The U.S. jobs report came in quite good this month at +271K compared to the +160K the market expected.Sources: Econometric Studios, BLS
Even more amazing, full-time employment – a key indicator of the real strength of economic growth – came in +540K. In the past two months, full-time employment in the U.S. has expanded by an incredible 1.12 million. That’s over just two months.
Over this same period, part-time employment has declined by 716K.Source: Econometric Studios, BLS
In the past two months, one can confidently say that the American job market is on fire.
The strength of the American job market poses the question: how are jobs in the U.S. doing compared to jobs in Europe, China, Russia, Brazil, and a few other large political areas? (Note that some large countries, such as India, are left off of the analysis because employment data out of the country lags far behind.)
Which country has experienced the largest expansion in employment? Here’s a look.
Jobs Across the Globe
The next graphic looks at employment growth in the United States, the Euro Area, China, Japan, Germany, the United Kingdom, France, Brazil, Italy, Russia, Canada, Australia, South Korea, and Spain. The figures plot the percentage growth in jobs since 2009 – the approximate point when the global economy bottomed out.
Which of the countries listed would you guess experienced the strongest employment growth?
Interestingly, on top is South Korea. Since 2009, businesses in South Korea have added almost 13% to their employee base. In second and third places at about 9% each are the United Kingdom and Australia. Rounding out the top 5 are Brazil (up about 8%) and Canada (up about 6%).
On the other end, the bottom 5 countries for employment growth are Span (still down 10% from its January 2009 figure), Italy (down about 3%), France and Japan virtually flat, and the European 18 (up a about half of a percent).Sources: Econometric Studios, Haver Analytics
What’s Behind the Strength/Weaknesses?
With the percentage growth picture known, what explains the strength in job growth in South Korea, the U.K., Australia, Brazil, and Canada? Why are businesses so weak in Spain, France, the Europe 18, Italy, and Japan?
The answer, unsurprisingly, lies in a web of interconnected factors. Businesses are likely adding jobs at a faster pace in South Korea because of its connection with China, and having a strong technology sector. A different story holds for the U.K. Instead of technology, although technology is certainly important in the U.K., the finance sector appears to be a major part driving the employment growth in the U.K.
On the other end, business growth is weak in Spain, France, and many other European countries for a number of reasons, including an internationally expensive labor conditions, regulatory environments, and large government sectors. The story behind Japan is similar to the U.K., although demographics may be an even greater force in the world’s third largest economy.
Overall, job growth across the globe is quite varied. In looking at job growth by country since 2009 for the largest economies in the world (by political boundaries), businesses in South Korea come out on top, with employment up about 13%.
On the other end, business in Spain is the weakest, still down 10% over the same period.