Flash Update: Unemployment Rate in Every Metro (Feb 2023 Release)

Link: https://civmetrics.com/uncategorized/flash-update-unemployment-rate-in-every-metro-feb-23-release/



The new metro-level unemployment numbers were released last week, and we’ve organized all the data for all 380+ metros in one chart at the bottom of this page. First, some highlights:

NOTE: All numbers are seasonally adjusted.

Here are the 10 metro areas that saw the biggest month-over-month increase in unemployment:

Author(s): Ted Ballantine

Publication Date: 6 Feb 2023

Publication Site: CivMetrics

Unemployment Rate Hits New Low of 3.4 Percent as Jobs and Employment Jump But…

Link: https://mishtalk.com/economics/unemployment-rate-hits-new-low-of-3-4-percent-as-jobs-and-employment-jump-but



If you work one hour, you are employed. If you don’t have a job and fail to look for one, you are not considered unemployed, rather, you drop out of the labor force.

Looking for job openings on Jooble or Monster or in the want ads does not count as “looking for a job”. You need an actual interview or send out a resume.

These distortions artificially lower the unemployment rate, artificially boost full-time employment, and artificially increase the payroll jobs report every month.

Q&A What’s Going On?

Q: Hey Mish, What’s Going On?
A: People are taking on second part time jobs to make ends meet. But full time employment is stagnant no matter how one slices and dices the revisions. 

Author(s): Mike Shedlock

Publication Date: 3 Feb 2023

Publication Site: Mish Talk

To Fight Inflation, The Fed Declares War On Workers

Link: https://www.levernews.com/the-fed-declares-war-on-workers/


New inflation data released Friday offered dismal news: Historic price increases aren’t showing any signs of abating, and in fact may be accelerating.

What can be done? Federal Reserve Chairman Jerome Powell has an idea: throw cold water on the hot labor market — perhaps the one bright spot in the current economy.

In fact, Powell recently screamed the quiet part out loud, making clear the largest central bank in the world is in fact an adversary to workers, when he declared that his goal is to “get wages down.”

At a May 4 press conference in which he announced a .5 percent interest rate hike, the largest since the year 2000, Powell said he thought higher interest rates would limit business’ hiring demand and lead to suppressed wages. As he put it, by reducing hiring demand, “that would give us a chance to get inflation down, get wages down, and then get inflation down without having to slow the economy and have a recession and have unemployment rise materially.”

Author(s): Julia Rock

Publication Date: 13 Jun 2022

Publication Site: The Lever

Revisiting the Beveridge Curve: Why Has It Shifted so Dramatically?




The Beveridge curve is one of the most robust regularities in economics, as it holds in different time periods, across countries2 and at the aggregate and disaggregated (or sectoral) level. When shown in a graph, it plots the job-vacancy rate (on the x-axis) against the unemployment rate (on the y-axis). The curve generally slopes downward, indicating that vacancies tend to be higher when the unemployment rate is lower, and vice versa.

Figure 1 shows the Beveridge curve for the monthly data collected in the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) from December 2000 until August 2021 (the most recent data point). Each dot represents a combination of the unemployment rate and the job opening rate.3 The sample is divided into four distinct periods, which correspond to the period up to the financial crisis, the ensuing recession and recovery up until 2017, and the period between January 2018 and March 2020, during which the unemployment rate was persistently below 4.5 percent. The fourth period — April 2020 through August 2021 — captures the COVID-19 months.

Author(s): Thomas A. Lubik

Publication Date: October 2021

Publication Site: Federal Reserve Bank of Richmond

Census Figures Show Americans’ Incomes Fell in 2020

Link: https://www.wsj.com/articles/americans-incomes-fell-in-2020-census-figures-show-11631629285


Americans last year saw their first significant decline in household income in nearly a decade, government data showed, with economic pain from the Covid-19 pandemic prompting government aid that helped keep millions from falling into poverty.

An annual assessment of the nation’s financial well-being, released Tuesday by the Census Bureau, offered insight into how households fared during the pandemic’s first year. It arrives as Washington debates how much more to spend to bolster the economy during the worst public-health crisis in a century.

Median household income was about $67,500 in 2020, down 2.9% from the prior year, when it hit an inflation-adjusted historical high. It came as the U.S. last year saw millions lose their jobs and national unemployment soar from a 50-year low to a high of 14.8%.

The last time median household income fell significantly was 2011, in the aftermath of the 2007-09 recession.

The Census Bureau’s topline income figure includes unemployment benefits but doesn’t account for income and payroll taxes nor stimulus checks or other noncash benefits like federal food programs. If those had been counted, the median household income would have risen 4% to $62,773.

Author(s): John McCormick, Paul Overberg

Publication Date: 14 Sept 2021

Publication Site: Wall Street Journal

How Many People Are Now Covered by Unemployment Insurance?

Link: https://mishtalk.com/economics/how-many-people-are-now-covered-by-unemployment-insurance



In April of 2020, there were 145.67 million people covered by unemployment insurance but only 133.33 million people working. 

This unusual inversion had never happened before. It lasted 4 months, April through June of 2020.

Covered Employment data is weekly, ending Saturday and lags by a week. I use a “monthly average” which run through July vs the employment level series which runs through August.

Author(s): Mike Shedlock

Publication Date: 6 September 2021

Publication Site: Mish Talk

Americans Should Quit Their Jobs More Often

Link: https://www.bloomberg.com/opinion/articles/2021-07-07/americans-should-quit-their-jobs-more-often


The pandemic and the work-from-home environment it spawned also led many economists to speculate that workers would become better adapted to technology, more efficient and strike a healthier balance between work and lifeThis, in turn, would leave them more mobile. A Microsoft Corp. workplace trends survey found that 40% of Americans are considering leaving their jobs this year. And many are doing just that, with 2.5% of the employed quitting their jobs in May, according to the Bureau of Labor Statistics’  Job Opening and Labor Turnover Survey. Although that’s down from the record 2.8% in April, it’s still higher than any other point since at least before 2001. Plus, consider that the quit rate was only 2.3% in 2019 when unemployment was just 3.6%, compared with 5.8% this May.

Author(s): Allison Schrager

Publication Date: 7 July 2021

Publication Site: Bloomberg

Labor Shortage Draws Attention of U.S. Lawmakers

Link: https://www.wsj.com/articles/labor-shortage-draws-attention-of-u-s-lawmakers-11622712602


Congressional lawmakers from both parties are considering incentives such as providing federal funding to pay for hiring bonuses for workers and expanded tax credits for employers. A handful of states are moving to implement such programs on their own, without waiting for Washington.

Some economists, Republican lawmakers and business owners say enhanced federal unemployment benefits are contributing to the labor shortage, because many workers receive more in government aid than they would get on the job. Those benefits — $300 a week on top of regular state payments — are due to expire after Labor Day.

Other economists say the payments have provided a boost to many lower-income families, who have disproportionately lost jobs in the coronavirus pandemic, while in turn pushing money back into the broader economy.

Author(s): Kate Davidson

Publication Date: 3 June 2021

Publication Site: Wall Street Journal

Deaths of despair and the incidence of excess mortality in 2020

Link: https://voxeu.org/article/deaths-despair-and-incidence-excess-mortality-2020



Mortality in 2020 significantly exceeds what would have occurred if official COVID-19 deaths were combined with a normal number of deaths from other causes. The demographic and time patterns of the non-COVID-19 excess deaths (NCEDs) point to deaths of despair rather than an undercount of COVID-19 deaths. The flow of NCEDs increased steadily from March to June and then plateaued. They were disproportionately experienced by working-age men, including men as young as 15 to 24. The chart below, reproduced from Mulligan (2020b), shows these results for men aged 15–54. To compare the weekly timing of their excess deaths to a weekly measure of economic conditions, Figure 1 also includes continued state unemployment claims scaled by a factor of 25,000, shown together with deaths.

Author(s): Casey Mulligan

Publication Date: 28 January 2021

Publication Site: Vox EU

Sorry, the Economic Crisis Is Over

Link: https://www.wsj.com/articles/sorry-the-economic-crisis-is-over-11617662226?mod=opinion_lead_pos2


It’s getting harder for the Biden Administration to claim we’re in an economic crisis that demands more spending. It’s closer to the truth to say the economy is growing in a way that calls for spending and monetary restraint.

The latest evidence arrived Monday with the Institute for Supply Management’s news that its March survey for service businesses hit 63.7. That’s an all-time high, and it signifies rapid growth and optimism. The only problem is that many businesses say they can’t find enough workers or supplies to meet their order books.

That follows Friday’s blowout employment report for March, with a net total of 1.07 million new jobs including revisions from the previous two months. Wage gains were bigger than they looked at first glance, given that many returning workers were those in lower-wage services jobs hurt by the pandemic.

Author(s): Editorial Board

Publication Date: 6 April 2021

Publication Site: Wall Street Journal

Fact-checking a GOP talking point on state, local relief in the American Rescue Plan

Link: https://www.politifact.com/article/2021/mar/19/fact-checking-gop-talking-point-state-local-relief/


• The American Rescue Plan signed by President Joe Biden allocates state and local aid based on the extent of unemployment in a state in late 2020. Critics say this punishes states that opened their economies earlier, under the assumption that their unemployment levels were lower.

• It’s not so clear-cut. Preliminary academic research shows that government policies on reopening had only a modest impact on unemployment. States that depend on especially hard-hit industries like tourism and oil and gas show high unemployment regardless of the government policy.

• Experts say that no method for targeting aid to the states is perfect; each has pluses and minuses.

Author(s): Louis Jacobson

Publication Date: 19 March 2021

Publication Site: PolitiFact

Democrats make low-tax states an offer they should refuse

Link: https://thehill.com/opinion/campaign/543992-democrats-make-low-tax-states-an-offer-they-should-refuse#new_tab


States are discovering and news outlets are reporting some surprising features of the new law. For starters, the President Biden-approved American Rescue Plan tweaks the funding formula to distribute funding based on average unemployment during the three final months of 2020 — rewarding Democratic-controlled states like New York, California and Illinois for their draconian COVID policies that resulted in the nation’s highest levels of unemployment. And it offers states billions more in Medicaid funding if they agree to boost their own Medicaid spending. 

Perhaps the most troubling is a legislative rider barring states that accept the aid from using the funds “to either directly or indirectly offset a reduction in the net tax revenue” derived “from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase.” 


Publication Date: 19 March 2021

Publication Site: The Hill