US ad employment gained 1,000 jobs in July, but pace of growth slowed

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 rose by 1,000 jobs in July, hitting its highest level since 2001. The pace of growth eased from June and May. Ad agency employment reached an all-time high. Job growth for the overall economy is slowing, according to the monthly employment report from the U.S. Bureau of Labor Statistics. July marked 31 consecutive months of job increases, but gains in July (187,000 jobs) and June (185,000 jobs) were the lowest monthly employment increases since that winning streak began in January 2021. The unemployment rate, based on a separate survey of households, eased to 3.5% in July from 3.6% in June, a sign of a continued tight labor market. Below, Ad Age Datacenter breaks down the report—by the numbers. Ad Age Best Places to Work Recognizing employers in advertising and marketing Enter here 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 497,200 jobs in July based on seasonally adjusted figures. That puts ad employment at its highest level since March 2001, around the time of the dot-com bubble. That earlier date is noteworthy: It marked the peak of the business cycle and first month of a recession. The ad market added 1,000 jobs in July, moderating from growth of 1,300 jobs in June and 1,800 jobs in May. BLS downwardly revised figures for the two previous months from the gains—2,200 jobs in both June and May—reported a month ago. 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 47%—of those jobs. Ad employment weakened last fall, dropping in three of four months from September through December. But the ad business found new momentum this year, with staffing increases every month in the first seven months of 2023 except for March. These ad employment gains came despite cutbacks at media companies and ad-centric tech firms. Employment in the broad BLS classification of media streaming distribution services, social networks and other media networks and content providers slumped in June to 232,500 jobs on a non-seasonally adjusted basis, down 800 jobs from May, with staffing falling to its lowest level since 2018. Staffing in the classification of web search portals and all other information services rose by 300 jobs to 160,500 jobs in June on a non-seasonally adjusted basis, but that’s far below its all-time high of 171,900 jobs last January. Become an All Access subscriber Get access to exclusive resources including Leading National Advertisers, World’s Largest Advertisers, Agency Report, Agency Review Tracker and TV Pricing Report. Click here Ad agencies U.S. ad agency employment jumped to 231,700 jobs in June, up 1,900 jobs for the month on a non-seasonally adjusted basis, reaching an all-time high. That followed a gain of 200 jobs in May. BLS downwardly revised the May figure from a preliminary gain of 300 jobs reported a month ago. BLS reports ad agency employment on a one-month lag, so July figures aren’t yet available. But the July increase in advertising, public relations and related services employment suggests that ad agency staffing rose last month. U.S. ad agency employment June 2023 vs. previous month: +1,900June 2023 vs. year earlier: +9,100 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, ticked down to 3.5% in July from 3.6% in June. The unemployment rate since March 2022 has held in a narrow band of 3.4% to 3.7%, underscoring a tight labor market. That mirrors the period of March 1968 through December 1969, when unemployment also held in a range of 3.4% to 3.7%. That historic stretch ended with the start of a recession in December 1969, a downturn that deepened in 1970 when workers went on a two-month strike against General Motors, then the dominant automaker. Flash forward: Labor contracts with GM, Ford Motor Co. and Stellantis expire Sept. 14, which could presage a strike this year that could affect the jobs story and economy. U.S. unemployment rate July 2023: 3.5% Source: Bureau of Labor Statistics. Seasonally adjusted. Ad Age Leading National Advertisers 2023 Ad spending, rankings and analysis for the biggest marketers and brands Enter here U.S. employment The nation in July added 187,000 jobs based on seasonally adjusted figures. BLS said the economy gained 185,000 jobs in June (downwardly revised from 209,000 jobs) and 281,000 jobs in May (downwardly revised from 306,000 jobs). BLS monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from recalculation of seasonal factors. 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 (156.3 million jobs in July) 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 in January 2020 declared the coronavirus outbreak a global public health emergency and in March 2020 classified COVID-19 as a pandemic. The group’s director general, Tedros Adhanom Ghebreyesus, in May 2023 determined that “COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern.” 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 July 2023 vs. previous month: +187,000 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 248,000 March 2023 217,000 April 2023 217,000 May 2023 281,000 June 2023 185,000 July 2023 187,000 Source: Bureau of Labor Statistics. Seasonally adjusted. Subscribe to Ad Age's Datacenter for ongoing data and insights on all of the most-advertised brands.

US ad employment gained 1,000 jobs in July, but pace of growth slowed

Featured Stories