February 2012 Employment Release

February 2012 U.S. employment situation: Labor market coming back to life

733,000 jobs added over the last three months; unemployment rate stable at 8.3 percent in February 600

12.0%

Monthly employment change Unemployment rate

400

10.0%

200 8.0%

0

6.0%

-200 -400

4.0%

-600 2.0%

-800

0.0%

-1000 2002

2003

2004

2005

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2006

2007

2008

2009

2010

2011

2012

Job growth positive for last 17 months 300,000

Total non-farm monthly employment change

284,000

246,000 251,000

250,000

227,000

223,000

220,000

220,000

202,000

200,000

157,000

150,000 121,000 120,000

112,000

110,000 96,000

100,000

84,000

85,000

54,000

50,000

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Feb-12

Jan-12

Dec-11

Nov-11

Oct-11

Sep-11

Aug-11

Jul-11

Jun-11

May-11

Apr-11

Mar-11

Feb-11

Jan-11

Dec-11

Nov-10

Oct-10

0

However, we are still two to three “good” years away from “normal” and previous peak levels Past 40 years

Recessions:

102

1973

1981

1990

2001

2007

Percent

100

98

96

94

92 0

2

4

6

8

10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 Number of months after start of recession

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Hiring is improving, yet only a third of jobs recovered from the recession so far

Jobs lost during recession‌

Jobs gained during recovery‌ Source: Jones Lang LaSalle, Bureau of Labor Statistics

Private sector hiring gaining momentum; public sector remains a drag Change in '000s jobs

Private sector hiring up 3.7 million since March 2010

400 200 0 -200 -400

Public sector shed 506,000 workers since March 2010

-600 -800

Private Sector

Public Sector

-1,000 2008

2009

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2010

2011

2012

Job growth positive in both service industries (office jobs) and production industries Goods-producing

Service-producing

600 400 200 0 -200 -400 -600 -800 -1000 Q1 2008

Q1 2009

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Q1 2010

Q1 2011

Q1 2012

Office-using job performance outweighing overall growth by considerable amount as productivity levels snap

Office-using (PBS) jobs lost during recession‌

Office-using (PBS) jobs gained during recovery‌ Source: Jones Lang LaSalle, Bureau of Labor Statistics

Where the jobs are coming from…PBS leads job growth in February, helping future office gains Professional and business services Education and health services Health care and social assistance Temporary help services Leisure and hospitality Durable goods Manufacturing Goods-producing Transportation and warehousing Wholesale trade Financial activities Mining and logging Motor vehicles and parts.

Nondurable goods Information Government Other services Retail trade Construction

82 71 61.1 45.2 44 31 31 24 10.6 8.4 6 6 5.6 0 -1 -6 -6 -7.4 -13 -20

Source: Jones Lang LaSalle, Bureau of Labor Statistics

0

20

40

60

February 2012 - One month net change (ths)

80

100

PBS hiring continues to drive office job growth Information

Professional and Business Services

Financial Services

150 100 50 0 -50 -100

P&BS represented 75.0 percent of office jobs lost in February 2010

by February 2012, it represented 94.3 percent of office growth

-150 -200 -250 -300 2009

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2010

2011

2012

Temporary employment grew rapidly in February, an indicator of future office employment growth (this time around)‌ Temporary employment monthly net change

2,500

Temporary employment

60

2,400

40

2,300 2,200

20

2,100

0

2,000 -20

1,900

-40

1,800

-60

1,700

-80

1,600

-100

1,500 2009

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2010

2011

2012

Temporary employment (ths)

Monthly net change in jobs (ths)

80

Industry segmentation: It is all about jobs and tech and energy are kings

Source: Jones Lang LaSalle

Energy, high-tech and office using sectors outperform overall economy since 2011 Year over Year % change 7.0 5.0 3.0 1.0 -1.0 -3.0 -5.0 -7.0 -9.0 High-tech

-11.0

Energy, Mining, and Utilities

2008

2009

Office-using industries 2010

Total non-farm 2011

Source: Jones Lang LaSalle, economy.com

Note: Due to inconsistencies and data lags, January and February 2012 do not have all high-tech subsections aggregated.

2012

Initial unemployment insurance claims rose slightly March 3rd, yet still 10.6 percent lower than a year ago Initial claims

4-week moving average

650,000 600,000 550,000 500,000 450,000 400,000

4 week moving average below 400,000 claims (consistently) means economy is adding jobs

350,000 300,000 250,000 1-Mar-08

1-Mar-09

Source: Jones Lang LaSalle, US Department of Labor

1-Mar-10

1-Mar-11

1-Mar-12

Total unemployment beginning to decline, still well above long-term average Total unemployment U-6

Ten year average

18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 2002

2003

2004

2005

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2006

2007

2008

2009

2010

2011

2012

White collar unemployment far below overall levels Bachelor's degree and higher

High school graduates, no college

12 10 8

8.3%

6 4

4.2%

2 0 2001

2002

2003

2004

Source: Jones Lang LaSalle, Bureau of Labor Statistics

2005

2006

2007

2008

2009

2010

2011

2012

Labor force participation for college grads improved in February, yet rates still low College graduates

High school graduates

79

63.5

College graduates High school grads no college

78.5

63 62.5

78

62

77.5

61.5 61

77

60.5

76.5

60 76 75.5 Jan-07

59.5 59 Jan-08

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Jan-09

Jan-10

Jan-11

Jan-12

Tech, energy and Sunbelt markets leading metro markets in total non-farm employment Seattle 2.3%

Bay Area 2.6%

Pittsburgh 2.4%

San Diego 2.2% Houston 3.0%

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Tampa 2.6%

Larger Midwest and East coast markets lagging

Chicago 0.4%

Cleveland -0.2%

New York 0.6%

Philadelphia -0.2%

Atlanta 0.0% DC 0.4%

Source: Jones Lang LaSalle, Bureau of Labor Statistics

Regionally, the West and South will lead employment growth through 2014 Bubble size represents total employment

Number of jobs (thousands)

Adding jobs

Job growth Q1 2012-Q4 2014

450 400 350 300 250 200 150 100 50 0 2.00%

New York

Los Angeles Chicago

Dallas

Philadelphia Detroit

SF St. Louis Boston Pittsburgh

3.00%

4.00%

Atlanta

DC Miami

Seattle Las Vegas

5.00%

6.00% % job growth

Adding jobs Source: Jones Lang LaSalle, Global Insight

Houston Phoenix

Denver 7.00%

8.00%