State Unemployment Rates In August 2014

In August, the unemployment rate decreased in 15 U.S. states, increased in 24 states and the District of Columbia, and was unchanged in 11 states.

The unemployment rate is higher than a year ago in only 3 states, Alabama (6.9% vs 6.5%), and Alaska (6.8% vs 6.7%), and West Virginia (6.6% vs 6.5%).

Recall that the national jobless rate in August was 6.1%.

State Unemployment

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Weekly Initial Jobless Claims Decrease To 280k

Initial jobless claims for the week ending September 13 were a seasonally adjusted 280k, down from the prior week’s revised reading of 316k. Not seasonally adjusted, jobless claims for the week were 241k.

Jobless Claims

The 4-week moving average of initial jobless claims is 300k.

Jobless Claims Long

The insured unemployment rate was 1.8%, down from 1.9% the week prior.

Insured Unemployment

The number of unemployment insurance recipients, or continuing claims, for regular state programs was 2.429 million, down from the previous week’s revised reading of 2.492 million.

UI Recipients

Individual states that had changes in claims of more than 1k (not seasonally adjusted):

States

Jobless claims and the unemployment rate:

Labor Market

Weekly Initial Jobless Claims Increase To 315k

Initial jobless claims for the week ending September 6 were a seasonally adjusted 315k, up from the prior week’s revised reading of 304k. Not seasonally adjusted, jobless claims for the week were 234k.

Jobless Claims

The 4-week moving average of initial jobless claims is 304k.

Jobless Claims Long

The insured unemployment rate was 1.9%, unchanged from the week prior.

Insured Unemployment

The number of unemployment insurance recipients, or continuing claims, for regular state programs was 2.487 million, up from the previous week’s revised reading of 2.478 million.

UI Recipients

Individual states that had changes in claims of more than 1k (not seasonally adjusted):

STates

Jobless claims and the unemployment rate:

U-3 and Jobless Claims

U.S. Hiring At Highest Rate Since 2007

U.S. job openings were little changed in July at 4.673 million from 4.675 million in June. Hires increased to 4.872 million from 4.791 million.

JOLTS

The number of unemployed workers per job opening increased to 2.07 from 2.03.

Unemployed per Opening

There were 4.559 million separations in July. Quits increased to 2.517 million from 2.484 million, layoffs and discharges increased to 1.659 million from 1.657 million, and other separations increased to 0.383 million from 0.379 million.

Separations

The ratio of quits to layoffs and discharges increased to 1.52 from 1.50, which is a positive sign and indicates people are more comfortable leaving their jobs.

Quits to Layoffs

Subtracting total separations from hires, net labor turnover for the month is suggested to be an increase of 313k jobs.

Hires and Separations

That 313k is substantially higher than the 212k nonfarm payrolls added as reported in the employment situation release.

NFP JOLTS

BLS

The Beveridge Curve shows the relationship between the unemployment rate and the job openings rate (job openings as a percentage of the total employed plus job openings).

Beveridge

U.S. Economy Adds 142k Jobs In August

The U.S. Bureau of Labor Statistics reported this morning that 142k nonfarm payrolls were added during the month of August. This follows revised payrolls gains of 212k in July and 267k in June.

NFP

A bulk of the August job gains came in the Professional Services and Education and Health Services industries.

Payrolls Industry

Along with Leisure and Hospitality, these 3 industries have contributed the most to the job gains over the last 8 years. Although Construction employment grew in August, it and the Manufacturing industry have had the most difficulty recovering from the economic downturn.

Industry Jobs Change

The household survey shows that 367k full-time jobs were added in August, while part-time employment decreased by 327k. Since November 2007 however, when the household survey showed peak employment, full-time jobs have decreased by 3.3 million and part-time jobs have increased by 3.0 million.

FTPT Change

Part-time employees made up 18.96% of the workforce in August, down from 19.18% in July.

Part-time Share

Those part-time for economic reasons, workers who would prefer to be full-time but are involuntarily part-time, as a share of those part-time for noneconomic reasons decreased to 37.3% from 38.2%.

PT Economic Reasons

The unemployment rate (U-3) was 6.1% in August, down from 6.2% in July. The broader underemployment rate (U-6) decreased to 12.0% from 12.2%.

Unemployment Rate

Youth unemployment continues to be volatile.

Unemployment Rate Age

Unemployment for those with a high school diploma or some college has increased in consecutive months.

Unemployment Rate Education

Blacks continue to experience the highest unemployment rate at 11.4%.

Unemployment Rate Race

The labor force participation rate was 62.8%, down from 62.9%, while the employment-to-population ratio was unchanged at 59.0%.

Labor Force Participation

Participation among men decreased to 69.2% from 69.3% and participation among women was unchanged at 56.9%.

Participation by Sex

The participation rate for prime age workers (25-54) increased to 81.1% from 80.8%.

Participation Rates Age

However, since the total participation rate peaked in August 2008, participation has only risen in the 55+ age bracket.

Participation Rates Change

Average weekly hours worked by production and supervisory employees were unchanged at 33.7, while average hourly earnings increased to $20.68 from $20.62. This increased average weekly earnings to $696.92, up 2.4% from a year ago.

Earnings Growth

Hours

Average duration of unemployment in August was 31.7 weeks, down from 32.4 in July and the high of 40.7 in 2011, but still elevated by historical standards.

Unemployment Weeks Duration

Of those unemployed, 46.8% have been so for 15 weeks or longer.

Unemployment Duration

Overall, this was not a great employment report as the number of job additions was low, but there were some silver linings: The new jobs were overwhelmingly full-time positions, the length of time people are staying unemployed is shortening, and labor force participation increased for prime age workers.

Weekly Initial Jobless Claims Increase To 302k

Initial jobless claims for the week ending August 30 were a seasonally adjusted 302k, up from the prior week’s revised reading of 298k. Not seasonally adjusted, jobless claims for the week were 249k.

Jobless Claims

The 4-week moving average of initial jobless claims is 303k.

Jobless Claims Long

The insured unemployment rate was 1.9%, unchanged from the week prior.

Insured Unemployment

The number of unemployment insurance recipients, or continuing claims, for regular state programs was 2.464 million, down from the previous week’s revised reading of 2.528 million and the lowest since June 2007.

Unemployment Insurance Recipients

Individual states that had changes in claims of more than 1k (not seasonally adjusted):

States

Jobless claims and the unemployment rate:

Labor Market

ADP Sees 204k Jobs Added In August

ADP reports that U.S. nonfarm private sector employment increased by 204k in the month of August. This follows revised increases of 212k in July and 297k in June.

“August marks the fifth straight month of employment gains above 200,000, continuing an encouraging trend for the U.S. labor market,” said Carlos Rodriguez, president and chief executive officer of ADP.

Mark Zandi, chief economist of Moody’s Analytics, said, “Steady as she goes in the job market. Businesses continue to hire at a solid pace. Job gains are broad based across industries and company sizes. At the current pace of job growth the economy will return to full employment by the end of 2016.”

ADP

Total nonfarm private employment by company size:

Company Size Change

Company Size

Change in total nonfarm private employment by industry:

Industry Change

Industry

The U.S. Bureau of Labor Statistics will release its employment situation report on Friday with much more detail about the labor market.