State Unemployment – July 2016 – raises question on BLS data

State Unemployment – July 2016 – raises question on BLS data

State Unemployment – July 2016 – raises question on BLS data – The National unemployment data is supposed to provide a measure of the health of the over-all labor market.   A more granular metric is one that considers local condition – i.e. state and local unemployment. However most of this data is constantly reworked and adjusted.  So there is some question as to the value that this information provides over the short term.

High unemployment states June and July 2016

The work force participation percentage of all employees (male and female) is at 62.8% – still one of the lowest levels in 38 years. There still are just 94,333,000 people who are not in the labor force.  When this data is added to the equation some serious questions are raised.

Work Force Participation

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In July 2016 there were 6 states with an unemployment rate of over 6% versus 8 in June 2016 with over 6% Unemployment. Of the high unemployment states, Nevada has been in a high unemployment state for the past 8 years..

High unemployment states July 2016

States with the Lowest Unemployment — Full Employment States

Several states have very low unemployment rates.   In June there were 15 states that we considered high unemployment states. Adjustments were made to the number so that last month there were 13.

Full employment states July 2016

Of the 13 full employment nine states had higher unemployment rates in July than in June: Massachusetts, Arkansas, Minnesota, Utah, Idaho, Hawaii, Nebraska, and South Dakota.

Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA’s Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.