United State Bureau Harvard Case Solution & Analysis

United State Bureau Case Study Solution

The United State Bureau of Labor Statistic release an employment situation report on every month at 8:30 am also by the name of Employment Jobs report. The employment situation is generally conducted by the survey on households, employees, the total overall number of employees and non-employed people, total hours they have worked and the wages and salaries they are given.

This information is widely used in many areas such as Wall Street regarding Stock market, economist to analysing the country’s economy and also helps business in taking effective decisions. The business can use this report for the hiring of new employees by looking at the conditions of the unemployment status and the current wages the employees are paid with.

Employment Situation Summary Released on 2nd June:

The employment situation summary which was released recently on 2ndJune 2017 stated that the employment in the U.S have been increasing and estimated that it would keep on increasing. On the summary, it was stated that the nonfarm payroll employment had been increased by 138,000 indicating that the people lost jobs in manufacturing, government and retail sectors. There also have a little change in the unemployment rate which is about 4.3% as the rate declined by 0.1%.

The increase in the federal fund interest which was made in the 3rd may to 1% from 0.75% was generally the reason in increasing the employment from 75,000 to 100,000 jobs per month. It is still believed that the Federal Reserve will hike the rate more in creating more job opportunities as well as in the growth of the U.S economy.

The Economist have also forecasted that the payrolls are supposed to be increased by 185,000 and the unemployment supposed to hold steadily in 2017 by 4.4%.

Household Survey Data:

The groups divided between the unemployment in U.S is that the 3.5% of the group consist of Whites while the others are Blacks, Asians and Hispanics. The people who temporarily lost their job declined by 211,000 to 3.3 million in May. The average earning of a person rose 4 cents or 0.2% to 26.22 in May as the wages have been increasing year by year at 2.5%. The labour force participating on applying for jobs also declined by 0.2%.

Establishment Survey Data:

The survey was conducted on several establishments in U.S to observe and monitor the employment status of the country, along with its working hours and also the wages paid. The employment increased in certain business sectors, food and services, drinking places and mining. Following are some of the sectors in U.S which have hired in the month of May.

  • The employment gains in the month of May were about 38,000 in the professional and business services, and the total average numbers of employment were around 46,000 in 2017.
  • The total number of employment in the healthcare sector which rose to 24,000 in May, which has an average of 22,000 per month so far.
  • The Food services such as in restaurant had a hiring of 30,000 jobs in May and have an overall increase of job by 267,000 over the past year.
  • Finally, the employment in the mining sector had an increase of 7,000 in May and had recently shown a growth ever since its low point in October 2016.

Impact of employment situation in the financial market (Stocks, Bonds and etc)

The financial markets such as bonds, stocks and money valuation are significantly impacted by the employment situation which is released by the United State Bureau of Labor Statistic. The financial market is the most driven by the Employment situation report. The impact of the employment situation in the financial market was finally realised in the year 1995 which was observed by the Federal Reserve Bank of New York.

It is stated that an unanticipated increase in the employment would result in the rise of U.S dollar. A strong employment status of the country may be indicated that it is heating up too quickly and economist would believe the occurrence of inflation. The changes in the labour market had an impact on the financial markets of U.S as it is predicted that the rise of U.S labour will result in the increase of bond yields.

United State Bureau Harvard Case Solution & Analysis

 

 

 

If the unemployment rises or due to low wages are given to workers, it will cause the interest rate to rise, while the bond and stock prices will fall. As the interest rates rise, the chances are that the unemployment would decrease which will result in the increase of people’s purchasing power and thus will cause the bond and stock prices to increase.

It is said that a health labour markets is favourable on the stock and bond market as it supports the economy growth along with the company profits....................

This is just a sample partial work. Please place the order on the website to get your own originally done case solution.

 

 

 

Share This

SALE SALE

Save Up To

30%

IN ONLINE CASE STUDY

FOR FREE CASES AND PROJECTS INCLUDING EXCITING DEALS PLEASE REGISTER YOURSELF !!

Register now and save up to 30%.