Small Progress in Jobless Rates, More Improvement Needed

There was good news reported in August by the Bureau of Labor Statistics, that the U.S employment rate fell 0.2 percent to 5.1 percent. Records indicate the rate to be the lowest since 4.8 percent in April 2008, just before the Great Recession.

Private firms have “claimed to create a net of 173,000 new jobs”; however, these employment opportunities consist of low-paying sector positions including health care, food industry and construction.

The Bureau of Labor Statistics conducted a survey where there were “8.03 million unemployed” in the first half of August, about 237,000 few jobless than the previous month.

“While many pundits are quick to hand out A’s to the economy at the start of the school year, a close look at the data shows the economy is barely showing up to class,” Economic Policy Institute analyst Elise Gould said.

Numbers provide indication that progress is happening, but there is more improvement needed.

“Nominal hourly wage growth has continued to flutter around 2 percent. To earn an A, wage growth needs to be far stronger, in the 3.5 percent to 4.0 percent range, and for more than one month. Current trends suggest nominal wage growth is only pulling down a C average.”

Jobless are the person employed part-time, but to want “full-time worker and discouraged workers who have stopped seeking employment. They make up one of every ten workers (10.3 percent).”

The majority of recent employment added in August include 33,000 government jobs where nearly “two-thirds of the gains (were) in local schools and most of the rest in state colleges and universities. Federal jobs stayed static, adding 2,000 jobs to 2.738 million, including the Postal Service.”

Source: PAI