Unemployment in USA in February 2014
Although it is sometimes overlooked, a key statistic for the understanding the employment market is the length of an average workweek. Some small changes in the average workweek usually imply large changes in the total hours worked. In the U.S., the average work week has fallen to 34.2 hours in February from 34.5 hours around September 2013, as per the Bureau of Labor Statistics. The decline, together with the mediocre job creation, shows that the total number of employment hours has decreased over the period.
The unemployment rate in the U.S in February 2014 appeared in this cycle:
Actual Previous Consensus Forecast
6.7% 6.6% 6.6% 6.5%
There is another possibility for the decline of average workweek that is the Affordable Care Act. It slowly induces businesses with lesser than 50 full-time workers—where full-time is defined as 30 hours per week—to keeping the number of hours low in order to to avoid having providing health insurance. This has played a part in the unemployment front. The jury is still on this explanation, though research has shown that existing laws that may be evaded through keeping firms small or working hours low can possess significant effects on the entire employment.
This is the division between female and male labor forces and it can be referred to as Occupational Gender Segregation. This relates to the reality that men and women do different jobs, based on understandings of what is the proper female and male work. According to Lazeart (2014), occupational gender segregation is sometimes vertical, whereby a woman concentrates on less influential jobs.
Despite the existent of some substantial volatility, U.S job creation has reached an average of 180k over the last 12 months which is slightly lower than the last 18 months average of approximately 191k. The private sector employment rate has increased for the 49th straight month, thus totaling to 8.681 million or about 177k per month. However, this has not lowered the rate of unemployment. This is because there are many potential employees clearing training institutions every other month. The government sector has been surprised by the upside creating 13k jobs, which are modestly higher than the last 3 month average of -14k. It seems that the trend of job creation rate is still approximately 175k to 185k per month, which is consistent with an economy that is growing at around 2%.
The USA labor force is characterized by a high unemployment rate among the youths and the less educated. Since 1993, unemployment rates between the youth and the uneducated have followed a similar trend, slightly increasing upwards. During the recent global recession, there has been a sharp increase as employers have been laying off most of their workers. The employment rate for all high school dropouts or graduates is higher than that of than for the overall population. The causes of discouragement and unemployment points out on the requirement to expand the access to higher levels of education and training programs. About one third of the discouraged labor force lack experience and lack of enough education.
The labor market is the supply and demand of so that there can be making of services and goods, sold or bought under the terms and conditions which constitute a contract in view of the law. The goods that are made are for sale, profit generation and exchange, not for the immediate satisfaction of the laborer needs. The USA labor market has moved from the primary sector to the service sector which can also be referred to as the tertiary sector. With the entry freedom of entry in the modern labor market, there have been existence and development of stiff competition.
For the anticipation that preceded unemployment report In February, many job seekers’ reaction was muted. On the economic growth and securities market, the industrial average edged up by about 30.83 points or 0.19 percent, thus closing at 16,452.72. For instance, the Standard & Poor’s 500-stock index grew by 1.01 points or a percentage margin of 0.05, closing at 1,878.04. However, the Nasdaq composite dropped by 15.90 points or about 0.37 percent, to end the day at 4,336.22.
There is long unemployment duration in this labor market. This reflects that there is underutilization of available human resources. Another evident characteristic is gap and limitations. The labor market has two measures that classify educational attainment. Age when individuals completed education and highest qualification. The age when an individually cleared school and the level of education determines whether a person gets employed. Workers are classified into three educational groups, those who graduated at 16 or under, between 17 to 20, and more than 21 years of age.
In conclusion, the USA labor market is not fair to the moat of the parties involved. There is a need to impose rules on equality, such as balancing the number of women and men in the market. This will go a long way in ensuring that no gender is considered weak. The Identity of workers should not be used to define the work they do, whether migrants or locals.
Bureau of Labor Statistics “BLS”. Unemployment in United States in February 2014. WebEdward, P. Lazeart . “The Hidden Rot in the Job numbers”. Wall Street Journal, 2014. WebNelson, D. Swartz. “As Job Creation increases in February”. The New York Times, 2014. Web.Jeffrey, Sparshott. “Economists react hits of spring”. The wall Street journal, 2014. Web