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Labor Market Conditions Prepared for Governor’s Council of Economic Advisors December 3, 2014 KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. Private Nonfarm Jobs Kansas January 2010 to October 2014 Definitions 120,000 110,000 1,130,000 100,000 1,120,000 90,000 2nd Qtr. 2014 Quarterly Census of Employment and Wages 1,100,000 1,090,000 Private Nonfarm Jobs, Seasonally Adjusted (Left Axis) 1,070,000 1,060,000 80,000 70,000 60,000 50,000 8,700 7,600 10,900 12,600 12,400 13,800 14,500 14,900 9,700 11,000 13,500 16,800 11,600 13,300 12,000 20,500 23,400 25,500 16,400 18,100 26,100 15,700 15,700 15,800 16,700 17,100 19,100 12,000 13,100 8,800 15,100 15,300 14,200 21,100 21,800 22,000 20,600 23,500 17,200 17,200 12,900 15,700 13,800 13,400 16,000 20,000 14,500 9,800 13,900 1,080,000 1,050,000 40,000 30,000 20,000 10,000 0 -20,000 -30,000 -40,000 Month-Year Source: Kansas Department of Labor, Labor Market Information Services, in conjunction with the Bureau of Labor Statistics. KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. Sep-14 Jul-14 May-14 Mar-14 Jan-14 Nov-13 Sep-13 Jul-13 May-13 Mar-13 Jan-13 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 Jan-11 -60,000 Nov-10 1,000,000 -10,000 Over-the-Year Change in Private Nonfarm Jobs (Right Axis) -50,000 Sep-10 1,010,000 Jul-10 1,020,000 May-10 1,030,000 Mar-10 -40,900 -22,900 -16,300 -13,000 -7,300 -4,800 -4,500 1,040,000 Jan-10 Private Nonfarm Jobs (Seasonally Adjusted) 1,110,000 Over-the-Year Change in Private Nonfarm Jobs (Not Seasonally Adjusted) 1,140,000 Comparison of Two Previous Recessions Private Sector Nonfar m Jobs, Seasonally Adjusted Kansas 2001 Recession 102.0 2007-2009 Recession Month 69 100.4 Apr 2008 100.0 Oct 2014 Month 78 100.1 98.0 Month 35 95.7 Index 96.0 94.0 Feb 2010 Month 22 93.2 92.0 90.0 Peak Peak Month Trough Trough Month Jobs Lost Time Jobs Lost Jobs Lost/Month Time Jobs Gained Jobs Gained/Month 2001 1,106,200 Mar 2001 1,059,100 Feb 2004 47,100 35 Months 1,346 34 Months 1,524 2007-2009 1,136,400 Apr 2008 1,059,500 Feb 2010 76,900 22 Months 3,495 56 Months 1,398 88.0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 Recession Timeline (Months) Source: Kansas Department of Labor, Labor Market Information Services, in conjunction with the Bureau of Labor Statistics. KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. 22.70 22.65 22.60 22.55 22.50 22.45 22.40 22.35 22.30 22.25 22.20 22.15 22.10 22.05 22.00 21.95 21.90 21.85 21.80 21.75 21.70 21.65 21.60 21.55 21.50 21.45 21.40 785.00 782.50 780.00 Using a 12-month moving average to reduce volatility in both series, real weekly wages reached a trough in September 2011 and started on an upward trend while real hourly wages continued to decrease; this indicates that hours increased between September 2011 and March 2012. May-09 770.73 777.50 775.00 772.50 Between March 2012 and December 2012, real weekly wages increased at a faster rate than real hourly wages; hours increased in the private sector. 12-month moving average of Real Average Hourly Wage 770.00 767.50 765.00 22.01 Dec-12 756.26 757.50 755.00 Jan-14 753.94 12-month moving average of Real Average Weekly Wage Source: Kansas Department of Labor, Labor Market Information Services, in conjunction with the Bureau of Labor Statistics 750.00 747.50 745.00 742.50 Real Average Weekly Wage KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. Sep-14 Jul-14 Mar-14 May-14 Jan-14 Nov-13 Sep-13 Jul-13 May-13 Mar-13 Jan-13 Sep-12 Jul-12 Nov-12 Month-Year Real Average Hourly Wage May-12 740.00 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 Mar-11 May-11 Jan-11 Nov-10 Sep-10 Jul-10 May-10 Mar-10 Jan-10 Sep-09 Nov-09 Jul-09 May-09 Mar-09 Sep-11 740.74 752.50 Since December 2012, real hourly wages have increased somewhat steadily while real weekly wages decreased until January 2014. Since January 2014, hours have remained steady. Mar-12 21.54 762.50 760.22 760.00 Real Average Weekly Wage (Oct. 2014 Dollars) Oct-09 22.53 Jan-09 Real Average Hourly Wage (Feb. 2014 Dollars) Private Sector Real Average Hourly and Weekly Wages Kansas (12-month moving average) Januar y 2009 to October 2014 Nominal wages are adjusted using the Midwest Urban Inflation rebased to October 2014. Over the Year Change in Employment, Hours, and Wages by Industry Kansas October 2013 to October 2014 Industry Total Private Construction Education and Health Services Financial Activities Leisure and Hospitality Manufacturing Other Services Professional and Business Services Trade, Transportation and Utilities Hours 0.0% -6.7% 1.6% -2.2% -0.9% 0.2% 0.3% 0.6% 0.6% Employment 1.2% 0.8% 2.3% 0.5% 1.5% -1.0% 5.7% 2.6% -0.2% Real Hourly Earnings 1.6% 3.9% 1.7% 7.2% 2.2% 9.8% 0.7% -1.8% -1.2% Source: Kansas Department of Labor, Labor Market Information Services in conjunction with the Bureau of Labor Statistics KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. Percent of all Private Sector Jobs 100% 5% 17% 7% 11% 14% 5% 15% 23% Unemployment Rate Kansas and U.S. Januar y 2012 - October 2014 U.S. 10.5 Kansas U.S. Adj. Kansas Adj. Unemployment Rate (%) 9.5 8.5 7.5 6.5 5.5 4.5 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 3.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 12 12 12 12 12 12 12 12 12 12 12 12 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 U.S. 8.8 8.7 8.4 7.7 7.9 8.4 8.6 8.2 7.6 7.5 7.4 7.6 8.5 8.1 7.6 7.1 7.3 7.8 7.7 7.3 7.0 7.0 6.6 6.5 7.0 7.0 6.8 5.9 6.1 6.3 6.5 6.3 5.7 5.5 Kansas 6.3 6.3 6.2 5.5 5.6 5.9 6.4 6.0 5.4 5.3 5.1 5.4 6.3 5.9 5.8 5.1 5.5 5.7 6.0 5.7 5.1 4.9 4.5 4.6 5.4 5.5 5.0 4.4 4.6 5.1 5.4 4.8 4.3 3.8 U.S. Adj. 8.2 8.3 8.2 8.2 8.2 8.2 8.2 8.1 7.8 7.8 7.8 7.9 7.9 7.7 7.5 7.5 7.5 7.5 7.3 7.2 7.2 7.2 7.0 6.7 6.6 6.7 6.7 6.3 6.3 6.1 6.2 6.1 5.9 5.8 Kansas Adj. 5.9 5.9 5.8 5.8 5.9 5.9 5.9 5.8 5.7 5.7 5.6 5.6 5.6 5.6 5.5 5.5 5.6 5.6 5.6 5.5 5.3 5.2 5.0 4.9 4.8 4.9 4.9 4.8 4.8 4.8 4.9 4.9 4.7 4.4 Source: Kansas Department of Labor, Labor Market Information Services, in conjunction with the Bureau of Labor Statistics. KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. 104 of the 105 Kansas counties are below the national unemployment rate. KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. www.dol.ks.gov Tyler Tenbrink Labor Market Information Services (LMIS) Presenter Phone: (785) 296-5000 ext.2593 Email: [email protected] KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws.