All Articles Tagged "unemployment rate"
Hiring continued, and at a nice clip during the month of September with 288,000 jobs added to the US economy for the month. The total is enough to push the unemployment rate down to 5.9 percent from 6.1 percent the previous month. This is the lowest point since 2008.
Still, the unemployment rate for Blacks is virtually unchanged at 11 percent. The unemployment rate for Blacks was 11.4 percent last month. For Whites, it’s 5.1 percent and Hispanics, 6.9 percent. And the number of people who are working part-time who’d rather have full-time work is still at 7.1 million.
Moreover, wages haven’t improved, dropping a penny since the last report for August. The workforce participation rate is also at the lowest point since 1978 at 62.7 percent.
These results exceeded economist expectations, and is the last report before the midterm elections. (Republicans are emphasizing that workforce participation rate.) So expect to hear quite a bit about this going into November. For Black voters, it will be critical that we hear what’s going to be done to make sure that the job gains are being felt more evenly across all demographics. The economy cannot be considered “well” or “recovered” if a major demographic group has a jobless rate that’s about twice the national average.
We’ve been in touch with the Bureau of Labor Statistics to find out why the figure remains so high for Blacks even as it falls for other groups. We’ll update this story when we have more information.
Small businesses, those with fewer than 50 employees, added 88,000 jobs to the economy in September, according to the latest ADP National Employment Report. That’s an increase from 82,000 in August, and 41 percent of all 213,000 jobs created for the month.
And even among this growth, the leaders were companies with fewer than 20 employees.
“These micro businesses added a total of 48,000 new employees in September, compared to 39,000 for businesses with between 20 and 49 employees.” says Fox Business.
Today, 30 percent of all American businesses have a woman at the helm. African American women in particular are a driving force, establishing their enterprises at six times the national average, according to a 2013 American Express OPEN report. Between 1997 and 2013, African American women-owned businesses grew by 258 percent and made $226.8 billion in revenue. They employ 1.4 million people, which is more than the combined population of Atlanta, St. Louis and Miami.
Women in general, and Black women specifically, have large barriers to overcome in terms of government contracts and funding, with only “only 17 percent of U.S. Small Business Administration loans went to women entrepreneurs,” according to that DallasWeekly article. But many women, seeing their fortunes turn sour during the recession took the circumstance as a reason to launch the business they’ve always considered.
The Small Business Association is trying to provide some of the education and resources that women need to get their businesses off the ground. The department outlines some of what they have to offer and how you can take part here. We’re going to be publishing an interview with the SBA for our Small Business Month/MN Bosses coverage this month, so stay tuned.
Numbers for the month of August show a gain of 142,000 jobs, a sharp decrease from the previous six months when 200,000 jobs were tallied each month. Revisions for previous month pushed the jobs figure up or down, but still above that 200,000 mark. Economists had estimated that August would reach 225,000 jobs added. A revision could push the number up, but it still wouldn’t reach the estimate.
The number of people out of work for six months fell to three million; 31 percent of all unemployed people are long-term jobless. And the underemployed — people who have stopped looking or who have settled for part-time work but would like full-time jobs — has fallen to 12 percent from 12.2 percent. Some say that could also be attributable, in part, to baby boomers retiring.
The unemployment rate fell from 6.2 percent to 6.1 percent.
For African Americans, the jobs situation is still more critical. That figure held steady at 11.4 percent, unchanged from last month when the rate jumped back up from 10.7 percent the previous month. Generation Opportunity puts the unemployment rate for people ages 18 to 29, including those who have stopped looking for work, at 15 percent. For African Americans, that figure goes up to 22.4 percent.
Across the board, an equally large problem is wage stasis. Wage growth for the month for all nonfarm workers went up six cents. And year-over-year, wages only went up 2.1 percent. Average hourly earnings are $24.53. Jobs are more plentiful — and better paying — in areas like technology, manufacturing and energy.
The uneven growth in the economy has spawned more low wage jobs, a lack of middle income jobs, a need for skills that a large segment of the population lacks, and high income growth for the biggest earners. While car sales have jumped up, for instance, home sales have not. And some experts are concerned about the anticipated increases in the interest rates, which would impact things like mortgages.
So there is still much work to do. In addition, the wage and skills gap that everyone is worried about is taking a toll that we should be on the look out for. If the majority aren’t making enough and don’t have the experience and training for the jobs of the future, the recovery isn’t being shared by everyone.
Our businesses have added: 9.7 million jobs over 52 months ✔ More than 1.4 million this year ✔ 262,000 in June ✔ → pic.twitter.com/yqb4kdD2fF
— The White House (@WhiteHouse) July 3, 2014
June jobs numbers were released this morning and it’s got onlookers very happy.
The US economy added 288,000, a rate that moves beyond what has been seen so far in 2014. The figure pushed the unemployment rate down to 6.1 percent, the lowest since September 2008 when the economy imploded. At the beginning of 2013, the rate was 7.9 percent.
Of course, this wave of employment hasn’t spread evenly throughout the recovery. For African Americans, the unemployment rate is 10.7 percent, though it’s worth noting that’s a decrease of .8 percent from last month, the largest drop since April when the unemployment rate fell by the same percentage value from the month prior.
And Generation Opportunity, a youth advocacy group, points out that the unemployment rate for millennials ages 19 to 29 is still 15.2 percent. Those rates increase when you look specifically at Hispanic and black young people.
But the increase was such good news for investors that the Dow opened and quickly rose to 17,000, the highest rate ever.
Still, wages haven’t gone up dramatically; only two percent in the past year. The participation rate is still 62.8 percent for the third consecutive month. And the number of people who are working part-time because they have no choice actually rose by 275,000. In fact, while a higher proportion of Americans are working than we’ve seen in a while, how much they’re working, the industries they’re working in and how much they’re making still seems to be a bit of a mash up of good and merely OK. You can’t really say things are going well when there’s a segment of the population that’s being left out.
Professional and business services saw the highest gains with 67,000 jobs added. Next is retail and food service. Then manufacturing and financial services.
What are you seeing from your vantage point? Are things looking up?
Jobs numbers for May show 217,000 jobs were added to the US economy for the month, results that The New York Times says demonstrate that the country has moved into “a healthy, if not spectacular, pace of job creation.” With these additional jobs, the country has regained all of the 8.7 million jobs lost during the recession. Still, the unemployment rate remains at 6.3 percent.
The unemployment rate for African Americans dropped one-tenth of a percent to 11.5 percent, still far exceeding the national average.
Not only are there demographics like African Americans who still struggle to find work. There are 15 million additional people on the job hunt. So despite the steady addition of 200,000 jobs per month, there are many who are still looking for an opportunity. The labor force population is still 62.8 percent of working age people, a figure that is closer to the 1970s days of financial stress, the NYT says. In fact, high school drop outs and those with only a high school diploma saw their unemployment rate actually rise slightly. Teens still have an unemployment rate of 19.2 percent.
For companies, there has been plenty of good financial news with the stock market booming, but they’re only now starting to take dips into the job pool and do some hiring. Professional and business services, healthcare and social assistance each added 55,000 jobs, and leisure services, particularly restaurants, added 32,000 jobs. The government and the US Postal Service are down from a few years ago.
Also, we must take into account that the jobs that have come back are not the ones that were lost necessarily. For instance, manufacturing is still down. But middle wage jobs appear to be growing, according to CNN Money, a good thing given the months in which low wage jobs like those in retail were the primary gains.
Secretary of Labor Tom Perez noted the lingering problems in his remarks about the numbers. “We’re moving in the right direction, but we have a lot more work to do. There are way too many people who are still on the sidelines,” he said.
Is the government painting a misleading picture of America’s job landscape? Recent job reports have used words such as “rebounding,” “improving,” and “snap back,” which all allude to an optimistic outlook for the job market. But — eh — Policy Mic just isn’t buying it!
The April jobs report boasted that the unemployment rate dropped from 6.7 percent to 6.3 percent. But Policy Mic says that the government neglects to reveal one thing: 47 percent of unemployed Americans, according to a Harris Poll survey commissioned by Express Employment Professionals, have “completely” abandoned their job search.
The poll, which surveyed 1,500 unemployed adults, also found that 46 percent did not attend a job interview the month prior. Nearly a quarter revealed they haven’t had an interview since 2012. As for government assistance, 80 percent of respondents are not receiving jobless benefits.
“This survey shows that millions of Americans are at risk of falling into the trap of prolonged unemployment, and it should give policymakers a greater sense of urgency to focus on the singular goal of creating jobs,” Bob Funk,CEO of Express, said in a press release.
Another fact that the April job report “forgot” to mention? The labor force is also experiencing its lowest participation rate in decades — 62.8 percent. That figure is the percentage of workers, over the age of 16, who are currently employed in the job market. Think about it. Is the unemployment rate dropping because oh-so-many jobs are being created or because more people are leaving the workforce?
These statistics, Policy Mic points out, affects America’s youngest employees the most. In fact, the survey’s respondents tended to be of a younger age since “more than half of all unemployed are under 40 and one third are under the age of 30.” Guess it’s not looking too good for Class of 2014, huh?
“. . .[T]he nation’s job market continues to force college graduates to take jobs they’re overqualified for, jobs outside their major, and generally delay their career to the detriment of at least a decade’s worth of unearned wages,” USA Today said.
Among Americans between 25 and 34, the April jobs report noted a drop from 75.9 to 75.5 percent in the unemployment rate. But like Policy Mic, Labor Market Economist Heidi Shierholz points out that job creation has nothing to do with it. “The entire drop (in unemployment) was due to people dropping out of the labor force, in particular young people,” she said.
“Unfortunately for young Americans,” said Evan Feinberg, president of Generation Opportunity, a youth advocacy organization, “the recession never ended.”
The country added 288,000 jobs for the month of April, driving down the unemployment rate to 6.3 percent, the lowest point since September 2008. This after a couple of months where growth was modest, though there were revisions upward to the numbers for February and March. The monthly average for the last year has only been 197,000, so the jump last month was significant.
Construction and retail both added more than 30,000 jobs and other economic activity is reportedly up. The number of long-term unemployed is down 287,000, 35.3 percent of the total unemployed.
However, the civilian labor force is down by 806,000 (not a good thing), the number of part-time workers is unchanged at 7.5 million and the number of “marginally attached” workers, those who have been looking for work, has stayed the same at 2.2 million.
And then there are the continued higher-than-average unemployment numbers for teenagers, the under-educated, and blacks. In the black community, the unemployment rate is at 11.6 percent. That’s a big improvement from the 12.4 percent rate last month, but still almost double the national average.
So the job market is showing signs of life, though there are lingering issues that seem to impact specific groups. Economists from an organization called the Conference Board say we can actually look forward to a labor shortage, with the unemployment rate dropping to 3.8 percent due to the mass exodus of retiring baby boomers. The “natural rate” of unemployment will drop to 5.5 percent by next year, they predict.
However, the number of people who will have the skill set necessary to fill new openings will also drop because the long-term unemployed have not been able to keep up with changes in the market, prompting employers to ask people not to retire. (Based on what we’ve been seeing, there’s also the issue of whether some workers are getting the necessary skills to start with, namely the digital skills to keep up with technology changes.)
Moreover, pay increases have not kept up with inflation, which impacts the financial security people feel and their spending power.
So there’s lots of good news this morning from the jobs report, but there’s also a big ol’ grain of salt to go along with that.
The US economy added 192,000 jobs for the month of March, a positive outcome that many attribute to better weather, which had a positive impact on construction (which added 19,000) and other areas. We also noticed a huge uptick — 30,000 jobs — in food services and drinking, indicating that better weather is getting more people out to restaurants and bars. And with more jobs and more money to spend, it could be impacting hiring.
Health care and business services were also strong areas.
Experts had been hoping for 200,000 jobs (we’re sure the unemployed were also hoping for more), but the result is in keeping with the average for the beginning of 2014. With these added jobs, the unemployment rate still holds steady at 6.7 percent. The New York Times has two useful graphs that shows both the change in the number of jobs added over the past two years and the effect on the unemployment rate.
“More people found work and more people joined the labor force,” notes The Wall Street Journal, though it’s important to keep in mind that those jobs were added in the private sector. Government hiring remained flat.
“Overall, the latest payroll numbers suggest the economy is gaining some traction and could be poised for faster growth in the coming months,” the article continued.
It’s also important to remember that 7.4 million people who are working part-time would rather be working full-time. The number of long-term unemployed (people unemployed 27 weeks or more) totals 3.7 million.
Equally critical is the fact that African-American unemployment is 12.4 percent, almost double the national average. That’s actually up .4 percent from last month and up from the low of 11.9 percent in December. So while the jobs situation is slowly improving, the state of things for the black community is still bleak. And the jobs situation has to improve for everyone if we’re really going to consider it a positive.
Experts thought the terrible weather nationwide would put a halt to job growth. But the US added 175,000 jobs in February, a decent showing given the slowdown in December and January. However, the average job growth for the past year has been 189,000, so the lower figure pushed the unemployment rate up .1 percent to 6.7 percent. The unemployment rate for blacks held steady at disheartening 12 percent.
The number of long-term unemployed — 27 weeks or more — was up to 3.8 million in February, an increase of 203,000. That’s 37 percent of the total number of unemployed people. On a slightly more positive note, the number of people marginally attached to the labor force — those who have looked for work but have had trouble finding it — is down 285,000 over the past year to 2.3 million. A chunk of this group, 755,000 people, are discouraged by the search, but that’s down by 130,000 year-over-year.
“The healthier-than-expected gain in hiring in February is likely to remove some of the anxiety that has been hanging over the economy because of the weak labor market data in the previous two months, as well as other gloomy signals like a downward revision in the government’s estimate of economic growth late last year and a decidedly mixed holiday shopping season for many retailers,” The New York Times writes. The paper predicts that the relatively positive results indicate that the Fed will continue to wind down stimulus efforts that were put in place to counteract the effects of The Great Recession.
Still, there is the problem of the long-term unemployed (those out of work more than six months). More than two million people have been without benefits since they expired in December 2013. Those benefits began in 2008, at the beginning of the recession under George W. Bush, but disagreements between Republicans and Democrats in Congress about how to pay for them has kept them from being reenacted. Florida and New Jersey are among the states that have been hardest hit by this lack of benefits since they have high populations of long-term unemployed. Sen. Cory Booker (D-NJ) tweeted last night that a vote could come next week.
That #RenewUI hashtag is where supporters of a renewal of those long-term unemployment benefits have been voicing their opinions.
The official unemployment rate for 2013 was 7.4 percent. But this figure is only a calculation of the average unemployment rate per month. Looking at the bigger picture, experts estimate that 12.7 percent of the workforce was unemployed at some point during the year. The numbers for African Americans, according to Economic Policy Institute (EPI), were even bleaker.
The EPI dismisses the official unemployment rate — it “understates the number of people who are unemployed at some point over a longer period.” By just looking the average unemployment rate per month, workers who were employed in one month and discharged the next — for example — slip under the radar.
So analyzing the share of employees who were out-of-a-job at some point during 2013, researchers discovered that one out of every eight workers was unemployed. Among Africa -Americans, this figure bloats to one in five.
The official unemployment rate for Black Americans in 2013 was 13.1 percent. “This is far higher than the highest overall annual unemployment rate over the last 70 years,” the researchers write. But again, this figure only looks at the average monthly unemployment rate. Analyzing the share of African Americans who were unemployed at some point this year, the number is a staggering 20 percent.
While the experts at EPI foresee an improvement for the over-the-year employment rate for African-Americans in 2014, it’s still relatively high at 17.4 percent.
“The labor market is improving extremely slowly for all major groups, but the employment situation of African Americans remains at something more akin to depression-level conditions,” EPI concludes.