So what is the employment state of the US right now? You would be surprised at what the numbers really mean.
On Friday March 8th the Bureau of Labor Statistics released the most anticipated report of the employment situation. The report found:
- Unemployment decreased to 7.7% in February. The number of unemployed persons also edged lower in February to 12 million.
- Total nonfarm payroll employment increased by 236,000 in February.
So does this mean that the economy state keeps booming every month? Not really.
It is important to look at a very important report, which is usually clouded: The Job Openings and Labor Turnover.
Why is this report so important? For one, it shows the population’s confidence on whether they would find other employment if they quit their current job. Second, it really shows a clear picture of how many people lost their job. So hypothetically, if the US lost 1 million jobs, but only gained 500,000 – this doesn’t bode very well for the economy.
On Tuesday March 12th, the Bureau of Labor Statistics released the Job Openings and Labor Turnover. This report found:
- The number of job openings (3.7 million) did not change much from December.
- The number of openings rose in professional and business services.
- However, it decreased in health care and social assistance.
- All remaining industries did not change much from January.
- The hires rate (3.1%) changed little from January. The hires rate was not seasonally adjusted.
- The hires rate decreased in mining and logging and in the arts, entertainment, and recreation.
- The hires rate was unchanged for total nonfarm, private, and government.
- The separation rate includes: (1) quits; (2) layoffs; and (3) discharges. The overall separations rate (3%) changed little from January.
- The overall quits rate was unchanged at 1.6%. The quits rate was not seasonally adjusted.
- The quits rate edged up for total private in January.
- The quits rate for government was unchanged.
- The layoffs and discharges rate was seasonally adjusted. The layoffs and discharges rate changed little from January at 1.1%.
So what does these statistics show? For one, that the overall rate of job openings has not really changed. Similarly, the overall rate of separation rate has not really changed.
Most interesting is the fact that upon close examination – the where of these job openings has changed.
In the health care and social assistance industries, the rate of job openings have decreased. The question posed is – will this affect the services accessibility to the public?
The education and health services rate was 3.1% (January 2012), 3.2% (December 2012), and 2.8% (January 2013). Since December 2012 to January 2013, we are seeing a 0.4% decrease.
The health care and assistance rate was 3.4% (January 2012), 3.4% (December 2012), and 3.0% (January 2013). From December 2012 to January 2013, we also saw a 0.4% decrease.
On the more positive side, the job openings rate increased in the professional and business services, as well as in construction.
The construction industry rate has been slowly increasing. The rate is 1.4% (January 2012), 1.6% (December 2012), and 1.7% (January 2013).
The professional and business services also show a very promising increase. In other words, we are almost back to January 2012 rates. The rate is 3.7% (January 2012), 3.1% (December 2012), and 3.6% (January 2013). This means that we have seen a jump of 0.5%, which puts at near the rate of January 2012.