U.S Economy Adds Jobs, Unemployment Rate drops to 7.7%

Author : neha

Updated : June 12th, 2019

It takes more than a Superstorm to disrupt the U.S job market.

Superstorm Sandy didn’t do as much damage as was anticipated to the nation’s employment situation, at least that’s what the government monthly data on the jobs market told when it illustrated the nation’s jobless rate dip to 7.7%. Forecasters and businesses, however, by now are looking past that report to the risks to jobs from the economic cliff.

U.S Economy Adds Jobs

146,000 jobs were added to business payrolls in last month, and the unemployment rate dipped a couple of ticks to 7.7%, a four-low, according to the government. Nigel Gault, chief U.S. economist at the research firm IHS Global Insight, says the report did not say much that’s new about the US economy.

Gault says that a hundred and forty six thousand jobs are very similar to the average that individuals have seen so far in 2012. It’s still a much delayed, slow recovery.

Though modest, the job growth was encouraging as it challenged disruptions from Superstorm Sandy and employers’ worries about awaiting tax increases from the year end “fiscal cliff.”

Analysts said the job market’s fundamental strength suggests that if the Congress and White House can reach a budget deal to keep away from cliff, hiring and economic growth could accelerate next year.

A budget agreement would match with the gains in key sectors of the economy.

With the destruction of homes construction hiring should increase. U.S automakers just enjoyed their best sales month in almost 5 years. And a resolution of the fiscal cliff could lead businesses to procure more industrial machinery and other heavy equipment. That would produce more manufacturing jobs.

“The ground is being set for faster growth,” said Nigel Gault.

House GOP leader John Boehner said that the two parties had made little progress in talks finding a deal to steer clear of the cliff.

The White House employed Friday’s mixed jobs report as a disagreement to drive President Barack Obama’s proposed tax rate increases for top earners, public works spending and refinancing help for stressed homeowners.

Superstorm Sandy, opposite to expectations, dampened job growth only minimally in November this year, the government said.

Job gains were more or less the same as this year’s 150,000 monthly average, and the jobless rate dropped 2/10ths of a percentage point to its lowest level since December 2008.

That implies that fears about cliff have not led employers to cut staff, however they are not employing aggressively, either. The economy must create job gain twice as November’s in order to lower the unemployment rate quickly.

Recent report included some disappointing signs. Employers added a total of 49,000 jobs in October and September than the government had initially expected. Monthly job totals come from a survey of 140,000 firms and government agencies, which jointly employ about 1 in 3 nonfarm workers in the United States.

Friday’s report included some discouraging signs. Employers added 49,000 fewer jobs in October and September combined than the government had initially estimated. Monthly job totals come from a survey of 140,000 companies and government agencies, which together employ about 1 in 3 nonfarm workers in the United States.

The jobless rate, deduced from a separate analysis of households, fell because 229,000 jobless people stopped seeking work and thus were no longer counted as unemployed.

The household survey inquires about 60,000 households whether the adults have jobs and whether those who don’t are seeking one. Those without a job who are searching one are counted as jobless. Those who are not searching are not counted as jobless.

As told, 12 million people were laid-off in November 2012, about 230,000 less than the previous month. That’s still many more than the 7.6 million who were out of work when the downturn officially began in December 2007.

A broader gauge considers the unemployed, plus part-time workers who want full-time work and those who have stopped looking for a job. That total added up to 22.7 million people in November, down from 23 million in October.

Investors appeared satisfied with the report. The Dow Jones industrial average closed up 81 points.

For now, doubts about the cliff have led some companies to cut back on purchases of heavy equipment. Consumers are also signal concern. A review of consumer sentiment fell sharply in December, economists noted, partly over worries that taxes could go up next year.

But a resolution of the cliff could speed up job growth in the construction and manufacturing industries. Those sectors, on average, pay more than the restaurant and retail jobs that have helped drive hiring in recent months and tend to put in more to economic growth.

Construction workers earned an average of $26 an hour in November. Factory workers averaged $24 an hour. Both far exceed the hourly average of $16.40 for retail employees and almost $13.40 for restaurant, hotel and other hospitality workers.

The labor market is improving rapidly and it is estimated that a budget deal would improve the economy’s average monthly job gains to about 200,000 in 2013.

One company that could boost hiring in 2013 is Ahaus Tool & Engineering in Richmond, Ind., which makes assembly machines for the power-generation and automotive industries.

Kevin Ahaus, president of the 90-person company says the company had its best year ever in the 12 months that ended in September this year. But since October, sales have leveled off. According to Ahaus, many customers are asking for bids but not closing deals, all because of the uncertain economic outlook.

That, in turn, is causing to delay hiring.

Ahaus said, “I probably won’t hire anybody until the first of the year because of all the unknowns out there.”

As stated, many analysts thought Sandy would delay job growth a lot in November as the storm forced retailers, restaurants and other businesses to close in late October and early November.

It didn’t. In part, that’s because the storm hit Oct. 29, but as long as employees had returned to work by Thanksgiving week, the survey considered them as employed.

However there were signs that the storm disrupted some sectors of the economy in November. For instance, Construction employment dipped to 20,000.

Retailers added 53,000 positions previous month, a sharp gain that possibly reflected holiday hiring. Auto manufacturers added almost 10,000 jobs. But in general, manufacturing jobs fell by 7,000; partly a result of 12,000 jobs lost in food manufacturing that possibly reflected layoffs at Hostess Brands Inc.

The recovery in housing is leading Georgia pacific, a paper and wood products company, to employ. It is opening a new plant in South Carolina next year and is filing 140 jobs. By far, it has received 2,400 applications.

“It’s a little overwhelming from an HR perspective,” said Julie Brehm, vice president of human resources.

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  1. I applied for unemployment on 8-1 and was approved. I received my letter of eligibility and debit card about a week ago. I did not file my intitial bi weekly claim because I missed the deadline by 1 day (didn’t realize they would be closed on Saturday). When I logged on it said I would have to reopen a claim because mine had been closed. I filled out the online form to deactivate the claim. My question is this: will I have another waiting week? And will unemployment have to contact my employer all over again to verify my wages and go through the entire process all over again or will they just reopen the claim with a new date window to file?

  2. Lost my job in 10/2018 due to plant closure, collected vacation and severance pay. Opened a claim in 1/2019. Got an on the job training job through career link in 5/2019 worked one week and became very sick and was off for two weeks VA could not find anything wrong but gave me medication for the symptoms and an excuse to return to work, prior to returning got a call from my recruiter at career link telling me the position was filled so i did not return. Reopened my claim, a few weeks later got a letter informing me the employer had appealed and said i did not return, had a hearing and the employer did not show but i lost and got a 2500.00 over payment. Got a temp job through an agency but have only worked 4 days in two weeks. Reopened my claim and was told i need to earn 2604.00 from current employer before it can be opened, did i do something wrong? Still applying for work but am days away from losing everything, need income to pay bills. PLEASE HELP

    1. Rodney,

      Your eligibility to claim UI benefits depends on multiple factors including monetary eligibility. If you’ve been officially told about the shortage of earnings, there’s nothing much one can do. If you’re still confident of winning the appeal, please make a strong case.

      1. I live in KY but my base wages were from earnings in GA when I lived there. I’ve exhausted my benefits in KY. Am I able to now file through GA since my earnings through 10/18 came from there?

        1. Dee,

          As much as I am aware, Unemployment Insurance is a one time cycle. Please call the Unemployment Office in GA for more.

  3. The hours at work have been cut due to lack of business for every department.
    So all full-time positions are now part-time.
    How do I file for partial unemployment?
    The only options I see (in Texas) are for full unemployment.

    1. Eric,

      You should be able to claim partial UI benefits. Please consider applying online until full hours are restored.

    1. William,

      If everything goes well, it should not take more than 7-10 business days (waiting week). Please call the Claims Center for more.

  4. I was employed by a VA company for 5 years, my contract ended yesterday (07/31/19), however, I worked remotely for those 5 years and live in FL, which state do I apply to for my unemployment benefits?

    1. Oscar,

      Please check with your employer if they remitted UI taxes into the system. Contract workers are generally not eligible.

        1. Oscar,

          In that case, please go ahead and apply if your employer remitted UI taxes into the system.

    2. You apply in Virginia…however, I worked seasonally and they used a ‘quarter’ that was empty, so even though my employer paid in, I only got a 1/3 of what I should have received. Figured that out later :/ They will also question WHY you aren’t able and available to work IN Virginia. They froze my account for about a month.

  5. I worked 37 years with the same company in Texas. On July 2nd of 2018, I was let go due to workforce reduction. I signed up for benefits several months later and now have drawn my 26 weeks of benefit. Is there any program currently open in Texas or federally that will extend additional money while job seeking?

    1. Lonnie,

      The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.

  6. I have been an employee of my company for 34 yrs. My position is being eliminated but I have been offered another position for less money. It is a much more physical job that I am not sure I can perform well. I am 75. If I try to fulfill the position and cannot do it, will I still be able to get benefits if I quit? They want me to try it for a couple of weeks to see if I am strong enough and if I can afford the cut in pay.

    1. Lynda,

      I suggest you call the Unemployment Office to find out about eligibility before making a decision on continuation.

      1. I recently lost my job..i was late for work and they took me off the schedule..never told me i was fired..didnt ask for uniforms back. Another cook was andd has been late for work and he didnt get taken off the schedule.can i still get unemployment?

        1. Kandie,

          Please note UI benefits are only offered to claimants who lose employment due to no fault of their own. You can call the Unemployment Office for clarification.

  7. Are there any training benefits or programs that will pay for an advanced degree, such as a PhD which is needed to become more employable?

    1. There are multiple training programs administered by the Labor Department in each state. For more info, please call visit the official website of the Unemployment Office.

  8. I’m about to exhaust my Unemployment benefits. I was laid off from my first job and
    found employment then I lost my job and became unemployed again. I applied for benefits and have have almost exhausted my benefits but have not found employment. Can I file for an extension?

    1. Deanna,

      The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.

  9. After reading your article it’s still not clear to me about requirements surrounding moving to another state and completing/continuing to collect. I have 8 weeks eligibility left, I am moving from MA to FL. The end of your article says: “Since it’s all virtual (online), you may still consider the option of continuing your claims from the base state even if you move to a different one until completion. As a responsible claimant, it’s your duty to inform the base state about your movement to ensure there are no hassles in the near future.”

    So it sounds like even once I am in new state I am eligible to continue to collect from my base state. I can just continue to do my required weekly job search and reporting to and filing in my base state (I do it via phone call-in). No need to complicate things by doing some crazy state transfer of benefits. Benefits also done via direct bank deposit and no need to change anything. Do I even need to tell my base state I am now living in a new state? Why? Thank you.

    1. Paul,

      For the ease of understanding, each state has its specific rules and laws with regard to administering Unemployment Benefits. It might be an obligation for a claimant to inform about the movement. For clarification, please call the Unemployment Office and speak to a representative.

  10. I was recently fired from my work 25-June-2019/due to me not meeting their “standards/ expectations” i submitted my UE claim on 28-June and have not received any pay as of today, 19-July. The status is currently “adjudication in progress,” my question is, should i be worried this will be denied? I read the FAQ on the UE webpage and it said only a couple applications require the adjudication process. How long does this process usually take to get the final answer of whether I’m denied or approved? The website stated it susuallt takes ~25 days for the adjudication process, does this mean once that’s done then i still have to wait another 2-6 weeks for final processing after? THANK YOU SOO MUCH to whomever is able to provide me with some answers/ input.

    ** this is my first time ever being fired or having to file for unemployment so i really have nooooo idea what is standard or normal or whatever. I feel like an idiot with my simple questions but it would bring me so much relief having them answered, truly

    1. Talia,

      I can understand your reason for the anxiety. Adjudication is a fact-finding process where both the claimant and the employer will get an opportunity to present their case. During this process, make sure to produce supporting documents that amplify your stance. For all you know, the adjudication can be a lengthy process.

      Best Wishes!

  11. I was permanently severanced from my job due to a Co. Reorg & received my last severance pay last week. I called UE & was told that I should now do my application online since I will no longer be getting funds & still without a job & that this coming Sunday regardless of knowing if I will or will not get benefits yet that I should still file a weekly claim in case of UE back pay.
    So my question is, do I still have to report 4 jobs applied to within this week, even if I do not know if I will be approved/denied for benefits until possibly next week anyway?

    1. Lynda,

      You should continue to report the job applications as long as you’ve been asked to do so. There will be a “Waiting Period” and the first payment will take about 7-10 days after which they’ll flow much quicker. Please call the Claims Center for clarification.

  12. I tried to transfer from one state to another. When I left Montana I was told there would be no problem transferring. When I arrived in North Carolina I had trouble reaching the area manager by phone. When he finally called me back he said to meet him for lunch to discuss when and where I would be working. He did not show up for lunch. Then he never returned any of my calls. I went PA to visit a friend a few weeks later and tried there. I met with the hiring manager and was told there should not be a problem doing the transfer since I was still in the system. I called the store a few times and they said it was still pending. Then I was terminated without even a phone call. Am I eligible for unemployment and if so do I file in Montana or North Carolina. I still have a Montana drivers license but I am living in NC.

    1. Stacey,

      As long as you were unemployed involuntarily, you should be able to claim UI benefits. Please consider applying.

  13. I have worked for 32+ years and recently have become unable to work due to health reasons, so I have had to resign from my job. I have contacted SS and will be able to apply for disability but it will take awhile to process. Can I apply for unemployment benefits? I live in WV.

    1. Sandra,

      UI benefits are only extended to claimants who lose their employment due to involuntary reasons. Please reach out to the Unemployment Office for more.

  14. I had to quit my job at Walmart in Fairmont West Virginia and moved back to my home state ky, I’ve got a son with drug problems and 3 older sisters that are not doing so well in health cause of their age. I didn’t understand about the transfer part they had at Walmart that I could put a date when I could start back because of my car problems I thought when I left I had to go in like in s few days, I’ve applied here at Walmart in Winchester ky 40391 two times already plus dollar store, speedway, truck stop, bp, a few other places it’s been going on 7 months without a job I live with my son and its getting harder on him paying rent and utilities and food, not to mention our personal hygiene stuff I really need help I have no income coming in to help him and his wife out I get foodstamps and Medicaid I was praying I could qualify for unemployment PLEASE HELP!!!

    1. Vicky,

      I can understand your situation. Unfortunately, UI benefits are only extended to claimants who lose employment due to involuntary reasons. Please call the Unemployment Office for further clarification.

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