With fears of a global slowdown, eyes are on its effect on the unemployment rate and job growth across the States. Reportedly, job growth has been abysmal in the month of February – the most limited it has been in over a year.
The stagnation in new job openings and a declining economy is observed by a meager 20,000 new openings in the U.S. economy. This has been the lowest since September, 2017. In comparison, over 200,000 new jobs were being created across the U.S. each month over the past year.
Courtesy: Bureau of Labor Statistics
January, 2019 (Green Bar): 311,000 | February, 2019 (Red Bar): 20,000
The businesses taking the hardest hits are the Construction department, Restaurants and Hotels, and Retail companies.
The U.S. Bureau of Labor Statistics stated that the Unemployment Rate for in the month of January this year rose to 4.0%, slightly higher than the estimated 3.9% for the month, and an increase by 0.3% in the 3.7% it had fallen to in December, 2018.
This number dropped to 3.8% in February, 2019, a result of government workers returning after a partial shutdown in the previous month.
There have also been consistent spikes in the Average Hourly Pay each month over the past year, rising to 3.4% in February of this year. It is the highest it has been since The Great Recession, but also might be an indicator of market inflation.
These are the official numbers under the U-3 Unemployment Rate.
The U-6 Unemployment Rate, which also accounts for part-time workers, makes for a more in-depth reading of the unemployment situation. These part-timers may work less than two hours per week and seek full-time work, but they are counted as employed under the U-3 reading. The U-6 Unemployment Rate also includes those not part of the labor force, known as Marginally Attached Workers. They do not make part of the part-time workers as they do not necessarily look for full-time jobs, but would like to work full time.
The U-3 Unemployment Rate for February, 2019 is 3.8% while the U-6 Unemployment Rate is 7.3%, slightly less than double the official number. This was 8.1% a month prior.
Courtesy: Macrotrends
U-3; February, 2019 (Grey Line): 3.8% | U-6; February, 2019 (Blue Line): 7.3%
There is no certainty over jobs and an employee getting laid off to repair economic damage is a likely possibility. With the sharp drop in new openings, one would find it useful to remain updated with the situation in and around their State.
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