Buried in the details of the May Employment Situation Summary released by the Department of Labor last Friday, was the fact that professional and business services accounted for 57,000 of the 175,000 jobs added, or roughly, one third of all new jobs created. Take an even closer look and you’ll see that 35,000 of the new jobs were in lower paying administrative and support services while 18,200 of the job increase tended towards the generally higher-paying areas of professional and technical services, such as architectural and engineering services, computer system services, management consulting and accounting.
During the three month period that ended in May, every major subcategory within the professional and business services sector has shown growth (with the exception of waste management and remediation services). While there has been a decline in federal government jobs as well as choppiness in the manufacturing industries, it looks to us that a slow and steady job recovery is occurring in professional and business services, which would square with what we are seeing, anecdotally in our consulting practice. Could this be an early indicator of more good news to come for our economy? We’ll definitely stay tuned.