Symbol of a fleeing worker. Labor migration and departure of skilled professionals. Concept of workforce shortage, emigration, and global labor markets. Economics and policy.


Slow job growth and a declining labor force participation rate contribute to the current low-momentum labor market, likely continuing into what economists predict will be a summer slowdown and further stressing ongoing labor challenges for the commercial cleaning industry.

The U.S. Bureau of Labor Statistics (BLS) latest report found that 57,000 jobs were added, nearly 50 percent less than what experts had estimated. Although the unemployment rate remained stable at 4.2 percent, data determined that this rate remains steady because more people are leaving the workforce. The labor force participation rate declined to 61.5 percent, adding to a shrinking pool of prospective employees.

Across industries, healthcare employment continued to grow in June, albeit at a slower pace than in prior months. This sector added 22,000 jobs, with hospitals gaining 9,000 jobs. Despite expectations that the World Cup would boost tourism, employment in the leisure and hospitality industry fell by 61,000 jobs. This is of notable interest to jan/san enterprises whose cleaning contracts are impacted by consumer traffic and facility occupancy in these sectors.

Another market trend was wage increases to address rising inflation rates. In June, average hourly earnings rose 0.3 percent to $37.64. While these raises support employees, they may not be enough to compete with inflation, which reached 4.2 percent in May. Starting in July, states across the U.S. plan to raise minimum wage rates to address economic insecurity.

Increasing minimum wage concerns commercial cleaning executives already managing constricting budgets, leading leaders to consider alternative measures to offset operational costs. Yet, many facility managers and building service contractors (BSCs) agree that competitive pay alongside comprehensive benefits is important to engage employees. In a CleanLink monthly poll, 43 percent affirm that baseline wages that align to local market conditions are essential to labor recruitment and retention efforts.

To learn more about the labor market report, click here. Refer to last month’s market analysis here.