US ad employment fell by 2,100 jobs in March—biggest drop in two years

Source: Bureau of Labor Statistics. Seasonally adjusted. Expanded jobs data: AdAge.com/adjobs. Credit: Infographic by Ad Age. Photo: iStock Employment in advertising, public relations and related services fell by 2,100 jobs in March, the biggest drop since the beginning of 2021. For the overall economy, U.S. employers added 236,000 jobs in March, the weakest monthly employment change since the end of 2020 in a sign the sizzling job market may be starting to cool, according to the monthly employment report from the U.S. Bureau of Labor Statistics. The unemployment rate eased to 3.5% in March from 3.6% in February, a reflection that the labor market remains tight. Below, Ad Age Datacenter breaks down the report—by the numbers. Advertising, PR and related services U.S. employment in the Bureau of Labor Statistics (BLS) classification of advertising, public relations and related services came in at 492,200 jobs in March based on seasonally adjusted figures. The ad market lost 2,100 jobs in March after holding steady in February at January’s level. BLS revised the February figure from a preliminary loss of 1,000 jobs it reported a month ago. Advertising employment has been on a seesaw: Staffing fell in September, November, December and March; it rose in October and January; and it was flat in February. The ad business scored strong job gains in 2021 through summer 2022 as the advertising market rebounded from pandemic losses. Then ad employment reached a plateau, with staffing in February (494,300) essentially unchanged from last August (494,600). The March job cut is a concern: The decline of 2,100 jobs was the sharpest drop since January 2021. The question now is whether that’s a foreboding sign of what’s to come—in the wake of layoffs at numerous tech companies—or statistical noise that will be forgotten if a coming monthly job report shows a rebound. This BLS jobs bucket includes ad agencies, PR agencies and related services such as media buying, media reps, outdoor advertising, direct mail and other services related to advertising. Ad agencies account for the biggest portion—about 46%—of those jobs. Tracking layoffs and budget cuts How brands and agencies are bracing for a recession Click here Ad agencies U.S. ad agencies added 800 jobs in February after trimming 800 jobs in January. BLS revised the January figure from a preliminary loss of 700 jobs it reported a month ago. Ad agency employment rose to 226,900 jobs in February on a non-seasonally adjusted basis. That marked the sector’s first monthly gain since October, when ad agency employment reached an all-time high of 228,700 jobs. BLS reports ad agency employment on a one-month lag, so March figures aren’t yet available. But the March decline in advertising, public relations and related services employment suggests that ad agency staffing fell last month. U.S. ad agency employment February 2023 vs. previous month: +800February 2023 vs. year earlier: +10,600 Source: Bureau of Labor Statistics. Not seasonally adjusted. Expanded jobs data: AdAge.com/adjobs. Ad spending, marketing and financial stats Analyzing the latest data Click here Unemployment rate The U.S. unemployment rate, based on a separate survey of households, dropped to 3.5% in March from 3.6% in February in a sign of a continued tight labor market. March’s rate was just a tick above January’s level of 3.4%, which was the lowest since 1969. U.S. unemployment rate March 2023: 3.5% Source: Bureau of Labor Statistics. Seasonally adjusted. U.S. employment The nation in March added 236,000 jobs based on seasonally adjusted figures. The economy gained 326,000 jobs in February (upwardly revised from 311,000 jobs) and added 472,000 jobs in January (downwardly revised from 504,000 jobs). Following an unprecedented loss of 20.5 million jobs in April 2020 as the nation locked down in the coronavirus pandemic, the economy has added jobs every month except for December 2020. Total U.S. employment (155.6 million jobs in March) has recovered all of its pandemic losses, topping its February 2020 pre-pandemic peak (152.4 million) to reach a new all-time high. The World Health Organization classified COVID-19 as a pandemic in March 2020. Ad Age Datacenter subscribers can see an expanded and updated table showing advertising employment back to 2000 at AdAge.com/adjobs. Month-to-month change in U.S. nonfarm payrolls March 2023 vs. previous month: +236,000 Month/year Jobs increase (decrease) Jan. 2022 364,000 Feb. 2022 904,000 March 2022 414,000 April 2022 254,000 May 2022 364,000 June 2022 370,000 July 2022 568,000 Aug. 2022 352,000 Sep. 2022 350,000 Oct. 2022 324,000 Nov. 2022 290,000 Dec. 2022 239,000 Jan. 2023 472,000 Feb. 2023 326,000 March 2023 236,000 Source: Bureau of Labor Statistics. Seasonally adjusted. Top marketers, brands and agency ventures Ad Age Datacenter’s definitive rankings of the biggest U.S. and global advertisers and agency companies Click here Subscribe to Ad Age's Datacenter for ongoing data and insights on all of the most-advertised brands.

US ad employment fell by 2,100 jobs in March—biggest drop in two years

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