Q&A of the Day – South Florida job cuts & how the unemployment rate works
Each day I’ll feature a listener question that’s been submitted by one of these methods.
Email: brianmudd@iheartmedia.com
Twitter: @brianmuddradio
Facebook: Brian Mudd https://www.facebook.com/brian.mudd1
Today’s entry:
I listen every day, but Monday's unemployment report piqued my interest. My role (is) being sent to the Philippines BUT I am expected to train these people taking my job!
Tenet Healthcare is sending many, many roles to the Philippines, one of the most UNAMERICAN moves in a long time. It's humiliating to say the least. The initiative starts with Florida and South Carolina then will move throughout the company.
What category of unemployment will these people fall into? Disgusting.
Bottom Line: Something that’s not lost on me as I’m reporting historically great employment information, is that it’s not unanimous. While the unemployment rate has never been lower for all demographics except white men, and average incomes have never higher – not everyone is participating. I also understand that hearing all of the great economic news can feel like rubbing salt in a wound if you’re facing a situation like what you’re describing. Specific to your situation, Tenant Healthcare announced a plan in January to eliminate 1,300 jobs in the United States, or just under 1% of their workforce, to rein in costs. I understand that for you the unemployment rate isn’t 3.5%, it’ll soon be 100%. It’s the reason that for 10+ years I’ve broken down every jobs report into three separate stories. The real unemployment rate, the demographics of the unemployed and how much money we’re making.
To answer your question, you along with the 1,300 unfortunate people laid off would be counted in the base unemployment rate, currently at 3.5% for up to 26 weeks. After 26 weeks is when the regular unemployment stats fall short. The real unemployment rate, which factors in those who’ve been what’s referred to as long-term unemployed, or more than 26 weeks, stands at 6.9% currently. That’s still the second lowest rate in recorded American history. But importantly, there are currently 6.7 million Americans not accounted for in the base unemployed stats. They include:
- 4.3 million underemployed (part-time seeking full time work)
- 1.2 million long-term unemployed (unemployed longer than 26 weeks)
- 1.2 marginally attached (work odd jobs but don’t have regular employment)
The best news in an otherwise bad news situation is that the average time to find new employment has never been lower and with healthcare remaining one of the hottest sectors for job growth and South Florida’s economy super-strong, your prospects should be strong for new employment. Best wishes.