765 | 957,070 |
Jan (est) | 1,179,851 | 480,192 | 699,659 | 215,821 | 964,031 |
Recent Month’s Estimated Change
Month | Non-Farm | Small (1-49) | Mid-Sized (50+) | Goods-producing | Service Producing |
---|---|---|---|---|---|
Dec ’16 to Jan ’17 | 8,017 | 3,291.49 | 4,725 | 1,056 | 6,961 |
Diff from Jan 2016 | 4,102 | 1,733 | 2,369 | (160) | 4,262 |
Trend
Date | Non-Farm | Small (1-49) | Mid-Sized (50+) | Goods-producing | Service Producing |
---|---|---|---|---|---|
3-month | 1,175,290 | 478,324 | 696,967 | 215,159 | 960,131 |
6-month | 1,173,439 | 477,591 | 695,848 | 214,527 | 958,912 |
By JAY MILLER
February 24, 2017