Thursday, June 19, 2014

Upward Unemployment Trend? Unemployment Statistics for United States in May 2014

Applications for Unemployment Down 6,000 in June 2014

The upward trend continues.  Bloomberg Businessweek reports that last week there were 312,000 new applications for unemployment benefits in the USA, a decrease of 6,000 from the prior week.

The Line is Shorter Then it Has Been in 7 Years
According to this article, the total number of people currently collecting benefits is the lowest that it has been in nearly 7 years.

How Many People Were on Unemployment in May 2014? 9.8 Million

According to the Department of Labor, 9.8 people were receiving unemployment in May 2014.

What Was the Unemployment Rate in the USA in May 2014? 6.3%

The United States Department of Labor estimated that the Unemployment rate in May 2014 was 6.3%.

How Many New Jobs Were Reported in the United States in May 2014? 217,000

The total number of new jobs in America that were indexed by the U.S. Department of Labor was 217,000.

Comparing the Unemployment Rates in the United States for Men, Women, Blacks, Whites, and Hispanics 

According to Bloomsberg, the the U.S. Department of Labor the unemployment rates for the following demographic groups were:
America the Beautiful

*  Adult men = 5.9%.
*  Adult women = 5.7%
*  Blacks = 11.5%
*  Whites = 5.4%
*  Hispanics = 7.7%

Unemployment Rate for American Teenagers in May 2014 Was Nearly 20%

This same study indicates that 19.2% of American teenagers were unemployed in May 2014.

How Many "Long-Term Unemployed" People (Out of Work for >27 Weeks)  Were There in May 2014? 3.4 Million

The term "long-term unemployed" means being out of work for 27+ weeks.  In May 2014, there were 3.4 Million people in that category.

What Percentage of the 9.8 Million Currently Unemployed Workers Have Been Out of Work for More than 6 Months? 34%

The estimated 3.4 million long-term unemployed comprised 34% of the reported 9.8 million workers who were unemployed in May 2014.

How Many Involuntary Part-Time Workers Were There in May 2014? 7.3 Million

When you consider all of the above statistics, you have to take into account the fact that there are many people who, although not identified as "unemployed" are considered to be working part-time involuntarily because they cannot find full-time employment.    According to the DOL, in May 2014 there were 7.3 million people who were working only on a part-time basis because the y could not obtain full-time work.

How Many Workers Are Deemed as "Self-Employed" in May 2014? 10 Million 1099 Workers in USA in 2014

All of these figures do not take into account people who are classified as self-employed.  I could not locate current statistics on this, although a February 2014 article from Forbes.com estimated that there were 10 million self-employed workers at the end of 2013.  This figure excludes owners of incorporated companies.

Millions Are Intentionally Misclassified and
Deprived of $Millions of Benefits and
Contributions to Which They Are Entitled
The fact is, most of these workers are not "self-employed" by choice but, rather, are forced to accept work as 1099 independent contractors in lieu of remaining out of work.  The most telling proof of that? Well, besides the wealth of information written on this topic over the years, the fact that the figure excludes owners of incorporated companies speaks volumes.  The overwhelming majority of folks who want to start their own business incorporate.  People who are on unemployment but offered 10999 independent contractor work do not.

Allow me to explain.

I believe that most of the "self-employed" workers are people who are working full- or part-time as independent contractors.  Many (if not the substantial majority) of these folks are actually doing the same thing as 1-2 employees working for the same company. the only difference is that they are being paid on a 1099 basis, as opposed to a w-2 basis.

The number of "independent contractors" is a scourge on the United States workforce, and costs state and federal governments (and the Social Security fund) billions of dollars per year.

I have written a great deal about the intentional misclassification of "true employees" as "independent contractors" by corporate America.

These predatory practices deprive millions of workers of very important civil rights (i.e. the right to pursue claims for discrimination under Title VII, unemployment benefits, workers' compensation benefits, overtime, protection under laws such as the FMLA, etc.) and millions of dollars worth of benefits (FICA and Social Security employer contributions, etc.) every year.  

Breakdown of New Job Market in All Industries as of May 2014

All of the below breakdowns are courtesy of the Bureau of Labor Statistics.

How Many New Jobs for Professionals Were Added in may 2014? 55,000

Professional and business services added 55,000 jobs in May, which was on par with the average growth in this area over the past 12 months.

What Was the Number of Computer-Related New Jobs Reported for May 2014?  7,000

In May,7,000 new jobs were added in each of the following areas computer systems design and related services and in management and technical consulting.

How Many New Temp-Agency New Jobs Were There in May 2014? 14,000

Temporary help services continued to trend up (+14,000).  There have been 224,000 new "temp jobs" over the past year. 

In May 2014, There Were 55,000 New Jobs in the Health Care Industry

In May, new jobs in the health care and social assistance industry grew by 55,000 jobs. The health care industry added 34,000 jobs in May, which was twice the average monthly gain over the prior 12 months. 

Within health care arena, there were 23,000 new jobs in May 2014 in ambulatory health care services (which includes offices of physicians, outpatient care centers, and home health care services) and 7,000 new jobs for hospital workers.

What Was the Number of New Jobs in the Field of Social Assistance During May 2014? 21,000

Employment rose by 21,000 in social assistance, three times the average gain shown over the prior 12 months (I would say this is a hot area right now!).   

32,000 New Jobs in Leisure and Hospitality Industry in May 2014

Within leisure and hospitality, employment in food services and drinking places increased by 32,000 in May, and by 311,000 over the past year.  Another growing field.

Were There Jobs in the Transportation and Warehousing Industry Available in May 2014? Yes, 16,000 of Them

Transportation and warehousing employment rose by 16,000 in May. This is up by 7,000 over the average of 9,000 jobs per month added in this industry over the past year.

In May, employment growth occurred in support activities for transportation (6,000 new jobs) and couriers and messengers (4,000 new jobs).

Little Change in New Job Market for Manufacturing, Mining and Logging, Construction, Retail, Government in May 2014

Manufacturing employment grew by 105,000 jobs over the past year, which is about the same as number added each month over the past year.   Durable goods added 17,000 jobs in May; this area has accounted for the net job gain in manufacturing over the past year.

Employment in other major industries, including mining and logging, construction, wholesale trade, retail trade, information, financial activities, and government, stayed about the same as seen during the preceding 12 months.

Click Here to see graphics and tables breaking down most or all of the above statistics.

John A. Gallagher, Esq. - Paoli, Pennsylvania
Helping Workers Since 1991
Philadelphia Area Employment Attorney Representing Employees
John A. Gallagher is an employment lawyer who represents employees in Pennsylvania. 

John typically represents employees who need an employment lawyer in Philadelphia County, Chester County, Delaware County, Bucks County, Berks County, Lancaster County and Montgomery County.

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