Staffing Stats

October U.S. Jobs Report: Key Insights for Staffing Leaders

(Based on data available prior to the federal government shutdown)

1. Federal Shutdown Delays Official Data

2. Job Openings Still Elevated, But Mixed by Sector

• Total openings (August): 7.23 million, a slight 0.3% increase from July.
• Top sectors hiring:
  • Health Care & Social Assistance: 1.38M openings
  • Professional & Business Services: 1.24M openings
• Biggest changes:
  • Leisure & Hospitality: +97K openings
  • Construction: -115K openings (sharpest decline at -38%)

Interpretation: Hiring demand remains steady but uneven. Healthcare continues to lead, while cyclical sectors like construction are cooling.

3. Regional Employment Picture

• States with the most job openings:
  • California (757K)
  • Texas (554K)
  • New York (426K)
• Fastest-growing job markets:
  • Utah (+0.47%), Oregon (+0.35%), Wisconsin (+0.28%)
• Largest job losses:
  • New York (-16.1K), Illinois (-13.3K), Washington (-10.5K)

Sector note: Texas gains came largely from Leisure & Hospitality, Health Care, and Government, other sectors saw declines.

4. Temporary & Staffing Industry Signals

• SIA | Bullhorn Staffing Indicator:
  • Down 4% year-over-year, but trending upward in recent weeks.
  • Temporary staffing hours have reached new year-to-date peaks.
  • However, September’s data likely show a modest decline in temp employment (seasonally adjusted).

Takeaway: Employers remain cautious about permanent hires but are leaning on temporary and contract staffing to maintain flexibility.

5. Alternative Labor Market Indicators

• Chicago Fed Nowcast: Unemployment steady at 4.34%, signaling a stable labor market.
• ADP Employment Report:
  • Headline figure: -32K jobs (due to benchmark adjustments).
  • Adjusted figure: +11K net new private jobs.
  • Growth concentrated in Health Care, Education, and Natural Resources.
  • Declines in Leisure, Hospitality, and Professional Services.

Insight: The labor market is cooling but not contracting. Job creation remains narrowly concentrated.

6. Shutdown and Upcoming Data Anomalies

• Historical pattern: Shutdowns have minimal, short-lived economic effects.
• However, federal layoffs and project disruptions could impact some firms’ cash flow temporarily.
• Important: October’s employment data (released November 7) will include an artificial -150,000 decline, caused by federal employee buyouts, not true job losses.

7. What This Means for Staffing & Business Leaders

Focus sectors: Healthcare, education, and government-related services remain resilient.
Watch for: Delays in hiring decisions, longer fill times, and cautious spending patterns.
Opportunity: Businesses may turn to temporary staffing or outsourced solutions to stay agile amid uncertainty.
Next data to watch: November 7 BLS report, expected to show temporary distortion due to federal transitions.

Stay informed with Scale Funding, a leader in invoice factoring and staffing industry support since 1994. Our deep expertise helps staffing firms navigate changing market conditions, manage cash flow, and seize new growth opportunities. As labor trends evolve, Scale Funding keeps you up to date on the latest staffing news, employment data, and financial insights, so your business can stay agile, competitive, and ready for what’s next.