Ad business cut 3,500 jobs in December as market goes cold

Source: Bureau of Labor Statistics. Expanded jobs data: AdAge.com/adjobs. Credit: Infographic by Ad Age. Photo: Unsplash Employment in advertising, public relations and related services fell by 3,500 jobs in December, the third drop in four months in a sign the ad business is entering a cold winter. For the overall economy, U.S. employers added 223,000 jobs in December, according to the monthly employment report from the U.S. Bureau of Labor Statistics. That’s the lowest monthly gain in two years, but it shows overall employment is still growing despite economic headwinds and unending chatter about an impending recession. The unemployment rate eased to 3.5% last month from a revised 3.6% in November, an indication that the overall 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 480,800 jobs in December based on figures that are not seasonally adjusted. The ad market lost 3,500 jobs in December following a sharp decline of 7,600 jobs in November. BLS significantly revised the November figure from a preliminary loss of 2,500 jobs it reported a month ago. The ad business cut jobs in three of the past four months—September, November and December. Ad employment now has fallen below its level before the pandemic (484,400 jobs in February 2020). 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 agency employment fell to 223,400 jobs in November, down from the all-time high of 225,300 jobs reached in October. Ad agencies lost 1,900 jobs in November after gaining 1,600 jobs in October based on figures that are not seasonally adjusted. BLS downwardly revised the October figure from a preliminary gain of 2,500 jobs it reported a month ago. BLS reports ad agency employment on a one-month lag, so December figures aren’t yet available. But December’s drop in ad, PR and related services staffing suggests weakness in ad agency employment last month. Agencies including Stagwell's Anomaly and 72andSunny and independent Empower have had recent layoffs. U.S. ad agency employment November 2022 vs. previous month: -1,900November 2022 vs. year earlier: +13,300 Source: Bureau of Labor Statistics. Expanded jobs data: AdAge.com/adjobs. Internet media U.S. internet media employment rose to an all-time high of 363,900 jobs in November from 363,000 jobs in October. Internet media employment—the BLS classification of “internet publishing and broadcasting and web search portals”—increased by 900 jobs in November after rising by 2,800 jobs in October based on figures that are not seasonally adjusted. BLS upwardly revised the October figure from a preliminary gain of 2,700 jobs it reported a month ago. The increase in digital media employment in November came despite headlines about staff reductions or a freeze in hiring at a range of internet and media companies. As with ad agencies, internet media staffing is reported with a one-month delay and is not seasonally adjusted. U.S. internet media employment November 2022 vs. previous month: +900November 2022 vs. year earlier: +43,400 Source: Bureau of Labor Statistics. Internet media businesses and web search portals. 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, edged down to 3.5% in December from a revised 3.6% in November. That 3.5% December figure is tied for the lowest monthly unemployment rate since 1969, a sign of a continued tight labor market with significant job openings. U.S. unemployment rate Seasonally adjusted.December 2022: 3.5% Source: Bureau of Labor Statistics. U.S. employment The nation in December added 223,000 jobs based on seasonally adjusted figures. That suggests a softening in the labor market amid economic headwinds—high inflation, rising interest rates, slowing housing market, slumping stock market, recession worries—and cascading headlines about corporate layoffs. The economy added 256,000 jobs in November (downwardly revised from 263,000 jobs) and added 263,000 jobs in October (downwardly revised from 284,000 jobs). U.S. employment grew by 4.5 million jobs in 2022. That’s the second-highest annual jobs gain on record, after the 6.7 million jobs added in 2021 as employment rebounded from pandemic-related losses in 2020. 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 (153.7 million jobs in December) has recovered all of its pandemic losses, topping its February 2020 pre-pandemic peak (152.5 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 table showing advertising employment back to 2000 at AdAge.com/adjobs. Month-to-month change in U.S. nonfarm payrolls Seasonally adjusted.December 2022 vs. previous month: +223,000 Month/year Jobs increase (decrease) Jan. 2020 339,000 Feb. 2020 376,000 March 2020 -1,498,000 April 2020 -20,493,000 May 2020 2,642,000 June 2020 4,505,000 July 2020 1,388,000 Aug. 2020 1,665,000 Sep. 2020 919,000 Oct. 2020 647,000 Nov. 2020 333,000 Dec. 2020 -115,000 Jan. 2021 520,000 Feb. 2021 710,000 March 2021 704,000 April 2021 263,000 May 2021 447,000 June 2021 557,000 July 2021 689,000 Aug. 2021 517,000 Sep. 2021 424,000 Oct. 2021 677,000 Nov. 2021 647,000 Dec. 2021 588,000 Jan. 2022 504,000 Feb. 2022 714,000 March 2022 398,000 April 2022 368,000 May 2022 386,000 June 2022 293,000 July 2022 537,000 Aug. 2022 292,000 Sep. 2022 269,000 Oct. 2022 263,000 Nov. 2022 256,000 Dec. 2022 223,000 Source: Bureau of Labor Statistics. 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Ad business cut 3,500 jobs in December as market goes cold

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