Monthly employment growth surpassed the 200,000-mark for a second consecutive month in November, adding 228,000 jobs and countering hurricane-related pauses earlier in the year. Importantly, job growth is still taking place faster than the labor force is capable of expanding and with the participation rate not increasing, placing pressure on employers in primary, secondary and tertiary markets to expand their headcount.

1. National employment
situation: November 2017
December 8, 2017

2. November 2017 U.S. labor market at a glance
2
+228,000
(85 consecutive months of growth)
1-month net change
+2,071,000
(+1.4% y-o-y)
12-month change
+838,000
10-year average annual growth
4.1%
Unemployment rate
6,093,000
(+7.5% y-o-y)
Job openings
-60bp
12-month change in unemployment
62.7%
Labor force participation rate
4,922,000
(+2.3% y-o-y)
Hires
3,182,000
(+3.4% y-o-y)
Quits
Source: JLL Research, Bureau of Labor Statistics

3. Even with slow labor-force expansion, hiring continues apace
Monthly employment growth surpassed the 200,000-mark for a second consecutive month in November, adding 228,000 jobs and countering hurricane-related
pauses earlier in the year. Importantly, job growth is still taking place faster than the labor force is capable of expanding and with the participation rate not
increasing, placing pressure on employers in primary, secondary and tertiary markets to expand their headcount. Employment and labor force expansion are
now trending near-exact alignment, resulting in an environment in which job creation will only be able to match the number of new entrants into the workforce.
Retail trade saw a much-needed rebound in November; general trends staying the same over the year
After months of contractions resulting in negative annual growth, retail trade added a much-needed 18,700 jobs in November, which helped to bring the sector’s
12-month change to near-positive territory in percentage terms. Structural changes to retail, however, will keep traditionally one of the largest employers away
from being a driver of the labor market. Apart from retail, growth trends have been consistent throughout 2017, spurred by continued activity in professional
services, health, education and emerging, non-traditional segments of information and finance.
Federal Reserve rate hike essentially certain given fundamentals
With inflation now at 2.0 percent and job growth holding steady, a rate hike from the Federal Reserve. Although wage growth has not grown as expected, labor-
market and other economic indicators are showing broadly confident expectations of the economy heading into 2018.
November 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
126,000
237,000
225,000
153,000
43,000
297,000
291,000
176,000
249,000
124,000
164,000
155,000
216,000
232,000
50,000
207,000
145,000
210,000
138,000
208,000
38,000
244,000
228,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1-monthnetchangeJob growth surpassed the 200,000 mark for the second
consecutive month, even with market tightening
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
Slow labor-force expansion and stable participation to
keep unemployment near current rate of 4.1%
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 appear to have stabilized at around 6.0-
6.1 million as labor market reaches maximum extent
6Source: JLL Research, Bureau of Labor Statistics

7. 2.8%
3.3%
3.3%
3.3%
3.8%
3.8%
4.6%
4.6%
4.8%
5.4%
0% 1% 2% 3% 4% 5% 6%
Construction
Manufacturing
Mining and logging
Information
Trade, transportation and utilities
Financial activities
Other services
Leisure and hospitality
Education and health
Professional and business services
Job openings rate (%)
Services-based growth keeping PBS jobs opening rate
above the 5% mark
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
Wage growth is still barely above inflation even as
hiring constraints intensify, up 2.5% over the year
8Source: JLL Research, Bureau of Labor Statistics

9. 1.6%
1.6%
1.9%
2.4%
2.5%
2.7%
2.9%
3.4%
3.4%
3.6%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Mining and logging
Trade, transportation and utilities
Manufacturing
Education and health
Professional and business services
Other services
Construction
Information
Financial activities
Leisure and hospitality
12-month wage growth (%)
Wage growth has subdued across the board, still driven
largely by knowledge-based sectors
9Source: JLL Research, Bureau of Labor Statistics

10. -8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
ChangesinceJanuary2007(%)
Civilian labor force Employed
Employment has caught up with labor-force expansion,
further highlighting talent shortfalls
10Source: JLL Research, Bureau of Labor Statistics

11. 62%
63%
64%
65%
66%
67%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Laborforceparticipationrate(%)The labor force participation rate shows no signs of
meaningful upward movement; likely to stay flat
11Source: JLL Research, Bureau of Labor Statistics

12. -4.0
-0.2
1.7
3.4
4.0
7.0
7.0
8.0
9.0
10.5
14.0
18.3
18.7
24.0
27.0
31.0
40.5
46.0
54.0
-10 0 10 20 30 40 50 60
Information
Utilities
Motor vehicles and parts
Wholesale trade
Nondurable goods
Mining and logging
Government
Financial activities
Other services
Transportation and warehousing
Leisure and hospitality
Temporary help services
Retail trade
Construction
Durable goods
Manufacturing
Health care and social assistance
Professional and business services
Education and health services
1-month net change (thousands)
After months of contractions, retail trade demonstrated
growth in November
12Source: JLL Research, Bureau of Labor Statistics

13. -20%
0%
20%
40%
60%
80%
100%
120%
2010 2011 2012 2013 2014 2015 2016 2017
Jobgrowthsince2010(%)Alternative, Internet-based information subsectors are
countering declines in traditional media
Source. JLL Research, Bureau of Labor Statistics 13
+99.7%
Other information services
Growth since 2010 (%)
-1.3%
Information (overall)

14. -3%
-2%
-1%
0%
1%
2%
3%
2010 2011 2012 2013 2014 2015 2016 2017
12-monthnetchangeNovember growth in retail trade helps bring annual
sector growth back to near-positive territory
Source: JLL Research, Bureau of Labor Statistics 14

15. -65.0
-22.7
-3.2
-1.4
47.0
61.3
64.0
66.0
80.0
89.2
116.3
120.0
150.0
184.0
189.0
279.0
388.3
471.0
548.0
-100 0 100 200 300 400 500 600
Information
Retail trade
Utilities
Motor vehicles and parts
Government
Wholesale trade
Mining and logging
Nondurable goods
Other services
Transportation and warehousing
Temporary help services
Durable goods
Financial activities
Construction
Manufacturing
Leisure and hospitality
Health care and social assistance
Education and health services
Professional and business services
12-month net change (thousands)
Annual growth trends show little sign of changing,
although manufacturing has gained ground
15Source: JLL Research, Bureau of Labor Statistics
548.0
471.0
279.0
150.0
189.0
434.0
PBS Education and health
Leisure and hospitality Financial activities
Manufacturing Retail trade
All other jobs
Core subsectors added 79.0 percent of all
jobs over the past 12 months.

16. 0%
1%
2%
3%
4%
5%
6%
12-month%changeBachelor’s degree holders’ unemployment is wobbling
around 2.1 percent, remaining essentially full
16Source: JLL Research, Bureau of Labor Statistics

17. -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
Throughout 2017, monthly office-using growth has
stayed constant at ~52,000 jobs
17Source: JLL Research, Bureau of Labor Statistics

18. -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 employment growth is beginning to stabilize at a
new normal of 3.0-3.2% annually
18Source: JLL Research, Bureau of Labor Statistics

19. 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 have recovered from
hurricane-related spike and still trending downward
19Source: JLL Research, U.S. Department of Labor

20. 0
20
40
60
80
100
120
140
ConsumerconfidenceindexConsumer confidence broke yet another record, rising
to 126.2 points
20Source: JLL Research, Conference Board

21. -40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
GrowthsinceJanuary2010(%)Gains in consumer confidence this cycle far outpace the
increase in consumer spending
21Source: JLL Research, Bureau of Economic Analysis, Conference Board
+129.4%
Consumer confidence
Growth since 2010 (%)
+21.2%
Personal consumption

22. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
12-month%change
Total unemployment 10-year average
Total unemployment bumped up slightly by 10bp to
8.0%, but still at similar pre-recession levels
22Source: JLL Research, Bureau of Labor Statistics

23. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 23
Phil Ryan
Phil.Ryan@am.jll.com
212 292 8040