January 2018 saw 200,000 net new jobs created, with unemployment once again stable at 4.1 percent. Job growth continues in line with expansion of the broader labor force, even as slack diminishes.

1. National employment
situation: January 2018
February 2, 2018

2. January 2018 U.S. labor market at a glance
2
+200,000
(87 consecutive months of growth)
1-month net change
+2,114,000
(+1.4% y-o-y)
12-month change
+873,000
10-year average annual growth
4.1%
Unemployment rate
5,879,000
(+4.4% y-o-y)
Job openings
-70bp
12-month change in unemployment
62.7%
Labor force participation rate
5,488,000
(+4.3% y-o-y)
Hires
3,174,000
(+3.1% y-o-y)
Quits
Source: JLL Research, Bureau of Labor Statistics

3. Job creation continues, with little sign of near-term change
January saw 200,000 net new jobs created, with unemployment once again stable at 4.1 percent. Job growth continues in line with expansion of the broader
labor force, even as slack diminishes. Gains were found largely across the board; notably, retail trade posted stronger but still below-average figures and
remains in negative territory over the year. On the other hand, momentum in e-commerce is driving activity in transportation, warehousing and wholesale trade,
whose monthly and annual standings are on the rise.
Shortages of skilled talent are now apparent nationally, not just in key markets
Continuing a trend that started in earnest in 2015 in many gateway and key secondary geographies, the lack of skilled talent and bachelor’s degree-holder
unemployment of 2.1 percent are placing constraints on the ability of companies to expand. This has been most acute in the office-using industries (professional
services, financial activities and information), which are now growing at much slower rates than earlier during the recovery. At the same time, this shortage is
helping to boost wage growth, which jumped to 2.9 percent over the year in January.
More of the same bodes well for rate hikes
The Federal Reserve is almost guaranteed to raise rates at its March meeting on the back of sustained economic growth, inflation above 2.0 percent for multiple
months and a near-full labor market finally showing the signs of maturing and accelerating wage growth that has, until recently, not demonstrated the expected
level of growth it would normally see at this point in the cycle.
January 2018 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
259,000
200,000
73,000
175,000
155,000
239,000
190,000
221,000
14,000
271,000
216,000
160,000
200,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1-monthnetchangeJanuary posted a healthy 200,000 net new jobs even
with minimal labor-market slack
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 once again stayed stable at 4.1%, but
could fall further if labor force expansion remains low
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 dipped slightly for a second consecutive
month, suggesting that demand is levelling off
6Source: JLL Research, Bureau of Labor Statistics

7. 2.4%
2.8%
2.9%
2.9%
2.9%
3.4%
3.9%
4.2%
4.7%
4.7%
0% 1% 1% 2% 2% 3% 3% 4% 4% 5% 5%
Education and health
Information
Mining and logging
Manufacturing
Construction
Trade, transportation and utilities
Other services
Financial activities
Professional and business services
Leisure and hospitality
Job openings rate (%)
Professional services and finance job openings are
holding firm in the 4%-5% range; others cooling
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 2018
12-month%change
Wage growth Inflation
Momentum is finally starting to take shape for wage
growth, up 2.9% over the year
8Source: JLL Research, Bureau of Labor Statistics

9. 0.3%
1.9%
2.3%
2.9%
3.0%
3.0%
3.1%
3.3%
3.7%
4.2%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%
Mining and logging
Manufacturing
Trade, transportation and utilities
Construction
Education and health
Professional and business services
Other services
Leisure and hospitality
Information
Financial activities
12-month wage growth (%)
Accelerating wage growth has been driven by service-
providing industries, notably finance and information
9Source: JLL Research, Bureau of Labor Statistics
Service-providing
industries
Goods-producing
industries

10. -8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 2018
Laborforceparticipationrate(%)For the fourth consecutive month, the labor force
participation rate has remained at 62.7%
11Source: JLL Research, Bureau of Labor Statistics

12. -6.0
-1.4
1.8
4.0
6.0
6.0
9.0
9.8
11.1
15.0
15.4
23.0
35.0
36.0
38.0
-10 -5 0 5 10 15 20 25 30 35 40 45
Information
Utilities
Temporary help services
Government
Mining and logging
Other services
Financial activities
Wholesale trade
Transportation and warehousing
Manufacturing
Retail trade
Professional and business services
Leisure and hospitality
Construction
Education and health
1-month net change (thousands)
Retail bounced back in January after months of
struggling; other sectors relatively stable
12Source: JLL Research, Bureau of Labor Statistics

13. -20%
0%
20%
40%
60%
80%
100%
120%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Jobgrowthsince2010(%)Alternative, Internet-based information subsectors are
countering declines in traditional media
Source. JLL Research, Bureau of Labor Statistics 13
+107.6%
Other information services
Growth since 2010 (%)
1.3%
Information (overall)

14. -37.0
-36.0
-3.5
15.0
58.0
73.8
97.6
102.0
121.0
148.7
186.0
226.0
342.0
448.0
470.0
-100 0 100 200 300 400 500
Information
Retail trade
Utilities
Government
Mining and logging
Wholesale trade
Temporary help services
Other services
Financial activities
Transportation and warehousing
Manufacturing
Construction
Leisure and hospitality
Professional and business services
Education and health
12-month net change (thousands)
E-commerce is fueling continued gains in wholesale
trade and transportation
14Source: JLL Research, Bureau of Labor Statistics
448.0
470.0
342.0
121.0
186.0
547.0
PBS Education and health
Leisure and hospitality Financial activities
Manufacturing Retail trade
All other jobs
Core subsectors added 74.1 percent of all
jobs over the past 12 months.

15. -3%
-2%
-1%
0%
1%
2%
3%
2010 2011 2012 2013 2014 2015 2016 2017 2018
12-monthnetchangeRetail trade will need to maintain January’s momentum
to return to positive annual growth in 2018
Source: JLL Research, Bureau of Labor Statistics 15

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 2018
1-monthnetchange(thousands)
Professional and business services Financial activities Information
A lack of skilled talent is hitting office-using
employment, with PBS gains well below 2012-2016
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 2018
12-month%change
Tech Energy, mining and utilities Office-using Total non-farm
Energy is beginning to rebound, but is still 22% below
2014 peak
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
The initial unemployment claims moving average is
now approaching a very low 230,000 per week
19Source: JLL Research, U.S. Department of Labor

20. 0
20
40
60
80
100
120
140
ConsumerconfidenceindexConsumer confidence reverted back to near-peak in
January, up 2.3 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 – data has one-month delay
+127.8%
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 increased by an additional 10bp in
January, suggesting a slight improvement in slack
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