Work

How Much Better Can Jobless Rate Get?

September 20, 2017 By Twila Van Leer

Jobless Rates — Could the rate of joblessness in the United States actually get too low?

Could the rate of joblessness in the United States actually get too low? It’s an interesting question that economists are considering more closely as the unemployment rate reaches new lows for this post-recession era.

The crux of the matter is that a pool of unemployed people anxious for jobs is necessary to support any growth in the number of jobs created. The latest report on unemployment , calculated by the Department of Labor, shows the figure at 4.3 percent, down a tenth of a point since May, when the rate was 4.4 percent.

In June, employers offered 209,000 more jobs that contributed to the small dip in the rate. In July, the greatest surge in job availability was in the restaurant/bar sector. Some 53,100 jobs were added to the tally, probably indicative of the rising wages being offered to restaurant and bar workers. Average hourly pay increased by 4.7 percent over June of the previous year.

The United States is benefiting from steady economic growth around the world. Europe and Japan have both posted gains and China’s somewhat teeter economy has showed signs of stabilizing.

The new figures suggest that Americans who had become discouraged with the job market and quit looking are now coming back to the search. Many who went back to school or decided to just stay home and care for family are being lured back by the abundance of jobs.

The rate of hiring has stayed about steady over this year compared with last, but some 184,000 new jobs have become available each month through July. In 2016, that figure was 187,000, a sign that the post-Great Recession economy was righting itself. This July, 81.8 percent of people aged 25 through 54 had jobs or were looking for one, the highest number since December 2010. Economists focus on this age range because it includes the Baby Boomers who retiring and the younger generation that is likely still to be pursuing higher education. The current figure, however, still lags behind the 84.6 percent that was registered in 1999.

Economists expect that the 81.8 percent could jump by another 0.7 percentage points if current trends continue. That would add another 1.8 million jobs.

More Young Adults Live With Parents

June 11, 2016 By Twila Van Leer

More millennials are choosing to still live with their parents. — More millennials are choosing to continue living with their parents.

For the past century and more, young adults were prone to leave the nest and set up housekeeping for themselves. Now, they are more likely to be residents in the family home, either as singles or with a spouse, according to the Pew Research Center.

Young Adults Waiting To Get Married

The phenomenon, statistically changing the 130-year trend, is as result primarily of young people who delay marriage until into their 30s, the Pew study concluded. In 2014, the percentage of young adults living in their parent’s home was 32.1. It is the largest percentage since 1940, when some 40 percent were living at home.

Young Adults With Less Education

Choosing a spouse or living partner is the most likely condition to prompt living with a parent when the young couple is not prepared financially to be independent. Status of education is also an important factor. Young people with less education may be more likely to remain at home, the study found. The statistical breakdown showed that in 2014, 19 percent of young adults with a bachelor’s degree were living at home; 36 percent of those who had some college but not a degree; and 40 percent of those who had failed to complete high school.

Since 1980, the level of education has been more telling, with college education being a definite benefit in the job market and more of those without a high school diploma dropping into less well-paying jobs.

The trend not to marry as early has had a definite effect, a Gallup Poll shows. In a survey, 60 percent of Millennials said they had never married, compared with 16 percent of Generation Xers and 10 percent of Baby Boomers. The increasing trend for women to succeed in the job market, while more males are floundering is one of the reasons, experts say. The Great Recession had a greater impact for men than for women.

Attitudes also have been in play. Marriage formerly was considered a step to help young couples to reach employment and financial goals. Now, marriage is seen to be the final step to reaching such goals, the researchers report. They delay commitment to marriage until they feel their education and career goals are stable.

The rising costs of education, with a larger percentage of young adults saddled with overwhelming education debt, also enters into the equation. Expectations for “living high” in marriage, which most of their parents did not harbor, have an effect on marriage decisions as well.

Unemployment

Relatively high unemployment rates over the past decade also have been a factor. The number of young men who are unemployed and living at home far outstrips the number who are employed and living independently.

The effect on the parental household of having young adults still in residence is the flip side of the new trends, with some parents delaying retirement and other decisions to accommodate the extra persons they are helping to support.

What Next In U.S. Economy?

April 29, 2016 By Twila Van Leer

Even though the government reports job growth again this spring, other factors seem inconsistent, leading to a somewhat hazy view as to what actually can be said for the national economy in the long run.

Inconsistent Factors In Determining Growth Or Decline In Economy

In March, only 126,000 new jobs were reported by the Labor Department, ending a run that saw more than 200,000 per month. The April figure rose again, to 225,500 new jobs. But the rising employment numbers have not been matched by significant increases in earnings.

Counterpoints to the job market improvements are signs that worker productivity is lagging, exports are diminishing, only modest gains have been reported in consumer spending and overall economic expansion is “sluggish.”

America has been the engine pushing the world’s economy in recent years, but the International Monetary Fund predicted recently that recovering strength in the big Asian economies could see them move into the lead.

The many factors determining either growth or decline in the economy are sending mixed signals of either potential strength or potential weakness. Lower oil prices have led to cutbacks at energy companies and the manufacturers who supply them. A stronger dollar has stymied export growth and depressed corporate profits.

On the rosy side, layoffs are down and home sales have surged this spring. A bad winter weather-wise, cheaper oil and a West Coast port wrangle (since resolved) all had a negative impact.

Factors Being Poured Into The Economic Mix In Recent Reports Include:

The number of Americans who applied for unemployment benefits dropped to 279,500 recently, the lowest level in 15 years. The decline seems to portend more hiring, according to the Labor Department. Some employers are holding off on hiring until the trend of the economy is clarified, the department report said. That opinion was supported by a private survey by ADP, a payroll processor. That survey showed that businesses added 169,000 jobs in April, compared with 175,000 in March.

Worker productivity dipped in the first quarter of this year while labor costs went up. The Labor Department report said it was only the third time in 25 years that productivity has shown a decline over two quarterly reporting periods. Such declines suggest that workers are becoming less efficient.

The trade deficit increased in March, creating a drag on the U.S. gross domestic product. However, imports rebounded after the West Coast ports dispute was settled. American exports have become more expensive for foreign purchasers because of the strength of the dollar. The trade gap rose 43 percent over February, the government report shows.

Although the government estimated an 0.2 percent annual growth during the first quarter of 2015, some economists argue that when the trade deficit is factored in, there was actual shrinkage in the economy from January through March.

Overworked? Take Back Your Down Time

October 26, 2015 By Twila Van Leer

The old adage that “All work and no play makes Jack a dull boy” is still true. Especially in today’s work format that often keeps an employee on the job long after the clock says, “Go home.”

Work can tend to overwhelm those who continue working when the have left the office. Keeping the technology at bay for a break now and then may have to become a conscious effort to avoid being drowned in the process.

Working a 40-hour per week traditional schedule is becoming more and more an anachronism. Data from the 2013 and 2014 Gallup Work and Education surveys showed that American workers put in an average 47 hours in a typical week. That’s almost an extra work day in the standard period. A lot of the activity takes place outside the usual work site.

Employees find themselves checking work emails at home or taking business calls after they have left the office. There are some ways to minimize the extra-office work time, including these:

Schedule off-work activities for times when you are not expected to be at the office. Exercise classes or free gym time, for instance, can be set at early morning times. Paying a trainer to help you stay in trim may be incentive to adhere to a schedule. Make arrangements with a family member or friend to enhance the chances you will take the time. Set up activities one or two nights a week. Make it an objective to leave the office on time no less than 20 percent of the time.

Involve your co-workers in off-site activities. Set up a company softball or bowling team or other inclusive activity, for instance. That will strengthen bonds and offset the tendency to go on working when the workday ends. Talking shop is inevitable, but keep it at a minimum.

Turn off the devices. Smartphones and Tablets. They’re wonderful for keeping tabs on work-related things, but take a break! They keep you connected to the office and can impinge on family and relaxation time. In 2013, Opinion Matters conducted a study that showed 39 percent of workers checked their work emails outside of their regular work hours, and 81 percent said they do it on weekends. If you are serious about cutting the cord and giving yourself that respite from work that you really need, turn them off.

The job is important. We all know that. But the job will go better if you mix in some non-work activity. Try it. You’ll like it.