Vision Payroll

Nonfarm payroll employment continued to edge up in June (+80,000), and the unemployment rate was unchanged at 8.2%, the US Bureau of Labor Statistics reported today. Professional and business services added jobs, and employment in other major industries changed little over the month.

Household Survey Data

The number of unemployed persons (12.7 million) was essentially unchanged in June, and the unemployment rate held at 8.2%.

Among the major worker groups, the unemployment rate for blacks (14.4%) edged up over the month, while the rates for adult men (7.8%), adult women (7.4%), teenagers (23.7%), whites (7.4%), and Hispanics (11.0%) showed little or no change. The jobless rate for Asians was 6.3% in June (not seasonally adjusted), little changed from a year earlier.

In June, the number of long-term unemployed (those jobless for 27 weeks and over) was essentially unchanged at 5.4 million. These individuals accounted for 41.9% of the unemployed.

Both the civilian labor force participation rate and the employment-population ratio were unchanged in June at 63.8 and 58.6%, respectively.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged at 8.2 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In June, 2.5 million persons were marginally attached to the labor force, down from 2.7 million a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 821,000 discouraged workers in June, a decline of 161,000 from a year earlier. (These data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.7 million persons marginally attached to the labor force in June had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Establishment Survey Data

Total nonfarm payroll employment continued to edge up in June (+80,000). In the second quarter, employment growth averaged 75,000 per month, compared with an average monthly gain of 226,000 for the first quarter of the year. Slower job growth in the second quarter occurred in most major industries.

Professional and business services added 47,000 jobs in June, with temporary help services accounting for 25,000 of the increase. Employment also rose in management and technical consulting services (+9,000) and in computer systems design and related services (+7,000). Employment in professional and business services has grown by 1.5 million since its most recent low point in September 2009.

Employment in manufacturing continued to edge up in June (+11,000). Growth in the second quarter averaged 10,000 per month, compared with an average of 41,000 per month during the first quarter. In June, employment increased in motor vehicles and parts (+7,000) and in fabricated metal products (+5,000).

Employment continued to trend up in health care (+13,000) and wholesale trade (+9,000) in June.

Employment in other major industries, including mining and logging, construction, retail trade, transportation and warehousing, financial activities, leisure and hospitality, and government, showed little or no change.

The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.5 hours in June. The manufacturing workweek edged up by 0.1 hour to 40.7 hours, and factory overtime was 3.3 hours for the fifth consecutive month. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.8 hours.

In June, average hourly earnings for all employees on private nonfarm payrolls increased by 6 cents to $23.50. Over the year, average hourly earnings have increased by 2.0%. In June, average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $19.74.

The change in total nonfarm payroll employment for April was revised from +77,000 to +68,000, and the change for May was revised from +69,000 to +77,000.

According to the US Department of Labor, in the week ending June 30, the advance figure for seasonally adjusted initial claims was 374,000, a decrease of 14,000 from the previous week’s revised figure of 388,000. The 4-week moving average was 385,750, a decrease of 1,500 from the previous week’s revised average of 387,250.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 2.6% for the week ending June 23, unchanged from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Increases

The advance number for seasonally adjusted insured unemployment during the week ending June 23 was 3,306,000, an increase of 4,000 from the preceding week’s revised level of 3,302,000. The 4-week moving average was 3,304,250, a decrease of 3,000 from the preceding week’s revised average of 3,307,250.

On May 30, 2012, the National Labor Relations Board (NLRB) Acting General Counsel Lafe Solomon issued a memorandum regarding social media policies in the workplace. The General Counsel’s memorandum is applicable to both unionized and non-unionized work environments.

Certain Employees Rights Are Granted Under Section 7 of the NLRA

Section 7 of the National Labor Relations Act (NLRA) allows employees the right to form, join, or assist labor organizations and the right to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. In addition, even in union-free businesses, employee complaints about hours, pay, treatment, working conditions, etc. may not result in disciplinary action or termination under the NLRA. This section of the Act has important implications for employer social media policies, as delineated in the NLRB’s recent memo.

Social Media Policies That Might Be Illegal

The NLRB’s memo covered seven social media policies published by various employers to demonstrate specific provisions that may be unlawful. Some of those social media policies include the following:

• Policies concerning an employer’s attempt to protect confidential information may be unlawful.
• Policies that aim to show peaceful relations amongst staff may be unlawful.
• Policies about employer image protections may be unlawful.

Companies Must Establish a Compliant Social Media Policy

To learn more about establishing a compliant social media policy, be sure to read the featured article by the HR pros at MyHRSupportCenter, The NLRB’s Social Media Policy Memorandum. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In a letter from Colorado Governor John W. Hickenlooper and Treasurer Walker Stapleton, Colorado employers were informed of the benefits of a recent bond offering by the State of Colorado.

UITF Was Financially Weak from 2008 Recession

The Colorado Unemployment Insurance Trust Fund (UITF) was destabilized by the 2008 recession. The UITF owed more than $600,000,000 to the federal government in April 2011 and was still projected to owe more than $100,000,000 at the end of June 2012.

Bond Proceeds Used to Stabilize UITF

By using the bond proceeds to stabilize the UITF, the governor asserts the following up-front savings to Colorado employers:

• Saves most Colorado businesses between $20-$120 per employee in 2013-2014
• “Turns off” the solvency surcharge to businesses for calendar year 2013 for the first time since 2004
• Moves the rates for employers based on a positive fund balance by June 30
• Allows bond assessments to count toward businesses’ experience ratings
• Creates potential for future lower rates as the UITF reaches financial health more quickly

The bond issuance also provides financial health to the UITF to benefit the fund for the long term through the following methods:

• Triggers solvency measures of HB11-1288, which will help prevent federal borrowing in future economic downturns
• Decreases interest cost associated with negative balance by half (from 3% to 1.4%), and stabilizes payments to make them more predictable
• Provides the UITF fund with a greater buffer that will promote quicker growth of UITF balance to protect employers from higher rates during future economic downturns

Bond Assessments Will Affect Unemployment insurance Premiums

According to the governor, principal and interest will be repaid as follows:

Bond Principal Repayments (Billing notices will begin in November 2012):

• Annual bond repayments will be streamlined with the regular billing process to minimize confusion and avoid additional bills sent to employers.
• Statements will denote what percentage will be used for bond payment, currently estimated at about 18-25%.

Bond Interest Repayments (Billing notices will begin in September 2012):

• Interest payments will mirror the billing process in prior years for Federal interest payments associated with the UITF’s negative Federal balance.
• Similar to Federal interest payments, this will be collected through a separate assessment billed in September.
• Bond interest will be charged only to businesses that have an experience rating of less than +7.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the Colorado UITF.