In April 2012, nonfarm payroll employment increased in 32 states and the District of Columbia and decreased in 18 states. The largest over-the-month increase in employment occurred in Indiana (+17,100), followed by Texas (+13,200) and Georgia (+7,800). The largest over-the-month decrease in employment occurred in Maryland (-6,000), followed by Wisconsin (-5,900) and New Hampshire (-4,800). Hawaii experienced the largest over-the-month percentage increase in employment (+0.8 per-cent), followed by North Dakota (+0.7 percent) and Indiana (+0.6 percent). New Hampshire experienced the largest over-the-month percentage decline in employment (-0.8 percent), followed by Alaska (-0.7 percent) and Vermont (-0.5 percent). Over the year, nonfarm employment increased in 43 states and the District of Columbia and decreased in 7 states. The largest over-the-year percentage increase occurred in North Dakota (+7.2 percent). The largest over-the-year percentage decrease in employment occurred in Rhode Island (-0.9 percent).

Regional Unemployment (Seasonally Adjusted)

The West continued to record the highest regional unemployment rate in April, 9.5 percent, while the Midwest again reported the lowest rate, 7.2 percent. Over the month, three regions experienced statistically significant unemployment rate changes: the Midwest (-0.2 percentage point) and South and West (-0.1 point each). The significant over-the-year changes occurred in the same three regions: the Midwest and South (-1.2 percentage points each) and West (-1.0 point).

Among the nine geographic divisions, the Pacific continued to report the highest jobless rate, 10.1 percent in April. The West North Central again registered the lowest rate, 5.8 percent. Two divisions experienced statistically significant unemployment rate changes over the month: the South Atlantic and West South Central (-0.2 percentage point each). Eight divisions had measurable unemployment rate changes from a year earlier, all of which were decreases. The largest of these occurred in the East South Central (-1.7 percentage points).

State Unemployment (Seasonally Adjusted)

Nevada continued to record the highest unemployment rate among the states, 11.7 percent in April. Rhode Island and California posted the next highest rates, 11.2 and 10.9 percent, respectively. North Dakota again registered the lowest jobless rate, 3.0 percent, followed by Nebraska, 3.9 percent, and South Dakota, 4.3 percent. In total, 24 states reported jobless rates significantly lower than the U.S. figure of 8.1 percent, 6 states and the District of Columbia had measurably higher rates, and 20 states had rates that were not appreciably different from that of the nation.

Arizona and Oklahoma experienced the largest over-the-month unemployment rate declines in April (-0.4 percentage point each). Seven other states also had statis-tically significant rate decreases: Florida, Nevada, New Mexico, and North Carolina (-0.3 percentage point each) and Idaho, Massachusetts, and Minnesota (-0.2 point each). The District of Columbia also posted a significant rate decrease (-0.3 per-centage point). The remaining 41 states recorded jobless rates that were not measurably different from those of a month earlier, though some had changes that were at least as large numerically as the significant changes.

Michigan registered the largest jobless rate decrease from April 2011 (-2.2 per-centage points). Twenty-three additional states reported smaller but also statistically significant declines over the year. The remaining 26 states and the District of Columbia recorded unemployment rates that were not appreciably different from those of a year earlier.

Nonfarm Payroll Employment (Seasonally Adjusted)

In April 2012, nine states recorded statistically significant over-the-month changes in employment, seven of which were increases. The largest statistically significant job gains occurred in Indiana (+17,100), Iowa (+5,800), and Arkansas (+5,500). Significant job losses occurred in New Hampshire (-4,800) and Alaska (-2,300). (See tables C and 5.)

Over the year, 24 states and the District of Columbia experienced statistically significant changes in employment, all of which were increases. The largest increase occurred in Texas (+225,800), followed by California (+175,600) and New York (+131,000).

New job growth in Nevada is being driven by the private sector, which has added employment in every month since January 2011. So far this year, private sector job levels are trending about 13,800 higher than a year ago. That is on top of approximately 12,000 new jobs added in 2011.  Those improvements are being partially offset by declines in the public sector, which has lost 6,400 jobs since January 2011.

The unemployment rate in each of the state’s three metropolitan areas fell below 12 percent and reached levels not seen in nearly three years. In the Las Vegas region, the unemployment rate fell to 11.6 percent in April, down from 12.0 percent in March. The unemployment rate in the Reno-Sparks area fell by six-tenths to 11.4 percent in April. In the Capital region, the unemployment rate fell six-tenths to 11.8 percent in April, down from 12.4 percent in March. In the Elko micropolitan area (Elko and Eureka counties), the unemployment rate declined three-tenths to 6.3 percent. The rate is 5.2 percentage points lower than the statewide average and 1.4 points lower than the national average, 7.7 percent.

“Much has been made of late about the underlying reasons behind the downtrend in the unemployment rate,” said Bill Anderson, chief economist for the Department of Employment, Training and Rehabilitation (DETR). “While job growth has been positive of late, contributing to the drop in the jobless rate, there are some structural forces at play, as well. Specifically, the labor force participation rate (LFPR) has been trending down both at the state and national level for many years.”

At the beginning of the recession, about 66 percent of the U.S. population was in the labor force (either employed or unemployed). As of April, the LFPR was just 63.6 percent, suggesting individuals (presumably without a job) are dropping out of the labor force and are not counted amongst the unemployed. In Nevada, the labor force participation rate has been trending down since the early 1980′s, after reaching a peak of 73.7 percent. The current LFPR stands at 64.9 percent, down from 67.8 since the start of the recession. While recent declines in the LFPR can be attributed to a poor job market, longer term trends point to changes in the structure of the economy and demographics of the population.

Seasonally adjusted nonfarm payroll employment in Nevada fell by 600 from March to April. Private-sector employment grew by 200 in April, but government employment fell by 800. Over the last year, private sector employment increased by 10,500 jobs. However, these gains were offset by a decrease in government employment of 5,100. April’s lackluster jobs report comes on the heels of a strong report in March, which was revised up by 2,700 jobs, pushing that month’s gain from 5,000 to 7,700.

Results were mixed for Nevada’s major industry sectors. Mining employment rose by 100 in April and set a new series peak dating back to 1990. The trade, transportation and utilities sector added 2,900 jobs, with a strong showing from retail trade (+1,600), transportation/warehousing/utilities (+1,100); and an increase of 200 jobs in wholesale trade. Education and health services added 1,200 jobs in April — most of it coming from the health care and social assistance sub-sector which added 1,100 jobs. Even with the increase, the health care and social assistance employment level is still below the peak set in October 2011.

“On the down side, a number of industries shed employment in April. Construction (-900) continued to trend down, setting a new post-boom low,” Anderson said. “Employment in professional and business services was down by 2,000 in April. Within the sector, administrative, waste management and remediation services lost 2,100 jobs. Although employment in accommodation and food services fell by 1,400 in April, it has gained 7,800 jobs over the last year (a gain of 2.7 percent). Government employers cut employment by 800 jobs over-the-month. Federal government employment was unchanged, and state government employment decreased slightly (-200). Most of the losses occurred in local government (-600). Local government employment has steadily decreased, losing 4,200 jobs in the last year and is currently at levels not seen since October 2005.

Employment levels in two of Nevada’s metropolitan areas increased over-the-month, with Las Vegas adding 400 jobs and Reno adding 500. Carson City lost 200 jobs and employment is down 3.5 percent from a year ago. Reno employment is also down from a year ago, with 900 fewer jobs than in April of 2011 (a decrease of 0.5 percent). Las Vegas has added 4,600 jobs since April of 2011 for a year-over-year growth rate of 0.6 percent.

Along with a growing labor market, measures of wages paid to employees continue to trend positive. The 12 month average of hourly earnings for all employees on private nonfarm payrolls rose by six cents, to $19.56. Average hourly earnings have increased by $0.70 since April 2011, an increase of 3.6 percent. Additionally, contribution reports from employers enrolled in Nevada’s unemployment insurance program show moderate growth in covered wages. After declining in both 2009 and 2010, average weekly wages have rebounded of late. Wages in 2011 were up 1.3 percent from a year ago ($829 vs. $818), despite some weakness in the fourth quarter.

Total personal income in Nevada has increased on an over-the-year basis for seven straight quarters, despite a fall in transfer payments. Transfer payments as a share of personal income rose markedly during the recession, driven by increases in unemployment insurance benefits, and peaked at 16.6 percent in the final quarter of 2010. Since then, the level of transfer payments as a part of personal income has trended down and currently stands at 15.6 percent of the total.

“Foreclosure information collector RealtyTrac of Irvine, Calif., said that after just one month in the No. 2 spot trailing Arizona in March, Nevada moved to the top of the list in April in part because of a 15 percent increase in foreclosure starts compared to March.

“Before moving to No. 2 in March, Nevada had led the nation in foreclosures for 62 consecutive months with its overheated housing market hit especially hard by the recession.

“In April, Arizona moved to No. 4 on the national list while California — a big feeder market for Nevada’s casino industry — advanced to No. 2 with one in every 351 homes there receiving a foreclosure filing.” Click here for the full story in the Las Vegas Sun.

Industry Distribution of Extended Layoffs

Over the year ending in the first quarter of 2012, the number of private nonfarm extended mass layoff events declined in 16 of the 18 major industry sectors. The manufacturing and the construction sectors experienced the largest declines in the numbers of worker separations over the year. Fourteen of the 21 manufacturing subsectors experienced over-the-year decreases in the number of layoff events.

Events and separations in the manufacturing sector declined to their lowest levels in program history (210 and 28,393, respectively). Thirty-six percent of manufacturing employers with an extended mass layoff event in the first quarter of 2012 anticipated recalling at least some of the displaced workers. The construction sector had 225 extended mass layoff events and 26,795 separations, primarily due to contract completion. This sector accounted for 21 percent of the layoff events and 15 percent of the related separations during the first quarter of 2012.

Reasons for Extended Layoffs

Business demand factors, primarily contract completion, accounted for 39 percent of the events and 44 percent of related separations in the private nonfarm sector during the first quarter of 2012. Layoffs due to the completion of seasonal work accounted for 28 percent of extended mass layoff events and 24 percent of related separations during the quarter.

Movement of Work

In the first quarter of 2012, 29 extended mass layoffs involved movement of work and were associated with 3,726 worker separations, a program low for both figures. Sixty-two percent of the events related to movement of work were from manufacturing industries. Employers cited organizational changes as the economic reason for layoff in 52 percent of the events involving movement of work. Among workers affected by the movement of work, the largest proportions were in the West.

The 29 events with movement of work for the first quarter involved 41 identifiable relocations of work actions. Employers were able to provide information on the specific number of worker separations for 33 of these actions. Among these actions, most were domestic reassignments and involved work moving within the same company.

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Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 715,000. This is 7.0 percent below the revised March rate of 769,000, but is 23.7 percent above the revised April 2011 estimate of 578,000.

Single-family authorizations in April were at a rate of 475,000; this is 1.9 percent above the revised March figure of 466,000. Authorizations of units in buildings with five units or more were at a rate of 217,000 in April.

Privately-owned housing starts in April were at a seasonally adjusted annual rate of 717,000. This is 2.6 percent above the revised March estimate of 699,000 and is 29.9 percent above the revised April 2011 rate of 552,000.

Privately-owned housing completions in April were at a seasonally adjusted annual rate of 651,000. This is 10.0 percent above the revised March estimate of 592,000 and is 20.1 percent above the revised April 2011 rate of 542,000.

Single-family housing completions in April were at a rate of 489,000; this is 11.4 percent above the revised March figure of 439,000. The April rate for units in buildings with five units or more was 158,000.

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Foreign residents increased their holdings of long-term U.S. securities in March – net purchases were $22.3 billion. Net sales by private foreign investors were $4.0 billion, and net purchases by foreign official institutions were $26.3 billion.

At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $13.9 billion.

Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were $36.2 billion.After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, the overall net foreign acquisition of long-term securities is estimated to have been $19.0 billion in March.

Foreign residents decreased their holdings of U.S. Treasury bills by $2.7 billion.Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities decreased by $9.4 billion.
Banks’ own net dollar-denominated liabilities to foreign residents decreased by $59.5 billion.

Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,580.2 billion, up 0.3 percent from February 2012 and up 6.6 percent from March 2011.

The total business inventories/sales ratio based on seasonally adjusted data at the end of March was 1.27. The March 2011 ratio was 1.26.

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Retail trade sales were up 0.1 percent from March 2012 and 6.1 percent above last year. Nonstore retailers sales were up 11.0 percent from April 2011 and building material and garden equipment and supplies dealers were up 10.3 percent from last year.

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Real average weekly earnings was unchanged over the month, as a result of no change in both the real average hourly earnings and the average workweek. Since reaching a peak in October 2010, real average weekly earnings have fallen 1.2 percent.

Real average hourly earnings fell 0.5 percent, seasonally adjusted, from April 2011 to April 2012. A 0.3 percent increase in average weekly hours, combined with the decline in real average hourly earnings, resulted in a 0.2 percent decrease in real average weekly earnings during this period.

Production and nonsupervisory employees

Real average hourly earnings for production and nonsupervisory employees rose 0.2 percent from March to April, seasonally adjusted. The increase stemmed from a 0.2 percent gain in average hourly earnings, combined with an unchanged Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Real average weekly earnings rose 0.2 percent over the month, as a result of the increase in real average hourly earnings, combined with an unchanged workweek. Since reaching a peak in October 2010, real average weekly earnings for production and nonsupervisory employees have fallen 1.6 percent.

Real average hourly earnings fell 0.7 percent, seasonally adjusted, from April 2011 to April 2012. The decrease in real average hourly earnings, combined with a 0.3 percent increase in average weekly hours, resulted in a 0.4 percent decrease in real average weekly earnings during this period.

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The energy index, which had risen in each of the three previous months, declined in April on a seasonally adjusted basis and offset increases in the other major indexes. The gasoline index fell 2.6 percent in April and accounted for most of the decline in energy, though the indexes for natural gas and fuel oil decreased as well. The food index rose in April as five of the six major grocery store food group indexes increased.

The index for all items less food and energy rose 0.2 percent in April, the same increase as in March. Increases in the indexes for shelter, used cars and trucks, medical care, airline fares, new vehicles, and apparel all contributed significantly to the April increase.

The 12-month change in the index for all items was 2.3 percent in April, the lowest figure since February 2011. The index for all items less food and energy also increased 2.3 percent over the last 12 months. This is the first time since October 2009 that the 12-month all items change has not exceeded the 12-month change for all items less food and energy. The food index has risen 3.1 percent over the last 12 months, and the energy index has risen 0.9 percent.

Food

The food index rose 0.2 percent in April, the same increase as in March. The index for food at home, up 0.1 percent in March, increased 0.2 percent in April. Five of the six major grocery store food group indexes rose in April. The index for fruits and vegetables posted the largest increase, rising 1.0 percent in April after a series of declines. The index for cereals and bakery products rose 0.4 percent in April after declining in March. The index for nonalcoholic beverages rose 0.2 percent, and the indexes for meats, poultry, fish, and eggs and for other food at home both rose 0.1 percent. In contrast, the index for dairy and related products fell 1.0 percent in April, its third consecutive decline. Over the last 12 months, the food at home index has increased 3.3 percent. Five of the six food groups have risen over that time; despite the April increase the fruits and vegetables group is the only one to decline over the last 12 months, falling 1.7 percent. The index for food away from home rose 0.3 percent in April and has increased 2.9 percent over the last 12 months.

Energy

The energy index, which rose 0.9 percent in March, declined 1.7 percent in April. The gasoline index fell 2.6 percent in April after rising sharply over the first three months of the year. (Before seasonal adjustment, gasoline prices increased 1.8 percent in April.) The fuel oil index also declined in April, falling 1.1 percent. The energy services index declined slightly in April, falling 0.2 percent. The index for electricity rose 0.2 percent after falling in March, but the index for natural gas declined 1.8 percent, its sixth decline in seven months. Over the last 12 months, the gasoline index has risen 3.2 percent, the fuel oil index has increased 0.9 percent and the index for electricity has advanced 0.6 percent. In contrast, the index for natural gas has declined 11.6 percent.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in April after a 0.1 percent increase in February and a 0.2 percent increase in March. The index for shelter increased 0.2 percent for the seventh month in a row, with rent and owners’ equivalent rent both rising 0.2 percent. The index for medical care increased 0.3 percent, with the index for hospital services rising 0.6 percent. The index for used cars and trucks increased sharply for the second straight month, rising 1.5 percent in April after a 1.3 percent increase in March. The index for airline fares also rose significantly in April, advancing 2.1 percent. The new vehicles index rose 0.4 percent, as did the index for apparel. The indexes for tobacco, alcoholic beverages, and personal care each increased slightly. The index for household furnishings and operations was unchanged in April, while the index for recreation fell 0.1 percent as the indexes for video and audio products and for toys both declined notably.

The index for all items less food and energy has risen 2.3 percent over the last 12 months, the same figure as last month and the sixth month in a row it has been either 2.2 or 2.3 percent. The index for shelter has risen 2.2 percent over the period, as has the index for new vehicles. The apparel index has risen 5.1 percent, the largest 12-month increase since January 1991, while the index for medical care has risen 3.4 percent.

Not seasonally adjusted CPI measures
The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.3 percent over the last 12 months to an index level of 230.085 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.4 percent over the last 12 months to an index level of 227.012 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.1 percent over the last 12 months. For the month, the index increased 0.3 percent on a not seasonally adjusted basis.

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