The Bureau of Labor Statistics (BLS) released their October Employment Report for the U.S. on Friday. Before the report was released and after accounting for the effects of the government shutdown, economists predicted a net jobs gain between 100,000 and 120,000 and an unemployment rate rise to 7.3 or 7.4 percent.
The official report stated that the unemployment rate rose to 7.3 percent, which was within expectations; however, the report revealed total nonfarm employment increased by a whopping 204,000. Despite a relatively large number of jobs added last month, a reason for the higher rate stems from furloughed federal employees being classified as unemployed on temporary layoff under the household survey’s definition.
Other highlights of the report include:
1. The number of net jobs added was 204,000; there have been 2.3 million jobs added over the last year or an average of 190,000 per month; and 11.3 million people remain unemployed.
2. The unemployment rate increased by 0.1 percent to 7.3 percent; the U-6 rate rose to 13.8 percent; the employment-to-population declined by 0.3 percentage points to 58.3 percent; the employment-to-population ratio for 25 to 54-year-olds declined to 75.5 percent ; and the labor force participation rate fell to 62.8 percent.
3. Average hourly earnings increased by 2 cents to $24.10 for a 2.2 percent increase over the last year.
Taking a closer look at labor market factors for teenagers and young adults depict dismal job prospects for 16 to 24-year-olds (see below). A steep decline in the this group’s participation in the labor force and employment rate to levels not seen in over 40 years and an unemployment rate of 15.1 percent provide clear indications that this group is suffering.
Factors contributing to this age group’s job market woes are the implementation of ObamaCare, minimum wage laws, and a host of other issues that decrease employers’ confidence in their future profitability, incentivizing them to let go of the least skilled workers.
The decline in this group’s job outlook poses substantial problems for those who are attempting to launch their careers. With more of these young adults and teenagers without work and exiting the labor force because they cannot find work, the less opportunity they will have to start their career, learn from on-the-job training, and improve their future productivity-a key to their prosperity.
More young Americans bearing the cost of not having a job, having to pay for ObamaCare, and paying for the rapid increase in college tuition are draining their potential to live the American Dream. This is a huge drain on the American economy and one that must be reversed soon if America wants to continue to be the beacon of hope to many of the world’s young adults.
The October jobs report indicates America’s economy is recovering but at an extremely lethargic pace and even more so for young adults.
Labor Market Challenges Facing 16 to 24-Year-Olds[[{“type”:”media”,”view_mode”:”media_original”,”fid”:”12600″,”attributes”:{“alt”:””,”class”:”media-image”,”height”:”422″,”style”:”display: block; margin-left: auto; margin-right: auto;”,”typeof”:”foaf:Image”,”width”:”587″}}]]
Young adults face an abysmal labor market with their employment-to-population rate and labor-force participation rate (both left axis) at lows not seen in 40 years and an unemployment rate (right axis) more than twice the national average.
Source: Federal Reserve Bank of St. Louis Economic Data.
“