Tim McMahon, Editor of UnemploymentData.com

My grandfather lived through the Hyperinflation in Weimar, Germany--to say he was an original “gold bug” would be an understatement. I began reading his “hard money” newsletters at the age of 16 and the dividends from gold stocks helped put me through college. I began publishing the Financial Trend Forecaster paper newsletter in 1995 upon the death of James Moore editor of Your Window into the Future and the creator of the Moore Inflation Predictor©. FTF specializes in trends in the stock market, gold, inflation and bonds. In January of 2003, I began publishing InflationData.com to specialize in all forms of information about the nature of Inflation. In 2009, we added Elliott Wave University to help teach you the principles of Elliott Wave analysis. In January 2013, we began publishing OptioMoney. Connect with Tim on Google+.

May Unemployment Statistics by State

June 25, 2012 by Tim McMahon

U.S. Unemployment Rate by State

The U.S. Bureau of Labor Statistics has released their Unemployment rates by State. So we can see how the various states compare. From the chart below we can see that California, Nevada, North Carolina, New Jersey, Washington D.C., and Rhode Island are all doing worse than the national average. New York, Connecticut, Michigan, Indiana, Illinois, Kentucky, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Colorado, Idaho, New Mexico, Washington and Oregon are all average in their unemployment rates while the remainder are above average.

How the Unemployment Rates of Various States Compare

Nevada continued to record the highest unemployment rate among the states at 11.6 percent in May. Rhode Island and California posted the next highest rates, 11.0 and 10.8 percent, respectively. North Dakota again registered the lowest jobless rate, 3.0 percent, followed by Nebraska, 3.9 percent.

South Dakota, 4.3%, Vermont 4.6%, and Oklahoma at 4.8% were all below 5%. While New Hampshire, [Read more…] about May Unemployment Statistics by State

Why Your Small Business Needs an Accountant

June 21, 2012 by Tim McMahon

Small Business Accountant

Many people who start their own small businesses do so as a means of determining their own destiny. They are their own boss, operating the business their own way and planning for the future with their own ideas. There are, however, certain laws and regulations legislating aspects of any business. For this reason, and more, it is a good idea for any small business to have an accountant.

Small Business Accountants Can Handle Payroll

Small business owners often wear many hats: boss, lease negotiator, inventory specialist, decision-maker, payroll, shipping and receiving, IT, HR, and occasionally even custodian. In the midst of all of that, they also manage employees, even if those employees are contracted. State and national law dictate what forms those employees need to fill out, how much of their paycheck is deducted for taxes, benefits, and Social Security. Business owners are forced to either learn the tax laws (and the changes to said laws each year) or hire an accountant to help. Just managing payroll can be time-consuming, as an owner your time is valuable and should be spent growing your business.

Small Business Accountants Can Handle Taxes

Even contract labor requires certain documentation. If a company pays a contractor more than $600 over the course of the year, a 1099 must be filed. Keeping track of the various tax amounts for various employees as well as which contracted employees earned how much can easily become a full-time job. Small business owners have plenty of other details to manage without adding that to their plates. If only for personnel purposes, an accountant will save time as well as headaches.

In addition to managing tax issues for employees, a small business accountant will help navigate tax concerns for the business itself. Capital improvements, profits, loss, depreciation, and potential write-offs may exist. Some small businesses pay taxes quarterly rather than annually, requiring an ability to understand and follow additional tax laws. An accountant can save you money by avoiding government penalties and late fees but also by pointing out deductions, monitoring for “slippage” or missing funds, and other ways to save money. [Read more…] about Why Your Small Business Needs an Accountant

Jobs Report

June 8, 2012 by Tim McMahon

Non-farm Payrolls

The latest jobs report came out on June 1st with the U.S. Department of Labor reporting that non-farm payrolls (jobs) increased by 69,000 in May (seasonally adjusted). See Current Employment Data for the unadjusted non-farm payroll data.

Non-Farm Payrolls Today’s chart compares the total nonfarm payrolls (blue line) to its two components Private sector job market (gold line) and Government sector job market (red line). But rather than showing total jobs it shows the percentage change in total nonfarm payrolls (blue line) since the declared end of the Great Recession in 2009 (the vertical line). So at that point it is zero. Prior to that point private sector jobs were as high as 7% higher while public sector (government) jobs were 2% lower (i.e. the government increased its employment from 2007 through 2009).

This chart illustrates, the overall job market (blue line) continues to trend higher albeit at a pace that has slowed over the past several months. Today’s chart also illustrates that the government job market has been trending significantly lower since the first half of 2009 (with the exception of temporary census hiring in mid-2010). This decline is due to federal, state and local governments attempting to realign their budgets following an unexpected decline in revenues as a result of the historic plunge in housing prices (i.e. property taxes, capital gains, etc.) and nonfarm payrolls (i.e. income taxes, payroll taxes, etc.).

Percent change Unemployment

One of the major tennents of Keynesian economics is that during a recession as the private sector is shrinking the public sector should increase and provide jobs and run deficits. But the side of Keynesian economics that most politicians forget is that the public sector is supposed to shrink and budgets are supposed to be balanced and debts repaid during good economic times.

The Non-Farms Payroll chart is courtesy of Chart of the Day

Paying for College: Student Loan Tips for the Newbie College Grad

June 7, 2012 by Tim McMahon

Student Loan Tips

Graduating from college is one of those milestone moments. You leave your college bubble and pseudo adult life, only to enter “real time” adulthood. While graduation means graduation parties, graduation gifts, and no more late night study sessions or final exams, it also means a nine to five job, “real world” bills, and student debt. Graduates today are facing hard times. With a steady and astounding unemployment rate, a competitive job market, and mounting student debt, it’s not hard to imagine new grad life being less than glamorous. While this transition is always going to be a challenge, there are several things that new or soon-to-be grads can do to prepare for real life. Use these tips to carefully manage your student loan debt and reduce some of the stress in your first year as a college graduate. Here are 3 Student Loan Tips:

Student Loan Tip #1– Prepay Your Loan

Mortarboard, SooMee turning tassel — Student Loans Soon, SooMee turning tassel—quinn anya (Flickr.com)

With harsh times afoot, many individuals make efforts to lower their monthly student-loan payments from the beginning. This can be a very enticing thing to do. You can consolidate your loan or you can extend your repayment of the loan. While these options offer immediate relief, they tend to make things more challenging over time. Extending your repayment period means that you make more payments over a longer period of time. Doing this means that you end up paying more money in interest on the loans overall. Sure, a loan extension may be necessary at certain times and in specific circumstances, but, if at all possible, it is best to hold off on extending the loan period for times of emergency.

Student Loan Tip #2– Set Reachable Goals

It’s important to set goals for yourself when it comes to loan repayment. Student loans are difficult because they are dropped on you before you can even find your footing in the world of true adulthood. Sit down and set up some basic, attainable goals for yourself. Ideally, you should attempt to make the suggested monthly payment plus a little bit extra whenever is possible on your loan. But, of course, sometimes (particularly in the beginning) this just isn’t going to be possible. Look at your finances and decide what type of goal is reachable for your repayment. Once you figure that out, stick with it. When the time comes that you think you can pay a little extra on top of your usual payments, reevaluate your goals. Even 10 dollars extra a month can make a huge difference in interest charges. Generally speaking, the repayment period for a student loan is 10 years. This is a good goal to start with, but take a look at your specific situation and see what’s best for you. [Read more…] about Paying for College: Student Loan Tips for the Newbie College Grad

Private Sector Job Creation Slightly Down in May

June 6, 2012 by Tim McMahon

Job Creation in May

According to the most recent Gallup survey results U.S. job creation is at a 19 in May down from 20 in April but up from 18 in March. Gallup interviewed 16,913 workers in May and asked them whether they felt their employer was increasing, decreasing or maintaining the same size workforce. This is not the same as asking employers about actual jobs they have created but gives an indication of the perception of the people. Gallup believes that this is a strong predictor of the direction of Unemployment and U.S. Jobless claims.

Job Creation

According to Gallup, the +19 for May is comprised of 35% of the nationwide workers surveyed saying that they thought that their company was increasing their workforce (hiring) while 16% of those surveyed said they felt their employer was decreasing their workforce (laying-off). Thus 35-16=19. The remaining 49% of the workers surveyed said that their company was holding steady neither hiring or firing.

Job Creation- Hiring vs Firing

According to the U.S. Bureau of Labor Statistics (Seasonally adjusted ) the Non-Farm payrolls in May increased by 69,000 jobs. Unfortunately, the U.S. adds about 167,000 new men,women and children every month. Of course not all of them are workers but 69,000 new jobs will just about provide for 167,000 new people so the net effect is that the Unemployment rate would stay about the same.

The one ray of hope according to Gallup is that Government job creation which has been negative since 2009 has ticked up from -7 in April to -3 in May even though private sector hiring fell from 25 to 23. Gallup believes that overall the level is relatively flat for the month of May and that we will have to look at next month’s data to see if a trend is developing.

See the full article U.S. Job Creation Largely Steady in May on Gallup.com

Sources:

Poplulation

Labor Statistics- Employment Situation — MAY 2012

Gallup US Job Creation

Great Jobs for Those with a College Degree

May 30, 2012 by Tim McMahon

College Degrees Lead to Good Jobs

Ask anyone who is carrying hundreds of thousands of dollars in college loans and they will tell you that a degree is an expensive investment. And like any investment you should be concerned with ROI (Return On Investment) or the value you get back for not only the money you invest in your education but on your time investment as well.

: College degree, Will Folsom(Flickr.com)

Research proves that those with college degrees are higher earners and suffer less unemployment on average than those with only a high school degree. Since a college degree is a smart investment, why not choose a degree program that promises a strong return?

The following jobs for college grads tend to be in high demand and have higher wages.

Human Resources

Working in human resources means dealing with hiring, firing, and other administrative management of the work force. No matter what the size or the purpose of a company, if there is more than one employee, there is a need for a human resource administrator. According to the US department of labor, the estimated rate of growth for these positions is over 20 percent for the next six years. With salaries averaging over $100,000, a college degree based in human resources is a safe bet for a strong return.

College Degrees Preparing You for a Human Resources Career

Many colleges offer a Bachelor’s degree in Human Resources Management and although there are also Associates degrees available, many experts agree that an Associates degree is no longer enough to get anything less than the lowest level human resources positions.

Job Search Scams

May 25, 2012 by Tim McMahon

Unfortunately, the economy and job situations are suffering. When times are hard, unemployment is high and people are desperate, this is the perfect opportunity for others to take advantage of you. Some scams include stealing form your account to having you work for one day and then firing you. An example is a company looking for a ‘marketing rep’ calls you once you apply for the position. They tell you they want you to come in immediately. They make it a big deal and say that there are many candidates and they want to make a decision fast. Once they get you into the office, they complete the interview and tell you that you are great and to come back for a second interview. This second interview requires you to ride along with a salesman ‘to get a better idea’, four hours later you are helping him go , door to door. Once you realize this is not what you want to do it’s too late. You just worked for free.

So before you apply for a job, attend an interview or accept a job review these tips to prevent being a victim of a job scam.

The Online Business Scam:

Job Seekers Awaiting Their Turns Patiently—jobsdbmalaysia (Flickr.com)

A job scam can be found anywhere; however scammers find it easiest to find their victims online. Online job boards don’t have many filters and that means scammers can get away with more. Large job sites like Monster.com and Indeed.comtry their best to monitor but are not always able to keep up with new scams.

This is why it is important when you search online to keep in mind: [Read more…] about Job Search Scams

What is Co-Insurance?

May 23, 2012 by Tim McMahon

CoInsurance: Definition

Coinsurance is a tricky term to define because it can mean different things depending on which type of insurance you are talking about. It is most commonly used in health insurance and commonly means the percentage of the total health care bill that you as the insured will have to pay. In other words you are responsible for a portion and the insurance company is responsible for a portion. You are both co-insuring against the cost of health care.

Of course it is not a straight percentage. If you have an 80/20% coinsurance clause in your health insurance policy that means that after your deductible has been met you owe 20% of the bill while the insurer will cover 80%. But then there is an Out-of-Pocket Maximum that limits your liability.

So in a way, [Read more…] about What is Co-Insurance?

Social Media Marketing Consultants Needed

May 18, 2012 by Tim McMahon

By Tim McMahon, editor

Social Media Marketing Consultants

Social Media Marketing is a new field and just as happened in other new fields like web designers 15 years ago, companies are scrambling to find qualified people to perform this valuable service for them. This is truly an opportunity to get in on the ground floor of a budding industry and make a name for yourself and carve out a lucrative career before others catch on.

What is Social Media Marketing?

Social media marketing is a relatively new method of promoting businesses via social media platforms and finding customers and ensuring customer satisfaction after you’ve found them. Companies are increasingly realizing how important happy customers are and that it is much more profitable to retain existing customers than to constantly look for new ones. Today, social media is not just used for finding long-lost colleagues or old High School friends on Facebook; or Tweeting about what you had for lunch on Twitter. Social media has turned out to be an important tool for businesses that want to create a successful online presence. As more and more people are using social media to search for the products they like, social media marketing has become a regular part of daily business transactions and businesses have discovered social media as a method to reach their target consumers and establish a pleasant brand experience online.

As a result, smart companies are shifting a part of their marketing dollars to social media. Large companies like Proctor & Gamble, Taco Bell, and Pepsi are budgeting huge amounts of money to manage brand perception and promote their products via social media. And in the process, they are creating the demand for thousands of Social Media Managers and Marketing Consultants.

So what do Social Media Marketing Consultants do?

Tap Into the Conversation

If an organization wants to find out the “chatter” in the marketplace about a particular product, they need to check the social media platforms such as Twitter and Facebook in order to see what prospective customers think about the brand. Social Media Marketing Consultants have their fingers on the pulse of the community. They monitor the chatter and set up alerts related to keywords pertaining to the brand they are monitoring. By tapping into this network and spreading the word Social Media Marketing Consultants can quickly spread the good word or defuse bad chatter from dissatisfied customers.

Spread the News

Social Media Marketing Consultants will often spread interactive online content, in relation to the commodity that’s being launched. For example if Pepsi wants to launch a new soft-drink it might create a game or a contest related to the new product to create a buzz around it with the hopes of it going viral and creating positive word-of-mouth from influencers.

Perform Online Customer Service

If an online linked in Social Media person discovers a dissatisfied customer he or she will quickly step in to diffuse the situation and turn that dissatisfaction into an amazing customer experience. Smart companies are empowering their Social Media consultants to handle customer service issues quickly before they become media nightmares.

Employment vs. Unemployment

May 5, 2012 by Tim McMahon

Employment – Unemployment

Employment vs. unemployment… You would think that they are two sides of the same coin. But when it comes to government stats they may not be.

The government uses two entirely different surveys to calculate Employment and Unemployment and as we will see since 2010 they have started to paint entirely different pictures. A few days ago we looked at how an independent organization (Gallup poles) is now tracking unemployment rates and how the government numbers appear to be understating the level of unemployment. Today we will look at the government’s own numbers and how they don’t even agree with each other… giving more evidence that the government is slanting the data. [Read more…] about Employment vs. Unemployment