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US loses 17,200 temp jobs in November, temp penetration rate falls

December 02, 2022

The US lost 17,200 temporary jobs in November from October to total temp jobs of about 3.1 million, the US Bureau of Labor Statistics reported today.

Total nonfarm employment rose in November with the US gaining 263,000 jobs, bringing the number of jobs to more than 153.5 million. The increase was roughly in line with average growth over the prior three months of 282,000 jobs and exceeded the increase of 200,000 forecast in a Dow Jones survey of economists. Monthly job growth has averaged 392,000 thus far in 2022, compared with 562,000 per month in 2021.

The temp penetration rate — temp jobs as a percentage of total employment — fell to 2.02 in November from 2.04 in October.

“Despite the surprisingly buoyant headline about the number of jobs created in November, the latest data reflects a gradual softening in the labor market,” said SIA President Barry Asin. “With temporary help employment growth now at 2.4% year over year, down from double-digit growth earlier in 2022, we continue to expect slower growth ahead. All of this will be moderated by the intense labor shortage that is likely to continue for the foreseeable future.”

The bureau also reported the US unemployment rate remained at 3.7% in November, unchanged from October; it has been in a narrow range of 3.5% to 3.7% since March. The college-level unemployment rate edged upward to 2.0% in November from 1.9% in the previous month.

Notable job gains occurred in leisure and hospitality, which added 88,000 jobs in November, including a gain of 62,000 in food services and drinking places; healthcare, up 45,000 jobs; and government, which rose by 42,000 jobs. So far in 2022, healthcare employment has increased by an average of 47,000 per month, compared a monthly average of 9,000 in 2021.

Employment declined in retail trade and in transportation and warehousing, down by 30,000 and 15,000 jobs respectively.

Both the labor force participation rate, at 62.1%, and the employment-population ratio, at 59.9%, were little changed in November and have shown little net change since early this year.

For more coverage of the job report, download an analysis by Staffing Industry Analysts.