The advertising, public relations, and related services sector in the U.S. experienced a significant drop in employment in May, losing 2,200 jobs.
This is the most substantial monthly decline since early 2021. In contrast, the overall U.S. economy saw a rise, adding 272,000 jobs, though the unemployment rate edged up to 4.0%, a level last seen in 2022.
Advertising and PR Sector Employment Details
Seasonally adjusted figures from the Bureau of Labor Statistics (BLS) show that the sector’s employment decreased to 521,800 jobs in May, down from a record high of 524,000 jobs in April. The job loss in May followed an unusually large increase of 4,500 jobs in April, the biggest monthly gain since June 2022. The April figure was revised up from an initially reported gain of 2,500 jobs.
Over the past six months, the advertising market has averaged a monthly gain of 1,200 jobs, with increases in December, January, and April, and decreases in February, March, and May.
This employment category includes ad agencies, PR agencies, and related services such as media buying, media representation, outdoor advertising, and direct mail, with ad agencies making up about 46% of these jobs.
Trends in Ad Agency Employment
In April, ad agency employment increased by 2,500 jobs, reaching 238,600 on a non-seasonally adjusted basis, matching the all-time high from last December. This rise followed a loss of 2,100 jobs in March, with the March figure revised from an initial report of a 2,200 job loss.
Ad agency employment has fluctuated recently, with declines in November, January, and March, and increases in December, February, and April. The BLS reports ad agency employment on a one-month lag, so May figures are not yet available, but the overall decline in advertising and PR jobs suggests a reduction in ad agency staffing in May.
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Broader Context of Media Employment
The decline in advertising jobs is part of a broader trend of cutbacks at media companies, ad-centric tech firms, and some agencies over the past year. Employment in the BLS classification of media streaming distribution services, social networks, and other media networks and content providers fell to 220,400 jobs in April, a decrease of 200 jobs from March.
Employment in web search portals and other information services dropped by 1,100 jobs in April, totaling 148,000 jobs, significantly below the peak of 162,100 jobs in late 2022.
U.S. Unemployment and Job Growth
The U.S. unemployment rate rose to 4.0% in May, based on a separate household survey, marking the highest rate since January 2022. Despite this increase, the unemployment rate has remained relatively low, ranging between 3.4% and 4.0% since December 2021, a period of stability not seen since the late 1960s.
Overall, the U.S. economy added 272,000 jobs in May, marking the 41st consecutive month of job growth, an uninterrupted trend that began in January 2021. The average monthly job increase over the past six months has been 255,000. Revisions to previous months’ data indicate that the economy gained 165,000 jobs in April and 310,000 jobs in March, slightly adjusted from initial reports.
Following the unprecedented loss of 20.5 million jobs in April 2020 due to the pandemic lockdowns, the U.S. economy has steadily recovered. Total employment reached 158.5 million jobs in May, surpassing the pre-pandemic peak of 152.3 million in February 2020, achieving a new all-time high.
The World Health Organization (WHO) declared COVID-19 a global public health emergency in January 2020 and classified it as a pandemic in March 2020. By May 2023, WHO determined that COVID-19, while still a health concern, no longer constituted a public health emergency of international concern.
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