March fell below expectations with 98,000 net new jobs, but unemployment dropped to a cyclical low of 4.5 percent as labor-force expansion slowed.

1. National employment
situation: March 2017
April 7, 2017

2. March 2017 U.S. labor market at a glance
2
+98,000
(78 consecutive months
of growth)
1-month net change
+2,185,000
(+1.5% y-o-y)
12-month change
+795,000
10-year average annual growth
4.5%
Unemployment rate
5,626,000
(-1.5% y-o-y)
Job openings
-50bp
12-month change in unemployment
63.0%
Labor force participation rate
5,440,000
(+6.3% y-o-y)
Hires
3,220,000
(+11.3% y-o-y)
Quits
Source: JLL Research, Bureau of Labor Statistics

3. After two strong months, March disappoints
January and February both exceeded the 200,000-job threshold, while March fell well below expectations with only 98,000 net new jobs. A contraction in retail
trade and slowdowns in all major sectors with the exception of professional and business services (PBS) were the primary drivers of this, compounded by
volatility due to tightening and employment growth continuing to exceed the rate of labor-force expansion. Although March’s monthly growth did not meet
consensus figures, the broader trend remains positive and future months will dictate whether this is an anomalous month or a broader shift in growth rates.
Unemployment drops, but slack is beginning to run out
Counter to job growth, unemployment metrics improved once again, with the unemployment rate dropping by another 20 basis points to a cyclical low of 4.5
percent. Total unemployment fell below the 9.0-percent threshold for the first time since 2007 and now stands at 8.9 percent. With unemployment already low,
the slowing rate of labor-force expansion (0.5 percent annually compared to total non-farm job growth of 1.5 percent) will present a challenge for employers
seeking to increase headcounts, particularly as unemployment for bachelor’s-degree holders remains steady at 2.5 percent.
Confidence is up even as inflation ramps up
The consumer confidence index spiked in March to 125.6 points, its highest figure since 2000. Business confidence metrics have also showed optimism,
indicating further economic growth ahead. The acceleration in inflation to 2.7 percent – now at the same rate as wage growth – may begin to affect consumer
spending, however, but tightening labor-market conditions will likely push wages up further.
March 2017 U.S. labor market highlights
3Source: JLL Research, Bureau of Labor Statistics

4. 360,000
226,000
243,000
96,000
110,000
88,000
106,000
122,000
221,000
183,000
164,000
196,000
360,000
226,000
243,000
96,000
110,000
88,000
160,000
150,000
161,000
225,000
203,000
214,000
197,000
280,000
141,000
203,000
199,000
201,000
149,000
202,000
164,000
237,000
274,000
84,000
166,000
188,000
225,000
330,000
236,000
286,000
249,000
213,000
250,000
221,000
423,000
329,000
221,000
265,000
84,000
251,000
273,000
228,000
277,000
150,000
149,000
295,000
280,000
262,000
168,000
233,000
186,000
277,000
24,000
271,000
252,000
176,000
208,000
135,000
164,000
155,000
216,000
219,000
98,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2011 2012 2013 2014 2015 2016 2017
1-monthnetchangeAfter a strong start to 2017, March saw only 98,000 net
new jobs, while downward revisions hit Jan. and Feb.
Source: JLL Research, Bureau of Labor Statistics 4

5. 0%
2%
4%
6%
8%
10%
12%
-1,000
-800
-600
-400
-200
0
200
400
600
Unemploymentrate(%)
1-monthnetchange(thousands)
1-month net change Unemployment rate
Unemployment fell to its lowest rate this cycle (4.5
percent) on the back of further labor-market tightening
5Source: JLL Research, Bureau of Labor Statistics

6. 2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
Jobopenings(thousands)Job openings show modest increase over the month,
surpassing 5.6 million
6Source: JLL Research, Bureau of Labor Statistics

7. 2.1%
2.3%
2.9%
3.0%
3.4%
3.9%
4.3%
4.5%
4.7%
5.2%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Construction
Mining and logging
Manufacturing
Information
Trade, transportation and utilities
Other services
Leisure and hospitality
Financial activities
Education and health
Professional and business services
Job openings rate (%)
The rate of job openings across sectors has remained
largely stable, although financial activities has risen
7Source: JLL Research, Bureau of Labor Statistics

8. -3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Wage growth Inflation
Inflation has now caught up with wage growth, which
may begin to squeeze consumer spending
8Source: JLL Research, Bureau of Labor Statistics

9. 1.8%
1.9%
1.9%
2.1%
2.4%
2.5%
2.6%
3.5%
4.0%
4.4%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
Education and health
Trade, transportation and utilities
Mining and logging
Financial activities
Construction
Manufacturing
Other services
Professional and business services
Information
Leisure and hospitality
12-month wage growth (%)
Office-using sectors registered above-average rates of
wage growth after a temporary slowdown
9Source: JLL Research, Bureau of Labor Statistics

10. 62%
63%
63%
64%
64%
65%
65%
66%
66%
67%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%changeThe labor force participation rate showed no sign of
change in March at 63.0 percent
10Source: JLL Research, Bureau of Labor Statistics

11. -6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Civilian labor force Employment
The rate of labor force expansion continues to slow,
posing further difficulty for employers
11Source: JLL Research, Bureau of Labor Statistics

12. -29.7
-3.0
-0.7
-0.4
0.0
1.0
3.0
3.5
6.0
9.0
9.0
9.0
10.5
11.0
11.0
11.0
16.0
16.7
56.0
-40 -30 -20 -10 0 10 20 30 40 50 60 70
Retail trade
Information
Utilities
Wholesale trade
Nondurable goods
Other services
Motor vehicles and parts
Transportation and warehousing
Construction
Financial activities
Government
Leisure and hospitality
Temporary help services
Mining and logging
Durable goods
Manufacturing
Education and health services
Health care and social assistance
Professional and business services
1-month net change (thousands)
Professional and business services was the only major
sector that did not record a slowdown in March
12Source: JLL Research, Bureau of Labor Statistics

13. -32.0
-1.5
1.0
3.0
9.3
36.0
37.0
46.4
54.0
58.5
88.7
110.2
152.0
177.0
178.0
258.0
437.0
527.0
639.0
-100 0 100 200 300 400 500 600 700
Information
Utilities
Durable goods
Mining and logging
Motor vehicles and parts
Nondurable goods
Manufacturing
Wholesale trade
Other services
Retail trade
Transportation and warehousing
Temporary help services
Government
Construction
Financial activities
Leisure and hospitality
Health care and social assistance
Education and health services
Professional and business services
12-month net change (thousands)
Mining and logging has returned to growth on an
annual basis after a sharp contraction
13Source: JLL Research, Bureau of Labor Statistics
639.0
527.0258.0
178.0
58.5
487.5
PBS Education and health
Leisure and hospitality Financial activities
Retail trade Manufacturing
All other jobs
Core subsectors added 77.7 percent of all
jobs over the past 12 months.

14. 0%
1%
2%
3%
4%
5%
6%
12-month%changeUnemployment for bachelor’s degree holders at 2.5
percent, consistent with 2015 levels
14Source: JLL Research, Bureau of Labor Statistics

15. -300
-250
-200
-150
-100
-50
0
50
100
150
200
2009 2010 2011 2012 2013 2014 2015 2016 2017
1-monthnetchange(thousands)
Professional and business services Financial activities Information
A third consecutive month of contraction in information
is beginning to drag down office-using growth
15Source: JLL Research, Bureau of Labor Statistics

16. -10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12-month%change
Tech Energy, mining and utilities Office-using Total non-farm
Tech’s slight bump to 4.9-percent growth held up, but
remains below 2015 highs
16Source: JLL Research, Bureau of Labor Statistics

17. 200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
Initialunemploymentclaimsperweek
Intial weekly claims 4-week moving average
Initial unemployment claims remain on a downward
trend despite already being at cyclical lows
17Source: JLL Research, U.S. Department of Labor

18. 0
20
40
60
80
100
120
140
ConsumerconfidenceindexConsumer confidence is soaring even as inflation rises
and now strongly exceed their previous peak
18Source: JLL Research, Conference Board

19. All metro areas exceeding 3.0-percent job growth
except for Salt Lake City are in the Sun Belt
19
3.1%
3.2%
3.6%
3.7%
3.9%
3.9%
4.3%
2.5% 3.0% 3.5% 4.0% 4.5%
Salt Lake City
Charlotte
Atlanta
Dallas
Jacksonville
Nashville
Orlando
12-month % change
Source: JLL Research, Bureau of Labor Statistics

20. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
12-month%change
Total unemployment 10-year average
Total unemployment dropped to 8.9 percent, the first
time below 9.0 percent since 2007
20Source: JLL Research, Bureau of Labor Statistics

21. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 21
Phil Ryan
Phil.Ryan@am.jll.com
202 719 6295