Posts Tagged ‘U-6 rate’

Broader Measure Of Unemployment Shows Continued Improvement In Nevada But Still Above 20 Percent

By Sean Whaley | 12:28 pm July 27th, 2012

CARSON CITY – A broader measure of Nevada’s unemployment picture, including those who have given up looking for work, showed slight but continued improvement through the second quarter of 2012, a federal report released today shows.

Called the U-6 rate, it declined in Nevada from 22.3 percent in the four quarters through March 31 to 22.1 percent in the 12 months ending June 30, according to the quarterly report from the U.S. Bureau of Labor Statistics.

Photo by FEMA via Wikimedia Commons.

Nationally, the U-6 unemployment rate is 15.3 percent, down from 15.6 percent through the first quarter of 2012. The only other state above 20 percent is California, with a rate of 20.3 percent. North Dakota has the lowest rate at 6.1 percent.

The U-6 rate is sometimes referred to as the “actual” jobless rate because it includes discouraged workers and those working part-time who would like to be in full-time jobs.

Nevada’s U-6 rate compares to the June seasonally adjusted rate of 11.6 percent, which held steady from May. The June rate, considered to be the official unemployment rate, was reported last week by the state Department of Employment, Training and Rehabilitation (DETR).

Nevada leads the nation in both measures of unemployment.

Bill Anderson, chief economist for DETR, said the good news for Nevada is that the unemployment rate is showing some “very modest” improvement.

“I think over time we will see the unemployment rate edge down,” he said. “There is going to be some good months, some bad months, but overall the trend is slightly downward.

“The same for the employment side of the equation, the more important employment side of the equation,” Anderson said. “Some good months, some bad months, but overall I think the positives will outweigh the negatives. But it is only going to translate into modest job growth.”

Prior to the recession Nevada was adding 60,000 jobs a year and the state was growing at four times the national labor market, he said. The current trend is about 15,000 jobs a year, Anderson said.

The official June jobless report noted that for the first half of the year, 14,000 jobs have been added in Nevada’s private sector establishments. This is on top of approximately 12,000 new jobs in 2011.

Gov. Brian Sandoval has made job creation a priority of his administration, and is pushing forward with an economic development plan to help create 50,000 new jobs in Nevada by the end of 2014.

In commenting last week on the June report, Sandoval said: “I am encouraged by the fact that this is the 12th straight month of positive news, but we must continue working to support job growth by bringing new business to Nevada and allowing existing businesses to be successful.”

Nevada’s official jobless rate peaked at 14 percent in October 2010. The U-6 rate in Nevada for the 12 months of 2010 was 23.6 percent.

Anderson said: “We’ve got a long way to go until we get to the 4 percent rate that we were at essentially prior to the last recession. But nonetheless the news of late has been better than it was a year or two ago.”

The Alternative Measures of Labor Underutilization for States shows six different jobless rates using different measures. The U-6 rate includes discouraged workers, defined as people who want work but who had not searched for work in the previous four weeks because they believed no jobs were available to them. It also includes “marginally attached” workers, defined as those who had not looked for work in the previous four weeks for any reason.

Finally the measure includes those employed part-time for economic reasons, defined as those working less than 35 hours per week who want to work full time, are available to do so, and gave an economic reason – their hours had been cut back or they were unable to find a full-time job – for working part time. These individuals are sometimes referred to as involuntary part-time workers.

The Bureau of Labor Statistics notes that this broader definition of unemployment is based on relatively small sample sizes at the state level.

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Audio clips:

Bill Anderson, chief economist for DETR, says the trend for unemployment in Nevada is modest improvement:

072712Anderson1 :25 is slightly downward.”

Anderson says the same is expected for job growth in Nevada:

072712Anderson3 :21 modest job growth.”

 

Broader Measure Of Unemployment In Nevada Shows Slight Improvement In First Quarter Of 2012

By Sean Whaley | 2:15 pm April 27th, 2012

CARSON CITY – A broader measure of Nevada’s unemployment picture, including those who have given up looking for work, showed slight but continued improvement through the first quarter of 2012, a federal report released today shows.

The rate in Nevada dropped from 22.7 percent in the four quarters through Dec. 31, 2011, to 22.3 percent through March 31, according to the quarterly report from the U.S. Bureau of Labor Statistics.

The “U-6” rate is sometimes referred to as the “actual” jobless rate because it includes discouraged workers and those working part-time who would like to be in full-time jobs. It compares to the official 12 percent unemployment rate for Nevada for March reported last week by the state Department of Employment, Training and Rehabilitation (DETR).

Nevada leads the nation in both measures of unemployment.

Photo by FEMA via Wikimedia Commons.

Nationally, the U-6 unemployment rate is 15.6 percent. The only other state with a rate above 20 percent is California, with a rate of 20.8 percent. North Dakota has the lowest rate at 6.3 percent.

The Alternative Measures of Labor Underutilization for States shows six different jobless rates using different measures. The U-6 rate includes discouraged workers, defined as people who want work but who had not searched for work in the previous four weeks because they believed no jobs were available to them. It also includes “marginally attached” workers, defined as those who had not looked for work in the previous four weeks for any reason.

Finally the measure includes those employed part-time for economic reasons, defined as those working less than 35 hours per week who want to work full time, are available to do so, and gave an economic reason – their hours had been cut back or they were unable to find a full-time job – for working part time. These individuals are sometimes referred to as involuntary part-time workers.

The Bureau of Labor Statistics notes that this broader definition of unemployment is based on relatively small sample sizes at the state level.

Bill Anderson, chief economist for DETR, said there has been gradual improvement in both the official rate and the broader measure of unemployment although the state still has a long ways to go. The official jobless rate has fallen for seven straight months. The U-6 measure has declined in each of the last two quarters, he said.

“They have been on the mend, albeit relatively slowly,” Anderson said.

But Nevada’s unemployment rate remains a concern for policymakers, even as other economic indicators are showing improvement.

The state Department of Taxation reported yesterday that taxable sales surged in February by 10.2 percent over February 2011. The state Gaming Control Board reported strong wins for casinos in both January and February.

Anderson said personal income has been up for seven straight quarters as well.

“The one area where we don’t seem to be gaining a whole lot of traction of yet is in our labor markets,” he said. “We’re seeing some improvement but it’s been relatively slow going.”

The reasons are due largely to the lagging construction and public employee job sectors, Anderson said. The construction industry has lost about 100,000 jobs compared to the peak prior to the recession, and budget difficulties have led to declines in government employment, he said.

The public sector job losses are particularly noticeable at the local government level. The March jobless report shows there were 4,400 few local government jobs in March 2012 compared to March 2011. State government jobs were down 1,300 over the same period.

Gov. Brian Sandoval has made job creation a priority of his administration, and is pushing forward with an economic development plan to help create 50,000 new jobs in Nevada by the end of 2014.

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Audio clips:

DETR economist Bill Anderson says Nevada’s jobless numbers are improving but it is slow going:

042712Anderson1 :35 the past year.”

Anderson says job creation is lagging behind other improving economic indicators:

042712Anderson2 :14 relatively slow going.”