The Bureau of Labor Statistics reports the current unemployment rate is 6.2% , and the unemployment rate in February 2000 pre-pandemic was 3.5%. while this is an improvement from the April 2020 unemployment rate of 14.7%, we need to look beyond the Bureau of Labor Statistics unemployment numbers to get a solid picture of the overall employment state of affairs.
The graph below indicates the number of people considered in the labor force according to the Bureau of Labor Statistics. You can see the labor force is significantly lower than pre-pandemic and while there is a steep gain for several months, those gains seem to have leveled out. One possibility is the continued higher level of state and federal government unemployment coverage is discouraging many workers from returning to the labor force. If you are obtaining nearly as much cash through unemployment insurance then you would make it in your regular job, why accept offers to return, or look for different positions?
The chart of employment to population ratio is important because of the measuring of working age total employment. We see a sharp drop with the pandemic onset, with a significant partial recovery, but now we see leveling out of the gains considerably below pre-pandemic levels. During the strong economy we expect to see a significant growth of total workers employed.
The challenges in the job recovery picture seem to be stalled out at about two thirds of pre-pandemic levels.
Keep in mind Fortune Magazine reports 100,000 businesses closed as a result of the pandemic and a recent CBS article reports 30% of small businesses, a total of 9 million, do not expect to survive the pandemic. This will put significant pressure on future unemployment, as workers from these closed businesses seek other opportunities. In today’s environment we need to be diligent in our work and seek the Lord’s guidance as King Solomon wrote, “Commit your work to the Lord, and your plans will be established.” (Proverbs 16:3)
Be ready to prepare and respond to disasters large and small by becoming a
Ready Christian .
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