President Donald Trump broke protocol and tweeted that there was a positive job report with the lowest unemployment. However, the current Federal Rule states that the executive branch employees are required not to comment on major economic reports.
This jobs report is usually kept under wraps till the Labor Department publishes it at 8:30 am. Here investors can misuse this data before it becomes public.
The jobless rate further dropped to 3.8% in May and there was a sign of a strong economy with a tight labor market. The employed percentage of America’s population stands at 60.4% which is still below pre-recession levels.
Josh Wright, Chief Economist at iCIMIS expressed, “This fell for several reasons with more people joining the labor market and several employers digging deeper into the pool of unemployed.” They have got the lowest unemployment rate since 1969 and the only other time it this low was in April 2000.
The increase in jobs paint a picture of the economy that determines the opportunities that almost anyone can get a hold of. Constantly, there is a thin gap between black and white unemployment which has tapered down to its lowest ever Black Unemployment rate.
There are several job openings based on the African- American and Asian-American that has seen a steady decline. This has seen a drop in low-education workers and teenagers. This includes the age category of 16-19 years which has fallen from 14.1% to 12.8%.
America’s population stands at 60.4% which is well below the pre-recession levels. This economy has added 223,000 jobs in May and this has constantly enhanced the economy. This can be found in key sectors like retail, health care and construction. While the economy added 207,000 jobs this month, it improved at a faster pace which is better than the average last year.
Wright expressed that the US economy has this incredible head of steam and this is the second-longest streak over the last nine years. Employers have added jobs every month and these wages have increased by 2.7% which is also higher than the previous year.
Though wage growth has picked up in recent months, economists are puzzled at how long it would take for it for it to climb faster. This job market works with employers that are typically looking to attract workers for a favorable wage. The last time unemployment was this low was in 2000 when it grew at the pace of 4%.
Similarly, there has been a boost in productivity and inflation which has seen its previous periods of growth increase based on the base wage rate. For workers, there has been an erosion of bargaining power that played its role.
The other explanation for this economic phenomenon is based on how the younger people and those reentering the job market would fill positions. Also, this could be based on whether they are better-paid veteran workers, and those that retire or look for new positions at another job site.
While uncertainties have been swept under the rug, there are several economists that express that this will increase competitions and jobs in the process. Several companies look to announce pay hikes and there are several benefits that would look to draw workers to their businesses.
One such business is Costco and this would raise wages for US employees from $1 to a minimum of $14 per hour. Additionally, bond yields have jumped significantly as the dollar inches higher.
While many exclaimed that is would be unwarranted for, this is welcome news for several aspirants that have been constantly looking for opportunities.
The month of April sees the total nonfarm payroll employment in the United States increased by 164,000. But the biggest update in the month of April is the unemployment rate edging down to 3.9 percent. This update comes after six months of being static at 4.1%. In terms of employment, jobs gains had occurred in the professional and business services, manufacturing, healthcare, and mining industries. In April, the unemployment rate marked down to 3.9%, following 6 months of being constantly marked at 4.1%. The number of people unemployed in the united states, locked at 6.3 million also edged down over the month.
Based on household survey data provided by the Bureau of Labour Statistics, the unemployment rate for adult women decreased to 3.5% in April. In terms of the jobless rates of other demographics adult men remained at 3.7% and teenagers at 12.9%. Whites remained at 3.6%, Blacks at 6.6%, Asians at 2.8% and Hispanics at 4.8%. Most of the demographics showed little to no change over the month of April.
Among the unemployed people, the number of job losers and people who completed temporary jobs has declined by 188,000 in the month of April to the total of 3 million. In terms of the long-term unemployed ( people who have been unemployed for 27 weeks or more). There was little change at 1.3 million. In the month of April, the long-term unemployed accounted for 20% of the total unemployed. Over the year, the number of long-term unemployed was down by 340,000.
The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged at 5.0 million in April. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or because they were unable to find full-time jobs.
Establishment Unemployment Survey Data
As explained above the Total nonfarm payroll employment increased by 164,000 in April, compared to an average monthly gain of 191,000 over the past one year. In April, job gains occurred in professional and business services, manufacturing, healthcare, and mining.
In April, employment in professional and business services increased by 54,000. Over the past 12 months, the industry has added 518,000 jobs.
Employment in manufacturing increased by 24,000 in April. Most of the gain was in the durable goods industry, with machinery adding 8,000 jobs and employment in fabricated metal products continuing to trend up (+4,000). Employment in Manufacturing has risen by 245,000 over the year, with about three-fourths of the growth in durable goods industries. The Healthcare industry added 24,000 jobs in April and 305,000 jobs over the year. In April, employment rose in ambulatory health care services (+17,000) and hospitals (+8,000). In April, employment in mining increased by 8,000, with most of the gain occurring in support activities for mining (+7,000). Since a recent low in October 2016, employment in mining has risen by 86,000. Employment changed little over the month in other major industries, including construction, wholesale trade, retail trade, transportation, and warehousing, information, financial activities, leisure and hospitality, and government.
The unemployment rate in the United States for the month of March 2018, remains unchanged at 4.1%. There has been no change in the unemployment rate since October 2017. However, in the month of March, the total nonfarm payroll employment increased by 103,000. There has been a significant increase in employment in industries such as construction, retail trade, professional and business services, manufacturing, financial activities, and mining.
March is the sixth consecutive month with the unemployment rate has remained at 4.1%, with the number of unemployed persons staying relatively unchanged at 6.7 million.
In terms of the major work groups, the unemployment rate for the blacks declined to 6.9% in March. Out of the unemployed demographic Adult men (3.7 percent), Adult Women (3.7 percent), Teenagers (13.5 percent) Showed no change from previous months. The same can be said for The Whites (3.6 percent), Asians (3.1 percent), and Hispanics (5.1 percent).
The number of long-term unemployed persons (People who haven’t been employed for more than 27 weeks) also remained relatively unchanged at 1.4 million. The long-term unemployed consisted of 20.3 % of the total number of unemployed people.
Employment increase in different industries
The total number of nonfarm employment had increased by 103,000 in March with an overall of 326,000 jobs. There was a significant rise in jobs in the manufacturing, health and mining industries.
In March, the Manufacturing industry increased by 22,000 jobs. Most of the gain in jobs in the manufacturing industry all stemmed from the durable goods component. Specifically, jobs grew in the manufacturing of fabricated metal products over the month (+9,000). Over the year, manufacturing has added 232,000 jobs. Out of the manufacturing industry the durable goods component accounted for about three-fourths of the jobs added.
March also saw a rise in jobs in the healthcare industry. The month saw 22,000 jobs added in the industry. Employment trended up mostly in the ambulatory health care services (+16,000) and hospitals (+10,000).
The Mining industry saw an increase of 9000 jobs, with gains occurring in support activities for mining (+6000) and in oil and gas extraction (+2000). Employment in the mining industry has risen by 78,000 since October 2016.
In terms of Professional and Business industries, March saw an uptick in jobs by 33,000 and has risen by 502,000 jobs over the year.
March saw little change in Retail trade employment with -4000, following the increase to 47,000 jobs in February. March observed a decline in employment by 13,000 in general merchandise stores. This decline, in turn, offsets the gain of a similar number of jobs created in February. With all the shift in jobs, over the year the retail trade industry depicts little net change.
The Construction industry also saw a decline in jobs (-15,000) following up from the large gain of 65,000 jobs in February.
There was little change in employment over the month in other major industries, which include wholesale trade, transportation, and warehousing, information, financial activities, leisure and hospitality as well as government.
The Employment Situation is a monthly report that is issued by the United States Bureau of Labour Statistics. Every month research and surveys are conducted in all demographics of the United States on the employment statistics and unemployment rates. If you would like a comparison of the employment statistics for this month and the previous month you can always find the Employment Situation report for the month of February at www.fileunemployment.org
Since the last report by the Bureau of Labor Statistics, US unemployment remained unchanged at 4.1 percent in February 2018. This remained at a 17 year low and slightly above the 4 percent market expectation. In the best states employment holds 30 percent of the weight in the ranking of the economy. In order to evaluate the economy, it can be based on three major metrics which include labor force participation rate, job growth, and unemployment rate. The labor force participation rate measures the percentage that employed or actively looking for a job. The unemployment rate is measured by the percentage of the labor force which is out of a job. These three metrics indicate the employment and economic prospects in the state.
While the number of unemployed increased by 22,000 to 6.71 million, employment rose by 785,000 to 155.22 million. In this time, the total labor force participation rate rose by 0.3 percentage points to 63 percent which is the highest in 5 months. While the unemployment rate averaged at 5.79 percent until 2018, the all-time high reached 10.8 percent in November 1982 and the record low of 2.5 percent in May 1953.
Change in Unemployment Rate
Based on this metric, you can evaluate the compound annual growth rate of nonfarm jobs over three years from 2013 to 2016 based on employment and the number of new jobs created. Far West and the Rocky Mountains had experienced the highest job growth rates while places in the Plains and Mid-Atlantic states had struggled. There were only four states which boasted of a growth of more than 3 percent. These states included Delaware, Arizona, and Oregon. Unlike these states, five states had negative growth rates: Wyoming, West Virginia, Alaska, Vermont, and Nebraska.
As of December 2017, Hawaii and North Dakota had the lowest unemployment rates in the country and it is followed by New Hampshire and Nebraska. Half of these 10 states had the highest unemployment rates and this included regions in the Southeast and Southwest. Out of all states, Alaska ranked No. 50 with a 7.2 unemployment rate. But in this period unemployment rate was at 4.1 percent with the lowest in the Rocky Mountain and the regions in the Great Plains.
In February, the number of long-term unemployed remained almost unchanged at 1.4 million and accounted for 20.7 percent of the unemployed. In the last year, the total long-term unemployed was down by 369,000. Also, in the same month, the civil labor force rose by 806,000. Total employment rose by 785,000 and hence the employment-population ratio increased by 0.3 percentage point to 60.4 percent and the last four months have seen little change. Also, those that worked part-time for economic reasons and this changed slightly at 5.2 million. Though these individuals would have preferred full-time employment and working part time because hours were cut or they were unable to find full-time jobs.
Also, in February, there were 1.6 million people that were marginally attached to the labor force was a little different from the earlier year. Some individuals were not part of the labor force but were available for work and looked for work in the last 12 months. They were earlier counted as unemployed as they did not search for a job in the last 4 weeks. There were also 373,000 discouraged workers which is down 149,000 from the previous year. There were discouraged workers that believed that there were no jobs and hence were not looking for jobs. Finally, the remaining 1.2 million persons that were marginally attached to the labor force had not searched for a job because of family responsibilities or school attendance.
This chart explains the Unemployment Rate for last ten year till 2017
Important Factors On Unemployment Rate
Here are some of that help in determining unemployment and the unemployment rate:
In the best states, healthcare is worth one-third of the weight of the ranking. There are 6 metrics that contribute to the rankings. These include child wellness visits, health insurance enrollment, adult wellness visits, adult dental visits, child dental visits and health care affordability. There are many Americans that have access to quality healthcare while others face barriers like a lack of insurance and things that prevent them from receiving basic health services. This lack of access to quality healthcare has increased the public health and financial burden on the state residents and the population on the whole.
Massachusetts has the best healthcare access but ranks fifth in healthcare and No. 8 overall state. Hawaii is the No.1 state in healthcare and is second in healthcare access. Four New England states make up the Top 10 which include Connecticut, Vermont, Rhode Island and New Hampshire. In the US, the worst state for healthcare access is Alaska but it ranks fourth in healthcare quality. Finally, six of the bottom 10 states for healthcare access are Mississippi, Florida, Oklahoma, Texas, Georgia, and Alabama.
When it comes to dental care, this metric determines the percentage of adults that do not visit a dental clinic for any reason like visiting a dentist, dental hygienist or dental specialist, within the past year. There is data that suggests that around 34 percent of adults do not visit the dentist and 26 percent are from New England while 40 percent are from the Southwest. While New England states comprised of the three of the top five states, 22 percent comprised of people from Connecticut which had the smallest percentage of those that did not visit dental clinics. Louisiana ranked at No. 50 for adult dental visits with 43 percent of adults that did not visit a dental clinic in the past year.
Higher Education takes up to half of the weightage of the education rankings. This metrics involves the numbers of citizens in each state that hold a college degree. There is a wide variance based on the states and regions. Massachusetts had ranked No. 8 among all the best states which was 10 percentage points than states in the Southwest and Southeast. This ranking will also account for the time that it takes for students to complete both the two and four-year college programs. This includes the cost of tuition, fees structure by state and the burden of debt that the college graduates have to face. South Dakota has the highest percentage of students that complete a two-year college degree within 3 years at 61 percent. Vermont has the highest average college in 2016 at $15,000 a year while Wyoming had the lowest cost at about $4,175 a year. In terms of the smallest debt burden, Utah averaged at less than $20,000 per student and the biggest debt burden, New Hampshire students were set back at more than $36,000 on average.
In terms of opportunity, forty percent of the weightage is given to measurements of opportunity based on the economic opportunity. The percentage of households living below the poverty line is the lowest in Mississippi. Based on metrics like food insecurity, children and adult count and those that do not get adequate nutrition, Mississippi and North Dakota rank the lowest. This takes into account the median household income in every state with Maryland’s ranking at the highest. It also gauges the disparity of income between the lowest income households and the highest. Alaska shows the smallest disparity between rich and poor. Four metrics are indicators that judge things beyond economic opportunity. These include employment, stability, health and the effect of quality of life in the state’s population. The No. 1 state for economic opportunity is New Hampshire and this is followed by Alaska, Maryland, Hawaii and North Dakota. While the best state overall was Iowa, it was ranked as 15 in this subcategory. The 15 states at the bottom of the list for economic opportunity include Southeast and Southwest states like Arkansas, Louisiana, Alabama and Mississippi.
The condition of infrastructure is key to evaluating the quality of life for all Americans. When it comes to ranking the best states for infrastructure, quality of roads, bridges and the use of renewable energy. Even though the US is among the list of the top nations for education, quality of life and entrepreneurship, it lags behind considerably in infrastructure.
The condition of infrastructure is key to evaluating the quality of life for any state’s citizens. In ranking the Best States for infrastructure, use of renewable energy and the quality of roads and bridges were major considerations. While the U.S. is among the top nations for education, entrepreneurship, and quality of life, it lags behind in infrastructure, earning a D+ in the American Society of Civil Engineers 2017 report card. There is a new $1.5 trillion plan by President Trump to rebuild bridges, ports, roads and other public works. But this plan has not seen the light of day since it is based on state and local funding and there is a shortage of skilled construction works which left post the period of recession and this has increase project costs. Iowa and North Dakota stand out as the best 2 states for infrastructure. The top 10 include most western and plains states like Utah and Idaho and half of these states are in the top 10 of overall best state rankings.
Crime and Correction
It is quite notable that crime in America has reached historic lows despite cities like Chicago, Charlotte and Baltimore seeing an increase in overall crime. Chicago accounts for less than 1 percent of all the US population but accounts for more than 20 percent of murders in 2016 alone. But, today the average person walking on the street is safer than 30 years ago. While the populations in state and federal prisons have seen a slow decline, the US imprisons more of its citizens than any other developed country. This has led to overpopulation in the prisons and the increase in the fiscal burden for states and this is disproportionate for affected minorities. A lot of states have a higher incarceration for minorities than Caucasians. While crime rates vary from state to state, there is a difference in how states deal with this issue from modernizing prisons to operating efficient correctional systems. New England states have the best crime and correction and Maine ranks No.1 and New Hampshire is a close second. But, more populous urban states like New Jersey and New York stand out of the rankings. In all of the top 10 states, New Hampshire, Massachusetts and Vermont rank in the top 10 best states.
The Bill of Rights enumerated all the basic rights and not the US Constitution. This was the 10th Amendment that reserved an unspecified list of rights for states. Fiscal stability is important to ensure that the state’s government allows for government sponsored programs and projects that affect the quality of life to the state’s residents. Today, these rights and powers of the states have enabled a broad range of services to their citizens. This includes the delivery of public education, state administration, and the overall fiscal health. An amazing fact is that the economy of California is equal to that of France. The No. 1 state is Utah and second is North Dakota. There are several midwestern states that rank in the top 10 and include Indiana and Missouri. Others on the east coast that are top rated in fiscal stability are North Carolina and Florida.
Quality of Life
Finally, one of the most important indicators that have guided policymakers and determined regulations was based on the quality of life index. This would ensure that there is a safe relationship between the people and the environment. Regulations like the Clean Air Act, Environmental Protection Agency, Clean Water Act, Safe Drinking Water Act are some important measures introduced. This was done to help states properly dispose of pollutants at treatment plants and meet the federal standards of public drinking water. The main objective was to help preserve the state’s resources and protect the public from harmful toxins and other health concerns. People have time and again shown their support and made their voices heard to improve these Acts. North Dakota and Minnesota are the most effective at promoting their citizens’ well-being by providing both a healthy environment and a sense of social connectedness. In the list of top states, New Hampshire, Wisconsin, South Dakota and Mississippi feature. There are measures in place to regulate the drinking water quality, air quality, the natural environment and the total toxic chemical pollution per square. The ranking also checks the risk on citizens. Social environment plays an important role and investigates people are involved in their communities. Political involvement includes evaluating the average voter turnout for presidential and congressional elections.
You can explore this chart to determine how states are ranked in terms of unemployment.
The unemployment rate in the United States for the month of February 2018, remains unchanged at 4.1%. There has been no change in the unemployment rate since October 2017. However, in the month of February, the total nonfarm payroll employment increased to 313,000. There has been a significant increase in employment in industries such as construction, retail trade, professional and business services, manufacturing, financial activities, and mining.
February is the fifth consecutive month with the unemployment rate has remained at 4.1%, with the number of unemployed persons staying relatively unchanged at 6.7 million.
In terms of the major work groups, the unemployment rate for the blacks declined to 6.9% in February. Out of the unemployed demographic Adult men (3.7 percent), Adult Women (3.8 percent), Teenagers (14.4 percent) Showed no change from previous months. The same can be said for The Whites (3.7 percent), Asians (2.9 percent), and Hispanics (4.9 percent).
The number of long-term unemployed persons (People who haven’t been employed for more than 27 weeks) also remained relatively unchanged at 1.4 million. The long-term unemployed consisted as 20% of the total number of unemployed people.
Employment Increase in Different Industries
The total number of nonfarm employment had increased to 313,000 in February. There was a significant rise in jobs in the following industries.construction, retail trade, professional and business services, manufacturing, financial activities, and mining.
In February, employment in the construction industry increased by 61,000, with gains in specialty trade contractors (+38,000) and the construction of buildings (+16,000). Construction has added 185,000 jobs over the past 4 months.
The Retail trade industry increased its employment by 50,000 over the month. Within the industry, employment rose in general merchandise stores (+18,000) and in clothing and clothing accessories stores (+15,000). However, over the past 4 months, which traditionally sees the bulk of holiday hiring and layoffs, employment in these industries has changed little on paper. On the other end of the spectrum of the retail trade industry, building material and garden supply stores added jobs over the month (+10,000).
Employment in professional and business services increased by 50,000 in February and has risen by 495,000 over the year. Employment in temporary help services edged up over the month (+27,000).
The Manufacturing industry added 31,000 jobs in February. Within the industry, employment rose in transportation equipment (+8,000), fabricated metal products (+6,000), machinery (+6,000), and primary metals (+4,000).
Over the past year, manufacturing has added 224,000 jobs. Financial activities added 28,000 jobs over the month, with gains in credit intermediation and related activities (+8,000); insurance carriers and related activities (+8,000); and securities, commodity contracts, and investments (+5,000). Over the year, financial activities have added 143,000 jobs.
Employment in mining rose by 9,000 in February, with most of the increase in support activities for mining (+7,000). Since a recent low in October 2016, mining has added 69,000 jobs.
Employment in health care continued to trend up in February (+19,000), with a gain of 9,000 in hospitals. Healthcare has added 290,000 jobs over the past year.
Employment in other major industries, including wholesale trade, transportation and warehousing, information, leisure and hospitality, and government, showed little change over the month.
Increase in Average Workweek and Pay
The average workweek for all employees on private nonfarm payrolls rose by 0.1 hour to 34.5 hours in February. In manufacturing, the workweek increased by 0.2 hour to 41.0 hours, while overtime edged up by 0.1 hour to 3.6 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls increased by 0.2 hour to 33.8 hours.
In February, average hourly earnings for all employees on private nonfarm payrolls rose by 4 cents to $26.75, following a 7-cent gain in January. Over the year, average hourly earnings have increased by 68 cents or 2.6 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 6 cents to $22.40 in February.
The change in total nonfarm payroll employment for December was revised up from +160,000 to +175,000, and the change for January was revised up from +200,000 to +239,000. With these revisions, employment gains in December and January combined were 54,000 more than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.) After revisions, job gains have averaged 242,000 over the last 3 months.
The Employment situation is a monthly report provided by the US Bureau of Labour statistics. The report mainly consists of data which involves the unemployment rates in the country. This unemployment rate research takes into account all factors such as unemployment in the terms of ethnicity, race, gender, age and industry. The report also examines the improvement/decline in wage among companies. While the report does provide the data, here are the important highlights simplified to make it easier to understand for the common reader.
Current Unemployment Rates
The employment situation in the United States remains unchanged for the fourth consecutive month at 4.1 %. In terms of the number of people, that too remains relatively unchanged with 6.7 million people unemployed.
When it comes to the major working groups, the black community had a rise in unemployment to about 7.7% while unemployment among the whites decreased to 3.5%. The jobless rates remained similar to that of last month with adult men (3.9%), adult women (3.6%), teenagers (13.9%), Asians (3.0%) and Hispanics (5.0%).
In terms of long-term unemployed i.e people who haven’t been employed for 27 weeks or longer. it was changed to 1.4 million and accounts for 21.5% of the overall unemployed.
However, persons employed on a part-time basis for economical purposes remained at 5 million, which was the same in January 2018. These individuals would prefer to work in full-time jobs but were given only the options to work part time or full time with major cutbacks to hours.
200,000 jobs were created in the month of January for Non-Farm employment. Employment continued to rise in food services and drinking places, healthcare, construction, and manufacturing.
Construction had increased their tally of jobs by 36,000 jobs in January. Most of this boost in jobs comes from Specialty trade contractors (+26,000) while employment in the residential building construction rose by 5000. Over the year, the construction sector has set about the creation of 226,000 jobs.
Employment in the food services and drinking places sector rose by 31,000 in the month of January. Over the past twelve months, the industry managed to provide 255,000 jobs.
The Healthcare industry continued to rise in terms of job creation in the month of January with 21000 jobs. 13,000 of which were jobs created in hospitals. Healthcare added in an average of 24,000 jobs this past month.
Employment in the manufacturing sector continues to be on an upswing with +15,000 jobs. The durable goods industry has also been on the rise with an increment of 18000 jobs. Manufacturing overall has brought in 186,000 jobs over the past 12 months.
Employment in other major industries, including mining, wholesale trade, retail trade, transportation and warehousing, information, financial activities, professional and business services, and government, changed little over the month.
Increase in Wage Rates
Industries in the US brought in 200,000 jobs which were more than the 180,000 jobs that were predicted. An example of this is the rise in hourly wages by 2.9% yearly in comparison to January of last year. In terms of monthly raises, it has increased by a good 0.3%. This means that the promised growth and recovery from the recession periods are finally starting to show in American wage pockets.
Many employers believe that since most of their competitors are providing equivalent wages, employees are leaving their jobs in order to gain more convenience. This has to lead to employers in the US to not only increase hourly wage rates but to improve the quality of the job. Employers intend to curb their attrition by giving employees more valued work and training in multiple skill sets.
According to the NY Times, it’s to be believed that unemployed people with a criminal background will not find it extremely difficult to gain employment. This acceptance of unemployed persons with criminal history mostly pertains to fast food restaurant chains, megastores, etc., where the skill requirement is very low.
While the unemployment rate remains at 4.1% for the past four months, it isn’t a bad phase. This is because the current unemployment rate is at an all-time low. The last time unemployment rates were low was over a decade ago in 2007. Since then, Unemployment rates have climbed dangerously and then slowly trickled down to the rate it currently is.
According to the New York Times, the new tax reform legislation pitched by Congress and signed by U.S President Donald Trump has encouraged employers and companies to increase wages of their employees and also provide them with bonuses. It is believed that not much can be predicted over the long-term consequences of the recent US tax reforms but for the moment, the employees have everything to gain.
Every month, the Bureau of Labor Statistics releases a news release called ‘The Employment Situation’. Detailing how employment is faring in all industries within the United States. The month of December saw no changes to the overall unemployment rate. However, most of the industries in the United States did create a steady increase of jobs in line with 2016.
The national unemployment rate for December 2017, remains at 4.1 percent, the same since October 2017. With the percentile remaining the same the number of unemployed persons remains at the 6.6 million mark. In 2017, the unemployment rate dropped by 0.6 percent, which in terms of people is equivalent to 926,000 respectively.
Out of the current crop of unemployed populous, 3.8% of men remain unemployed and 3.7% of women are currently unemployed. Employers in the U.S had added in 148,000 jobs in December in order to ensure that the unemployment rate remains at the constant 4.1%. The unemployment rate has been controlled since October, with a surge in unemployment in months prior.
This is actually an improvement as the current unemployment rate is at its lowest since the early 2000’s. Another plus is that December 2017 was the 87th straight month where employers have tried to employ more people. While the current 148,000 jobs created is significantly lower than what the economists predicted for the end of the year, it’s still a good sign knowing that jobs are in creation.
The least unemployment rate in each sector of the United States are:
West – Hawaii (2.0%)
Midwest – North Dakota (2.3%)
North East – New Hampshire (2.5%)
South – Tennessee and Arkansas (3.3%)
The Highest unemployment rate in each sector of the United States are:
West – Alaska (7.0%)
Midwest – Illinois (4.7%)
Northeast – New Jersey (4.8%)
South – District of Columbia (5.8%)
In terms of different ethnicities within the United States, below are the unemployment rates for each:
2.5 % Asians
The current issue in the United States, however, is that there is a lot of stress on employers, as there are around 6 million jobs still yet to be utilized by the public, but due employers searching for talented personnel only, there is pressure to fill up all those vacant job roles.
This is especially important, seeing that the number of long-term unemployed individuals (people who haven’t been able to find employment for 27 weeks or more) changed only little at 1.5 million. This 1.5 million accounted for 22.9 percent of the total unemployed. Throughout 2017, however, the number of individuals who have been unemployed for a long-term declined by 354,000.
When it comes to new entrants, the number decreased by a total of 116,000 in the month of December. New entrants consist mostly of the youth population who are looking for employment after graduation from high school or college. Those that have never worked before are also considered freshers seeing as they lack any experience necessary for employment.
When it comes to the healthcare industry, employment increased by 31,000 jobs in the month of December. The Healthcare industry tallied up 300,000 jobs in 2017, compared to the gain of 379,000 jobs in 2016. Out of the 31,000 jobs, the healthcare industry created, 15,000 comprised of ambulatory health care services. The remaining 12,000 jobs comprised of hospital staff.
Construction jobs increased by 30,000 in December. Most of the increase in number consisted of specialty trade contractors, with an increase of 24,000. Employment in construction increased by 210,000 which is significantly higher compared to the gain of 155,000 in 2016.
December also saw employment in the manufacturing industry rose by 25,000, which comprises of a gain in the durable goods industry by 21,000 jobs. 2017 saw manufacturing add 196,000 jobs, which is a slight change from 2016.
Employment in food services and drinking places had a little change in December (+25000). Over the year, the food services and drinking places industry added in 249,000 jobs, which is similar to the 276,000 increase in 2016.
Professional and Business Services saw a slight change in December with an increase by 19000 jobs. Throughout 2017, the industry had an average of 44,000 jobs per month which is similar to the average monthly gain in 2016.
When it comes to retail trade, it seems the situation was unchanged with a decline of 20,000 in December. The retail trade industry saw employment in general merchandise stores on the decline by 27,000 jobs in December alone. Overall retail trade employment has lowered in 2017 by 67,000 jobs after a huge increase in 203,000 jobs in the year 2016.
In simple terms, those looking for work could opt to look for jobs in the Construction, manufacturing and the food services/drinking places industry as there is a continuous production of jobs from 2016 and 2017. At this point, it’s best to not be picky and choose one of these industries for employment, unless you prefer to remain broke and living in your mother’s basement.
When it comes to the unemployment rate in America, it is based on the percentage of the total unemployed labor force throughout the country. This helps in reviewing the country’s economy through the years. With this, we understand that unemployment rises during recessions and falls on the rebound. You should know that unemployment declined during the 5 US wars and mainly during World War II. But quickly after the wars ended, there was a spike in recession. During the Great Depression, America faced its highest rate of US unemployment at 24.9 percent in 1933. While in 1931 to 1940, unemployment was more than 14 percent and remained in single digits till 1982 when it rose to 10.8 percent. It was during the Great Recession of 2009 that the annual unemployment rate reached 9.9 percent in 2009.
You should know that the lowest unemployment rate was 1.2 percent in 1944. But, you should know that unemployment can get lower based on economic policies and the outcome of companies gaining a foothold in new countries. This means that for a healthy economy, there should be a natural rate of unemployment that should follow. This is usually because people move before they settle down in their new job. Otherwise, they get retained for a better job or stay unemployed and look out for work and wait for the right job. Even when the unemployment rate is 4 percent, it can be tough for companies to expand since they would have a hard time recruiting new good workers.
Unlike previous years, unemployment is now at a 44 year low at just 4.1% with several proactive measures brought in to ensure a higher minimum wage and employment opportunities for all.
Since unemployment cycles coincide with business cycles, job employment solely depends on whether there are enough good candidates to fill these vacancies. You should know that slow growth hampers employment and in fact causes high unemployment. With the decline in the gross domestic product, businesses will have to lay off workers. This will make jobless workers spend less. Now with lower consumer spending, there is a significant reduction in business revenue in this time period. This forces several companies to make more payroll cuts to reduce their costs and the downward cycle on workers is simply devastating.
Remember that unemployment rate is used as a lagging indicator. What this means is that it continues to worsen even as economic growth improves. Companies are hesitant about hiring workers back only when there are sustainable growth and a stable upward trend. That means that when the unemployment rate reaches 6 percent, the government will have to step in. Based on the turn of events the Federal Reserve uses expansionary monetary policy and will lower the federal funds rate. When the unemployment continues, Congress will step in to use its fiscal policy. It can create jobs for public work projects. It can also stimulate demand by providing extended unemployment benefits. The main way to ensure a healthy economic growth rate is by ensuring that there is a steady increase by 2-3% to create 150,000 jobs.
Just so you know! There are only two ways to get a country back on track.
Countries either choice the usual route of a monetary policy which is a quick fix where money is pumped in to drive growth. Otherwise, the more difficult fiscal policy is used to stimulate the economy with tax spends.
Monetary policy is usually the first solution for a quick and effective method. A lower interest rate will make it easier for families to borrow and solve their needs. This includes items like homes, cars, and electronics. It will stimulate enough demand to put the economy back on track. With a lower interest rate, your business can borrow at a lesser rate. This allows them the capital to hire more workers to meet the growing demand.
If all measures under this stimulus fail then it will mean that the government needs to make rate cuts and feed the economy with increased taxes to boost businesses. This helps businesses make more money from people that buy into their products once they have the disposable income to make their purchases.
A second method is by using the Fiscal policy. This is done by increasing or cutting taxes to stimulate the economy. With an expansionary fiscal policy, there will be a slower time for it to come into effect. Both Congress and the President have to agree on the next steps that follow. This can be more effective when it is executed. This will give the government some teeth to turn things around. The main thing is to gain the confidence of the people by convincing them of a better future. Cutting taxes works in the same manner as reducing interest rates. Both help businesses and consumers to spend more. This increase in demand will provide businesses with more money to invest and hire more workers. Government spending usually takes the form of creating jobs. When the government hires employees, they can do so directly or with contracts through companies to provide services. This provides customers with cash to buy more essential products. In order to best judge the situation across the length and breadth of the US, you should weigh the unemployment rate against GDP growth and inflation. You will find a table below representing unemployment since 1929 when the stock market crashed. This table compares the unemployment rate, GDP growth, and inflation.
U.S. Unemployment Rate Over The Last 89 Years
US Inflation Rate
When it comes to the inflation rate, it is the percentage change in prices from one year to the next. These changes result in a business cycle. The first phase is the expansion where growth is positive and the country can see a 2% inflation. When the economy expands beyond 3 percent, it will create an asset bubble. The second phase is the peak when the expansion ends and contraction begins. Well in the third phase, you will find a contraction which results in a recession. Inflation usually falls below 2.0 percent and then deflation looms. The fourth phase is called the trough and this is the month when the contraction ends and the expansion begins. You should know that inflation responds to monetary policy that is enacted by the Federal Reserve. The Federal Reserve will focus its attention on the core inflation rate and will exclude things like volatile gas and food prices. The Fed sets a target inflation rate of two percent. If the core rate rises much above that, the Fed will execute a contracting monetary policy which increases interest rates and shuts down demand and thereby lowers prices.
US Records 10 Years with 3 percent growth
For a record 10 straight years, the United States has had 3 percent growth in Gross Domestic Product based on data by the Bureau of Economic Analysis. In 85 years since the BEA’s existence, the annual change in real GDP there was only one ten-year stretch between 2006 to 2015. This is because real annual growth in GDP peaked in 2006 at 2.7 percent. After which it has never been this high again. The last recession ended in June 2009. In 6 calendar years from 2010 to 2015, real annual GDP growth has never exceeded the 2.5 percent it reached in 2010. The longest consecutive stretch of years in which the US saw real growth by 3 percent or better was a seven-year period between 1983 to 1989. The second longest period was a growth of 3 percent between 1939 to 1944 during World War II. In the last two years, annual growth has been stagnant at 2.44 percent. In the fourth quarter from 2016 to 2018, it is projected to grow only by 2.7, 2.5 and 2.4 percent.
This primarily means that a steady growth rate of 3 percent is good for the economy. But, unless there is higher growth the economy will tend to stagnate and the number of jobs that are open for new faces will not grow significantly and this will create a problem if the number of new openings does not increase year-on-year, the unemployment rate does not fall further. If it depends solely on government policy through correction to make America continue its growth trajectory which does not rely solely on government jobs and contracts.
The national Unemployment Rate in September 2017 was 4.2%, a fall of 0.2 percent, compared to the previous month. In aggregate, there were a little over 33,000 jobs reduced from the economy during this month. The negative impact of Hurricane Harvey and Irma could be felt in industries such as food services and drinking places which registered a negative growth.
By the end of September 2017, the number of unemployed persons declined by about 331,000 to 6.8 million.
Unemployment Rate among Major Workers Groups
Adult Men – 3.9%
Adult Women – 3.9%
Teenagers – 12.9%
All the categories above recorded a positive growth during the month, both in comparison to the previous month and to the same period in 2016.
Unemployment Rate among Ethnic Groups
Blacks – 7.0%
Asians – 3.7%
Whites – 3.7%
Hispanics – 5.1%
In the categorization based on ethnicity, the jobless rates among Blacks saw a considerable decline of 0.7% from the last month. All other groups recorded negligible decline.
Those falling into the category of long-term unemployed (jobless for 27 weeks or more) witnessed a marginal decline during this month. It stood at 1.7 million, covering 25.5 percent of the unemployed persons.
The number of people who worked part-time for economic reasons was 5.1 million. People falling under this category wanted to work full-time but were employed part-time since their hours were cut or could not find full-time hours, both due to involuntary reasons.
In the category of marginally attached to the labor force, a little over 1.6 million persons were tagged under this. Since people falling under this segment had not looked for employment in 4 weeks before the survey, they were not considered as “unemployed”.
Employment Data in Various Industries (Top Highlights)
1) As an after-effect of the hurricanes, a little over 105,000 jobs were lost in the food services and drinking places. On an average, this industry has added 24,000 jobs per month over the last 112 months.
2) At +23,000, Health Care added the highest number of jobs among all categories during September 2017. In the last 12 months, it has gained an average of 27,000 jobs per month.
3) Transportation and warehousing were the second highest grosser at +22,000 jobs followed by financial activities that clocked +10,000 jobs during September.
The average workweek for all employees was 34.4 hours, the same as the previous month.
The manufacturing workweek was 40.7 hours, unchanged from the previous month. The overtime was 3.3 hours.
The average hourly earnings for all employees was $26.55, up by 12 cents from August 2017.
With an increase of 9 cents, the average hourly earnings of production and nonsupervisory employees in the private sector were $22.23.
With 8 years of president ship behind him, Barack Obama successfully reduced the unemployment rate to below 5%, a monumental success given that he took office when the country was facing its greatest economic downward spiral. But is that all? There are indeed many states, who have really pushed their limits. After exploring the most friendliest States for starting a new business, here’s our take on the top cities with the lowest unemployment rate, packed with one of the lowest tax rates, better housing facilities, and low business costs too. They are truly the new sunshine states, in the most literate sense of the word.
The US, in its record since the 2008 economic crisis has hit the lowest unemployment rates in other specifics too, with a record low veteran and teenage unemployment rates.
Let’s examine why these states apart from having the lowest unemployment rates, can also be the best places to raise a family, consequently ticking all the right boxes.
While on paper (as stats indicate), as of July 2016, the state with highest unemployment rate would be Alaska, with a rate of 6.7%, while South Dakota stands at the lowest, at 2.8%. This sounds like we could nearly prove that for many economic models, the full unemployment is may no longer be a prerequisite/assumption but a realized dream! (Well, almost!)
But are they also the best cities to live in and raise a living? Is a city with low unemployment rate all you need to lead a prosperous lifestyle? Turns out, it isn’t. Here, we give you the highlights as to what makes a city friendly enough to figure in our list –
Our Picks For Places To Start Work And Raise Families
Cities within the state of Texas, Utah, Nebraska and North Dakota easily from our top picks. It is a more than a decent mixture of ingredients, encompassing, low tax rates, good education system, state-backed innovative programs, high civilian employable population combined with lowest unemployment rates, all consistent over the years, and business friendly too. These factors are what increasingly matter to most people looking to establish a foothold in an urban set-up.
In places like Lincoln and Omaha, Nebraska, there is incredibly low unemployment rate combined with high civilian workable population. Lincoln, as a city, stands at third place, with 3.3% of unemployment rate with a civilian labor force of 177,377 as of July 2016.
Its economy is highly reliant on its primary, agricultural sector, freight transport, telecommunications, manufacturing industries, information technology, including the transportation sector.
Close to one-third of its population possess a bachelor degree, making it a highly competitive labor market when compared against other states whose educational qualification lie in between one-fourth or 25%. Nebraska’s State Department of Labor is also well-known for its efforts to train eligible unemployed populace with skill sets that help increase their prospects of finding a new or a better job.
Benefit schemes in the State of Nebraska are also one of the most sought-after, for they provide unemployment benefits from 1 week to 26 weeks. As computed by Gallup Daily Tracking, Nebraska is found to have one of the highest job-creation indexes at 35 and its track record boasts of the lowest of all percentages of ‘letting-go workers’ which stands at 8.
Similarly, Logan, Utah with a Civilian Labor Force of 67, 870 has an unemployment rate of 4.0%.
Utah seems to have understood that to create a favorable environment for employees to stay, it is not enough to just create a welcoming business environment. In addition, it should be a place where they can picture themselves settling down to raise their families and go on living. To fulfil these aspects, Utah has spent a lot of money trying to make people favor them into believing they have the best of class housing facilities and can provide an overall good quality of life, which they do! Utah also benefits from having a high number of colleges both in terms of favoring graduates and also families looking for a secure place of education.
Our third favorite is North Dakota with highly prosperous cities like Bismarck which with a civilian labor force of 62,242 stands first with an unemployment rate of 2.9% (when ranked against cities). The cost of living charges closely follows national average with the national average cost of living index at 100. While Fargo is one the most prosperous of its cities with overall costs of living lower than the national average, Bismarck has a slightly above average for groceries, housing, and health with below average indices for transportation, and utilities.
A study combined with the tools of research correlating tax incentive programs (including tax rates) to unemployment rates are found to be having a direct relationship to each other. After evaluating the census data of a particular state (as published in the Review of Regional Studies by Kala Seetharam Sridhar), that post implementation of tax incentive programs, over time, effectively impacts the unemployment rate.
When a city turns into an enterprising zone, welcoming new businesses and creating an environment which entices them, can at the end of a year, approximately affect up to 3% of its unemployment rates. This can easily be the case with the cities within Texas. It is not one or two, but a numerous number of cities that have qualified into being one of the most business-friendly of states, not to forget the least tax rates too. Odessa, Texas, with a civilian labor force of 83, 418 has an unemployment rate of 3.9% and Midland, with a Civilian Labor Force of 87, 857 has an unemployment rate of 3.3%.
Texas though has a very high record in terms of percentage of hiring new workers at 44%, it is job creation index falls a little short at 31 though still holds itself at the national average.
Why Is It Important To Pick From The Best American Cities?
Politics of fear has been the defining criteria for developing a fixed perception that America has been damaged internally with an increase in export of jobs through MNCs looking to setting up enterprises abroad. But real stats have a way of breaking these myths circulating around, as, in the past 10 years, U.S. has created 10 million jobs with a few hundred thousands of jobs still being created every month. July saw 255,000 new jobs being added to the market, while the figure has been consistent for the past few months too. In short, this may be some of the best times to live in for the labor market has met its surplus with a tenacity not seen since the Reagan days.
If you are one to be unemployed and are looking for alternate options at securing a job, we hope to have answered all your questions. File Unemployment is one place where you can get answers on, eligibility criteria, benefit amount calculation, weekly and other benefit schemes from all States in the U.S. Go and check out our Community forums to get instantaneous answers to your queries, by both people who have received benefits as well as our experts in the field.