Tag: Unemployment

Unemployed? Raid Your 401(k) or Borrow From Your Parents?
Unemployment

Unemployed? Raid Your 401(k) or Borrow From Your Parents?

You can’t get a loan when you don’t have an income.
So do you sacrifice your future and withdraw from the 401(k) plan you had at your last job?
If you don’t want Mom and Dad living with you someday, it’s better to take the distribution from your own assets and make saving a priority when you get back to work.” Establish Formal Loan Terms With Your Parents Let’s say your parents can comfortably help you out.
The challenge is that the child may have no means of making loan payments right away.
Dennis LaVoy, a financial advisor with Telos Financial in Plymouth, Mich., adds that discussing your short-term plan to find another job and decreasing your expenses as much as possible so your parents don’t feel you’re spending frivolously can mitigate family tension.
Minimize the Damage From a 401(k) Withdrawal If a 401(k) withdrawal is your best or only option, how can you minimize the financial damage from the lost investment opportunity and early withdrawal penalties?
Similarly, if you have a Roth IRA, you can withdraw contributions without penalty.
She also recommends contributing beyond the minimum required to get the employer match once you’re working again and funding an additional retirement account, such as an IRA, to offset some of the retirement savings you withdrew while unemployed.
(For more, see How 401(k) Withdrawals Work When You’re Unemployed.)
“The long-term impact of a withdrawal from a retirement account is very damaging, especially when it’s someone in their 20s and 30s.” For someone 30 years from retirement, a $10,000 withdrawal that would have grown by 8% per year means a sacrifice in retirement savings of more than $100,000.

Unemployment: Youths must adapt to survive
Unemployment

Unemployment: Youths must adapt to survive

If they do not, they risk getting left behind as new technology overtakes traditional industries.
In today’s age where technology is rapidly evolving and disrupting traditional industries, governments all over the world face challenges on youth unemployment, of up to 13.1% in 2017, according to the United Nations.
One major factor is that new technologies demand new types of skills and much less of the old ones.
Hence, youth today need to dynamically reinvent themselves by continuously acquiring new skills to adapt to the rapid changes in technology.
This shows how the internet and social media have disrupted traditional media in a big way.
However, with the fall in recruitment for traditional media, more roles are opening up in online portals.
The retail industry has also become more accessible to budding young entrepreneurs as they no longer need to raise funds for a physical shop.
New industries are ending traditional employments but adding other, more sophisticated, ones.
In the upcoming election, candidates and political parties will raise the issue of unemployment and start pointing fingers.
The Organisation for National Empowerment (ONE) urges youth to move #ForwardTogether as we face the era of disruption, so no one gets left behind.

Hiring picks up, unemployment falls to 4.8 percent in Pittsburgh region
Unemployment

Hiring picks up, unemployment falls to 4.8 percent in Pittsburgh region

The Pittsburgh region’s seasonally adjusted unemployment rate dipped slightly to 4.8 percent in February as strong hiring picked up in 2018, according to the monthly workforce report released on Tuesday by the state.
The labor force has gained 4,900 people through the first two months of this year after shrinking by as many as 19,000 in 2017, according to the monthly reports.
But it is clear that while many residents retired and gave up looking for work last year, the workforce appears more confident so far in 2018.
The region’s annual job growth stood at 1.4 percent, with employers adding 14,400 jobs since February 2018, according to seasonally adjusted figures.
That matched the statewide annual job growth of 1.4 percent in February.
(Those numbers are not seasonally adjusted for the gains and losses normally seen throughout the year, making it hard to compare monthly changes.)
Education and health services gained 4,700 positions over the year, for about 2 percent job growth, and professional and business services gained 1,000 positions, a less than 1 percent job growth.
The sector added 1,300 jobs for a total employment of 10,400 in February.
The Pittsburgh metro area, which encompasses Allegheny and six surrounding counties, has the 11th lowest jobless rate among 18 metro areas across the state.
Daniel Moore: dmoore@post-gazette.com, 412-263-2743 and Twitter @PGdanielmoore

U.K. real wages rise; jobless rate falls
Unemployment

U.K. real wages rise; jobless rate falls

LONDON–The unemployment rate in the U.K. declined in February to its lowest level in more than 40 years, while wage growth strengthened, signs that the labor market remained healthy despite weak growth at the start of the year.
The figures will cement expectations the Bank of England remains on track to lift interest rates for the second time in a decade when officials meet in May.
The jobless rate in the U.K. declined to 4.2% in the three months through February, compared with 4.3% in the three months through January.
The unemployment rate was last as low as 4.2% in 1975, the Office for National Statistics said.
The fall was driven by a rise in employment.
The number of people not seeking work registered a small decline.
Wage growth excluding bonus payments accelerated to an annual 2.8% during the three-month period, the fastest rate of growth since 2015, driven by higher pay settlements in construction and manufacturing.
The BOE has telegraphed that it expects to lift its benchmark borrowing costs three or more times over the next few years to restrain inflation.
Economists believe the next increase, to 0.75%, could come as soon as next month.
Write to Jason Douglas at Jason.Douglas@wsj.com and David Hodari at David.Hodari@wsj.com

China unveils urban survey unemployment rate
Unemployment

China unveils urban survey unemployment rate

BEIJING–China unveiled its official survey of unemployment reports, an addition to its list economic indicators that should help policy makers and analysts better gauge the state of the economy.
Starting this month, China will release its survey unemployment rate for large cities on a monthly basis, the National Bureau of Statistics said Tuesday.
The national urban survey unemployment rate stood at 5.1% at the end of March, slightly higher than the 5.0% recorded for the first two months of the year, the statistics bureau said.
March’s rate shows that the country still faces large employment pressures, due to rising trade protectionism and uncertainties about the global economy, said Ning Jizhe, head of the statistics bureau.
Still, the door-to-door surveys, based on a sample of about 120,000 households, indicate that the country’s unemployment rate is below a global average rate of about 5.7%, Mr. Ning said in a statement.
The survey unemployment rate has been hovering around 5% in recent years, with variations across different regions of the country, according to sporadic releases of survey results.
The unemployment rate in northeastern Liaoning province rose above 7% when it was in recession in 2016, officials have said.
Critics of China’s employment data have pointed out that the country’s unemployment data tend to be underestimated due to hidden unemployment, especially at state-owned companies.
Write to Liyan Qi at liyan.qi@wsj.com

Unemployment rate falls to 3.3% in February
Unemployment

Unemployment rate falls to 3.3% in February

Department of Statistics notes that the unemployment rate in February this year was also 0.2% lower than a year ago.
On year-on-year (y-o-y) comparison, the unemployment rate in February 2018 was also 0.2% lower than a year ago, according to the February 2018 Labour Force Statistics report released today.
The DoS said the number of labour force increased 0.3% in February 2018 to 15.23 million from 15.19 million a month earlier.
On the labour force participation rate in February 2018, the department said it remained unchanged at 68.2% compared with that of the previous month.
“On y-o-y comparison, the labour force participation rate in February 2018 increased 0.4% from the same month a year ago,” it said.
It added that 31.8%, or 7.11 million of the working-age population (15-64 years), were outside the labour force in February 2018, up from 7.07 million in the previous month.
“The group comprised housewives, students, retirees and those who were not interested to work,” it said.

Unemployment is refusing to budge in the face of booming jobs growth, keeping wages down
Unemployment

Unemployment is refusing to budge in the face of booming jobs growth, keeping wages down

This week in finance: Labour force data expected to show around 20K new jobs, but unemployment stuck at 5.5pc (Thursday) Federal Reserve expected to raise rates by 0.25 percentage points (Wednesday US time) Mini reporting season sees Myer set to announce a big write-down on its assets on top a 40pc fall in profit (Wednesday) Jobs growth has soared — around 400,000 new jobs created in the past year — while wages growth and the unemployment keep plodding along the same uninspired path.
The business conditions’ employment sub-index is still solid, but tracking well below what would normally deliver the average 35,000 new jobs a month over the past year.
The NAB view is that softer employment growth is likely to mean a lower participation rate, and that means unemployment is unlikely to come down in the short-term at least.
It has been seven years since the unemployment rate last ventured under five per cent and it is difficult to see how it will get back there if jobs growth slows.
That demand differential between public and private has also translated into marginally higher wage growth in the public sector.
Government spending has also propped up aggregate consumption, with real government spending growing at around four per cent over the past three years — closer to five per cent by the end of last year — while real household consumption was meandering along at under three per cent. “It is no wonder that households are feeling the pinch,” Mr Aird said.
Fed to lift rates again It all means that the Reserve Bank can’t lift rates, while in the US, where jobs growth has seen unemployment cut to around four per cent, interest rates are going up.
Back in December the dots suggested three hikes this year and two in 2019.
If the write-down sees net assets closer to Myer’s market capitalisation of $360 million, it would breach its debt covenant of net assets needing to be above $500 million.

US adds fewer jobs than expected, unemployment rate holds at 17-year low
Unemployment

US adds fewer jobs than expected, unemployment rate holds at 17-year low

The US economy added 103,000 nonfarm payrolls in March, fewer than economists’ forecast for 185,000.
Still, job growth in the first quarter was stronger than it was in the same quarter last year, suggesting that many people on the sidelines, such as stay-at-home parents, have begun seeking and finding jobs.
Wage growth in March improved from February, and the unemployment rate, at 4.1%, remained at its lowest since 2000.
The US economy added 103,000 nonfarm payrolls in March, its fewest in six months, according to the jobs report released by the Bureau of Labor Statistics on Friday.
The unemployment rate held at 4.1%, its lowest level since December 2000.
Still, job growth in the first quarter of 2018 was stronger than it was in the same quarter last year, suggesting that many working-age people on the sidelines, such as stay-at-home parents, have begun looking for and finding jobs.
Wage growth increased from February, with average hourly earnings increasing by 0.3% month-on-month and 2.7% year-on-year, in line with what economists had predicted.
Hiring was strong in manufacturing, healthcare, and mining.
After a hiring spree in February, the construction and retail sectors let go of more people than they brought on board in March.
Cold and snowy weather during the week of the BLS’ survey may have slowed down the construction industry, which had its worst month in two years.

Despite a strong economy, American states are desperate for revenue
Unemployment

Despite a strong economy, American states are desperate for revenue

WITH unemployment at a 17-year low and stockmarkets near all-time highs, one might expect the coffers of American state governments to be overflowing.
Yet despite these favourable economic conditions, many of them are still struggling to make ends meet.
Standard & Poor’s, a credit-rating agency, has downgraded over a dozen states since 2016.
Many of these fiscal woes can be blamed on sluggish revenue growth.
Since 2013, the prices of services have risen by 2.6% per year, whereas those of goods, which generate most sales-tax receipts, have fallen at an annual rate of 0.4%.
To balance their books, many states have relied on rainy-day funds and other one-time gimmicks.
In May, Texas voted to close a $2.5bn revenue shortfall by siphoning $1bn from its rainy-day fund and delaying a payment to its highway fund.
In November, Pennsylvania agreed to borrow $1.5bn against future payouts from its Tobacco Settlement Fund, a pot of money set aside for health-related programmes.
Other states have exhausted such quick fixes.
It is the state’s first tax rise in 28 years.

This Day In Market History: Eurozone Unemployment Hits 12%
Unemployment

This Day In Market History: Eurozone Unemployment Hits 12%

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened?
On this day five years ago, unemployment in the eurozone hit a record high of 12 percent.
Where The Market Was The Dow finished the day at 14,662.01.
What Else Was Going On In The World?
In 2013, Edward Snowden leaked information about the National Security Agency’s PRISM program, which had illegally collected thousands of personal emails of U.S. citizens.
A cybersecurity breach at Target Corporation TGT 0.21% exposed the financial data of 40 million customers.
In February 2013, the unemployment rate in Greece reached a staggering 26.4 percent, while Spain’s unemployment was a nearly identical 26.3 percent.
The unemployment rate for Europeans under age 25 was 23.9 percent at the time.
Today, the European unemployment rate remains well above the U.S., but it has significantly improved since 2013, recently falling below 9 percent.