Unemployment (U.S.)

SeekingAlpha  2 hrs ago  Comment 
This article is a follow-up to my previous post about the unemployment gap. I explain more formally how incorporating nominal rigidity - the well-documented avoidance of wage cuts - can improve the recent performance of a simple wage inflation...
WA Business News  Aug 6  Comment 
Most of the thousands of staff affected by the collapse of mining services and recruitment firm Bluestone Group have been saved from unemployment.
newratings.com  Aug 5  Comment 
LISBON (dpa-AFX) - Portugal's unemployment rate eased for the fifth consecutive time in the second quarter of this year, figures from Statistics Portugal showed Tuesday. The unemployment rate dropped notably to 13.9 percent from 15.1 percent...
Financial Times  Aug 5  Comment 
Figures from a survey of purchasing managers raise hopes that demand in the single currency bloc is strengthening though unemployment remains a concern
The Australian  Aug 5  Comment 
THE RBA has kept the cash rate at a record low today as it waits to see whether unemployment is rising.
TheStreet.com  Aug 4  Comment 
NEW YORK (MainStreet) — Wage increases have remained anemic with the majority of American workers receiving a paltry 2% increase across many sectors and industries. The high unemployment rate has decreased the pressure to increase wages on...
247WallSt  Aug 4  Comment 
The Conference Board Employment Trends Index, the so-called ETI, has been released for the month of July. It looks a tad better than Friday’s unemployment and payrolls report. July’s ETI rose to 120.31 from an upwardly revised reading of...
SeekingAlpha  Aug 4  Comment 
The U.S. Employment Situation report released last Friday was somewhat weaker-than-expected, but the data follow the pre-existing trends. There is no sign that turmoil overseas has yet had an impact on the U.S. labour market, which is not too...
WA Business News  Aug 4  Comment 
Another month of solid jobs growth is not expected to be enough to bring the unemployment rate down from its highest level in 10 years.
New York Times  Aug 3  Comment 
Few nonprofit organizations are helping unemployed men find interview suits, but the ones that do are making a big difference.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

This article is about unemployment in the U.S. To read more about unemployment in other countries, see Unemployment (disambiguation).

Unemployment and employment are closely watched economic indicators. A low rate of unemployment often raises inflation fears, due to potential labor shortages. High unemployment raises fears of recession. Strong job growth means prosperity. Job losses, recession. The chart to the right shows the annual unemployment rate from 1948 through 2007.

In looking at unemployment and employment there is ample room for confusion. Two separate and distinct measures of unemployment are often reported in the media, as well as two separate and distinct measures of employment. Each indicator has value, but must be understood correctly. All four are reported by the Bureau of Labor Statistics (BLS).

Unemployment

  • The “Unemployment Insurance Weekly Claims Report” is often cited in the press, with a focus on “initial claims” for benefits. An increase or decrease is popularly taken as a portent of the direction of the economy. A seasonally adjusted insured unemployment rate is also reported weekly. This measure of unemployment is not equivalent to the unemployment rate that is reported on a monthly basis by the BLS for several reasons: (1) Not all persons are covered by Federal or State unemployment insurance programs. (2) Some who are covered don’t file claims. (3) Some are still unemployed when their benefits run out and they drop out of the program.
  • A broader unemployment rate is estimated on a monthly basis by the BLS. The data that form the basis for the unemployment rate are gathered through a monthly survey of 60,000 households. This is called the Current Population Survey (CPS). The reference period is the week that includes the 12th day of the month. This is the unemployment rate that is used when economists and market analysis look at trends over time. Note that both measures of unemployment are revised annually, resulting in changes in previously reported unemployment rates.

Definitions and Discussion

The unemployed are defined by the BLS as “persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week.”

The unemployment rate is the number of unemployed as a percent of the labor force. The labor force consists of employed and unemployed persons. It is sometimes called the “civilian labor force” because it excludes people in the armed forces.

The size of the labor force varies over time due to economic conditions and changes in the number of working age people. When the economy is strong more people are apt to look for work and the size of the labor force swells. This could drive up the unemployment rate even when employment is growing. On the other hand, when jobs are scarce some people give up looking for work, which can result in a decline in the unemployment rate even as the economy weakens.

As the Baby Boom generation retires the size of the labor force might shrink, although a strong flow of young people into the labor force (the “Echo Boom” generation) and immigrants have the potential to keep the size of the labor force high enough. Many Baby Boomers may also delay the age at which they retire.

Illegal immigration is a complicating factor in the estimation of the number of employed and unemployed in this country. This “shadow labor force” is not well accounted for.

Employment

  • In the CPS (the survey of 60,000 households) each employed person is counted only once, even if he or she holds more than one job. Excluded are persons whose only activity consisted of work around their own house (painting, repairing, or own home housework) or volunteer work for religious, charitable, and other organizations. The employed include paid employees and those who work in their own business
  • The BLS also conducts the Current Employment Statistics (CES) survey of 390,000 business establishments. It yields a detailed breakdown of employment, hours and earnings for all major industrial sectors (except agriculture) and subgroups each month. When analysts talk about change in manufacturing jobs, for example, they are referring to the CES survey. The CES says nothing about unemployment.

The two surveys show different levels of employment and employment growth and have on occasion been contradictory due to the different samples and survey methodologies.

Unemployment Rate Since 1948
Unemployment Rate Since 1948
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki