RECORD 94,031,000 PEOPLE NOT IN LABOR FORCE

The number of people not in the labor force exceeded 94 million for the first time, hitting another record high in August, according to new jobs data released Friday by the Bureau of Labor Statistics.

The BLS reports that 94,031,000 people (ages 16 and over) last month were neither employed nor had made specific efforts to find work in the prior four weeks.

The number of individuals out of the civilian work force represented a jump of 261,000 over July’s record of 93,626,000 people.

August’s labor force participation rate remained at the same level as the prior two months at 62.2 percent, the lowest level seen since October 1977 when the participation rate was 62.4 percent.

The civilian labor force also experienced a slight decline of 41,000 people, compare to July’s 157,106,000 people in the civilian labor force to 157,065,000.

In total 149,036,000 people were employed in August, 8,029,000 were unemployed, and 5,932,000 people who wanted a job.

Overall the Labor Department reported that the economy added 173,000 jobs in August. The unemployment rate was 5.1 percent, lower than July’s 5.3 percent.

Via: Breitbart

Continue Reading....

A Minimum-Wage Bungle in New York

New York's Fast Food Wage Board, a panel appointed by Gov. Andrew Cuomo, has recommended increasing the minimum wage to $15 an hour from $8.75 for quick-service restaurant businesses with 30 or more locations. The target, according to Mr. Cuomo, is “large, national companies which have been making extraordinary profits” while “underpaying their workers,” who are supported by public-welfare programs such as Medicaid.

But the higher labor costs that the New York state labor commissioner is expected to approve will not hit large companies. That’s because small business owners own and operate all of New York’s Burger King restaurants, and about 95% of its McDonald’srestaurants, as franchisees. These business owners set the compensation for the workers they employ. Burger King and McDonald’s, on the other hand, are paid a percentage (generally a 3% to 5% royalty fee) of the restaurant’s gross sales, regardless of the franchisees’ profits.

There are 7,303 franchised restaurants in New York operating under agreements with 116 brands, and like other restaurant owners, many pay some of their employees the starting wage of $8.75 an hour. Yet the owner of even a single franchised restaurant would automatically have to pay a minimum $15 an hour, simply because of his affiliation with a brand that has more than 30 restaurants nationwide. That’s not fair.

Could these restaurant owners cope with such a huge increase in operating costs by reducing their profits? Quick-service restaurant franchises operate on slim profit margins—on average 2 to 4 cents on the dollar according to an Employment Policies Institute study. And to the extent they make lower profits, these business owners will be less likely to open new restaurants. Restaurateurs who own more than 30 non-franchise quick-service establishments also will be put at a disadvantage with competitors not subject to the higher minimum wage.

To manage increased costs, franchisees instead may be forced to reduce their current staff or reduce their hours. They might even seek to automate some of their processes by implementing kiosks or mobile platforms for ordering food. The result would be fewer job opportunities for unskilled young men and women, who rely on these entry-level jobs to learn important work and life skills and to move up the employment ladder.

What about increasing prices? Certainly, consumers’ willingness to pay more for fast food would help offset the franchisees’ increased labor costs. However, increasing prices may result in losing customers who will seek lower-priced options. Two levels—one for franchises and another for other restaurant owners—will force some franchises to close.

State or local governments that raise the minimum wage across the board will help the lowest-wage workers who manage to keep their jobs. But the solution to the lack of quality jobs is not a massive minimum-wage increase for a subset of one industry, in an attempt to turn low-skilled entry-level jobs into middle-income jobs. The real culprit is six years of ineffective progressive economic policies. According to the Bureau of Labor Statistics, there are 8.3 million Americans still unemployed and another seven million “marginally” employed, often working two or three part-time jobs to make ends meet. There are more than 550,000 fewer full-time jobs today than there were in December 2007, before the recession began.

The answer to the current drought in jobs with a good salary isn’t another well-intended but misguided government fix. Instead, it is economic growth that will create the kind of jobs that will permanently lift people out of poverty. A vibrant free-enterprise system is the only way to generate that kind of economic growth, not blatantly discriminatory social experiments conceived by union bosses.

Mr. Caldeira is the president and CEO of the International Franchise Association in Washington, D.C.

Via: Wall Street Journal

Continue Reading....

Chart: What's the real unemployment rate?

The Labor Department said Friday the unemployment rate remained flat at 5.3 percent in July—but does that tell the real story?

Many economists look beyond the "main" unemployment rate to other figures that give a more textured view of the economy. On jobs day, the Bureau of Labor Statistics puts out a slew of data that show various aspects of the nation's employment situation.

One is the U-6 rate. The BLS defines U-6 as "total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force" plus all marginally attached workers.

In other words, the unemployed, the underemployed and the discouraged—a rate that remains above precrisis levels.The U-6 rate dipped in July to 10.4 percent, the lowest since June 2008. The overall trend in the U-6 has been more volatile than the main unemployment rate (also know as the U-3). The U-6 rate is down 180 basis points over the last year, versus a 90-basis-point drop in the U-3.

 Unemployment rate: 7.5%● U-6 rate: 14.2%Bureau of Labor Statistics

Another figure is the U-1, which is the percentage of the civilian labor force that's been unemployed for 15 weeks or longer. In July, the U-1 dropped to 2.0 percent, which means that people losing their jobs aren't staying unemployed as long. While the U-1 has a similar historical curve to the above U-6, it's much closer to precrisis levels. 

Will these jobs numbers lead the Fed to raise interest rates?

Yes, by the end of September.

Yes, by the end of December.

No, they'll wait to see more improvement in the economy overall.

VOTE

Vote to see results

Economists are scrutinizing jobs figures especially this month amid speculation that the Federal Reserve is waiting for strong gains in jobs and wages to justify an interest rate hike later this year. Fed chair Janet Yellen said in May that while higher wages increase costs for employers, they indicate a strengthening economy that is good for business.

Average hourly wages rose 0.2 percent to $24.99 in July.

 Change in average weekly wages: 0.46%● Change in average hourly wages: 2.44%Bureau of Labor Statistics

Via:  CNBC

Continue Reading....

RECORD 56,209,000 WOMEN NOT IN LABOR FORCE

The number of women not in the labor force reached a record high in July, according to data released Friday by the Bureau of Labor Statistics.

According to the BLS, 56,209,000 women aged 16 and older were not participating in the workforce in July, besting April’s record of 56,167,000 women who were neither employed nor had made a specific effort to find work in the four weeks prior.

July’s figures represented an uptick of 124,000 over June’s level of 56,085,000 women who were out of the workforce.

The civilian labor force also shrank for women last month from 73,547,000 in June to 73,528,000 in July. The labor force participation rate for women, meanwhile, remained the same at 56.7 percent.

Of those women considered to be in the workforce, 69,638,000 had a job and 3,891,000 were unemployed. The unemployment rate for women was 5.3 percent in July, up slightly from June’s 5.2 percent.

The month of July also saw a record 93,770,000 Americans not participating in the labor force.

While the labor participation rate remains at the lowest it has been since the late 1970s, the overall unemployment rate remained at 5.3 percent and nonfarm payroll jobs increased by 215,000.

Via: Breitbart

Continue Reading.....

Big Damage to Hiring Emerges as Key Impact Of Obama’s Healthcare

The judicial decision to uphold all of the president’s health-care subsidies may be disappointing, but the economics of Obamacare are far worse than whatever constitutional mistakes have been committed by the Supreme Court.

Click Image to Enlarge

The economics of Obamacare are very bad. The law is inflicting broad damage on job creation and new-business formation. It ruins job incentives by making it pay more not to work, thereby intensifying a labor shortage that is holding back growth and in turn lowering incomes and spending.

Across-the-board Obamacare tax increases are inflicting heavy punishment on investment — right when the U.S. economy desperately needs more capital as a way of solving a steep productivity decline.

Because of Obamacare, there’s an additional 0.9% Medicare tax on salaries and self-employment income, a 3.8% tax increase on capital gains and dividends, a cap on health-care flexible spending accounts, a higher threshold for itemized medical-expense deductions, and a stiff penalty on employer reimbursements for individual employee health-policy premiums.

Each of these tax hikes is anti-growth and anti-job.

There is so much talk about “secular stagnation,” inequality, and stagnant wages these days. But there’s little talk about the negative economic impact of Obamacare. It’s a much bigger story than SCOTUS jurisprudence.

A couple of examples.

First, there’s the problem of the 49ers and the 29ers. The business mandates and penalties imposed by Obamacare when small firms hire a 50th employee or ask for a 30-hour workweek are so high that firms are opting to hold employment to 49 and hours worked to 29. Lower employment and fewer hours worked are a double death knell for growth.

The BLS sheds light on this: Although part-time work has fallen during the recovery, to 7 million from around 9 million, it hovered around 4 million during the prior recovery. Part-time employment, which as a share of total employment peaked at around 20% in 2010 and has slipped to about 19%, hovered around 17% during most of the prior expansion. Obamacare?

Everybody is complaining about the low labor-force participation rate and the equally stubborn reduction in the employment-to-population rate. But why are we surprised? Obamacare is effectively paying people not to work.

Via: New York The Sun

Continue Reading....

Jobs Report Shows Millennials Need A Republican President

Millennials continue to struggle under President Obama—no wonder 73 percent think finding a job will be difficult once they graduate. What my generation needs is the opportunity to achieve the American Dream, not the failed Obama policies that make it tough to find a job. Hillary Clinton would be more of the same. We need a new direction and a Republican president.

BACKGROUND:

The Unemployment Rate For 16-24 Year Olds Increased From 11.6 To 12.2 Percent In May. (Bureau Of Labor Statistics, Accessed 6/5/15)

The Unemployment Rate For 20-24 Year Olds Increased From 9.6 To 10.1 Percent In May. (Bureau Of Labor Statistics, Accessed 6/5/15)

The Unemployment Rate For 25-34 Year Olds Stayed At 5.8 Percent In May.(Bureau Of Labor Statistics, Accessed 6/5/15)

Survey of Young Americans’ Attitudes toward Politics and Public Service(Harvard Institute of Politics, 3/18/15-4/1/15)

119. Based on the current state of the economy, how easy or difficult do you think it will be for students in your class to find a permanent job after graduation?

Very easy…......................3%

Somewhat easy............. 23%

Somewhat difficult........61%

Very difficult..................12%

When Compared With The Overall Labor Market, The Young-American Economy Is “Sort Of Terrible.” “But a deeper look at the Young-American Economy today suggest that, in contrast to the overall labor market, it is still sort of terrible.” (Derek Thompson, “The Economy Is Still Terrible For Young People,” The Atlantic, 05/19/15)

“The Median Income For People Between 25 And 34 Has Fallen In Every Major Industry But Healthcare Since The Great Recession.” “A recent analysis of the Current Population Survey last year found that the median income for people between 25 and 34 has fallen in every major industry but healthcare since the Great Recession began.” (Derek Thompson, “The Economy Is Still Terrible For Young People,” The Atlantic, 05/19/15)

For Recent College Graduates Underemployment Is “High,” The Quality Of First Jobs Is “Getting Worse” And” Wages Are “Growing Slowly, If At All.”“Underemployment (the share of college grads in jobs that historically don’t require a college degree) is high. The quality of these first jobs is getting worse. And, for these reasons, wages are growing slowly, if at all.” (Derek Thompson, “The Economy Is Still Terrible For Young People,” The Atlantic, 05/19/15)

Via: GOP.com

Continue Reading....

JOBS DATA: 92,986,000 PEOPLE NOT IN THE WORKFORCE

The month of May saw 92,986,000 people not participating in the workforce, according to new data released Friday by the Bureau of Labor Statistics reveals.

May’s total represented slight decline compared to last month’s record, which saw 93,194,000 people outside the workforce.

The BLS defines those not in the labor force as people ages 16 and older who are neither employed nor “made specific efforts to find employment sometime during the 4-week period ending with the reference week.”

The labor force participation rate came in at 62.9 percent, a slight uptick compared to April’s 62.8 percent.

According to the BLS, the civilian labor force itself rose by 397,000, reaching 157,469,000 in May.

Of those participating in the workforce, 148,795,000 had a job and 8,674,000 were unemployed.

The overall unemployment data from the BLS saw payroll employment rise in June by 280,000 and the official jobless rate at 5.5 percent.

Via: Breitbart

Continue Reading....

The Intentional Buffoonery of the Progressive Left

Goldilocks wrote: So how are beginning workers and poor people supposed to advance economically?Obama Wage Hike is Obamacare by 'Other Means'

Dear Comrade Goldi,

I can tell you one way to make it more difficult for “beginning workers and poor people” to advance. If you raise the minimum wage, they’ll be likely to be hurt worst, first.

People advance economically by gaining experience and thus bringing more value to an employer, not by passing capricious laws.

According to a BLS survey done in 2011, only 5 percent of workers who make hourly wages are at or below the federal minimum wage to begin with. Of the 1.7 million people who receive minimum wage salaries, 54 percent are aged 24 or below even as 80 percent of the workforce is 25 and above. So despite accounting for only 20 percent of the workforce, we see that minimum wages are more concentrated in those “beginning workers and poor people.”

When you are younger and lack skills you make less money.

Only a liberal would have difficulty understanding this obvious fact.

Powerful or Pitiful?

Curiously-- and damningly too-- 2.1 million of the 3.8 million at or below the minimum wage are accepting wages below the federal minimum.

Via: Townhall

Continue Reading.....

Teen Unemployment: 20.7%, More Than Three Times the National Average

(CNSNews.com) -- The teen unemployment rate went up in January to 20.7% -- from 20.2% in December-- and is now more than three times the national unemployment rate of 6.6%,  according to the latest data from the Bureau of Labor Statistics (BLS).

The BLS numbers show there were 1,140,000 people ages 16-19 unemployed in December. For January, that number was 1,147,000 -- an increase of 0.6%.

The teen unemployment rate (seasonally adjusted) has been in the 20s range (high and low) since October 2008. It hit a high of 27.3% in October 2010.

Via: CNS News

Continue Reading....

1,154,000 Fewer Americans Working Today Than 6 Years Ago

(CNSNews.com) - 1,154,000 fewer Americans are working today than six years ago, according to data from the Bureau of Labor Statistics.

In January 2008, 146,378,000 Americans 16 and over were employed, and now in January 2014, 145,224,000 are employed, a difference of 1,154,000.

91,455,000 Americans 16 or older did not participate in the nation’s labor force in January, meaning they neither held a job nor actively sought one. That's a 353,000 decline from December, but 172,000 more than November.

The national labor force participation rate -- the share of Americans who had a job or were actively looking for one -- ticked up to 63 percent in January, from 62.8 percent in December.

In January, according to BLS, the nation’s civilian non-institutional population, consisting of all people 16 or older who were not in the military, a nursing home or other institution, reached 246,915,000 (number not seasonally adjusted). Of those, 155,460,000 participated in the labor force by either holding a job or actively seeking one.

The 155,460,000 who participated in the labor force equaled only 63.0 percent of the 246,915,000 civilian non-institutional population.

Via: CNS News

Continue Reading......