FileUnemployment

The Employment Situation in the United States – January 2018

Author : vijay

Updated : March 7th, 2018

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.

 

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    1. Angie,

      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.

  1. I have exhausted my unemployment benefits in the state of Texas. When I called and asked how to go about with the extension, I was told that the extension were done away with in 2013. I’ve been looking for work and have yet to find something. Is it possible to receive an extension or are my exhausted benefits the end of the line? And if there is a way for an extension, how do I go about the claiming process?

    1. Jarese,

      I can understand your situation. The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available.

  2. I’ve been receiving UI bennifits for 3 months. I was surprised yesterday when I opened an email asking for one of the companies information, why I left, etc. I called the UI office this morning and was told that this fortune 100 company is able to reply, furthermore fight my claim and possibly making me pay back the claim. I’m just very confused how they, the old company can chime in 12 weeks after my claim was already processed. Even more confused, as the original letter has that companies name on it.
    Thanks!

    1. Evan,

      If you suspect something amiss, please raise an issue with the Unemployment Office. This might be a classic case of fraud.

  3. Hi Jeff,
    I am in California and last month I exhausted all of my unemployment, I turned 61 and never thought that age would be such an issue but can’t seem to land a job. Question – if I don’t get a job by the end of my “current benefits years end” can I open a new claim and be able to receive additional unemployment after my current benefits year runs out?
    Thanks, Don

  4. Can you receive unemployment while receiving severance payments or do you need to wait until all severance is paid to start receiving unemployment?

      1. I’m confused. When I called the Texas Workforce Commission they said Emergency Unemployment Compensation has not been offered in Texas since 2013.
        I asked about Extended Benefits. They took my information and I received a determination that I was eligible. The next day I got another determination that I was not eligible due to:
        ” Issue: Insufficient Wages Between Benefit Years
        Decision: Your claim is not valid. We have cancelled your claim and cannot pay you benefits.
        Reason for Decision: Our investigation found you have not earned wages equal to six (6) times
        your weekly benefit amount since the beginning date of your last benefit year.
        Date of Cancelled Claim: 09-22-19
        Beginning Date of Your Last Benefit Year: 09-16-18
        Law Reference: Subsection 207.021(a)(7) of the Texas Unemployment Compensation Act.”

        Actually I had earned ~30k from a severance package since the beginning date of my last benefit year.
        Six times my weekly benefit amount is only~ $3k??

        Any idea?
        Any help would be appreciated.

    1. If you are receiving continuing severance payments, you are not eligible to file for UI benefits until those payments end. You should file your claim after 7 days of the receipt of your last severance payment.

  5. I have been trying very hard to get a number I can call to have one (1), I say again one (1), question answered. I am a contractor and have been working in many states in the course of my career. My last job was here in Mobile AL at ST Engineering Aerospace and I saw something about needing to be employed for 18 months in Alabama to qualify for benefits. I had a claim in Tennessee and they have a way of filing when you have worked in different states. I forget what it is called but my question to you is does Alabama have a way that I can file after working in different states?

    1. Kevin,

      Please note this is a private forum. If you’ve filed from TN, suggest you reach out to the Unemployment Office for clarification.

  6. DO YOU HAVE TO ACCEPT A POSITION THAT HAD OFFERED YOU SIGNIFICANTLY LOWER WAGES THAN YOUR PREVIOUS EMPLOYMENT; ESPECIALLY IF THE WAGES DO NOT COVER YOUR MONTHLY FINANCIAL
    OBLIGATIONS?

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