The latest report from the Department of Labor for the week from March 21-28 is just in. The unemployment claim numbers are at an all-time high for the second week running at 6,648,000 seasonally adjusted initial claims. The labor department reports that most states attribute these numbers to layoffs led by the accommodation and food services sector.
In this post, we take a sectoral overview of accommodation and food services as an employer and see the unemployment scenario from its perspective. The coronavirus-induced economic slowdown has made the futures of thousands of chefs, bartenders, wait staff, baristas, etc. uncertain. Now, all these employees have been made eligible for Unemployment Insurance claims.
Profile Of Accommodation And Food Services Sector
According to the Bureau of Labor Statistics, this sector employed 14 million people in 2018. It showed an average unemployment rate of 5.4% over the last 4 months.
The top occupations in this sector are waiting or food service, food preparation, and cashiers. The largest number of employees are wait staff, followed by cooks. Employees earn an average hourly wage of $15.87. Many are employed and paid on an hourly basis in this sector.
The working hours’ number a minimum of 25 on average. Cooks may work much longer hours in a week.
COVID-19 Causes Unemployment in Accommodation And Food Services
This sector has reported the highest number of layoffs in the following states:
- New York
- Rhode Island
The reason for this is the lockdown of hotels, restaurants, pubs, bars, etc. by the US government in light of these places being potential clusters. As this sector depends on very regular cash flow, it doesn’t have the nest egg that bigger conglomerates can gather. The impact of dropping sales is seen very quickly.
In turn, employment in related businesses such as hotel aggregators like Booking.com gets affected. Such businesses survive on commissions from their third party services between customers and providers of accommodation and food services.
The sector’s nature makes remote work impossible, forcing layoffs and furloughs. Americans are clearly following social distancing norms well.
Types Of Jobs Still Available
As you can see in our post on jobs that are still hiring, dining out took a huge hit, but meal delivery services survive and some are thriving. Pizza chains, take-out meal joints, etc. have scaled up hiring to deal with larger order volumes. A few restaurants have switched to offering delivered and take out meals and are thus surviving with the staff getting reduced wages.
The most common job roles will be in food preparation, delivery services, and stocking/inventory work. It will be very difficult to find more specialized and high paying job roles at this point in time.
Projections For The Future
If the coronavirus-triggered shutdowns continue for too long, worldwide recovery for this sector will be difficult. The growth of accommodation and food services as an employment generating sector was fueled in recent years by the general economic growth and the resulting rise in disposable incomes.
With many big employers having global supply chains, the worldwide economic shutdowns in response to coronavirus will cause losses everywhere. Another big driver of the growth of accommodation and food services is tourism which will surely fall due to job losses.
The American Hotel and Lodging Association says that the hotel sub-sector alone has had losses of over $5 billion. Making up the amounts to retroactively pay employees still on rolls when the economy revives, will be hard without a quick revival of global trade and supply chains.
The restaurant industry was facing labor charge pressures, spiraling rent costs and criticism about food wastage even before the pandemic. This is a good opportunity for corrective actions that go beyond merely restarting production and service.
Job losses, layoffs, unemployment, furloughs- these are all the words we have been seeing in the past few weeks. As the US economy seems geared to head into a recession, people are naturally anxious about the future of their employment. In this scenario, are there any careers available despite coronavirus? Is anyone hiring?
The good news is that yes, there are several new jobs coming up even now, some in response to the coronavirus-situation. The bad news is that some of them may require specialized skills. But, don’t let that stop you from applying to the jobs we list below.
Coronavirus: Careers To Look At Now
There are some companies whose business model is letting them survive the ‘new normal’. They have scaled up hiring to meet the demands of the COVID-19 pandemic.
E-Commerce and Retailers
The global e-commerce giant, Amazon, said on March 21 in an Instagram statement that it is looking to hire about 100,000 new employees. It needs more delivery agents, warehousing staff and people to man its brick-and-mortar ventures.
Similarly, Walmart announced plans to hire over 150,000 workers on an hourly basis to fulfill their warehousing and store requirements.
Grocery chains and supermarkets like CVS, 7-Eleven, etc. are also hiring for various roles including stocking shelves, etc. Grocery delivery service Instacart is looking for gig workers and personal shoppers. Demand for home delivery has jumped in several states.
Meal delivery services have also experienced an upsurge in demand and are looking to increase staff. Papa John’s, Pizza Hut, etc. continue to have good demand. Big FMCG companies like Pepsico are also hiring since they continue to produce packaged food.
Healthcare is obviously one of the most important sectors right now. Protective equipment manufacturers, hospitals, etc are looking to hire doctors, nursing staff, medical assistants, etc. Job search portals are teeming with healthcare job postings.
State Labor Departments
The Labor Departments of most of the states are in the process of hiring people to help process the massive surge in unemployment insurance applications. New York and Michigan have already begun. Some states are even calling upon retired employees to help process the common complaints of people unable to access their accounts.
Some gaming companies are hiring now and with people looking to kill time at home, the sector is slated to grow. Popular gaming platforms and services such as Steam and Xbox have reported a huge rise in the number of users.
Some of the world’s biggest companies operate within this sector like Google, Apple, Microsoft, Netflix, etc.. Zoom has just exploded because of the massive adoption of teleconferencing for remote working jobs; as companies that are so far surviving have told employees to work from home. They conduct interviews online.
EdTech provider OutSchool is hiring teachers for its K-12 programs.
Sectors Bearing The Brunt Of Coronaviral Recession
The forced shutdowns have affected the following employers very badly:
- Restaurants, Bars, Pubs
- Small brick and mortar grocers
- Cab Drivers
- Shopping Malls
- Event Managers
- Sitters, Petwalkers, etc.
- Automotive companies and oil companies
- Hotels, Inns, etc.
- Big fashion companies like Macy’s, JCPenney, Victoria’s Secret, etc.
Concerns With The Unemployment Scene: Food For Thought
Since the economic situation is deeply unpredictable now, speculation is rife about how people losing their jobs will settle into the new normal. The nature of the new normal is itself unclear.
One problem with the newly available jobs is of course that they may not be accessible to many groups of job-seekers due to location constraints or unsuitability. People with disabilities will have a tougher time.
Another concern is the temporary and low-skilled nature of some of these coronavirus careers. The initial boom brought on by the extreme situation may fade once the pandemic fades, laying off many such employees.
There is also a dearth of jobs for white-collar workers with many years of experience. If more companies go bankrupt, they too will form a large part of the unemployed. They may also experience more ageism than ever before.
On a healthcare-related note, people are desperately rushing to job fairs for non-online recruitment processes, not following distancing precautions. This may prolong the pandemic.
In these desperate times, any measures that sustain the economy are welcome. As people look to earn square meals, any jobs are welcome to many workers. It’s hard to see a bright side to the scary numbers coming out every day, but any economic change creates certain opportunities while damaging others.
Employment is undoubtedly essential for meeting one’s basic requirements. It promotes self-esteem, self-realization, and satisfies creative urges. Conversely, unemployment has adverse effects on mental health. Read on to know more about how unemployment and mental health are interconnected.
According to statistics, the unemployment rate in the United States rose to 3.6% in 2020. Several factors, such as changing policies, climate change, widespread epidemics like coronavirus, etc. have contributed to the rise in the unemployment rate.
With that said, unemployment, particularly when involuntary or unexpected, takes a toll on one’s mental balance. An unemployed person displays lower levels of psychological well-being than the employed. When one experiences unemployment for an extended period, he/she can report several mental disorders & conditions such as depression, anxiety, low self-esteem, substance abuse, to name a few. In some extreme cases, psychological distress can lead to violent and suicidal behaviors. Let us have a brief look at the impacts of unemployment on mental health.
As per statistics, about 6.7% of US adults experience major depressive disorder after a job loss. When individuals remain unemployed for a longer time, it is natural for them to feel a sense of hopelessness. Some just feel disappointed, and others may disconnect themselves from family, friends, and social life as they find it difficult to face people and questions on the unemployment that arises during the conversation. Some of the symptoms of depression include:
- Social isolation
- Feeling of hopelessness
- Lack of concentration
In some extreme cases, individuals can also experience hallucinations, suicidal thoughts, and delusions.
Anxiety is another major psychological disorder attributed to long-term unemployment. When individuals no longer have a source of revenue, they become anxious about everything. How to fulfill the needs of the family? How to pay utilities, rent, medical, meals, and children’s school fees? Such thoughts can haunt them all the time. Some of the symptoms of anxiety are:
- Excessive worry
- Specific phobia
- Sleep disturbance
- Muscle tension
Long-term anxiety or chronic anxiety can result in physical health issues such as respiratory and urinary problems, and many more.
Unemployment and mental health conditions, like self-esteem, are closely linked. When employed, individuals would feel a sense of purpose and critical contributors to society. But when they lose the job or remain unemployed for a longer duration, they experience the feeling of worthlessness, incompleteness, and lack of confidence. Further, due to low self-esteem, the unemployed person might see disapproval or rejection even when there isn’t any. Some of the common signs of low self-esteem are as follows:
- Social isolation
- Sensitive to criticism
- Fear of failure
- Easily annoyed
- Constantly seeking reassurance
- Trouble being alone
Low self-esteem can also manifest physical health problems and erode individuals’ life in every way.
Develop low confidence
Being unemployed can unknowingly cause psychological damages like lack of confidence or self-doubt. This is common among those who are unemployed for a longer period. Self-doubt deepens when they are unable to find a job within a short span after losing a source of income. The individuals may feel they are not worthy of a job and start doubting their skills and capabilities. Common signs of lack of confidence are as listed below.
- Constructive to feedback
- Emotional turmoil
- Continuously trying to find a loophole in skills
- Keeping mum during job regarding conversations
- Finding excuses for actions
Individuals developing low confidence can eventually lapse into conditions where every action appears personal.
In the worst scenario, the unemployed can also turn to illegal drug use. Unemployment is undoubtedly one of the significant factors that affect mental health. However, the impact varies with the duration of unemployment.
If you are one among the unemployed, do not lose hope, and pay attention to your mental health. If you are employed but know people who are currently facing such unfortunate situations, ensure to motivate them and ask them to stay positive!
If you are in need, you can avail of unemployment benefits. Ensure to check your eligibility criteria before applying for filing for unemployment benefits.
In recent times, climate change has been viewed in terms of global warming, occurring due to the release of greenhouse gases such as carbon dioxide and sulfur dioxide into the air. This phenomenon will also have a deep impact on society at a micro level, which could completely alter our way of living. It can already be seen as many landscapes are undergoing drastic changes. Climate change and job losses will have an inevitable impact on the job market on the whole.
The impacts of climate change and jobs can be seen when we consider the rising incidence of extreme weather events. They displace workers, damage business assets and disrupt transportation and rural infrastructure.
These effects cost the country’s economy dearly in terms of the losses of life, money, and productivity. For instance, the recent California wildfires burned 259,823 acres of land and were spread across 105,147 hectares in total.
The International Labor Organisation released a report recently which states that:
- Heat will cut down two percent of working hours worldwide
- 43 million jobs will be lost globally due to rising temperatures
- Billions of dollars will be lost by 2030 globally due to climate change
Among the economic sectors worst affected will be the wine industry, tourism sector, agricultural sector, the fishing sector, food & beverage sector, and the energy sector among others.
Climate Change and Its Impact on the Agriculture Sector
Climate change will be a major deterrent in the agricultural sector. Things like heat waves are going to occur frequently and this, in turn, has a huge impact on crops. While a lot of regions will suffer from extreme droughts many regions will face issues like flooding or drought. All this will have a huge impact on agricultural land and in turn damage crops.
Globally the agricultural sector will face the heat, here are some interesting stats on how the sector will face pressure due to climate change:
- 60 percent of global working hours will be lost due to heat stress by 2030
- Since 2016, 11,379 farmers committed suicide in India alone
A report by the International Labor Organization states that people working in the agricultural sector will be one of the most affected due to climate change. The report further elaborates that poorer countries will be more affected due to rising temperatures as compared to wealthier nations.
How Climate Change is Affecting Tourism
Tourism is heavily reliant on the climate. But climate change is causing snow-capped mountains to melt, due to this fewer and fewer tourists want to visit hotels in these destinations. A lot of other things like warmer countries becoming warmer, and colder countries becoming colder are forcing tourists not to go on vacation. Here’s a look at how the tourism industry is going to take a hit.
- Snowsports will take a hit of 20 billion dollars in the U.S, which will impact hotels in the surrounding areas
- Due to rising sea levels, a lot of beaches are getting submerged. This will impact all the employees who work in the hospitality industry around these beaches
- With snowcaps melting a lot of skiing destinations will no longer be available causing skiing instructors to lose their jobs
Tourism is going to be badly affected due to climate change. As people lose their jobs, they no longer have the disposable income which sustained the rise of this industry in the recent past.
How Climate Change affects The Fishing Industry
Every year more than 49 million American’s fish on American waters. But due to climate change, the water is becoming warmer in streams, rivers, and lakes which in turn is changing the habitat and behavior of fish.
With ocean temperatures rising and an increase in acidity, it is becoming extremely difficult for marine organisms to survive. Due to this, there will be a huge impact on the fishing industry especially for those who work in this sector. Here are a few pointers that show how climate change and job losses is affecting this industry:
- The coastline of New England has lost an average of 16 percent fishing jobs due to climate change from 1996 to 2017
- By 2050, global fisheries could lose anywhere between $17 to $41
- Global fisheries will face losses of an estimated $1.979 trillion dollars by 2100
An increase in sea temperatures and current flow will affect marine life and may even make some species extinct. This will impact the economy and jobs in the near future.
The Impact of Climate Change on the Food and Beverage Industry
Climate change has caused a huge water shortage globally. This impacts the food and beverage industry directly. In several sub-continental countries, the monsoons are 85 percent below average.
Global sugar prices have touched a 28- year high, mainly due to lower production in countries like India and Brazil. Experts predict climate change droughts are going to take place more frequently than ever. Several large companies have taken a hit because of the change in climate:
- Fresh Del Monte lost 2.5 million dollars due to the drought in brazil in 2016
- Coca-Cola and Pepsi lost more than 1 million retailers in Tamil Nadu, India due to the drought in 2017
Experts in climate change predict that in the near future droughts are going to be more prevalent than ever. This is a cause for concern for leading food and beverage companies globally as water is very important for the production of food and beverages.
Effects of Climate Change on The Wine Industry
Climate is one of the two most important factors that control the grape harvest. It also affects soil quality. The soil-climate equilibrium should be maintained for producing good wine.
Producing wine is becoming increasingly difficult due to severe changes in the climate.
The rising temperatures make it incredibly difficult to maintain this balance, thus negatively affecting wine quality and production. Here are a couple of points to define how climate change is affecting the wine industry.
- The wine industry loses more than ten billion US dollars annually. This is due to damaged assets and production losses
- Due to this wine tariffs are increasing and wine sales are down by 2%, which has resulted in a loss of 17,000 jobs alone according to a report by Reuters
It should be noted that temperature plays an important role in the production of wine. But due to climate change, it is becoming increasingly difficult to maintain that optimal temperature. To deal with this, the wine industry is slowing getting automated and moving indoors. Manual labor is slowly becoming redundant for the production of wine resulting in job losses.
Climate Change and How It’s impacting the Energy Sector
Energy companies are accused of causing climate change, but they are also adversely affected due to climate change. One of the top experts in the field stated that “If you’re a petrochemical company in the Gulf Coast, you are worried about hurricanes. If you’re in California, you’re worried about droughts and water access to your operations. If you’re a mining company, and you have operations in the Arctic, you’re going to worry about permafrost melting.”
To further elaborate climate change and job losses has really hit the energy industry in a big way. Leaving energy companies confused about how to tackle this ever-increasing problem Here are a few statistics to back this statement:
- The mining sector saw a drop from over 150,000 jobs in the 1980s to 53,000 jobs in July 2018 according to a report by High Country News
Whether or not energy industries are ready to fight climate change is yet to be seen. But the numbers above definitely paint a grim picture.
Is The World Doing Enough To Tackle Climate Change?
No, the world is not doing enough to tackle climate change. Governments of thriving nations need to come together and discuss how to reduce climate change and job losses and their impacts on the world. The world needs to be better prepared because if we don’t take this problem seriously it could really affect our lives in ways we cannot imagine.
If you are laid off due to climate change you are eligible for unemployment benefits in your state which you should claim right away.
The economy of the United States has remained steady over the past year. However, the outbreak of the Coronavirus disease has seen severe repercussions for the American Job Market. One of the industries severely hit by the outbreak is the oil industry.
Oil and natural gas producers have taken a hit over the last year due to low commodity prices. They will have to slash investments in exploration and production. The other effects of the Coronavirus outbreak can be seen quite clearly in the following.
- The Price of Texas Intermediate Crude fell below $50, a 20 percent decline as compared to the previous month
- Chinese oil demand from America is on a low by 20 percent due to dwindling air travel after the outbreak
- According to the New York Times, 14,000 to 750,000 employees lost their jobs in the United States last year because oil companies have tightened their budgets
- With the outbreak of the virus, more layoffs will be expected in the oil and natural gas industry
With fewer Chinese tourists entering the U.S, the tourism and hospitality sector is sure to take a blow. This, in turn, will reduce hiring. Auto industries will take a big hit as a lot of parts of vehicles are imported from China and assembled in the U.S. This will reduce production and have a heavy impact on the industry.
Speaking to the media, Razat Gaurav, the chief executive of LLamsoft, a supply chain company in Ann Arbor, said: “ If the current Coronavirus outbreak continues, it will ultimately affect auto assembly plants in the U.S and even Mexico.” This is worrisome for all the employees of assembly plants across America, as it may affect their jobs. Despite all the gloom, the U.S Commerce Secretary has a different view. Wilbury Ross, during a tv show, opined, “The virus will help to accelerate the return of jobs to North America.” These comments are surprising as it looks difficult for the U.S job market to accelerate further in such times of gloom.
How Global Epidemics Affects The Economy
Many research papers by experts show that an infectious disease can have a sizable impact on the economy in the short and long term. Governments of robust economies in the world should try to stop such epidemics from spreading fast.
If epidemics like the coronavirus disease spread, they not only take lives but disrupt economies. What’s interesting to note is that with development standards increasing, the vulnerability to epidemics should decrease on the whole. Instead, what’s happening is that the highly interconnected world is increasing the occurrence and spread of epidemics. It is worrisome how the coronavirus is slowly turning into a pandemic and disrupting life on a global scale.
How an Epidemic Can Trigger Work-From-Home Opportunities
With the outbreak of the coronavirus, a new interesting trend is on the rise. A lot of tech companies in China, such as Microsoft, Tencent, and Alibaba have told their employees to work-from-home, till things stabilize in the country. Macao, Hongkong, and Singapore have also followed suit and ordered their employees to work-from-home.
Many technology companies have tried to inculcate the work-from-home option but have never really succeeded in the past. With the virus spreading, companies have had no choice but to let their employees work-from-home. It remains to be seen whether work-from-home prospects will be widely available in the future. With the workforce evolving, companies globally should encourage more work-from-home opportunities.
An epidemic such as the coronavirus disease can have a sizeable effect on the economy. Lives can be lost, economies can crumble, jobs are lost, and all-in-all, nations suffer. The world needs to be better prepared to deal with such problems.
Looking at the number of deaths that have taken place in China, Coronavirus has to be taken seriously. So that such an epidemic does not come back to haunt the world once again.
Jobs of the future, have already surfaced in the United States of America. A lot of activities that the workforce carries out today are going to become automated in the times to come. Several new advancements in machine learning and artificial intelligence are the way forward for the workforce of the future.
Automation-enabled technologies such as robotics and artificial intelligence will increase productivity among the workforce. This, in turn, will boost the economy and also strengthen the way tasks are carried out on a day to day basis.
The United States saw one-third of new jobs created that never existed before, in the last 25 years. These jobs are in hardware manufacturing, app creation, IT systems, and IT management. Jobs of the future will incorporate a lot of digital technology and will also create new forms of entrepreneurial activity. Also, people working in small businesses and the self-employed will benefit from higher income opportunities in jobs of the future.
Here are some essential statistics on the future of the workforce:
According to the World Economic Forum, sixty-five percent of children who enter primary school today will get jobs that currently don’t exist.
The Bureau of Labor and Statistics stated that by 2020 there would be 1.4 million open computing jobs, but only 400,000 graduates in science will have the necessary skillset.
Accenture states that Artificial intelligence can double annual economic growth by 2035 and also bridge the nature of work between man and machine.
Adobe researched 4,000 office workers who believed technology makes them more prolific, improves work-life balance, and also helps connect with co-workers better.
Mckinsey believes that between the time frame of 2016 and 2030, the demand for social and emotional skills will expand in various industries in the United States by 26%.
Exciting Trends on How the Workforce Is Changing
Organizations will be more fluid and dynamic; companies will see a rise in project-based teams that are incredibly vibrant and could work from any location globally. Also, a lot of generation Z employees will be interested in acquiring multiple roles from one place of employment.
A lot of independent players such as Etsy, Uber, and Upwork are shaping the way gig economy functions.
With the advent of internet access and mobile technology, remote workers are prevalent even today. The future employee need not be in the same location as the job. This will make work extremely efficient & convenient for an employee to live anywhere in the world, rather than find a job and move to a city where the job is located.
Desire to work
For employees to be happy in their respective jobs, they will need something more than a paycheck to keep them happy. A lot of employees in the future will want the latest technologies and gadgets to help facilitate the work from home options and lots more. The future employee will also want personal development opportunities to help get the best out of them.
Upskilling is the only way forward for an employee to survive in this dynamic workforce. Employees will have to learn new skills and be extremely adaptable to any situation that comes their way. Technology will continuously update, and employees will need to change with the times.
What You Need to Do to Prepare for the Jobs of the Future
The jobs of the future will require individuals to work on personal attributes like emotional intelligence, social intelligence, passion, creativity, and imagination. Individuals need to act and get involved in lifelong learning, so they are ready to change at any given point of time.
Individuals need to invest in new skills. Employees need to have a diverse set of work experiences and take the initiative to shape their career paths.
On the other hand, employers need to think in a broader perspective about the process of recruiting new employees. Companies need to evaluate skills like problem-solving, emotional intelligence, critical thinking, and creativity.
The jobs of the future are going to be extremely dynamic. The future employee needs to be prepared for this change and be extremely versatile. It’s definitely going to be very exciting to see how future jobs will shape the current workforce. To sum up, upskilling and staying updated on the changing trends is the way forward.
If you are currently unemployed you should know you are eligible for unemployment benefits in the state you reside in. You can use the unemployment benefits calculator which we created to help you know how much benefits you are eligible for.
Are you on the job hunt and not hearing back from the companies you applied to? Well, they could be numerous reasons as to why you do not hearing back from jobs you applied for. Not knowing where you stand in your job search can be pretty stressful for you. The uncertainty on whether you should keep applying for more jobs or wait for a response from previous interviews and positions you applied to is the real challenge.
If you’re in such a position where you lack clarity, its best to keep chugging along and apply to more companies out there, the more companies you apply to higher the chance of you getting hired and landing that dream job.
Here are some reasons we’ve listed out why organizations don’t get back to applicants :
The Company Size Matters
It’s always polite and the correct thing to do for companies to inform potential employees whether they are selected or not. Many large companies do have adequate software and resources, which makes it easier to notify applicants whether they are selected or not. On the other hand, smaller companies lack resources and reserves in place to inform candidates whether they are the right fit or not.
Your Resume is Not the Right Fit
You might be the right candidate for the job, but your resume does not show it Not Hearing Back From Jobs can be really frustrating. You should frame your resume to display the best skill set that you possess. It’s also not a bad idea to frame your resume based on the job description for every job you apply to. This increases your chances of getting an interview call and getting that dream job.
Your Resume Format is Incorrect
If you’ve sent out a resume that is not correctly formatted and includes typos and errors, there is a high chance you will not receive a call from the company. You must know your resume is your first chance to leave a good impression on your potential employer.
The Documentation Could be Incorrect
You may not have submitted the required documentation the company asked for. For e.g., it could be anything ranging from a cover letter, writing samples, or references. Applicants should know this if a potential employer asks for any documentation regarding a job prospect, you must submit the information. This improves your chances of getting a job.
Change in Hiring Plans
Companies can change hiring plans at any given point in time. The required position which a candidate applied for may not be needed anymore. Or budget concerns may have delayed the hiring process currently. The management may have changed, or an internal candidate may have been hired for the role.
Not hearing back jobs you applied for can be frustrating. What you need to do is be patient and keep applying to other companies. Another thing you can do is follow up by calling up the company or sending an email to know where you stand. If you are unemployed currently, fileunemployment.org provides job seekers with relevant information about UI benefits present in each state in America. You can also use our unemployment calculator to know how much benefits you are eligible for. Information on our site helps job seekers connect with your nearest unemployment office and also provides a list of phone numbers.
April 2018 marks the 107th month of the current economic expansion that had begun in June of 2009. This expansion surpassed what was previously regarded as the second longest economic expansion in US history from February 1961 to December 1969. With the assumption that this economic performance continues, the record low jobless rates in 14 states will become part of the second longest economic expansion in US history.
Fourteen states have set new records for low unemployment rates in the previous year, which is nearly a decade after the recession that left a large populous of Americans unemployed. States that hit the new unemployment low are Hawaii (2.1%), Idaho (2.9%), Kentucky (4%), Maine (2.7%), Mississippi (4.5%). Oregon (4.1%) and Wisconsin (2.9%)
The State of California as well set a new record last month. The unemployment rate of the Golden State stands at 4.1% according to the unemployment situation a bi-monthly report published by the United States Bureau of Labor Statistics. That’s the lowest rate recorded since BLS began keeping track of state-level unemployment figures in 1976. It’s a third of the 12.3% unemployment rate California notched at the height of the recession in December 2010. Among the other states to reach an all-time low is Colorado at 2.6%, Alabama at 3.7%, Texas at 3.9%. All these states have attained an all-time low in comparison to the 8.3% they averaged during the recession period of December 2010.
In terms of the remainder of the 14 states with the low unemployment rate, Tennessee has fallen to the lowest unemployment rate it has ever measured, 3.3 percent, in January. Hawaii’s unemployment rate is the lowest in the nation. Idaho, Iowa, Maine, Nebraska, New Hampshire, North Dakota and Wisconsin all have unemployment rates lower than 3%.
It seems likely that the current economic and job growth continues well into next year. It also depends on a major trade war or other major economic/political risks that would derail the expansion. May of 2019 will be the 121st month of the current expansion and will break the previous record 120-month expansion from March 1991 to March 2001. In the meantime, the two important economic milestones outlined above of record jobless rates in more than one out of four US states. Along with surpassing the previous 106-month record for the second longest uninterrupted period of economic expansion in US history. The decline in unemployment rates is a reason for the public of the United States should rejoice!
An unemployed youth is one who does not have a job, but actively seeks for one based on their educational qualifications. The United Nations categorizes a person as unemployed on the basis of one who is qualified, willing and able to work, but does not find any job based on their specialization.
According to the United States Bureau of Labor Statistics, the unemployment rates among persons between 16-24 years stood at 9.9% in February 2017 and 8.8% in May, 2017. However, there was a gradual drop in youth unemployment that stood at 9% in February, 2018.
Causes For Youth Unemployment
1. Frictional Unemployment
Frictional unemployment happens when workers leave their jobs to find new ones. In most cases, it is a voluntary decision which can result in layoff or termination of the employee. Here, the word friction is referred to the time, effort and expense that a worker takes to find a new job. It is unavoidable because it is integral to a job search process.
Reasons for Frictional Unemployment
- Some unemployed persons have saved enough money and quit their job due to having enough financial resources to keep them afloat.
- When new workers enter the workforce
- When job-seekers re-enter the workforce. These are people who went through a period in their lives when they decided to stop looking for jobs. There could be multiple reasons for a person to quit a job. Some cases include raising children, getting married and taking care of the elderly.
Frictional unemployment can be reduced by bringing better information about jobs to the workers. In a booming economy, usually jobs are in a higher supply. Often employers have a hard time finding qualified candidates. In the expansion phase of the business cycle, workers feel more confident to quit their job in search of a better one.
2. Structural Unemployment
Structural unemployment is a form of unemployment that is generally caused by a mismatch between the skills that workers in the economy can offer and the skills demanded by employers. It usually occurs due to technological changes that make the job skills of workers outdated. Structural unemployment happens due to non-tailored education to fit individuals to the labor market. As a result young people find it hard to find jobs according to their specialization.
Reasons For Structural Unemployment
- Advancements in new technologies, may cause a decline in existing industries. This could be based on using robots and advanced technology that minimizes jobs
- Another reason for structural unemployment, is that it can be highly evident in a place where there are technically advanced jobs available, but the workers lack the skills to perform them
3. Cyclical Unemployment
Cyclical unemployment occurs only when workers lose their jobs because of down turns on the business cycle. It is generally considered to be the major cause of high unemployment. Unemployment gradually recovers from the recession and soon the unemployed have more chances of getting hired. Cyclical unemployment is temporary depending on the degree of recession or depression in a country. Review your unemployment eligibility with our Eligibility Calculator.
Reasons For Cyclical Unemployment
- Cyclical unemployment results from a large drop in demand. It usually starts when a consumer demand for goods and services drop, business revenues decline, etc. Once companies are affected by such problems, workers are given layoffs.
- Cyclical unemployment occurs when there is not enough demand for goods and services in the economy at large to provide jobs.
How To Curb Youth Unemployment In America?
Student Exposure On Industry Needs
Ensure that university students are exposed to industry needs and the current labor market. This will help them find careers that suit their interests while making the best use of their skills. Students who have this exposure will be able to explore several career options during college through internships, apprenticeship, job shadowing, and classroom-based community projects.
With the evolving nature of industries, the market labor requirements also changes. Universities must keep up to this changing trend by altering the academic curriculum and look at how it will cater to various industrial requirements.
Thus, the academic curriculum must be revised and focused towards the practicality of industrial standards. The immense reliance over classroom methodology and theory extincts students from a practical formula of knowing how to progress in an industry.
Post Secondary Partnerships By Colleges
Some universities and colleges in the US have started to provide students with real-world applications and work environments. One such example is Oregon University’s Sustainable Cities initiative.
Here, university students have to partner with business leaders and local government officials to create a business plan and solution to real problems in the line of sustainable cities, transportation, infrastructure and city planning. This initiative exposes students to a practical level of industrial requirements and makes them ready for the job without undergoing any industrial training.
Industry Skills And Programs For Students
Programs that are aimed to focus on industry standards, based on innovative practices to connect students to employers, before they get a job will drive them to a practical forefront.
A university or college that responds quickly to industry needs will not just attract individuals seeking for an employment, but will also attract companies looking for professional development opportunities for their employees.
For example, companies like Modern Technology Council and General Assembly collaborate and work with students after they have completed their formal education. This is an exercise to help them improve their skills needed to be ready to enter into the industry of their choice.
Training For Workforce Demands By Colleges
Companies tie up with colleges and universities to provide recruiting requirements and in due course of time, the university trains students on basis of industry curriculum. This type of an academic progress will help update and revise educational syllabus to suit it to industrial standards.
History Behind Youth Unemployment In US
The United States government began tracking unemployment officially in the 1950s, but estimates before the 1950s was assessed. The Great Depression of the the early 1930s had an employment rate of 23.6% which is considered the highest till date. The country’s lowest rate was 1.2% in 1944 during World War II, where the economy was over driven. The lowest rate of unemployment seen in the United States post World War II was 2.9% in 1953.
In total, the United States has witnessed 11 recessions since 1948 (Postwar period). During the 1980s, the unemployment rate reached a peak of 10.8% and then fell to 5.3% at the end of President Ronald Reagan’s second term. In 1992, it again rose to 7.5% under George H.W. Bush.
The Great Recession pushed it above 10% and stayed above 8% until September, 2012. Some economists state that, the proposal of the American Jobs Act by President Barack Obama, if enacted, would have brought the rate of unemployment below 7%.
Solve Your Unemployment Woes with File Unemployment
Since the job market has been steady, look at boom-towns and other options to help define you grow your career. If you are still unemployed and willing to work then you should use the Benefits Calculator. Read about the the base period and the qualifying wages and the duration of receiving benefits and the amount of weekly benefits based on your state. We’re all ears to listen to your queries on American unemployment and you can share your suggestions in the comment section.
Artificial Intelligence is set to change the landscape of the job market by cutting jobs, adding Artificial Intelligence (AI) related jobs and ensuring that the workforce continues to reskill themselves. After all, AI was developed based on the theory and the development of computers that are able to perform tasks that require human intelligence. This could be visual perception, decision making, speech recognition, and translation. This term was coined in 1956 and has now become popular based on advanced algorithms, data volumes, and significant improvement in storage and computing power.
During the 1950s, AI revolved around symbolic methods and problem-solving. In the 1960s, the US Department of Defense started training computers to mimic basic human reasoning. It was the Defense Advanced Research Projects Agency that did street mapping projects in the 1970s. In fact, DARPA had intelligent personal assistants in 2003 way before Cortana, Alexa, and Siri. This resulted in automation and formal reasoning that computers possess today. This includes smart search systems and decision support systems that will complement and augment human abilities. AI technologies have now been able to help specific benefits in all industries like healthcare, retail, and sports.
Trends in Artificial Intelligence
AI is the new technological frontier, countries, and companies are working hard to gain control of this emerging technology. Alphabet has invested $30 billion and Baidu set aside $20 billion to develop AI technologies. Goldman Sachs suggests that self-driving vehicles will make 25,000 truckers lose their jobs every month. Similarly, large warehouses can now operate with just a dozen people and this is set to affect nearly 1 million packers and pickers in the US.
Companies like Amazon Robotics are using a combination of advanced robotics and a combination of artificial intelligence to help big-box retailers with logistics solutions. DARPA, the organization behind the internet and GPS navigation is currently working with Boston Dynamics to create robots for disaster relief and also worked on the Atlas robot.
Earlier, publishers would spend hours and even days to create content for their website and social media. Wibbitz allows publishers to create videos in minutes and the Associated Press uses a tool called Wordsmith to create news stories based on earnings data. In 2018, you can expect more media professionals and companies to use natural-language and video-generated technologies.
In 2017 alone, there were over 20 million Amazon smart speakers sold and this is without counting the number of Google Home and Apple Airpod devices. By this, you can imagine the number of Americans that can control their homes by interacting with technology by using voice commands. By the end of 2018, consumers should be able to interact with smart assistants that will be integrated with smartphones, televisions, and computers. This is great news for data scientists that will see a growth of over 2.7 million jobs by 2020. These AI jobs would be required to enhance AI machine-learning requires probability to determine the proper decision and answer for a given problem. The platforms require more data to make better predictions. With the growth of the company, it will make it more cumbersome to analyze data and hence there is a need to hire data scientists to handle large data sets to aid these AI platforms.
Robotic Automation and AI
Today robotic automation has grown to be a disruptive force. Even now two-thirds of Americans feel that robots would perform most work done by humans in the next 50 years. In addition, nearly 80% feel that their current jobs will most probably exist in their current form within the same timeframe. The recently concluded World Economic Forum suggests that automation including AI would result in the loss of close to 5 million jobs globally by 2020. Similarly, the International Labor Organization states that nearly 137 million workers in countries like Philippines, Thailand, Cambodia, and Vietnam which accounts for 56% of the total workforce of the countries would be displaced by robots. These workers are mainly from the garment manufacturing industry.
But on the contrary, Genpact CEO NV Tyagarajan feels that there would be a sizable number of jobs that this technology would create. From data suggested by the Robotics Industries Association, it reveals that robots are likely to become the workforce of tomorrow. Within the first half of 2016, North American robotics technology vendors sold 14,583 worth over $817 million to companies across the world. More than 265,000 robots would be deployed at factories across the country and placing the US in third place when it comes to robotics deployments after China and Japan.
Robotic automation requires servicing and programming with the help of high-skill jobs for technicians, programmers, and others. This will create a new set of high-skilled jobs but for every job created by robotic automation, several thousand jobs would be eliminated and this would be disruptive to any workforce.
You should know that by the end of 2018, one-third of robotic deployments would be smarter, more efficient and would be able to collaborate with other robots. This would allow them to work safely alongside humans. In early 2019, there would be a Chief Robotics Officer for 30% or more of the world’s leading companies. Several governments around the world will have drafted or implemented specific legislation surrounding robots and safety, security and privacy. When the year 2020 approaches, average salaries in the robotics sector will increase by 60% and nearly a third of the available jobs in robotics will remain vacant due to a shortage of skilled workers in this sector.
The field of robotics favors Trump as he pledged to bring back manufacturing to the US. But on the downside, it would not help in bringing back jobs for lower-skilled workers. Corporations can mitigate against increasing labor costs in the US without compromising on profit margins to automate low-skilled jobs. This means that this can bring back manufacturing back to the US or create new jobs but not both together.
AI and Employment
Since millions of jobs would be at risk and the worldwide employment crisis looms at large, the only logical thing to do is to enhance the education of tomorrow. This means that people would have to learn about AI and the robotic workforce. In some markets that have unstable employment, developed nations look to science, technology, engineering, and math or STEM graduates to stay competitive.
2017 is the year of the hype cycle for emerging technologies as AI will automate 1.8 million people out of work by 2020. While job losses generate the most interest among the headlines, losses only tell a part of the story. But once you review the possibilities of AI, you will come to know that it will create 2.3 million jobs by 2020 with a net gain of 500,000 jobs.
In time, you would question how many companies would successfully deploy AI and not replace the human workforce. This means that in time, it would help humans be faster and more productive. The notion of technology being a killer of jobs has plagued the job market for several years. Automation has made it cheaper to produce fabric and led to more customers. This, in turn, drove demand and the product. Since the job changed, during the industrial revolution, there has been no shortage of work for semi-skilled labor. While 21 percent viewed AI as something to excited about, 17 percent felt it would be disrupting and enabling, while 9 percent felt AI would displace most jobs in 10 years.
There are a number of positions that are developing around AI. This includes data scientists, AI trainers, capabilities related to modeling, computational intelligence, mathematics, machine learning, linguistics, neuroscience, and psychology. AI will take on more work that we currently handle, constantly learn and adapt to new skills which will be the same for every worker to maintain their job. The challenge now is how is AI related to the change in the scope of human jobs in the light of AI’s automation and autonomy. Though the potential effect of AI on jobs includes job losses, it would also require a number of AI-related skills. You should also know that AI cannot completely replace human judgment. AI is today, just a manifestation of an ongoing workplace evolution. Since the industrial revolution, there are many innovations that are associated with the transition period of temporary job loss. This is then followed by recovery and the business transformation. In a similar manner, AI would likely follow suit. Moving forward workers and leaders looking at AI as a robot would steal jobs and hence should start looking at intelligence augmentation (IA). To mitigate this issue of having a lack of well-trained professionals, businesses should look inward and enforce reskilling and on-the-job training. In time, staff trained in AI would be able to focus on critical activities which in turn would boost productivity.