Tag: Underemployment

The industries hiring and firing in Australia right now
Unemployment

The industries hiring and firing in Australia right now

Frazer Harrison/Getty Images.
That, along with declines in unemployment and underemployment along with gains in labour market participation and hours worked, all point to a labour market that is in rude health right now.
But, beyond the headline jobs figure, which industries have been hiring and firing recently?
Without seasonal adjustments, employment increased by 53,000 in the three months to November, led by a 32,400 increase in those working in “other” services.
Education and training, at 13,700, was another industry where hiring levels were strong.
In comparison, jobs were shed in eight industries, led by manufacturing at 22,900.
Over the year, employment in healthcare and social assistance surged by 135,000, outpacing increases of 102,000 and 61,000 respectively in construction and education.
Despite employment falling in the three months to November, healthcare and social assistance, at 13.3%, is far and away the largest employer in Australia.
Making those figures all the more impressive, vacancies have increased in most Australian states and territories, and in the vast majority of sectors, over the past 12 months.
So not only is hiring levels strong, but the improvement is broad-based in nature.

New stats show unemployment in the UK is being replaced by chronic ‘underemployment’
Unemployment

New stats show unemployment in the UK is being replaced by chronic ‘underemployment’

. There has been a 400% increase in the number of people on zero-hours contracts since 2002.
There are now twice as many “underemployed” workers as unemployed workers.
The official rate of unemployment is 4.3% of all workers, or 1.46 million people.
But the percentage of workers who want more hours, or part-time workers who want better jobs, is nearly double the unemployment rate, at about 9.7%, or 3.3 million people, according to the ONS. “Underemployed” workers who “wanted more hours in their current job”: 1.9 million.
People on “zero-hours contracts”: 883,000.
And the number of people who want to work more hours in their current job is now greater than official unemployment.

DAVID BLANCHFLOWER: The Fed’s misleading view of the job market reflects ‘a huge intellectual failure’
Unemployment

DAVID BLANCHFLOWER: The Fed’s misleading view of the job market reflects ‘a huge intellectual failure’

DAVID BLANCHFLOWER: The Fed’s misleading view of the job market reflects ‘a huge intellectual failure’.
Flickr / Federal Reserve The Federal Reserve is making a big policy error by raising interest rates, and it is doing so because policymakers are wedded to failed economic models that ignore deep underemployment and a weak underlying economic environment.
Blanchflower told Business Insider in an interview that the Fed was vastly overestimating the labor market’s true strength by focusing too heavily on the historically low headline unemployment rate, which registered 4.4% in June. “Prior to 2008, the unemployment rate was a sufficient statistic to tell you about the labor market,” Blanchflower said. “The employment rate was mirror image.” “Inflation is weak because we’re in a cyclical down point — there’s much more slack than the unemployment rate suggests,” he said.
There’s probably a mix of reasons.
Among those is pressure from interest groups like banks, which begged for rate cuts during the crisis but are now tired of the subpar returns associated with a prolonged low-rate environment.
he added.
US inflation continues to undershoot the Fed’s 2% target, and it is in fact moving further below it, despite a low headline jobless rate.

Lousy Pay Raise? That May Be as Good as It Gets–Update
Unemployment

Lousy Pay Raise? That May Be as Good as It Gets–Update

Lousy Pay Raise?
First, the bad: Unemployment may be at a 16-year low and the economic expansion may be third-longest on record, yet wage growth is miserable, clocking in between 2.5% and 3% for the past year.
Because pay is closely tied to what employers can recover by raising prices (inflation) or sales per employee (productivity).
As the expansion matures they hire less-skilled and experienced workers.
Because they come on board at much lower pay levels than incumbents, these newly hired workers’ raises don’t move the average much.
The median raise for a low skilled worker has risen from 1% in 2013 to 3% now, and for a young worker (aged 16 to 24) from 3.5% to over 7%.
Even if it returned to 2%, higher real (i.e., after inflation) wages requires better productivity growth.
Inflation is subdued in both.
For now, the Fed remains confident unemployment this low will eventually get inflation back to 2%.
Yet for this to get wage growth back to 4% is a stretch, all the more so when an expansion is as long in the tooth as this one.

Why the Tight Labor Market Isn’t Generating Better Pay
Unemployment

Why the Tight Labor Market Isn’t Generating Better Pay

Lousy pay raise?
First, the bad: Unemployment may be at a 16-year low and the economic expansion may be third-longest on record, yet wage growth is miserable, clocking in between 2.5% and 3% for the past year.
When unemployment was this low in the late 1990s and the mid-2000s, wages grew 4%.
Yet its longstanding assumption that a fully employed economy would eventually nudge prices and wages higher looks shakier by the month.
Because pay is closely tied to what employers can recover by raising prices (inflation) or sales per employee (productivity).
Since 2012, U.S. businesses’ selling prices have risen by 1.4% and worker productivity by 0.6% per year.
Because they come on board at much lower pay levels than incumbents, these newly hired workers’ raises don’t move the average much.
The median raise for a low skilled worker has risen from 1% in 2013 to 3% now, and for a young worker (aged 16 to 24) from 3.5% to over 7%.
Even if it returned to 2%, higher real (i.e., after inflation) wages requires better productivity growth.
Yet for this to get wage growth back to 4% is a stretch, all the more so when an expansion is as long in the tooth as this one.

PHL unemployment rate down 5.7 percent in April
Unemployment

PHL unemployment rate down 5.7 percent in April

Unemployment rate in the Philippines dropped to 5.7 percent in April from 6.1 percent a year, results of the Philippine Statistics Authority’s latest Labor Force Survey showed Friday.
In a separate statement, the National Economic and Development Authority (NEDA) noted that sustaining employment figures, while improving related services, is crucial to meeting the government’s key targets in the Philippine Development Plan 2017-2022 — the Duterte administration blueprint for the country’s development.
Meanwhile, underemployment rate—the proportion of employed persons wanting additional work—reached its lowest in more than 10 years at 16.1 percent in April.
Employment in the agriculture sector increased by 1.2 percent, with net employment gains of 125,000 workers.
“Increased activity confirms the renewed positive outlook of exporting firms that had anticipated increases in the volume of export production,” Socioeconomic Planning Secretary and NEDA chief Ernesto Pernia noted.
“This loss could be an effect of the 2016 election spending fully tapering off.
He added that the government should innovate employment opportunities by developing low-cost, labor-intensive but efficient methods for meeting current infrastructure needs and essential health and education services.
We can further enhance current programs like the Government Internship Program (GIP) and JobStart Philippines to help workers make informed career decisions and acquire skills necessary in today’s competitive environment,” the NEDA chief said. “This presents a challenge in meeting the PDP target to increase labor force participation of women to 51.3 percent by 2022,” Pernia said. “To reverse this trend, NEDA notes that the government needs to work on the full implementation of the Responsible Parenthood and Reproductive Health Law, on improving access and affordability of child care services, and on crafting policies that promote work-life balance, which is among the aspirations of Filipinos, according to a national survey for AmBisyon Natin 2040, the country’s long-term vision,” he said.

Fed Focuses on Job Gains as Economy Sends Mixed Messages — Update
Unemployment

Fed Focuses on Job Gains as Economy Sends Mixed Messages — Update

Fed Focuses on Job Gains as Economy Sends Mixed Messages — Update.
The report showed the unemployment rate ticked down from 4.4% in April largely because of a drop in the number of Americans in the labor force last month.
Fed officials have said they believe the slowdown in inflation in March and April is likely to prove transitory, leaving them on track to raise short-term interest rates at their policy meeting this month to a range between 1% and 1.25%, and pencil in one more rate move this year.
The economy is still adding more than enough jobs to keep up with the growth of the working-age population.
In March, Fed officials projected the unemployment rate would end the year within a range of 4.4% to 4.7%.
Officials at their last meeting on May 2-3 indicated they were prepared to look past a surprise drop in their preferred inflation gauge in March.
Prices rebounded somewhat in April, though prices excluding food and energy slowed to an annual gain of just 1.5%, the lowest since December 2015.
A weaker dollar and stronger labor market could push prices in the other direction. “There are good reasons to expect that inflation will resume its gradual rise,” Fed governor Jerome Powell said in a speech Thursday.
In March, officials estimated that by the end of this year, annual inflation would be 1.9% and the unemployment rate would be 4.5%.

15% of Eurozone Workers Are Unemployed or Underemployed, Says ECB
Unemployment

15% of Eurozone Workers Are Unemployed or Underemployed, Says ECB

FRANKFURT – Around 15% of eurozone workers are unemployed or underemployed, according to the European Central Bank, suggesting wages and inflation in the 19-country bloc are unlikely to pick up for some time.
The new estimate comes amid a tense debate over how quickly the ECB should start reducing its massive monetary stimulus program.
But in a study published Wednesday, the ECB warned that the region’s labor market was far from healed.
While the bloc’s unemployment rate has fallen sharply–to an eight-year low of 9.5% in March–broader measures of unemployment have been slower to decline, the ECB said.
The ECB said that by these measures, around 18% of eurozone workers were unemployed or underemployed. “Labor markets in most euro area countries–with the notable exception of Germany–appear to still be subject to a considerable degree of underutilization,” the ECB said.
Mr. Draghi and top ECB officials have pushed back against German demands for a policy reversal, arguing that a large dose of stimulus is still needed if inflation is to remain on track.
In its report, the ECB said broader measures of unemployment had continued to increase in France and Italy and remained above pre-crisis levels in countries like Spain.
Other major central banks, including the Federal Reserve, also look at broader measures of “slack” when assessing the economy.
In the U.S., the official unemployment rate has fallen to just 4.4%, but the U-6 unemployment rate–which includes discouraged workers and part-time workers who want more hours–is still at 8.6%.

Eurozone’s unemployed/underemployed rate at 15%
Unemployment

Eurozone’s unemployed/underemployed rate at 15%

Eurozone’s unemployed/underemployed rate at 15%.
FRANKFURT–Around 15% of eurozone workers are unemployed or underemployed, according to the European Central Bank, suggesting wages and inflation in the 19-country bloc are unlikely to pick up for some time.
The new estimate comes amid a tense debate over how quickly the ECB should start reducing its massive monetary stimulus program.
But in a study published Wednesday, the ECB warned that the region’s labor market was far from healed.
While the bloc’s unemployment rate has fallen sharply–to an eight-year low of 9.5% in March–broader measures of unemployment have been slower to decline, the ECB said.
The ECB said that by these measures, around 18% of eurozone workers were unemployed or underemployed.
Mr. Draghi and top ECB officials have pushed back against German demands for a policy reversal, arguing that a large dose of stimulus is still needed if inflation is to remain on track.
In its report, the ECB said broader measures of unemployment had continued to increase in France and Italy and remained above pre-crisis levels in countries like Spain.
In the U.S., the official unemployment rate has fallen to just 4.4%, but the U-6 unemployment rate–which includes discouraged workers and part-time workers who want more hours–is still at 8.6%.
That is down from a peak of around 17% in 2010, but still higher than before the financial crisis.