Nonfarm payrolls increased by 1.37 million in August and the unemployment rate tumbled to 8.4% as the U.S. economy continued to climb its way out of the pandemic downturn. CNBC’s Steve Liesman breaks down the data.
Category: employment
US Job Situation
There has finally been a drop in unemployment numbers. But this is not exactly a call to bring out the champagne. There has been such an increase in unemployment numbers within the last few months due to COVID-19 that it is quite hard not to see an increase. Let’s take a look at what some of this means.
Looking at the numbers for the end of June. Thankfully unemployment dropped to 11.1% (which is still very high). Nearly 5 million jobs were added in June which was a lot more than was estimated by economists. In addition, June marks the second consecutive month that there has been this level of growth…but it does have to be seen in context in that 20 million jobs were lost in April during lockdown.
But looking toward the future it has been recognized that since many more individuals are now working from home and businesses are allowing for this, more jobs will also be created. There will be more opportunity and wages could increase since there is less money being spent on office maintenance. This will definitely comprise some of the direction of the future.
Optimism on Post-COVID-19 US Economic Recovery
When the shutdown began due to COVID-19, stores and businesses worldwide were forced to close operations and thousands of people joined the unemployment lines, no one for a second imagined a recovery would be anything but traumatic. But there has been some good news for the US economy; it seems that recovery is happening and that it is actually ahead of the estimated schedule. In May of 2020 America gained 2.5 million jobs and unemployment actually dropped to 13.3 percent, rendering it the highest gain in job creation since numbers were recorded by the Bureau of Labor Statistics in 1939.
Of course these numbers do have to be taken in context. April saw huge losses so comparatively that number might not be as positive as it initially appears. Indeed, nearly 21 million jobs were lost in April of 2020.
And there is also the issue of the “misclassification” rendering the numbers inaccurate too. Many were rendered as employed but not at work but the reality was not that they were working from home for example but they were temporarily laid off with no guarantee of a return to work and if so, in what capacity. That would have put the unemployment figure in May actually at 16.1%.
Nonetheless, given that unemployment figures for May were estimated at approximately 20 percent, today’s numbers look good. As President Trump stated during a a press conference:
“We’re going to be back and we’re opening our country. And if you look at the lockdown governors … the ones that are most energetic about opening, they are doing tremendous business and that’s what these numbers are all about.”
With a trillion-dollar rescue package and much larger unemployment aid, the recession has been guided through government aid as well.
US Economy and Growth
America’s economy has enjoyed a steady solid growth rate for over 10 years. The question is, where, how and what does the next decade look like?
According to a recent Bloomberg article, most of the wealth that the nation has generated has been from just 1% of counties. A recent report from the Bureau of Economic Analysis found that a staggering 32.3% of US GDP was generated by 31 US counties. What is perhaps even more odd about this statistic is that last year those 31 counties had only 26.1% of employed Americans.
So it seems that the bones of the US economy is becoming further concentrated in larger cities and by the coasts. Rural counties are dying down which could have implications for labor mobility and infrastructure spending.
But who exactly are these people who are bolstering the economy today? According to a recent article in Yahoo Finance it is the immigrants who are making this happen:
“Over the last decade, 42% of the net growth in U.S. population, and 54% of the net growth in the workforce, can be attributed to immigration. During the same period, the birth rate of native-born Americans has decreased, and the death rate has increased, due to aging. Immigrants now comprise roughly 15% of the total U.S. population. And because they tend to be younger than native-born Americans, immigrants now comprise about 17% of the U.S. workforce.”
With unemployment back at to its lowest since 1969 and a 3.1 percent increase in average hourly wages from 2018, wherever its coming from and whoever’s providing it, the employment situation in America is positive.
Looking for a Job?
A job is so much more than a paycheck. Obviously the monthly wage one brings home is crucial but having a place to go every day benefits one’s self-esteem; bolsters social skills and can even take one’s mind off everyday worries. As such, the more people who are in gainful employment, the better for them, their families and society as a whole. Here we take a brief look at which US states offer the best employment opportunities.
GoBankingRates recently conducted a study on the best places to find a job. While nationwide the last decade has witnessed a 17+ percent growth rate, different states have varied employment growth rates. For example, Colorado seems to offer the most employment opportunities and has a five year average annual unemployment rate of only 5. 7 percent. Not only that but if you do live there, public transportation is good and improving. Private transportation is on the same page since there are now new vehicles in the market, powered by local electricity. This of course is great for the environment and supplements the state’s economic development while offering customers reduced energy costs.
Over in New Hampshire – the second best place to find a job in America right now – unemployment figures are a mere 3.2 percent and the state has added a third additional job vacancies than people seeking work. Offering some of the lowest property taxes in the nation, with a median price of a home estimated at $244,900, economics look good for people living in the state of New Hampshire.
And then there is Utah (employment growth rates of 12.5 percent for 5 years and 17.4 percent for 10) with an unemployment average of just 3.4 percent in five years. Minnesota also boasted a 10 year employment growth of 9.4 percent with one of the lowest unemployment rates nationwide.
So job seekers have quite a lot to consider. If it does seem you’re just not getting the job you need/want, check out these other states for greater success.
Economic Growth and Job Vacancies
At the beginning of 2019 the Bureau of Labor Statistics reported a jump to 7.6 million of job vacancies in America. Adding 304,000 new jobs in January was actually “almost double the 158,000 the market had forecast.” There have been other organizations noting a jump in employment opportunities throughout the nation as well, in particular the Job Openings and Labor Turnover Survey (JOLTS). While this is really great news, there is of course the concern that this may open the door a bit too wide for those in current stable positions to seek better opportunities that could upset the apple cart, stressing out SME owners. There has also been a substantial decline in job layoffs.
Other good news for workers was the increase in hourly wages in February being “the fastest pace in nine years.” As well, Kevin E. Schmidt pointed out that:
“The importance of this strength in jobs and wages is that it has driven much of the resurgence in the American economy. Jobs and wages are the cornerstone of consumer spending — the key driver of U.S. economic growth.”
Unemployment dropped to 3.8 percent in February (from 4 percent).
The American Dream: A Look in 2019
President and CEO of the US Chamber of Commerce, Tom Donohue presents his 2019 State of American Business address in this video. He focuses on policies that result in the bolstering of growth to “enable workers, families, and businesses to pursue their American dreams.” As such, in the video, one business owner Brian Steorts, Flags of Valor, described his American dream as the ability to “remember, employ and empower” his employees…remembering how we became the greatest country in the world.
Maria Rios of Nation’s Waste, explained: “Coming to this country from El Salvador, becoming an American citizen and starting my own business and creating jobs for other americans; that was my American dream.”
Mark Wilson, Chime Solutions, Moscow, GA “My American dream was to see people reach their full potential; that’s what the American dream is really all about.”
There are different American dreams here; but business is the “common thread that combines them.”
Additional US Job Creation
October was a great month for job creation throughout America. According to an Economic News Release from the US Bureau of Labor Statistics, 250,000 jobs were added last month. Unemployment remains at a almost-5 decade low at 3.7% with Hispanic unemployment getting to its lowest ever – 4.4%. There has been a hike in salaries too.
All this, in spite of Hurricane Florence and Hurricane Michael.
Home Depot Stepping Up Hiring
As more and more people scramble to find employment in a difficult economy, one company is hanging the “We’re Hiring” banner. Home Depot has just announced that it will soon be hiring 70,000 seasonal workers for the spring. This is the company’s busiest time of the year, as many people work on their homes in the warmer weather.
Those seeking positions can apply at the Home Depot website and hiring will be picking up the pace in the coming weeks. Tim Crow, the executive vice president of Human Resources explains that temporary job openings can sometimes turn into full time jobs, and that people should think of their temporary opportunities in this light.
In 2011, approximately half of the temporary job opportunities did turn into permanent positions for those who were employed.