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The U.S. Labor Market Cools, and It's Not Just the Weather - Assignment Example

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labor market cools, and it’s not just the weather,’ that the Bloomberg Business Week published on February 7, 2014. The author reports on employment rates in the nation and notes a disappointment in January 2014 as the actual…
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The U.S. Labor Market Cools, and Its Not Just the Weather
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Download file to see previous pages The report also adjusted previous values on an upward trend. The bad weather, in December, persisted in January and influenced adjustment of data but the persistence indicate that the slow recovery from lost employments during the previous recession may be due to other factors than the bad weather. Retrenchment in the public sector is one of the factors to the poor recovery because while the private sector created about 142000 jobs in January, the public sector lost about 29000 jobs and this occurred and the federal and state levels. Most of the aspects of employment however remained the same. Average working period per remained constant at 34.4 hours while average hourly wage improved by just five cents. The number of people out of employment remained the same while unemployment rate reduced by 0.1 percent from 6.7 percent. Reduction in number of beneficiaries on unemployment benefits and number seeking jobs could have accounted for this. The labor force however grew by 499000 while total employment increased by 616000. This is however still above the threshold limit beyond which the central bank pledged to maintain minimal interest rates. Many of the new employment opportunities rose from highly paying sectors in which retail trade was the most significant (Philips 1).
Unemployment is one of the indicators of an economy’s status and its measure and trend is significant to the corporate sector. A reducing trend in unemployment rates is an indicator of recovery from the previous recession and informs business organizations to expand their production capacity because of better economic prospects. Another implication of the article on the corporate sector arises from its clarification of the source of poor trend in unemployment indicators. Explaining cause of the poor observation distinguishes progress in the corporate sector from the declining opportunities in the public sector to offer confidence in the economy, a ...Download file to see next pagesRead More
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