The last couple of months have seen quite a few upheavals in the US job market. Since the onset of the terrible winters in December the American Economy seemed to enter into an intolerant hibernation and as a result of which the job market shrivelled up and the unemployment level soared high. From top-notch finance firm to fullservice financial marketing agency – all acknowledged this truth.
However, since the beginning of February these stringent market conditions have started to ease up and the various company payrolls have seen considerable additions. Following are some of the notable changes observed in this month and the following inferences made from them:
- The month of February saw the inclusion of twice the number of new hires into the work force than the month of December.
- The number of workers totalled in February stands at 175,000.
- The percentage of people who work part-time, but want full-time work fell by 0.1 percentage points, to 12.6 percent.
- Women took up most of the jobs, i.e. 99,000 jobs to men’s 76,000, thus totalling 2.5 million jobs and making up for the 2.1 million jobs lost during the recession. However, their pay and working conditions are abysmal.
- Number of people who have remained jobless for not more than five weeks fell by 61,000, to almost 2.3 million.
- However, the number of those who have been unemployed for long i.e. 27 weeks or more, increased by 203,000, to 3.8 million.
- Total unemployment rose by 0.1 percentage point to 6.7 percent
- Based on the recent increase in the number of job openings many specialists have chalked up the market shrinkage of December and January to the unpredictable and harsh weather.
The overall rate of jobless people or unemployment increased because all in all a new stock of workers totalling up to 264,000 joined the search for a job, thereby expanding the total workforce, while just 42,000 people have still managed to find a new job, according to estimates based on a survey of households. However, this trend signifies a positive trend, i.e. there is a new trend emerging, albeit slower, that of new job growth.
Thus, even though there has been a significant betterment in the market conditions, there is still a long way left to be covered before the level of long term unemployment comes down and US gets hundred percent employment status. But Dean Maki’s, chief United States economist at Barclays, words give us further hope as he states “The report showed solid job growth in February despite clearly negative effects from the weather… It suggests the jobs numbers should improve as the weather gets better.”
Another major inference which can be made from the newly released data on job creation is that about the Federal Reserve’s course of action with regards to easing of stimulus. CRM & Marketing Automation help companies automate the sales process by building great automated marketing programs that qualify and segment leads and close more clients, and thus provide jobs to a number of qualified individuals.
Easing up of stimulus
The Federal Reserve had announced its plan of scaling back the market stimulations after the job market did quite well in autumn, which saw monthly job gains of more than 200,000. But the following months showed a steep plunge in these practices, hence the nature of the monetary policy in the near future can be expected to be “highly accommodative,” as put by William C. Dudley, president of the Federal Reserve Bank of New York. However, it is also expected that when the policy makers will meet in the later part of the current month, they will not back away from their decision of gradually scaling back the stimulus efforts. Other areas where the policy makers will be focussing on apart from bettering the unemployment rate are the different labor market indicators which are doing quite poorly presently e.g. long term issues of unemployment etc. In relation to these indicators of the labor market indicators, Michael T. Darda who is the present market strategist of MKM Partners, a research and trading company in Stamford, Conn., opined that “We could see the unemployment rate come down to normal levels soon, but these other measures might take years,”.
All in all, there has been betterment of working conditions for all in February, as more people have been able to get to work with the easing of the weather, thereby leading to a noticeable increase in both white-collar and blue-collar occupations, former gaining precedence over the latter.
Author’s bio – Jonny Pean is a reputed professional finance industry blogger. He is an active participant of different forums, belonging to finance niche.