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The Recession’s Impact on the Economy, Employment and Older Workers

The Recession’s Impact on the Economy, Employment and Older Workers. April 20, 2010 Employment Security Commission of North Carolina Lynn R. Holmes, Chairman. Employment and Workforce Related Services to North Carolina’s Citizens and Employers Labor Market Information

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The Recession’s Impact on the Economy, Employment and Older Workers

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  1. The Recession’s Impact on the Economy, Employment and Older Workers April 20, 2010 Employment Security Commission of North Carolina Lynn R. Holmes, Chairman

  2. Employment and Workforce Related Services to North Carolina’s Citizens and Employers Labor Market Information Unemployment Insurance Employment Services Job Referral and Placement Assistance Re-employment Services Career Counseling Resume Preparation Assistance Assessment and Testing Referral to Training Services Referral to Supportive Services Trade Adjustment Assistance (TAA and ATAA) ESC Services

  3. Employers Dislocated Workers Veterans Agricultural Workers Older Workers Disabled Workers Youth Ex-Offenders ESC Services

  4. Impact of the Economic Conditions on Employment Security Commission • As the state experienced economic recession, citizens turned to the Employment Security Commission for assistance. • Increased numbers of customers to ESC Local Offices • Increased Claims for Unemployment Insurance Benefits • Regular Claims peaked at 158,659 in Jan 2009 • Pressures on the Unemployment Insurance System • Increased number of TAA Petitions • Between Dec 2007 and April 2010, 391 Petitions were certified which covered an estimated 32,044 workers

  5. Employment Services Registered Applicants

  6. North CarolinaCalendar Year 2009Totally Separated and Attached Initial ClaimantsTotal Initial Claimants = 670,885

  7. Unemployment Insurance Compensation Programs • Unemployment Insurance – 26 weeks • Extended Benefits – 20 weeks • Extended Unemployment Compensation Tier I (EUC Tier I) – 20 weeks • Extended Unemployment Compensation Tier II (EUC Tier II) – 13 weeks • Federal Additional Compensation

  8. Newest Extension • Added 1 additional week to EUC Tier II • Extended Unemployment Compensation Tier III (EUC Tier III) – 13 weeks • Extended Unemployment Compensation Tier IV (EUC Tier IV) – 6 weeks • Individuals may be eligible for up to 99 weeks of UI benefits

  9. National Situation • Between December 2007 and March 2010 • Decrease of 8.2 million (5.9%) Nonfarm Jobs • 4.1 million Goods Producing • 2.1 million - Manufacturing • 1.9 million – Construction • 4.1 million Service Providing • 2.0 million – Trade, Transportation & Utilities • 1,134,100 - Retail Trade • 1.5 million - Professional & Business Services • 714,900 - Employment Services • 0.6 million – Financial Activities March 2010 data are preliminary and December 2007 data are revised.

  10. National Employment 137,951 National recession beganDecember 2007 129,750 March 2010 data are preliminary, all other data are revised.

  11. National Employment(Seasonally Adjusted, in thousands) 132,070 129,750 March 2010 data are preliminary, while all other data are revised.

  12. US Labor Force P: Preliminary; R: Revised

  13. National Situation • As of March 2010 • 7.3 million more individuals unemployed in the United States than in December 2007 • Lost 8.2 million jobs • Need to add 136,669 net jobs a month for the next 60 months to reach December 2007 employment levels

  14. North Carolina Situation • Between December 2007 and March 2010 • Decrease of 277,700 (6.7%) Total Nonfarm jobs • 179,500 Goods Producing • 101,500 - Manufacturing • 77,300 - Construction • 98,200 Service Providing • 66,900 - Trade, Transportation & Utilities • 42,900 - Professional & Business Services • 13,500 - Financial Activities • 8,500 – Leisure & Hospitality

  15. North Carolina Employment 4,169,500 3,891,800 National recession beganDecember 2007 March 2010 data are preliminary, other 2010 data are revised, while all other data are benchmarked.

  16. B: Benchmarked; P: Preliminary

  17. B: Benchmarked; P: Preliminary

  18. North Carolina Labor Force B: Benchmarked; P: Preliminary

  19. North Carolina Situation • As of March 2010 • 284,184 more individuals unemployed in North Carolina than in December 2007 • Lost 277,700 jobs • Need to add 4,628 net jobs a month for the next 60 months to reach December 2007 employment levels

  20. United States/North Carolina Unemployment RatesJanuary 2009-March 2010(Seasonally Adjusted)

  21. States With the Highest Unemployment Rates, March 2010(Seasonally Adjusted, in thousands) All Data are preliminary.

  22. Demographics of North Carolina’s Older Workers

  23. North Carolina Population Source: U.S.Census Bureau, Population Division, Interim State Population Projections, 2005

  24. Characteristics of North Carolina’s Older Labor Force • From 2000 to 2009, the Civilian Labor Force increased by 623,000 (15.7%) • 257,000 (41%) occurred in the 55 to 64 age group • 59,000 (9.4%) occurred in the Over 64 age group • The overall Labor Force Participation (LFP) Rate decreased 3.9 percentage points from 68.1% in 2000 to 64.2% in 2009 • LFP for the 55 to 64 group increased 3.9 percentage points from 59.0% to 62.9% • LFP for the 64 and Over group increased 1.5 percentage points from 13.9% to 15.4% Source: Geographic Profiles, BLS 2009 data are preliminary

  25. Characteristics of the Older Labor ForceContinued • In 2009, there were 334,000 more workers unemployed than in 2000 • 40,000 more worker Age 55 and Over unemployed than in 2000 • The overall Unemployment Rate increased 6.8 percentage points from 3.6% in 2000 to 10.4% in 2009 • Unemployment Rate for the 55 to 64 group increased 4.0 percentage points from 1.6% to 5.6% • Unemployment Rate for the 64 and Over group increased 4.0 percentage points from 3.6% to 7.6% Source: Geographic Profiles, BLS 2009 data are preliminary

  26. Characteristics of the Older Labor ForceContinued • In 2009, North Carolina had a 15.4 percent civilian labor force participation rate for those older than 64 • North Carolina has one of the lowest participation rates, ranked 43rd out of 51 • Alaska had the highest at 69.3 percent • West Virginia was the lowest at 12.4 percent • The national average was 17.2 percent • During the same period, the national unemployment rate for this group was 6.4 percent • North Carolina’s average unemployment rate was 7.6 percent, the 12th highest in the nation • Florida had the highest at 11.0 percent • South Dakota was estimated to have the lowest at 2.0 percent Source: Geographic Profiles, BLS 2009 data are preliminary

  27. Percent Civilian Non-institutional Population by Age Group 2009 Annual Average Preliminary

  28. Labor Force Participation Rate by Age Group2009 Annual Average Preliminary

  29. Unemployment Rate by Age Group 2009 Annual Average Preliminary

  30. North Carolina Civilian Labor Force 2007-2009 Annual Averages(in thousands) Source: Geographic Profiles, BLS

  31. North Carolina Labor Force Participation Rate 2007-2009 Annual Averages Source: Geographic Profiles, BLS

  32. North Carolina Unemployment Rate by Age 2007-2009 Annual Averages Source: Geographic Profiles, BLS

  33. How ESC Assists Older Workers • Older Worker Specialists in many of the ESC’s 92 Local Offices • Highlights to Employers benefit of employing older workers • Wealth of work experience • Possess a broad range of job skills • Loyal, dedicated, dependable, & committed to quality are often traits of older workers • Federal tax credits to employers that hire older workers

  34. Assessment of the State’s Readiness for its Aging Population • Cabinet agencies, including ESC, have been tasked to assess their readiness to serve North Carolina’s aging population. • This will include a review of: • Existing and proposed policies focused toward older adults • Documents and initiatives which examine effects of the aging population on policy and programs • Older adults participation in shaping of programs and policies • Private and local government participation in shaping of programs and policies

  35. Lynn R. Holmes Chairman esc.chairman@ncesc.gov 919.733.7546 P.O. Box 25903 Raleigh, NC 27611-5903

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