The US government has been in partial shutdown since December 22, 2018, as President Trump continues to demand more than $5 billion for the border wall between US and Mexico. At this time, since the Democrats control the House, they continue to suggest that they won’t agree to any new money for the wall. Though Trump would not declare a state of national emergency, the White House has already started the groundwork in the event that a major problem arises. Till date, this is the longest shutdown in the history of America.
What Does This Shutdown Mean?
This partial government shutdown would lead to a serious impact on the 800,000 federal employees including the essential jobs that are required to work without pay. This would suggest that most government offices and national monuments would not be functional. As of now, it is difficult to predict layoffs or companies closing down or seeing companies slash up to one-third of its staff due to mergers and acquisitions.
Why the Shutdown?
President Trump stated that he would not relent till the Democrats come to an understand and would go to the extent of using even Disaster Relief Funds to ensure that he has enough financial backing to complete the Wall. Owing to this, President Trump suggested that he would even militarize the border and improve the border security to safeguard the American people.
What to Expect With the Government Shutdown?
Currently, the Federal Government gets its funding from the annual budget appropriations that is governed by the Congress. While the majority of the government has funding in place since the budget was initiated on October 1, 2018, there are still agencies that are operating on temporary extensions which expired at midnight on December 21, 2018.
Workers are in a fix as funding was not enacted for those agencies during the shutdown. This leaves several employees working for those agencies that have stayed on the job even with furloughs.
In both cases, these employees will remain unpaid until the spending authority is restored. Those that remain at work are called Excepted while those that are furloughed are called Non-excepted. In this period individual agencies would help make decisions in what the government calls Contingency Plans.
How to Survive a Government Shutdown?
The best way to prepare for this kind of crisis is to have a Financial Fire Drill (FFD) in place. This FFD is a focused look at essential expenses and how you would be able to cover them during a no-work period. This includes a list of resources and the answer to all the what-ifs. This is where you should prepare yourself on how to answer an interview.
How Much Should You Save to Be in the Clear?
When you come to think about it, you should try to be financially secure to ensure that when push comes to shove, you have enough resources for you and your family. This actually is quite liberating as you can learn to get by on $1,000 a month till things get better.
You should try to develop a habit of saving and if you have, then your healthy emergency fund can be used for an occasion like this one. While it is suggested that you save for three to six months’ worth of expenses, it would be advisable to save for a year’s worth. Though in theory, it could be difficult, it can be made possible.
Though the main point would be to save on the emergency fund and spend it. There are cases of emergencies where you cannot be fully covered. Also, if it takes more than three months to find a new job or recover from a health issue then you still have to pay the bills and this emergency fund would come in handy.
Similarly, you should learn to perform better at work and learn new skills while on the job to ensure that you are up to date with the current state of affairs.
Claim Your Unemployment Benefits
If you are among the 800,000 federal employees or among the many that have lost their job or have furloughed your work then you can apply for unemployment benefits.
How do you apply for benefits, you ask?
Firstly, you will have to apply online to WorkForce West Virginia website or visit the nearest WorkForce office for help.
Secondly, submit the Notification of Personnel Action (SFSO) or a Notice to Federal Employee About Unemployment Insurance (SF8).
Thirdly, as furloughed federal employees, you should upload past check stubs to the application to expedite the process. Though furloughed federal employees are not required to seek employment to receive benefits, they would be expected to reach an agreement with Congress to back pay once the shutdown has ended.
Use our Resources and Tools to Your Benefit
If you are in a tight spot and need help to find employment then you should take a look at some of our resources in order to ensure that you are well on your way. You also need to figure out how you can get hired after a career break, we have the right resources to help you on your way.
Don’t forget to use our host of tools like the Base Period Calculator, Benefits Calculator, and the Eligibility Calculator to help determine your benefits amount that you should receive. This way you can figure out what your base period is, determine the benefits that you are due and whether you are officially eligible to claim your benefits.
With the Base Period Calculator, you can determine what your base period which is the months prior to losing your job. These are the usually the first four of the last five completed calendar quarters prior to the effective date of the claim/unemployment.
Similarly, you can use the Benefits Calculator to determine what is the amount of benefits that you are due based on your base period.
But before you determine your benefits, you should check out the Eligibility Calculator to know whether you are eligible for benefits and if you are actively searching for a job.
If you have any questions about how to use these tools or need any information about how to get your benefits then you can reach out to us in the comments section below. Don’t feel shy, we’re all ears!
Total employment in the non-farm category increased by 155,000 for the month of November. The rate of employment has remained unchanged at 3.7%, as per the reports of the U.S. Bureau of Labor Statistics. The report also states that sectors such as healthcare, manufacturing, transportation, and warehousing have recorded job gains.
Household Survey Data
The rate of unemployment remained unchanged for the third month in a row at 3.7%, and the number of unemployed persons changed marginally standing at 6 million. In the course of the year, however, the number of people unemployed and the rate of unemployment declined by 641,000 and 0.40% percentage point respectively.
The unemployment rate for various groups can be found in the table below:
|Group Group ||Unemployment Rate |
|Men ||3.3% |
|Women || 3.4%|
| Teenagers ||12%|
The above data indicate that there are little to no changes in comparison to the previous month.
The rates of labor force participation and the employment-population ratio, remain unchanged at 62.9 percent and 60.06 percent. The numbers of persons employed part time for economic reasons, however, changed a little, standing at 4.8 million.
The number of long-term unemployed (those jobless for 27 weeks or more) has come down by 120,000, with the overall figure now standing at 1.3 million for November. This group accounted for 20.8% of the overall rate unemployment rate. These involuntary part-time workers seek full-time employment but end up with part-time jobs because of either their due to the reduction in their working hours or due to the inability to find full-time job opportunities.
In November, 1.7 million people were marginally attached to the labor force, which is said to be an increase of 197,000 from the previous year. These people were not in the labour force in the previous year and were not counted as unemployed as they did not make an attempt to find employment.
Among the marginally attached, it is said that 453,000 people are identified as discouraged workers. Discouraged workers do not look for work in the current scenario as they believe that there are no jobs available for them. The other 1.2 million people are marginally attached to the labor force, as they have not looked for work due to commitments such as school attendance or family responsibilities.
Establishment Survey Data
In November, the total non-farm payroll employment increased by 155,000, which is lesser than the average monthly gain in the previous 12 months, which stands at 209,000. Healthcare, manufacturing, transportation, and warehousing sectors were some of the areas that witnessed job gains in the given month.
The healthcare sector added 32,000 jobs in November. Within the industry, employment growth occurred in ambulatory healthcare services, adding 19,000 jobs and hospitals adding 13,000 jobs. Over the year, the healthcare sector has added 328,000 jobs.
The manufacturing sector has added 27,000 jobs, with chemicals and primary metals adding 6,000 and 3,000 jobs respectively, in November. Overall, the manufacturing sector has added 288,000 jobs in the course of the year, largely in durable goods industries.
Transportation and warehousing sector has reportedly added 25,000 jobs in November. Within the industry, growth occurred in couriers and messengers, adding 10,000 jobs and warehousing and storage, adding 6,000 jobs. Over the year, this sector has added 192,000 jobs.
Other industries that have experienced job growth in November include professional and business services, which added 32,000 jobs, retail trade added 18000 jobs, merchandise stores added 39,000 jobs and miscellaneous store retailers added 10,000 jobs.
There were also industries that recorded a decline in job growth, such as the clothing and cloth accessories industries lost 14,000 jobs, electronics and appliance stores lost 11,000 jobs and sports, books and hobby stores lost 11,000 jobs.
The drop in soybean exports and the record high increase in imports of consumer goods has created a US trade deficit which is at a 10-year high. This would mean that the Trump administration’s tariff-related measures to reduce the trade gap have been ineffective.
New data suggests that private employers hired fewer workers than expected in November and this points to the moderation in the pace of the job growth. This was reinforced by yet another report that showed a decline in the number of Americans filing claims for unemployment benefits.
The report maintains that weak housing and business spending on equipment data signals a slowdown in economic growth. There have been concerns over the health of the economy that has upset the financial markets in the last few days.
Increase in Trade Deficit
Also, the Commerce Department suggested that the trade deficit has increased by 1.7% to $55.5 billion, the highest its ever been since October 2008. This trade gap has widened for 5 straight months. Revised data show that there is a deficit rising to $54.6 billion instead of the previously reported $54 billion.
Similarly, the politically sensitive goods trade deficit with China has surged 7.1% to record $43.1 billion in October. There is a bitter trade war which is brewing between the United States and China. There are imposed tariffs on $250 billion worth of Chinese imports to force concession on the list of demands that would change the terms of trade between the two countries.
Sino-American Trade War
China has now created new import tariffs on US goods in response. President Trump accuses Beijing of not playing fairly on trade. Additionally, to the Chinese goods, Washington was slapped with tariffs on steel and aluminum imports into the United States. While President Trump and President Xi Jinping agreed to hold off on imposing more tariffs for 90 days while they negotiate a deal to end this trade dispute.
After the arrest of Meng Wanzhou, CFO of Huawei Technologies and the daughter of its founder, this truce seems to be in jeopardy.
The overall trade deficit is forecast to rise to $55 billion in October. When it is adjusted for inflation, the good trade deficit was increased to $87.9 billion in October from $87.2 billion in September. This so-called real trade deficit above the average for the third quarter.
Trade, Stocks, and Exports
Trade subtracted 1.91 percentage points from GDP growth in the July-September quarter. Growth estimates for the fourth quarter are at 2.8% annualized rate. But owing to this, the economy still grew at a 3.5% pace in the third quarter.
But US stocks are trading sharply after Wanzhou’s arrest which has sparked fears between the Sino-US tensions. Also, the prices of the US Treasuries were trading higher while the dollar was weaker against several other currencies. Also, in October, exports of goods and services slipped by 0.1% to $211 billion. China has targeted the Soybean exports in the trade dispute and this has been dropping for the last several months and fell $0.8 billion. Exports of civilian aircraft and engines also fell.
Additionally, exports of petroleum and consumer goods were the highest on record. A strong dollar is probably restraining the overall export growth.
Imports Reach a Record High
With the trade deficit reaching an all-time high, this would mean that imports would have sky-rocketed. Imports of goods and services rose by 0.2 percent to $266.5 billion which is an all-time high. Consumer goods imports increased by $2 billion to a record high of $57.4 billion and were boosted by a $1.5 billion increase in imports of pharmaceutical preparations.
Another item that reached its highest record is motor vehicles as were other imports of goods. Imports are driven by high domestic demand as well as the strong dollar which is making the prices of imported goods cheaper and this offsets the impact of the tariffs.
At the same time, the ADP National Employment Report showed private payrolls rose by 179,000 jobs in November after the downwardly revised increase of 225,000 in October.
The forecasts show that private payrolls advanced 195,000 last month following a previously reported 227,000 increase in October.
This ADP report which was jointly developed with the help of Moody’s Analytics published ahead of the government’s more comprehensive employment report for November which is scheduled for release on Friday.
Nonfarm payrolls are likely increased by 200,000 in November after surging by 250,000 in October. The unemployment rate is forecast holding steady at half a century low of 3.7%.
Though the ADP report is a record that predicts the private payrolls component of the government’s employment report, job growth looks like its slowing. The main reason for this is due to the shortage of qualified workers.
The Decline in Hiring and Claims
In its third report, the Labor Department expressed that the initial claims for the state unemployment benefits dropped 4,000 to seasonally adjusted 231,000 for the week ended Dec. 1. Even though claims have fallen to 225,000 in the latest week, claims have risen for three straight weeks touching an eight-month high of 235,000 during the week ending November 24.
This is a reason to believe that the labor market has reached its peak. While job layoffs have increased, there is an uncertainty over facing tariffs and the stock market turbulence may have to be dented confidence as well, for companies that are trimming their staff.
The fourth report by the Institute for Supply Management (ISM) expressed that its non-manufacturing activity index rose 0.4 points to a reading last month of 60.7. Any reading above 50 indicates expansion in the sector which accounts for more than two-thirds of activity in the US economy.
But this time around, the ISM’s employment measure fell 1.3 points last month with employers in the construction industry reporting difficulties finding workers due to lack of qualified talent. Only time will tell if job growth would be triggered by policy-making and the change in trend in the job market.
You can read more about the unemployment situation in the US and stay updated.
The Total non-farm payroll employment in the United States rose by 250,000 in October and the unemployment rate remained unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reports. Job gains occurred in the health care industries, manufacturing, construction, and in transportation
and warehousing industries.
Household Survey Data
The unemployment rate in the United States remained at 3.7 percent in the month of October and the number of unemployed persons changed a little at 6.1 million. Over the year, the unemployment rate and the number of unemployed persons declined by 0.4 percentage point and 449,000, respectively.
Among the major worker groups, the unemployment rates for
adult men (3.5 percent),
adult women (3.4 percent),
teenagers (11.9 percent),
Whites (3.3 percent),
Blacks (6.2 percent),
Asians (3.2 percent), and Hispanics (4.4 percent) showed little or no
change in October.
The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 1.4 million in October and accounted for 22.5 percent of the unemployed.
The labor force participation rate increased by 0.2 percentage point to 62.9 percent in October but has shown little change over the year. The employment-population ratio edged up by 0.2 percentage point to 60.6 percent in October and has increased by 0.4 percentage point over the year.
The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged at 4.6 million in October. These individuals, who would have preferred full-time employment, were working part
time because their hours had been reduced or they were unable to find full-time jobs.
In October, 1.5 million persons were marginally attached to the labor force, little changed from a year earlier. (Data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job
sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
Among the marginally attached, there were 506,000 discouraged workers in October, about unchanged from a year earlier. (Data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available
for them. The remaining 984,000 persons marginally attached to the labor force in October had not searched for work for reasons such as school attendance or family
Establishment Survey Data
Total nonfarm payroll employment increased by 250,000 in October, following an average monthly gain of 211,000 over the prior 12 months. In October, job growth occurred in health care, in manufacturing, in construction, and in transportation and warehousing.
Health care added 36,000 jobs in October. Within the industry, employment growth occurred in hospitals (+13,000) and in nursing and residential care facilities (+8,000). Employment in ambulatory health care services continued to trend up (+14,000). Over the past 12 months, health care employment grew by 323,000.
In October, employment in manufacturing increased by 32,000. Most of the increase occurred in durable goods manufacturing, with a gain in transportation equipment (+10,000). Manufacturing has added 296,000 jobs over the year, largely in durable
Construction employment rose by 30,000 in October, with nearly half of the gain occurring among residential specialty trade contractors (+14,000). Over the year, construction has added 330,000 jobs.
Employment in leisure and hospitality edged up in October (+42,000). Employment was unchanged in September, likely reflecting the impact of Hurricane Florence. The average gain for the 2 months combined (+21,000) was the same as the average monthly
gain in the industry for the 12-month period prior to September.
In October, employment in professional and business services continued to trend up
(+35,000). Over the year, the industry has added 516,000 jobs.
Employment in mining also continued to trend up over the month (+5,000). The industry has added 65,000 jobs over the year, with most of the gain in support activities for mining.
Employment in other major industries–including wholesale trade, retail trade, information, financial activities, and government-showed little change over the month.
To know more about the job market and to know more about unemployment benefits, head on to www.FileUnemployment.org
Iowa’s unemployment has dropped to 2.5 percent and this makes it the second lowest in the country after Hawaii. But 50 percent of Iowa graduates still prefer to move out of the state once they are done with college. Iowa’s unemployment rate has fallen to the lowest percentage since 2000.
There is a low unemployment rate for Iowa as compared to the rest of the United States. Also, the job openings in the state are greater than the number of workers seeking jobs.
Iowa has a historically low unemployment rate. Whether it’s good or bad is based on whether you’re a firm or a worker. If you’re a worker and there is a lot of jobs then it is always a good thing. But for a firm, it could be difficult for them to find the right candidates to match these jobs.
Economy and Employment
Iowa’s economy has done better than most states and unemployment remained low during the Great Recession. The Federal Reserve for Economic Data shows that there was a recession in 2007 and Iowa’s unemployment was approximately 6.7. This is lower than the US unemployment rate which is approximately 10 percent. Also, in most cases, vehicles can be expensive for most people that work in the rural economy.
There are a large number of skilled workers that qualify to work on certain types of jobs and may feel the need to move in order to be in places where their skill sets are in demand.
Based on the effect of the low unemployment rate, professional organizations are coming in and engaging with students through classroom level activities to try to build relationships with them.
Iowa Students and Trends
Research conducted by the UI during the academic year 2016-17 was 50.25 percent of graduate students employed in Iowa and 23.07 percent employed in Illinois. There are several students that come from different states and live in Iowa and find opportunities and this encourages them to stay in the state. Iowa students prefer to move out and the most prominent reason is to live in a metropolitan area. Most people prefer going to states with a lower cost of living like Texas. Also, there are areas that attract people with certain interests. It’s not since May of 2000 that Iowa’s unemployment has been this low. Iowans are coming together to help more Iowans find work and get upskilled based on their community of 2,100 and business leaders.
While the number of unemployed Iowans has decreased to 44,000 in July from 44,900 in June, this is a positive trend. The current estimate shows are lower by 8,100 than a year ago where the level of 52,100. The total number of working Iowans increased to 1,640,300 in July which is 5200 higher than June and 13200 higher than a year ago.
Seasonally Adjusted Nonfarm Employment
The total nonfarm employment decreased by 700 in July which is lowering the total down to 1,591,500 jobs in the market. Accounting to this would mean that there is a small loss is the third of 2018 which follows the surge in hiring over the last two months. Goods-producing sectors have together added jobs for the sixth-consecutive month stretching back to January. At the same time service industries shed 2,300 jobs following large gains over the past two months. At the same time, private industries as a whole experienced no change since June while the government shed 700 jobs which is up against the 400 jobs annually.
The retail industry shed the most jobs in July which is about 3000 and was responsible for all of the loss in the trade and transportation sector which lost 2,100 jobs. This decline was expected given the recent announcements of stores closing around the state. For the most part, retail has trended down since the beginning of 2017. This trend should continue through 2018 as online sales continue to gain popularity around the nation.
In the education services and healthcare sector, this was the only major loss this month due to small losses in each segment. This sector is expected to trend back up during the second half of the year. Similarly, the manufacturing sector had the biggest job gains with an increase of 1,300 jobs and this would follow another moderate gain of 900 in June.
Financial services added 600 jobs in July and it continues to expand its footprint in the Iowa economy. Similarly, there were 600 jobs gained in the leisure and hospitality industry. This sector has been increasing staffing levels since the fourth quarter of last year and gains have been the heaviest within the food services and accommodations. Construction has seen a small gain of 300 jobs this month which is the sixth consecutive month of growth.
There have been 19,000 jobs gained since last July and most of these gains occurred within Iowa’s factories which accounts for 11,300 jobs. The durable goods shops have outpaced the non-durable goods counterparts in terms of growth which is 7900 jobs versus 3400 jobs. Construction industries are up by 3,500 jobs annually following job gains which stretched back to January. Additionally, the finance sector has continued to fair well by adding 2900 jobs. While the private sector has lost 2600 jobs and so is the trade and transportation industry by 2200 jobs.
Still Looking for a Job? – FileUnemployment.org
If you are unemployed then you should use the resources and research on FileUnemployment.org to connect with your local unemployment offices and search your unemployment claim. You can determine how to go about your claim based on the application process, eligibility calculator, job search requirements and more. You can find out what are the type of unemployment benefits that you can claim based on the state. Here you can choose your state and connect with an office close to you.
Americans filing for unemployment benefits unexpectedly rose but remained near a 49 year low. This increase appeared unlikely to make a dent in the US labor market which remains strong.
The claims for state unemployment benefits increased by 7,000 and adjusted to 214,000 for the week. Earlier, economists suggested that the claims forecast was slipping to 206,000 from 207,000.
Claimed increased for South and North Carolina which were affected by Hurricane Florence and claims for Virginia and Puerto Rico were being estimated. The four weeks moving average of initial claims considered a better measure of labor market trends which irons out week-to-week volatility which rose by 2,500 to 209,500
The labor market is viewed as being near or at full employment, which many economists believe is helping U.S. wages grow a little more quickly and fueling expectations the Federal Reserve will increase interest rates again in December. This year alone, the Fed has already raised rates three times.
The claim report expressed that the number of people receiving benefits after the initial week of aid rose 4,000 to 1.66 million for the week ended September 29. The four weeks moving average of the so-called continued claims which has decreased 10,000 to 1.66 million to the lowest level since August 1973.
People seeking help with lost wages from Florence has surpassed Matthew. This is nearly 9300 North Carolinians that have applied for disaster-related unemployment benefits due to Hurricane Florence.
Many of these people which is nearly 8000 have applied for disaster unemployment assistance which is an additional benefit for those that are left without wages due to the storm. This is nearly four times the number of people that requested for disaster unemployment assistance after Hurricane Matthew in 2016.
There are several in Eastern North Carolina that have not resulted in several days and weeks without pay. These are hourly workers, self-employed workers, fishermen, and farmers. Most lost wages at the end of the month especially when they have to make payments for mortgage, rent or electricity.
Metros Hit Badly
The state has made payments of more than $300,000 in claims and this could easily pay out several million. After Hurricane Matthew, payouts reached more than $2.8 million for storm-related unemployment claims. There were more than 7545 applications for regular unemployment and around 2200 for DUA after the storm.
Hurricane Florence had a much larger impact on metropolitan areas, such as Wilmington, Jacksonville, and New Bern, while Hurricane Matthew hit more rural areas. The storm hit areas which have a higher labor market which means greater claims numbers.
Disaster unemployment assistance is available to people who live in one of the 28 counties approved for a federal disaster. This is for residents that cannot work as the roads are flooded, power outages and damage to the building are constraints to their work.
It also helps those who are ineligible for standard unemployment insurance recoup some of those lost wages from the storm. People may not be eligible for regular unemployment benefits because they’ve already used their 12-week allotment for the year or because they haven’t been in their job long enough to qualify for benefits.
However, workers should apply for standard unemployment as well as DUA. While standard unemployment benefits pay up to $350 a week for 12 weeks, DUA pays up to $350 a week for up to 27 weeks.
The Division of Employment Security has been busy since Florence hit North Carolina with all employees helping process claims. In Onslow County, the DES used the Division of Workforce Solutions’ only bus to make a mobile computer lab to process applications.
Scotland County which has the state’s largest unemployment rate at 7.6 percent had the state’s NC Works office handling claims in downtown Laurinburg. This area was flooded by the storm and forced workers to temporarily relocate to Scotland County’s economic development office.
Most roads in Scotland County’s rural region was flooded and damaged which kept away many workers from their jobs.
NC Works employees moved to Kordsa in Laurel Hill to assist with the worker’s file claims. Places like Kordsa, which employs around 100 people which manufactures nylon wiring for tires. The company’s building lost power and the roads around it flooded, causing it to halt operations for four days.
How to Apply for Disaster Unemployment Assistance
If you are a worker from one of these 28 counties in Eastern North Carolina then you have been approved for federal disaster assistance.
Eligible counties are: Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Moore, New Hanover, Onslow, Pamlico, Pender, Pitt, Richmond, Robeson, Sampson, Scotland, Wayne and Wilson.
The eligibility criteria for DUA include the following where an individual should meet one or more of these conditions as a direct result of a major disaster
- No longer have a job
- Unable to reach their place of employment
- Scheduled to start work but unable to reach the job
- Become the breadwinner or major support of family because of disaster-related death of the head of household
- Cannot work because of injury directly caused by the declared disaster
The September unemployment rate declined to 3.7% in September and the total nonfarm payroll employment increased by 134,000. The main job gains were in the professional and business services which includes health care, transportation and warehousing.
Hurricane Florence affected sections of the East Coast in the month of September and this would be the reference periods for establishment and household surveys. Response rates for the two surveys were within the normal range. When it comes to the establishment survey, the reference period of the pay period is the 12th of the month.
But unusual weather is more likely to have an impact on the average weekly hours than on employment. You should know that average weekly hours are estimated for paid time during the pay period which includes holidays, sick leave and time off from work. The impact could be severe weather on hours and this could result in a reduction in the average weekly hours. For instance, while some employees do not work for part of the pay period or haven’t received pay for time missed others could deal with cleanup, repair and extra work hours.
While the unemployment rate declined by 0.2% leaving it at 3.7%, accordingly the number of unemployed decreased by 270,000 to 6 million. In the last year, the unemployment rate and number of unemployed persons declined by 0.5 percentage points closing it at 795,000 unemployed persons.
Unemployment Rates for Worker Groups
Among the major worker groups, the unemployment rates are:
- Adult women: 3.3%
- Whites: 3.3%
- Adult men: 3.4%
- Teenagers: 12.8%
- Blacks: 6.0%
- Asians: 3.5%
- Hispanics: 4.5%
While the unemployment for white and adult women declined in September. There was little or no change for adult men, teenagers, Blacks, Asians and Hispanics over the entire month.
At the same time, the number of long term unemployed or those that are jobless for 27 weeks or more changed a little at 1.4 million over the month. These individuals accounted for 22.9 percent of all unemployed.
In September, the labor force participation rate remained at 62.7%, and the employment population ratio changed a little at 60.4%. The number of persons employed part time for economic reasons increased by 263,000 to 4.6 million in September.
Also, 1.6 million persons were marginally attached to the labor force which is almost the same as before from a year earlier. These individuals do not fall under the labor force but looked for work for the last 12 months.
Of the marginally attached workers, there were 383,000 discouraged workers which is almost unchanged from a year ago. The remaining 1.2 million persons are marginally attached to the labor force in September and had not searched for work for reasons such as school attendance or family responsibilities.
Nonfarm Payroll Employment
The nonfarm employment rose by 134,000 in September as compared to the average monthly gain of 201,000 over the previous 12 months. In September, job gains have occured in professional and business services, health care, and transportation and warehousing. At the same time employment has increased by 54,000 in professional and business services and rose by 560,000 over the year.
Similarly, health care employment grew by 26,000. Hospitals added 12,000 jobs while ambulance health care services increased by 10,000. Overall, health care employment has increased by 302,000.
Transportation and warehousing employment rose by 24,000. Job gains in warehousing and storage increased by 8,000, couriers and messengers by 5,000 and the over all transportation and warehousing would be increased by 174,000.
Construction employment continued to trend up by 23,000. The industry in total added 315,000 jobs over the past 12 months. Employment in manufacturing continued to grow as 18,000 people joined the workforce. Over the past 12 months, manufacturing added 278,000 jobs which is four-fifths of the gain of the durable goods.
Mining rose by 6,000 over the month and 53,000 over the year. The hospitality and leisure industry lost 17,000 jobs in the month of September. There is little or no change in wholesale trade, retail trade, information, financial activities and government.
The total nonfarm payroll employment for July was revised from +147,000 to +165,000 and the change for August was revised up from +201,000 to +270,000. Based on these revisions, employment gains in July and August combined were 87,000. Also, after the revisions job gains has averaged 190,000 per month for the last 3 months in 2018.
The Unemployment rate in the United States remains unchanged at 3.9% while the total nonfarm payroll employment increased by 201,000 in the month of August. The US Bureau of Labor Statistics in their monthly report state that job gains occurred in professional and business services, wholesale trade, health care, transportation and warehousing and mining industries.
As stated above, the unemployment rate remained at 3.9% in August and the number of unemployed personnel remained at 6.2 million.
Household Survey Unemployment Data
In terms of the major worker groups, the unemployment rate for adult men was at 3.5%, and adult women tallied at 3.6% unemployed. Unemployed teenagers were accounted at 12.8%.
The Whites accounted at 3.4%, Blacks at 6.3%, Asians at 3% and Hispanics at 4.7%. There was little to no change in the unemployment rates for each major worker groups.
The number of long term unemployed people changed little in the month of August at 1.3 million and accounted for 21.5% of the total unemployed. Long term unemployed are people who have been jobless for 27 weeks or more. Over the year, the long term unemployed numbers have declined by 403,000.
In other findings from the report, the labor force participation rate (62.7%) and the employment population ratio (60.3%) both declined by 0.2% in the month of August 2018.
When it comes to people employed part time for economic reasons (also known as involuntary part time workers), at 4.4 million, changed little in the month of August. However, the number has been down by 830,000. It should be noted that these individuals preferred full-time employment but had to work part time because of reduced hours or the lack of full-time jobs.
The month of August 2018 sees 1.4 million people marginally attached to the labor force, which is a slight difference from the previous year. These people were not in the labor force, were looking to seek employment and have been searching for jobs sometime in the past 12 months.
Non Farm Payroll
In the month of August, the total non farm payroll employment had increased by 201,000. This is in tune with the average monthly gain of 196,000 over the past year. In the month of August, employment increased in the following industries:
- Professional and Business Services
- Health Care
- Wholesale Trade
- Transportation and Warehousing
The Professional and business services added in 53,000 jobs in the month of August. The professional and business services added in 519,000 over the past 12 months.
August 2018 sees an employment rise in the healthcare industry by 33,000. Most of the jobs gains stem mostly from ambulatory health care services with 21,000 jobs. Job gains of about 8,000 were seen in hospitals. Over the year, the healthcare industry has added in 301,000 jobs.
Employment in the wholesale trade industry increased by 22,000 in the month of August and 99,000 over the past 12 months. From the industry, the durable goods wholesalers added 14,000 jobs over the month. This accounted for about two-thirds of the over the year job gain in the wholesale trade industry.
The transportation and warehousing industry rose by 20,000 jobs in the month of August. The industry has risen by 173,000 jobs over the past year. Within the industry, couriers and messengers have been responsible for adding in around 4,000 jobs in the month of August.
The mining industry had a rise in employment by 6,000 jobs in the month of August and showed little change from its progress in July. Since a recent dip in October 2016, the mining industry has added in 104,000 jobs. Most of the jobs in entire support of mining activities.
The construction industry continues to have an uptick of 23,000 jobs in the month of August. Over the year, the construction industry has increased its jobs by 297,000 over the year.
The manufacturing industry changed slightly negatively in the month of August, with a loss of 3,000 jobs. Over the past 12 months, employment in the industry was up by 254,000. More than 3/4th of the gains were from the durable goods segment in the industry.
In terms of employment in other major industries, there was little to no change in employment. These major industries include retail trade, information, financial activities, leisure and hospitality and government.
United States President Donald Trump’s quest for job creation in the United States has had many twists and turns. President Trump believes that the solution to creating more jobs in the United States is through levying heavy trade tariffs, targeting mostly Chinese made products.
In 2018 alone, Trumps has levied tariffs on 10,000+ products from China, Canada and European Union. In reciprocation these countries have levied their own trade tariffs on American goods. While this may help certain industries to create more jobs within the country, there is always the scenario of cause and effect.
What President Trump has failed to realise, is that levying high tariffs on foreign goods does not affect traders but more importantly set the burden onto the American consumers. In order for American consumers to obtain foreign goods, they will have to pay the high tariffs of trade instead of the supplier.
Trade Tariffs Impacts Agrarian Economy
The main industry that is affected by trump’s tariffs is the agriculture industry. This is because all the profits that farmers gain from trade become nullified because of the high tariffs, and this will result in severe losses.
While setting tariffs on agriculture would be a smart thing to do because the industry is solely export based. It leads the country to be vulnerable from trade tariffs being set by foreign countries. China is the second largest buyer of agricultural exports from agricultural exports. This means that farmers are particularly affected.
China retaliated by levying 25% duties on US agricultural products, which estimates to around $45 Billion. US producers of soybean, corn, poultry and beef were affected the most. As a result, farmers and agricultural workers have a hard time making a living in a sector that has always lagged behind historically in the national average of all industries.
Not to mention, poorer areas of the United States will be afflicted much more than others. States like Louisiana, Alabama and South Carolina have per capita incomes much lesser than the national average.
These households face the greatest threat in the export dependant agricultural companies, because of the inability to do business with one of their most important trade partners.
While it is significant that industries like the steel and aluminium stand to benefit from trade tariffs (possibility of gaining 26,000+ jobs), every industry is connected to each other. The high tariffs of steel and aluminum can affect the manufacturing of other products that use steel and aluminium. The dependency of a certain product and increase in trade tariffs can result in the loss of 400,000 jobs in other industries.
Not only that, automobile companies like Ford or Mercedes Benz/ BMW will also be hit majorly with the trade tariffs being levied. While it may seem like a good idea to prevent the influx of foreign vehicles, these automobile companies have their largest factories situated right in the United States.
Higher tariffs on raw materials like Steel and Aluminium leads to higher production costs for the automobile industry. This in turn would lead to more reliance on machines and higher number of layoffs of human resource. This would lead countless number of jobs being lost and a rising unemployment rate.
Companies Affected by Trade Tariffs
Just this year, the largest nail maker in the US, Mid-Continent Nail had to let go of 60 workers after their sales plunged by 70% after Trump’s implementation of a 25% tariff on steel from Canada and Mexico. Similarly, the Poplar Bluff Company had to raise its prices which led to defection by customers. The company worries of more layoffs and the termination of the entire 500 member workforce by Labor Day.
World renowned motorcycle company Harley-Davidson aims to shift a portion of its motorcycle manufacturing to outside the US in order to survive the trade war. The Milwaukee based motorcycle company stated in public filing that the move was paramount in preserving its second biggest sales market after the European marked imposed new tariffs. The company intends to close its plant in Kansas, Missouri, and add jobs to its Pennsylvania facility.
Meanwhile, Tariffs can lead to the cause of 4000 workers becoming unemployed at the Volvo plant in South Carolina. Volvo Cars Chief Executive Hakan Samuellsson told Reuters that trade barriers and restrictions were preventing them from creating as many jobs as they hoped to plan.
Now with the trade war deemed to escalate, it would mean the potential decrease in jobs. If you are currently looking for employment, it is advisable to check www.fileunemployment.org to see the unemployment benefits you could avail from the city/state you reside in. Also check out the various articles that provide vital information as to getting employed in the United States.
July 2018 saw the unemployment rate edge down to 3.9% from June’s 4.0%. The number of unemployed decreased by 284,000 to 6.3 million in the month of July. In both cases, numbers were down over the year by 0.4% and 676,000 numerically.
In terms of the major working groups, the unemployment rate for adult men and whites both declined to 3.4% in the month of July. The jobless rates for adult women remained at 3.7%. Teenagers at 13.1%, blacks at 6.6%, Asians at 3.1% and Hispanics at 4.5%.
When it comes to unemployed persons, the number of re-entrants to the labor force had a decrease of 287,000 in July to 1.8 million, following the increase in June. (Re-entrants are people who were previously employed but were not part of the labor force prior to beginning their job search)
Out of the total unemployed, the number of long term unemployed persons (those who have been unemployed for 27 weeks or more) remained unchanged from the 1.4 million in July. The long term unemployed accounted for 22.7% of the total unemployed.
The Labor participation rate for the month of July remained unchanged at 62.9% over the month of July as well as the year. The employment population ratio which is at 60.5% changed little in July but increased by 0.3% over the past 12 months.
The number of people who are employed part time for economical reasons (aka involuntary part time workers) changed little from 4.6 million in July, but over the year was down by 669,000. These people, would have preferred full time employment, had to settle for part time because of reduced hours and the inability to find full time jobs.
July 2018 sees 1.5 million people marginally attached to the labor force, which is a slight difference from the previous year. These people were not part of the labor force, wanted and were available for work, and were looking for jobs during the prior 12 months. The Bureau of Labor Statistics did not count them as unemployed because they did not look out for work for in the 4 weeks preceding the survey.
When it comes to the marginally attached, there were 512,00 workers who were discouraged, which is a slight change compared to the previous year. Discouraged workers are termed for people who aren’t currently look for work because of their belief that no jobs are available to them. The remainder 1 million people who are marginally attached to the labor force in July had not searched for employment due to family responsibilities and school attendance.
Non Farm Payroll Employment
The total non farm payroll employment increased by 157,000 in July 2018. This is in comparison to the average monthly gain of 203,000 in the past year. July saw job gains occur in professional and business services, manufacturing, health care and social assistance industries
Out of the non farm payroll employment increase, the professional and business services increased by 51,000 in the month, and 518,000 jobs over the year. Over the month, employment increased in the temporary health services by 28,000 and computer systems design and related services by 8000.
The manufacturing industry added in 37,000 in the month of july, with most gains in the durable goods component. There was an increase in employment in transportation equipment by 13000, 6000 in machinery and 2000 jobs in the electronic instruments industry. Over the past year, the manufacturing industry has added in 327,000 jobs.
Employment in health care and social assistance industries rose by 34,000 in the month of July. The healthcare industry trended up in employment over the month with 17000 jobs, contributing to an increase of 286,000 jobs over the year. Hospitals added in 7000 jobs over the month, whereas social assistance, individual and family services added in 16,000 jobs in July and 77,000 jobs over the year.
Employment in food services and drinking places continued to trend up over the month (+26,000). Over the year, the industry has added 203,000 jobs.
Construction employment continued to trend up in July (+19,000) and has increased by 308,000 over the year.
In July, employment in retail trade changed little (+7,000). Job gains occurred in general merchandise stores (+14,000), clothing and clothing accessories stores (+10,000), and food and beverage stores (+8,000). These employment gains were offset by a decline of 32,000 in sporting goods, hobby, book, and music stores, reflecting job losses in hobby, toy, and game stores.
Employment showed little or no change over the month in other major industries, including mining, wholesale trade, transportation and warehousing, information, financial activities, and government.
The Employment Situation is a monthly report and survey conducted by the United States Bureau of Labour Statistics.