One piece of very good news for the economy is that with the unemployment rate at 4.9% in March 2016, more hard to place workers are now getting jobs. The labor participation rate is almost at 63% and it continues to trend up. This will help even more family provide for their families, keep up with their bills, and maybe even save a few dollars.
The strong labor market is bringing in many individuals that were not actively seeking a job. Or it is encouraging people that did not have success in the past to search again for another job.
Maybe they only had a GED and could not get a decent paying job. Or Americans that were on some type of benefits only, such as SSI disability, were not “motivated” to seek a job as the wages being paid by employees were so low. Now with the improving job market these individuals, and others, are re-entering the workforce.
The employment rate of less skilled workers has increased about .7% in the last six months. This is an astounding rate for such a short period of time. Many of these individuals only have a GED or lack many of the technical skills that are required in the high tech labor market. But they are now having luck according to the latest BLS as well as ADP statistics.
Employment firms such as Manpower and Adecco are also having more success in placing these workers. The demand for both part and full time workers is increasing nationwide. Not only may someone with a GED now be able to find a decent paying job, but companies are often willing to train them as well to give them even more skills. There is also a heavy demand for experienced seniors that can bring some “maturity” to the workplace, and the unemployment rate for the disabled is down to under 11%.
This bodes well for those low income families that are struggling to keep up with their bills. Often a household has had just one person working. Now with a second member potentially bringing in an income, it will help them family buy the items their family needs. Or maybe they can now afford that extra medication they have put off buying, or even take a vacation!
Employees that are not “job hopping” are also being rewarded. Employees that are with the same company for the last 12 months are getting increases in their pay of over 4% per year. This is per the latest statistics from ADP. This is an increase in income that is greater than the rate of inflation, and is another key factor for keeping up with the cost of living.
With the national employment rate at under 5%, which experts consider to be full employment, the job market s starting to heat up. This may help bring many low income families out of poverty. Whether someone has skills (or not) the chances of them finding a new or better paying job is greater than it has been in years.