April’s dismal jobs report shows the 2019 economy is not coming back and that’s a problem

bartender
The US is reopening to a reshaped economy where consumer spending is recovering faster than jobs.

  • The US economy only added 266,000 jobs in April, far less than economists’ predictions of 1 million.
  • While leisure and hospitality showed the biggest gain, they were still far below pre-pandemic norms.
  • The jobs report signals that the reopened economy won’t look like 2019’s for a long time.
  • See more stories on Insider’s business page.

April’s jobs report is a big yikes.

The US economy only added 266,000 nonfarm payrolls last month, the Bureau of Labor Statistics announced Friday. That’s way less than 1 million, the median estimate for payroll gains by economists surveyed by Bloomberg. While it was the fourth consecutive month of payroll increases, it was the smallest since September.

As a Morgan Stanley note from economist Robert Rosener’s team stated, “The expected ‘string’ of strong jobs reports has started to look more like a modest trail of crumbs.”

In the process, unemployment has risen again, albeit slightly from 6% to 6.1%, it was the opposite direction of the forecasted decline to 5.8%.

Job growth was strongest in the leisure and hospitality sector, adding some 331,000 payrolls. More than half of this increase was linked to hiring in food services and bars, offsetting declines in other sectors such as temporary help services.

The staggering numbers indicate that while the economy is still set to come roaring back to life this year, it won’t look anything like it did in 2019, and jobs may not come back at nearly the same rate as consumer spending ramps up.

Consumer spending recovering faster than jobs

The US economy is on the verge of a glow-up. Vaccines are increasingly finding their way into arms, big cities are reopening, and Americans are sitting on $2.6 trillion in excess savings, between three stimulus checks and a decline in discretionary spending.

They’re already swiping their cards on things like outdoor activities, transit, restaurants, clothes, and beauty as they prepare for what Insider reported is shaping up to be a “hot vaxx summer.” Economists expect this to continue, predicting that a lockdown lift will see the biggest boomtime in a generation.

But the return of consumers to the economy hasn’t yet been matched with blowout job growth, which is putting the predicted post-pandemic boom in a new light. The US is still down roughly 9.8 million jobs from its pre-pandemic peak. While relaxing restrictions is expected to help narrow this gap within the incoming months, April’s payrolls spark concern over how easy these gains will be.

The disruption to the experience economy is still taking its toll. Leisure and hospitality may have seen the most job gains in April, but employment in certain industries of this sector still hasn’t reached pre-pandemic levels.

Hallmarks of the 2019 economy that suddenly went on pause last year – the payrolls of motion picture and sound recording industries, travel arrangement and reservation services, performing arts and spectator sports, and accommodation – were all still at least 25% below where they were before the pandemic. Hollywood and travel may not look the way they once did on the jobs front – or not for years, meaning job gains will have to come from somewhere else.

Reopening to a reshaped economy

Experts have been warning of millions of jobs permanently lost to the pandemic, Insider’s Ben Winck reported.

Countries will need to “think well in advance” of what a post-pandemic economy will look like so as to add jobs where they’re going to be, Kristalina Georgieva, managing director of the International Monetary Fund, said in a Thursday video conference. Federal Reserve Chair Jerome Powell also noted that millions of Americans will struggle to find work as they acclimate to a permanently changed labor market.

“The real concern is that longer-term unemployment can allow people’s skills to atrophy, their connections to the labor market to dwindle, and they have a hard time getting back to work,” he said in the conference. “It’s important to remember we are not going back to the same economy, this will be a different economy.”

However, some experts remain optimistic. Jason furman, former top economist to former president Barack Obama, said on MSNBC Friday that he expects hiring to pick up during the summer. “I think we’re gonna see a hot summer in the labor market,” he said.

Lockdown lifts are just beginning and vaccinations are still rolling out. That is all to say: it’s still early on. But that we’re in the first stages of a recovery means that the 2019-vintage experience sector of the economy won’t snap back instantaneously, and that other industries are still grappling with the worker effects of not having properly estimated demand for goods during the pandemic.

April’s jobs report was a strong signal that recovery won’t be as simple as going back to the economic playbook from the before times. Instead of seeing an economy restored to what it once was, we might see an economy reshaped into something new.

Read the original article on Business Insider

Why America’s economic recovery is stumbling as experts badly misjudge the labor market

Now Hiring sign
A customer walks by a now hiring sign at a BevMo store on April 02, 2021 in Larkspur, California.

  • April’s jobs report was a shocking miss, suggesting the hiring rebound many anticipated was an illusion.
  • Virus fears, childcare pressures, and unemployment benefits all likely drove the weak payrolls read.
  • Biden has proposed massive packages focused on jobs, but they likely face months of negotiation before passage.
  • See more stories on Insider’s business page.

Democratic political advisor James Carville became famous in the 1990s for his phrase “it’s the economy, stupid.”

After April’s shockingly disappointing jobs report, it looks more like “it’s not the economy, stupid, it’s the virus.”

March’s strong jobs data – along with widespread projections of a coming economic boom – had raised optimism among economists for a continued recovery in the labor force. It prompted Federal Reserve Chair Jerome Powell to deem March an “inflection point” for the reopening of the economy, and experts saw it kicking off a season of outsize payroll increases. But the drop in April makes clear the virus continues to bite.

Economists had expected payroll gains to reach 1 million, but the country added just 266,000 jobs last month. It was the smallest monthly increase since January and the biggest miss of payroll forecasts in more than two decades. The unemployment rate rose to 6.1%, female employment declined, and, although hard-hit sectors like leisure and hospitality saw healthy gains, most others posted either meager growth or shed jobs entirely.

The Bureau of Labor Statistics’ Friday release underscores just how much the labor market still has to recover, and that the climb won’t be as easy as most economists anticipated. Even if April stands out as a gloomy outlier, the average pace of payroll growth suggests it could take years to fully recoup the millions of jobs lost to the pandemic.

What went wrong?

The jobs report was such a shock that it’s hard to find a single explanation at first glance. It also highlights just how inadequate forecasting tools are for measuring this unique economic moment.

Economists typically use a combination of quantitative and qualitative data to estimate future growth. Indicators like weekly jobless claims and hours worked join anecdotal evidence and broad surveys to create forecasting models. Economists’ calculations, when tallied together and averaged, usually come close to guessing monthly payroll additions.

The April data serves as a wake-up call for the many forecasters who didn’t even come close to guessing correctly. Whether models overlooked details like COVID-19 fears or bullish biases tarnished forecasts, economists need to reconcile how they were so wrong.

The disappointment was likely fueled by several factors instead of one solvable hurdle. Despite President Joe Biden’s overdelivering on vaccinations, the country is far from placing the coronavirus pandemic behind it. Daily case counts still averaged about 50,000 at the end of last month, and highly contagious strains continue to spread across the US.

The coronavirus pandemic has also been notable for the “she-cession,” hurting female employment much more than men. The absence of affordable childcare and lack of in-person schooling around the country likely kept some Americans home instead of working, as born out by the April report, which showed women – who disproportionately take on childcare responsibilities – losing jobs through the month.

How big is the labor shortage?

Last month also saw several businesses across the manufacturing and service sectors reporting difficulties in finding workers. The jury is still out on how widespread worker shortages might be, as about 10 million Americans remain unemployed. On one hand, some economists suggest boosted unemployment benefits cut into the incentive to find work. Strong wage growth in the leisure and hospitality sector also signals businesses may need to lift compensation to attract workers.

“The benefits are due to expire in September but perhaps people think jobs will be just as easy to find then as they are now, so why take a job today?,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said. “If people continue to resist taking the jobs on offer at the pay on offer, then wages will have to rise more quickly.”

The Chamber of Commerce called on lawmakers to withdraw the federal benefit to unemployment insurance following the April report. The supplement results in 25% of recipients earning more from unemployment benefits than by working, Neil Bradley, executive vice president and chief policy officer at the Chamber of Commerce, said in a statement.

“We need a comprehensive approach to dealing with our workforce issues and the very real threat unfilled positions pose to our economic recovery from the pandemic,” he added.

The April data does not quite agree with the chamber’s argument, showing labor demand overshadowing anecdotes of a supply shortage. April job gains were strongest in lower-wage industries and in sectors with in-person jobs. The composition of last month’s job additions “doesn’t scream supply constraints as the problem,” Nick Bunker, an economist at Indeed, wrote on Twitter.

Separately, the number of Americans temporarily laid off ticked slightly higher in April. That also signals labor demand wasn’t as robust as businesses’ anecdotes suggested.

Looking to other labor-market data, the steady decline in weekly jobless claims now looks much less encouraging for the recovery. The April uptick in unemployment comes as filings for unemployment benefits fell throughout the month to numerous pandemic-era lows. The drops initially seemed to signal that more Americans were returning to work, but BLS’ report suggests the downtrend has more to do with Americans dropping out of assistance programs than finding employment.

It could take months for the government to lend a hand

Much of the last few months’ promising job gains were linked to massive stimulus packages. The CARES Act helped a sharp hiring rebound after initial COVID-19 lockdowns in March 2020. And Biden’s $1.9 trillion plan in March 2021 spurred stronger economic activity last month.

The president has since rolled out two new spending proposals, the larger of which would spend $2.3 trillion on job creation. The American Jobs Plan would create millions of jobs by funding traditional infrastructure projects, clean energy initiatives, and nationwide broadband, Biden said in a Thursday speech. Biden’s administration has at other times cited a Moody’s Analytics projection of 2.7 million new jobs from the American Jobs Plan.

The smaller package, named the American Families Plan, could support hiring in its own right by overhauling the care economy, as it seeks to provide paid family and medical leave and childcare support.

Yet such support is likely months away. Republicans have balked at both plans, lambasting their hefty price tags and the tax hikes proposed to offset them. Democrats seem to face a challenge passing the package on a party-line vote via reconciliation, as some moderates in their party have yet to throw their full support behind the follow-up packages as they exist.

To be sure, the April report represents just one month of hiring. May numbers could show a healthy rebound and revive the positive trend. The economy is not even fully reopened from virus-safety considerations yet, so rebounds are likely.

But with additional fiscal support far on the horizon and economists highlighting a number of obstacles hindering job growth, the resurgent spring recovery for jobs that many economists were predicting is gone.

Read the original article on Business Insider

The disappointing April jobs report showed gains were mainly in leisure and hospitality

A waiter in New York
  • The latest jobs report came in far below economists’ estimates.
  • But the hard-hit sector leisure and hospitality saw another month of strong gains.
  • Professional and business services saw the largest job decline between March and April.
  • See more stories on Insider’s business page.

The leisure and hospitality sector was the only major industry to see a six-digit job gain between March and April.

The US added just 266,000 nonfarm payroll jobs in April, according to the latest jobs report from the Bureau of Labor Statistics. This increase was far below the 1-million job gains economists expected to see. BLS wrote in the report that the leisure and hospitality sector saw 331,000 jobs added in April “as pandemic-related restrictions continued to ease in many parts of the country.”

Employment gains across sectors were not as spread out as they were in March. The following chart shows what sectors saw job gains and losses from March to April:

The biggest rebound in April was in leisure and hospitality; this was the third-consecutive month of job gains for this sector. Most of the jobs added in leisure and hospitality were from food services and drinking places. Food services and drinking places added 187,000 jobs last month, but the industry is still 13.5% below its pre-pandemic employment level from February 2020.

“At least job gains picked up in the leisure and hospitality sector, where job growth is desperately needed,” Nick Bunker, an economist at Indeed, said in a statement about the latest figures. “But the gains were not as fast as hoped for or, frankly, as needed. Employment in these industries is still almost 17% below pre-pandemic levels.”

The sector that saw the second-most gains was government. This sector’s employment rose by 48,000 last month. BLS noted that most of the gains in this sector were in local education, which added 31,000 jobs in April.

After adding jobs in March, employment in professional and business services dropped the most last month. This sector lost 79,000 jobs last month. BLS wrote in the jobs report that “employment in temporary help services declined by 111,000” in this sector.

Construction, however, did not see any employment change from March to April. The sector did add 97,000 jobs in March after a loss of 57,000 jobs in February.

“Shockingly in a period of quickly rising housing prices, construction industries added no new jobs in April,” Bunker said.

Read the original article on Business Insider

‘What is everybody else not seeing?’ One top economist details why Friday’s jobs report will double the average forecast – and explains why she’s comfortable being an outlier

Now Hiring man with mask
A man wearing a mask walks past a “now hiring” sign on Melrose Avenue amid the coronavirus pandemic on April 22, 2021 in Los Angeles, California.

  • Jefferies’ estimate for April payroll growth is 2.1 million jobs, double the consensus forecast.
  • Economist Aneta Markowska cited time-sheet data, jobless claims, and surveys for her bullish forecast.
  • Reopening and stimulus will play a bigger role in the April report than in March, she added.
  • See more stories on Insider’s business page.

The Bureau of Labor Statistics’ upcoming jobs report is expected to show strong payroll growth through April as the US reopened. But where most economists see a moderate month-over-month improvement, Aneta Markowska of Jefferies stands out in her bullishness.

The median estimate from economists surveyed by Bloomberg for April payroll growth sits at 1 million payrolls. That would mark a pickup from the 916,000 jobs added in March and the strongest month of job growth since August.

Markowska, Jefferies’ chief economist, forecasts that the economy added 2.1 million jobs last month. Not only is that more than double the median forecast, but also 800,000 payrolls greater than the next highest projection from a top economist. The unemployment rate will fall to 5.2% from 6% and beat the forecast of 5.8%, according to the bank.

While Markowska’s estimates stand leagues away from the consensus, the chief economist told Insider she has a tougher time understanding the median forecast than supporting her own.

“To be honest, I’m sort of asking the same question in reverse. What is everybody else not seeing?” Markowska said. “I run a number of models and the lowest one gives me an estimate of 1.4 million.”

Looking to quantitative data, Markowska highlighted changes in jobless claims as supporting growth of more than 1 million payrolls. Kronos data tracking hours worked correlates well with nonfarm payrolls and signals an April gain of 1.6 million jobs, she added.

BLS’ survey timing also backs up Jefferies’ forecast. The March report had little to do with reopening, as the survey window closed on March 13, Markowska said. The April report, due for release Friday morning, should better capture how reopening and Democrats’ stimulus boosted job growth in the leisure, hospitality, and retail sectors, she added.

Still, the hard data only makes up part of Markowska’s projection. Reports like the Census Bureau’s Household Pulse Survey and The Conference Board’s own survey point to growth as high as 4 million payrolls, the economist said. Although survey responses are volatile and harder to tie to quantitative data, they support Markowska’s argument for a blowout month of job gains.

“Obviously [3 million] sounds excessive, and I wouldn’t rely on any of those individually. But they certainly give me more confidence that we could get something closer to 2 million,” she said.

Aneta Markowska
Jefferies Chief Economist Aneta Markowska.

Looking beyond April growth and into 2022

Robust hiring could last into the summer, and even though Markowska sees the pace tapering off later in the year, she still expects growth to trend above the pre-pandemic norm. Jefferies’ GDP forecast calls for a 7% expansion in 2021, slightly exceeding the Federal Reserve’s estimate for 6.5% growth. That rate implies average monthly payroll additions of about 500,000 payrolls in the final month of 2021, Markowska said.

The chief economist’s optimism isn’t relegated to 2021. Consensus forecasts see the rate of recovery dropping off in 2022 as stimulus expires and easy gains turn into more modest improvements. But where the Fed expects GDP growth to slow to 3.3% next year, Markowska cited a still-elevated savings rate and expectations for stronger production for her 5% growth forecast.

“There’s still a lot of upside for industrial production. I think, by the middle of the year, you’re going to be looking at capacity utilization rates that match the peaks from the last cycle, and they’re going to keep going,” she said.

“That’s where I really differ: the ability of this economy to sustain a lot of that momentum. Whereas a lot of people see a fiscal cliff happening next year, I think that’s more of a story for 2023.”

Read the original article on Business Insider

From cafeteria workers to principals, here’s what everyone makes in a public school

Elementary school teacher
Elementary school teachers earn a median wage of $62,050 a year.

35. Fast food and counter workers earn a median of $25,510 a year and 121,970 are employed by public schools.

school cafeteria workers preparing food

34. Institutional and cafeteria cooks earn a median of $26,130 a year and 116,220 are employed by public schools.

school cafeteria school cook

33. Childcare workers earn a median of $28,560 a year and 88,280 are employed by public schools.

preschool

32. School bus monitors and protective service workers, all other, earn a median of $29,120 a year and 58,930 are employed by public schools.

FILE - In this March 15, 2013, file photo, teacher Astrid Barrios, center, listens as Milford police detective Carlos Sousa, left, debriefs participants after a lockdown exercise at Milford High School in Milford, Mass. The actions of students who died tackling gunmen at two separate U.S. campuses a week apart have been hailed as heroic. At a growing number of schools around the country, they also reflect guidance to students who are told, at least in some situations, to do what they can to disrupt shootings. (AP Photo/Michael Dwyer, File)

This is a catch-all category used by the BLS to designate protective service occupations that are not included in other occupational groups. 

31. Teacher assistants earn a median of $29,320 and 963,030 are employed by public schools.

teacher

30. Substitute teachers earn a median of $29,510 a year and 414,660 are employed by public schools.

teacher

29. Coaches and scouts earn a median of $30,890 a year and 39,440 are employed by public schools.

high school football coach

28. Education instruction and library workers, all other, earn a median of $31,410 a year and 50,940 are employed by public schools.

library

This is a catch-all category used by the BLS to designate educational occupations that are not included in other occupational groups. 

27. Janitors and cleaners earn a median of $31,950 a year and 276,360 are employed by public schools.

janitor cleaning garbage Urige Buta
Olympic marathon hopeful Urige Buta pushes a cleaning cart as he works at a high school in Haugesund, west of Oslo on March 19, 2012.

26. Office clerks earn a median of $33,330 a year and 94,600 are employed by public schools.

office worker laptop plant

25. Bus drivers earn a median of $33,900 and 189,570 are employed by public schools.

Bus driver

24. Security guards earn a median of $35,720 and 28,890 are employed by public schools.

school security guard in New York

23. First-line supervisors of food prep and serving workers earn a median of $36,440 a year and 32,890 are employed by public schools.

cafeteria

22. Secretaries and administrative assistants earn a median of $38,260 a year and 205,820 are employed by public schools.

receptionist

21. Bookkeeping, accounting, and auditing clerks earn a median of $42,400 a year and 28,940 are employed by public schools.

bookkeeping accounting spreadsheet

20. Maintenance and repair workers earn a median of $44,440 a year and 53,340 are employed by public schools.

classroom repair ceiling

19. Teachers and instructors, all other, earn a median of $47,250 a year and 87,550 are employed by public schools.

teacher

This is a catch-all category used by the BLS to designate class-room occupations that are not included in other occupational groups. 

18. Computer user support specialists earn a median of $48,000 a year and 30,370 are employed by public schools.

computer teacher with students

17. Preschool teachers earn a median of $53,550 a year and 48,640 are employed by public schools.

preschool teacher with kids

16. Registered nurses earn a median of $58,810 a year and 48,800 are employed by public schools.

nurse

15. Kindergarten teachers earn a median of $59,300 a year and 101,900 are employed by public schools.

kids storytime reading teacher kindergarten students

14. Kindergarten and elementary school special education teachers earn a median of $61,090 and 170,250 are employed by public schools.

special education

13. Middle school teachers earn a median of $61,780 a year and 529,600 are employed by public schools.

middle school teacher robotics

12. Child, family, and school social workers earn a median of $61,790 a year and 39,900 are employed by public schools.

social worker

11. Middle school special education teachers earn a median of $61,980 and 74,930 are employed by public schools.

autistic child
Six-year-old Gwendoline, an autistic child, works with Professor Gilbert Lelord at Bretonneau hospital in Tours, France.

10. Elementary school teachers earn a median of $62,050 and 1,199,550 are employed by public schools.

elementary school teacher

9. High school career and technical education teachers earn a median of $62,340 and 66,140 are employed by public schools.

shop class woodworking apprentice

8. Librarians and media collections specialists earn a median of $62,690 and 42,900 are employed by public schools.

Librarian

7. High school special education teachers earn a median of $63,060 and 123,160 are employed by public schools.

Special Needs Education

6. High school teachers earn a median of $63,400 a year and 847,900 are employed by public schools.

english school teacher
English teacher Radka Tomasek speaks to the class at the English Center June 16, 2006 in Miami, Florida.

5. Educational, guidance, school, and vocational counselors earn a median of $65,840 a year and 126,500 are employed by public schools.

guidance counselor

4. Instructional coordinators earn a median of $70,210 a year and 70,420 are employed by public schools.

Teacher
In this May 13, 2010 photo, English teacher Nicholas Melvoin walks around his classroom as he teaches at Edwin Markham Middle School.

3. Speech-language pathologists earn a median of $71,120 a year and 53,960 are employed by public schools.

Speech and Language Pathologist

2. Clinical, counseling, and school psychologists earn a median of $77,500 and 41,320 are employed by public schools.

child psychologist

1. Education administrators, such as principals and superintendents, earn a median of $99,690 and 214,110 are employed by public schools.

Arizona principal empty classroom

Method and data source

Public schools employ a wide variety of workers, and salaries range from well below the median wage to very high-paying.

The Bureau of Labor Statistics’ Occupational Employment and Wage Statistics program offers data on employment and wages across different occupations and industries. According to that report, there were about 7.27 million Americans employed by public schools owned by local governments in May 2020, the most recent year for which data is available.

The median annual wage across all public school occupations was $49,680. The salaries for occupations with at least 25,000 employed within the sector range from $25,510 for fast food and counter workers to $99,690 for education administrators.

Teacher salaries also vary between grade levels. For instance, high school teachers earn a median wage of $63,400 a year, while middle school teachers earn a median wage of $61,780. 

For our analysis, we looked at all the occupations with at least 25,000 employees in the local-government-owned school sector in May 2020. We then ranked these occupations from lowest to highest wage. In addition to the median annual pay, the above slides also include the number of people in that job within this industry.

Read the original article on Business Insider

The 30 highest-paying jobs in Texas, where everything’s bigger – including the salaries

Texas Oil Companies Apache Corporation in Garden City, Texas
Petroleum engineers make an average of $169,760 a year.

  • Petroleum engineers, various physicians, and air traffic controllers all make six figures in Texas.
  • Using wage data from BLS, we found the jobs with the highest average salaries in Texas.
  • The following are the 30 highest-paying jobs in the Lone Star State.
  • Visit Business Insider’s homepage for more stories.
30. Aerospace engineers make an average of $128,330 a year.

SpaceX launch in Texas
SpaceX launches its first super heavy-lift Starship SN8 rocket during a test from their facility in Boca Chica, Texas, on December 9, 2020.

Number of people employed in Texas: 6,290

What they do, according to O*NET: Perform engineering duties in designing, constructing, and testing aircraft, missiles, and spacecraft.

29. All other managers, all other personal service managers, and entertainment and recreation managers (except gambling) make an average of $129,120 a year.

business meeting

Number of people employed in Texas: 28,530

This is a catchall occupation category that includes various manager positions. 

28. Human resources managers make an average of $129,770 a year.

human resources

Number of people employed in Texas: 11,140

What they do, according to O*NET: Plan, direct, or coordinate human resources activities and staff of an organization.

27. Natural sciences managers make an average of $131,530 a year.

scientists in lab

Number of people employed in Texas: 3,560

What they do, according to O*NET: They plan, direct, or coordinate activities in such fields as life sciences, physical sciences, mathematics, statistics, and research and development in these fields.

26. Postsecondary health specialties teachers make an average of $136,360 a year.

medical professor teacher

Number of people employed in Texas: 14,990

What they do, according to O*NET: They teach courses in health specialties, in fields such as dentistry and laboratory technology.

25. Purchasing managers make an average of $136,890 a year.

purchasing manager

Number of people employed in Texas: 6,480

What they do, according to O*NET: They plan, direct, or coordinate the activities of buyers, purchasing officers, and related workers involved in purchasing materials, products, and services. 

24. Chemical engineers make an average of $138,600 a year.

chemical engineer

Number of people employed in Texas: 5,800

What they do, according to O*NET: They use design chemical-plant equipment and devise processes for manufacturing chemicals and products, such as gasoline and synthetic rubbers.

23. Air traffic controllers make an average of $139,530 a year.

air traffic controller

Number of people employed in Texas: 1,920

What they do, according to O*NET: They control air traffic and authorize, regulate, and control commercial airline flights according to government or company regulations to expedite and ensure flight safety.

22. Lawyers make an average of $142,730 a year.

texas lawyer

Number of people employed in Texas: 46,340

What they do, according to O*NET: They represent clients in criminal and civil litigation and other legal proceedings, draw up legal documents, or manage or advise clients on legal transactions. 

21. Sales managers make an average of $147,690 a year.

entrepreneurship pitch deck meeting

Number of people employed in Texas: 31,830

What they do, according to O*NET: They plan, direct, or coordinate the actual distribution or movement of a product or service to the customer. They may also analyze sales statistics gathered by staff to determine sales potential and inventory requirements and monitor the preferences of customers.

20. Financial managers make an average of $148,860 a year.

boss meeting with employee

Number of people employed in Texas: 46,340

What they do, according to O*NET: They plan, direct, or coordinate financial activities of a branch, office, or department of an establishment.

19. Marketing managers make an average of $155,010 a year.

marketing manager office coworker

Number of people employed in Texas: 18,060

What they do, according to O*NET: They plan, direct, or coordinate marketing policies and programs.

18. Podiatrists make an average of $157,850 a year.

foot feet massage podiatry podiatrist

Number of people employed in Texas: 470

What they do, according to O*NET: They diagnose and treat diseases and deformities of the human foot.

17. Computer and information systems managers make an average of $158,010 a year.

computer hardware

Number of people employed in Texas: 29,970

What they do, according to O*NET: They plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming.

16. Geoscientists (except hydrologists and geographers) make an average of $166,720 a year.

Geoscientist

Number of people employed in Texas: 6,650

What they do, according to O*NET: They study the composition, structure, and other physical aspects of the Earth, such as oceans and atmospheres.

15. Petroleum engineers make an average of $169,760 a year.

oil worker walks toward a drill rig in Loving County, Texas

Number of people employed in Texas: 15,090

What they do, according to O*NET: They devise methods to improve oil and gas extraction and production, and determine the need for new or modified tool designs. Oversee drilling and offer technical advice.

14. General pediatricians make an average of $172,950 a year.

pediatrician baby doctor family

Number of people employed in Texas: 1,560

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent children’s diseases and injuries.

13. Dentists (all other specialists) make an average of $173,380 a year.

Prosthodontist

Number of people employed in Texas: 570

What they do, according to O*NET: This job category includes periodontists, pediatric dentists, and prosthodontists, among other dental specialists.

12. Architectural and engineering managers make an average of $173,550 a year.

architectural engineer

Number of people employed in Texas: 15,400

What they do, according to O*NET: They plan, direct, or coordinate activities in such fields as architecture and engineering, or perform research and development in these fields.

11. Nurse anesthetists make an average of $180,380 a year.

nurse

Number of people employed in Texas: 2,960

What they do, according to O*NET: They administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia. 

10. Oral and maxillofacial surgeons make an average of $184,300 a year.

oral surgeon

Number of people employed in Texas: 210

What they do, according to O*NET: They perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects.

9. General dentists make an average of $184,410 a year.

A dentist performs a dental examination.
A dentist performs a dental examination.

Number of people employed in Texas: 8,480

What they do, according to O*NET: They examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums. 

7. Airline pilots, copilots, and flight engineers make an average of $194,100 a year.

american airlines
American Airlines is headquartered in Fort Worth, Texas.

Number of people employed in Texas: 9,860

What they do, according to O*NET: They pilot and navigate the flight of fixed-wing, multi-engine aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo. 

6. Obstetricians and gynecologists make an average of $194,430 a year.

gynecologist

Number of people employed in Texas: 1,740

What they do, according to O*NET: Physicians who provide medical care related to pregnancy or childbirth and those who diagnose, treat, and help prevent diseases of women.

6. Psychiatrists make an average of $195,970 a year.

therapist

Number of people employed in Texas: 1,550

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent disorders of the mind.

5. General internal medicine physicians make an average of $201,560 a year.

internist doctor physician

Number of people employed in Texas: 5,030

What they do, according to O*NET: Physicians who diagnose and provide non-surgical treatment of diseases and injuries of internal organ systems.

4. Physicians and surgeons (all other) make an average of $213,950 a year.

doctor and female patient
Emlyn Louis, MD speaks with Julia Herrera as he examines her at the Broward Community & Family Health Center on April 20, 2009 in Pompano Beach, Florida.

Number of people employed in Texas: 21,420

What they do, according to O*NET: This job category includes allergists and immunologists, dermatologists, neurologists, pathologists, physical medicine and rehabilitation physicians, radiologists, and urologists.

3. Family medicine physicians make an average of $220,390 a year.

doctor

Number of people employed in Texas: 8,010

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent diseases and injuries that commonly occur in the general population. 

2. Surgeons make an average of $234,680 a year.

surgeon

Number of people employed in Texas: 3,290

What they do, according to O*NET: Physicians who treat diseases, injuries, and deformities by invasive, minimally invasive, or non-invasive surgical methods, such as using instruments, appliances, or by manual manipulation.

1. Chief executives make an average of $239,060 a year.

Michael Dell, Dell's founder and CEO
Michael Dell, Dell’s founder and CEO. Dell is based in Round Rock, Texas.

Number of people employed in Texas: 6,730

What they do, according to O*NET: Provide overall direction. They plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.

Method and data source

There has been a lot of interest in moving to Texas within the corporate world in the past year as well as among everyday Americans. A recent report from commercial real estate firm CBRE Group, which is headquartered in Texas, found that the number of moves from San Francisco to Texas increased by 32.1% in 2020 from 2019, although most moves from San Francisco stayed within California.

Jeff Tucker, a senior economist at Zillow, told Insider’s Natasha Solo-Lyons that the appeal of places like Austin comes from the city being “a burgeoning tech hub paying high wages, while still remaining much more affordable than coastal markets like San Francisco, San Jose, and Seattle.”

Using data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics program, we found the 30 jobs with the highest average annual salaries in Texas as of May 2020, the most recently available data. Eight of the top 10 highest-paying jobs in the Lone Star State were medical professions, making it the most lucrative industry for Texans.

We also included a brief definition of the occupation, when available, from the Occupational Information Network (O*NET) and the number of people employed as of May 2020 according to BLS data.

Read the original article on Business Insider

The 30 highest-paying jobs in California

Airport LAX busy airplane
Airline pilots, copilots, and flight engineers are one of the highest-paying jobs in California where they earn $229,110 a year.

  • California has an economy bigger than that of most countries.
  • Using wage data from BLS, we found the occupations with the highest average salaries in California.
  • The following are the 30 highest-paying jobs in the Golden State.
  • See more stories on Insider’s business page.
30. Computer hardware engineers

computer hardware

Average annual salary: $153,730

Number of people employed in California: 15,140

What they do, according to O*NET: Research, design, develop, or test computer or computer-related equipment.

29. Human resources managers

human resources

Average annual salary: $154,030

Number of people employed in California: 22,420

What they do, according to O*NET: Plan, direct, or coordinate human resources activities and staff of an organization.

28. All other managers, personal service managers, and all other entertainment and recreation managers

business meeting

Average annual salary: $154,690

Number of people employed in California: 71,660

This is a catchall category on BLS for managers that combines 2018 Standard Occupational Classification codes of entertainment and recreation managers, all other personal service managers, and all other managers.

27. Compensation and benefits managers

Spreadsheet and Calculator

Average annual salary: $155,130

Number of people employed in California: 1,940

What they do, according to O*NET: Plan, direct, or coordinate compensation and benefits activities of an organization.

26. Advertising and promotions managers

advertising agency advertising manager business meeting

Average annual salary: $158,820

Number of people employed in California: 2,270

What they do, according to O*NET: Plan, direct, or coordinate advertising policies and programs as well as create posters, contests, and other similar promotions for a product or service.

25. Nurse midwives

nurse midwife and nurse at doctor's office

Average annual salary: $159,590

Number of people employed in California: 1,010

What they do, according to O*NET: Diagnose and coordinate all aspects of the birthing process, either independently or as part of a healthcare team.

24. Dentists

dentist

Average annual salary: $160,300

Number of people employed in California: 12,040

What they do, according to O*NET: Examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums.

23. First-line supervisors of police and detectives

police supervisor

Average annual salary: $161,250

Number of people employed in California: 5,040

What they do, according to O*NET: Directly supervise and coordinate activities of members of police force.

22. Financial managers

bank banker office

Average annual salary: $162,650

Number of people employed in California: 92,670

What they do, according to O*NET: Plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.

21. Marketing managers

marketing manager

Average annual salary: $176,940

Number of people employed in California: 42,140

What they do, according to O*NET: Plan, direct, or coordinate marketing policies and programs, such as determining the demand for products and services offered by a firm and its competitors, and identify potential customers.

20. Lawyers

lawyers

Average annual salary: $179,470

Number of people employed in California: 84,160

What they do, according to O*NET: Represent clients in criminal and civil litigation and other legal proceedings, draw up legal documents, or manage or advise clients on legal transactions.

19. Astronomers

astronomy Los Angeles, California on 04/01/2018 crowd of people outside of Griffith Observatory
Griffith Observatory in Los Angeles.

Average annual salary: $181,360

Number of people employed in California: 340

What they do, according to O*NET: Observe, research, and interpret astronomical phenomena to increase basic knowledge or apply such information to practical problems.

18. Architectural and engineering managers

architectural engineer

Average annual salary: $188,940

Number of people employed in California: 36,100

What they do, according to O*NET: Plan, direct, or coordinate activities in such fields as architecture and engineering, or carry out research and development in these fields.

17. Judges, magistrate judges, and magistrates

Inyo county California courthouse

Average annual salary: $195,700

Number of people employed in California: 1,650

What they do, according to O*NET: Arbitrate, advise, adjudicate, or administer justice in a court of law.

16. Orthodontists

dentist dental

Average annual salary: $197,710

Number of people employed in California: N/A

What they do, according to O*NET: Examine, diagnose, and treat dental malocclusions and oral cavity anomalies. 

15. Computer and information systems managers

computer servers

Average annual salary: $198,210

Number of people employed in California: 81,760

What they do, according to O*NET: Plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming.

14. Natural sciences managers

mars rover

Average annual salary: $202,570

Number of people employed in California: N/A

What they do, according to O*NET: Plan, direct, or coordinate activities in such fields as life sciences, physical sciences, mathematics, and statistics, and carry out research and development in these fields.

13. Oral and maxillofacial surgeons

dentist oral surgery surgeon

Average annual salary: $204,920

Number of people employed in California: 560

What they do, according to O*NET: Perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects.

12. Nurse anesthetists

Anesthesiologist Anesthesiology patient hospital surgery doctor physician

Average annual salary: $205,360

Number of people employed in California: 1,710

What they do, according to O*NET: Administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia.

11. Dentists, all other specialists

A dentist performs a dental examination.
A dentist performs a dental examination.

Average annual salary: $205,860

Number of people employed in California: 440

What they do, according to O*NET: This is a catchall category for dentists not listed in some other occupational group.

10. Anesthesiologists

anesthesiologist

Average annual salary: At least $208,000*

Number of people employed in California: 3,500

What they do, according to O*NET: Physicians who administer anesthetics prior to, during, or after surgery or other medical procedures.

*BLS does not have an exact wage estimate for this occupation.

9. General internal medicine physicians

internist doctor physician

Average annual salary: $210,620

Number of people employed in California: 3,000

What they do, according to O*NET: Physicians who diagnose and provide non-surgical treatment of diseases and injuries of internal organ systems.

8. Pediatricians

pediatrician baby doctor family

Average annual salary: $212,990

Number of people employed in California: 3,250

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent children’s diseases and injuries.

7. Family medicine physicians

PANORAMA CITY, CA - JANUARY 28: Dr. Jason Greenspan (L) and emergency room nurse Junizar Manansala care for a patient in the ER of Mission Community Hospital where doctors held a press conference outside on a class action lawsuit against the state of California by a coalition of emergency room physicians claiming that without additional funding, the entire emergency healthcare system is on the verge of collapse on January 28, 2009 in Panorama City, California. According to the coalition, the cost of providing emergency room treatment has nearly doubled over the past decade and patient load increased by more than 28 percent while Medi-Cal reimbursements have remained largely unchanged. During that time, 85 California hospitals in California have closed and an additional 55 facilities have shut down their emergency rooms. California now reportedly ranks worst in the nation for access emergency care and last in emergency rooms per capita. California has seven emergency rooms per million people while the national average is 20 emergency rooms per million people. (Photo by David McNew/Getty Images)
Doctors performing on a patient.

Average annual salary: $215,860

Number of people employed in California: 10,920

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent diseases and injuries that commonly occur in the general population.

6. Chief executives

Sundar Pichai

Average annual salary: $218,700

Number of people employed in California: 30,150

What they do, according to O*NET: Determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body.

5. Physicians, all other, and ophthalmologists

dermatologist
Dermatologist Dr. Deanne M. Robinson and a patient.

Average annual salary: $226,200

Number of people employed in California: 30,800

What they do, according to O*NET: This is a catchall category for specialized doctors not listed in some other occupational group. Some specialties include dermatologists, hospitalists, ophthalmologists, and urologists.

4. Airline pilots, copilots, and flight engineers

Airport LAX busy airplane
Airline pilots, copilots, and flight engineers are one of the highest-paying jobs in California where they earn $229,110 a year.

Average annual salary: $229,110

Number of people employed in California: 10,170

What they do, according to O*NET: Pilot and navigate the flight of fixed-wing, multi-engine aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo.

3. Surgeons

Surgery

Average annual salary: $229,430

Number of people employed in California: 4,790

What they do, according to O*NET: Physicians who treat diseases, injuries, and deformities by invasive, minimally invasive, or non-invasive surgical methods.

2. Obstetricians and gynecologists

Obstetrician gynecologist

Average annual salary: $235,610

Number of people employed in California: 1,440

What they do, according to O*NET: Physicians who provide medical care related to pregnancy or childbirth and those who diagnose, treat, and help prevent diseases of women, particularly those affecting the reproductive system.

1. Psychiatrists

Psychiatrist

Average annual salary: $245,000

Number of people employed in California: 3,970

What they do, according to O*NET: Physicians who diagnose, treat, and help prevent disorders of the mind.

Method and data source

California is one of the largest economies in the world, with a gross domestic product bigger than that of most countries.

Using data from the Bureau of Labor Statistics’ Occupational Employment and Wage Estimates program, we found the 30 jobs with the highest average annual salaries in California. To do this, we looked at the 765 detailed occupations that had average annual wage data available for the state in May 2020, the most recently available data.

Similarly to our recently published list of the highest-paying jobs in the US, medical occupations were top earners. Eight of the top 10 highest-paying jobs in the state are various medical and dental specializations.

Average annual salaries and number of people employed in each occupation are from BLS’ May 2020 estimates. Where available, we also included a brief description of what workers in the occupation do, from the Department of Labor’s O*NET Online occupational database.

Read the original article on Business Insider

Inflation is coming back. Consumer prices climbed more than expected in March, data shows.

Walmart coronavirus shopping
Shoppers are seen wearing masks while shopping at a Walmart store, in North Brunswick, New Jersey, on July 20, 2020.

  • A popular gauge of US inflation rose faster than expected in March as the economy reopened.
  • Consumer prices rose 2.6% year-over-year, partially lifted by March 2020’s drop in price growth.
  • The Fed has signaled that reopening will drive a strong but transitory surge in inflation.
  • See more stories on Insider’s business page.

Prices of common consumer goods rose faster than expected last month as widespread reopening accelerated the economic recovery.

The Consumer Price Index, a popular measure of overall inflation, gained 0.6% from February to March, according to data published by the Bureau of Labor Statistics. Economists surveyed by Bloomberg had expected an increase of 0.5%. The reading follows a 0.4% gain in February. A 9.1% surge in gasoline prices drove the bulk of the uptick.

Core inflation – which excludes volatile energy and food prices – increased 0.3%. That also exceeded the median estimate of a 0.2% month-over-month jump.

Consumer prices jumped 2.6% year-over-year, marking the largest increase since the pandemic began. The reading also exceeded the economist forecast of a 2.5% climb. The measure is somewhat skewed, however, by data from March 2020, when prices declined when the pandemic first froze economic activity. That drop artificially lifts the year-over-year figure by giving the latest measure a lower bar to clear.

“We expect year-over-year inflation to remain steady as the upward pressure of a fast-reopening economy and fiscal stimulus is counteracted by somewhat tougher year-over-year comps,” David Kelly, chief global strategist at JPMorgan Asset Management, said.

Still, the increases suggest inflation will strengthen through the economic recovery, as expected. Price growth trended below the Federal Reserve’s 2% target for decades, signaling consistently weak demand. Now, with businesses reopening, consumers deploying stimulus-boosted savings, and hiring picking up, economists expect inflation to come in above 2% for some time.

The Fed anticipated such a bounce and has dampened concerns that inflation will run rampant. The central bank adjusted its inflation target in August to pursue above-2% inflation for a period of time to counter years of below-target price growth.

Fed Chair Jerome Powell has said that, while reopening will drive stronger inflation, the effect will likely be “transitory” and quickly fade as the economy enters a new normal.

“It is more likely that what happens in the next year or so is going to amount to prices moving up, but not staying up. And certainly not staying up to the point where they would move inflation expectations above 2%,” Powell said in early March, adding the central bank will “be patient” in waiting to pull back on its ultra-accommodative policy.

Americans, however, aren’t yet buying Powell’s message. The median expectation for one-year inflation rose to 3.2% last month, its highest point since 2014. The estimate for three-year inflation edged higher to 3.1% from 3%. Though the Fed hasn’t clarified how high it’s willing to let inflation run, 3% price growth would be the strongest since the early 1990s.

While it’s true that inflation expectations have steadily landed above actual inflation for decades, expectations alone can drive inflation higher. Businesses tend to lift prices and workers usually demand higher wages when the country expects stronger inflation over the next year.

Read the original article on Business Insider

Avocado toast will save the economy

avocado toast
Millennials are set to drive restaurant spending during the economic reopening.

  • Restaurants are making a comeback.
  • March’s jobs report smashed expectations, adding 916,000 against a 660,000 estimate, and dining led the way.
  • Led by dining, leisure and hospitality added 280,000 jobs, so avocado toast and the like should lead to a lot more hiring.
  • See more stories on Insider’s business page.

The economy really began to reopen in March, and restaurants led the way.

The US economy added 916,000 jobs in March, trouncing economic forecasts that predicted that number would look more like 660,000 jobs. The leisure and hospitality industry not only drove nearly all of February’s jobs gains, it accounted for roughly one-third of March’s upswing. With 280,000 payroll additions last month, it added more jobs than any other sector.

Leisure and hospitality consists of arts, entertainment, and recreation, ranging from performing arts and museums to amusement parks. It also includes accommodation and food services, which contributed to 215,000 of the sector’s added payrolls in March. Food services and drinking places fueled most of these additions, with 175,000 new jobs alone. It’s becoming clear that eating out will be very important for the economic recovery.

While restaurants made huge job gains last month, the sector will also need Americans willing to spend on dining out for its recovery – along with that of the wider American economy.

Americans seem to have already started doing that. For the seven days ending March 27, spending on restaurants and bars was up a whopping 200% year-over-year, per Bank of America card data. The more representative two-year change still showed an 11.9% increase. Overall, BofA found total card spending up 82% year-over-year and up 20% over two years for the period, signaling that trillions of federal stimulus are working.

Of course, with restaurants come things like avocado toast, a luxury long used as a metaphorical stick to beat the millennial generation with, perpetuating the narrative that this frivolous generation isn’t focused on the right things financially. While that’s not quite true, it is the case that millennials ate out more and spent more eating out than any other generation prior to the pandemic. They’re on track to be the biggest food and beverage spenders by 2030.

High-earning millennials saw a lot of excess cash build up in their savings accounts during the pandemic. That puts them in prime position to cash out on a favorite experience they’ve been deprived of for a year.

They’ve already begun fueling New York City’s indoor dining scene when restrictions were lifted and splurged while doing so. Millennials shelled out for high-priced items like steak, wine, and tasting menus, sending check averages and tips on the climb, Bloomberg’s Kate Krader reported.

It turns out the economic reopening – and recovery – will taste like avocado.

Read the original article on Business Insider

The economy added almost 1 million jobs in March, but 14.3 million people are still jobless

Coronavirus movie theater
Moviegoers shop at concessions before the movie “Godzilla vs. Kong” on the reopening day of the TCL Chinese theatre during the outbreak of the coronavirus disease (COVID-19), in Los Angeles, March 31, 2021.

  • The March jobs report trounced forecasts, but some unemployment gauges show a steep climb ahead.
  • The “real” unemployment rate used by Fed Chair Powell and Treasury Secretary Yellen fell to 8.7% from 9.1%.
  • The measure includes misclassifications and workers who dropped out of the labor force since February 2020.
  • See more stories on Insider’s business page.

The March jobs report was a hugely positive surprise.

The Bureau of Labor Statistics said Friday that 916,000 nonfarm payrolls were added last month. That compares to the 660,000 expected by economists surveyed by Bloomberg and an upwardly revised gain of 468,000 jobs in February. The headline unemployment rate fell to 6%, matching the consensus forecast.

The data signals that the $1.9 trillion stimulus passed in March and gradual reopening drove a strong rebound for the labor market. Leisure and hospitality businesses – those hit hardest by the pandemic and related lockdowns – counted for one-third of the month’s additions. Construction firms added roughly 110,000 payrolls after hiring contracted during the prior month’s harsh storms.

Still, alternative metrics show there’s plenty of progress to be made before the economy fully retraces its pandemic-era losses. Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen have touted a “real” unemployment rate that includes workers that have been misclassified as having a job while they’re on pandemic-related furloughs and Americans who dropped out of the labor force since February 2020.

By Insider’s calculations, that rate fell to 8.7% in March from 9.1%. That level suggests 14.3 million Americans are still jobless.

Separately, the Bureau of Labor Statistics’ broader read of nationwide unemployment remains at worrying highs. The U-6 rate – which includes Americans employed part-time for economic reasons and workers only marginally attached to the labor force – dipped to 10.7% from 11.1%.

The rate of job growth seen in March still pushes a full recovery well into the future. Even if the US continues to add 916,000 jobs every month, it would take until January 2022 to lift employment back to levels seen before the pandemic.

“Today’s report confirms that labor market conditions are rapidly heating up but reaching broad-based and inclusive full employment will be a multi-year process,” Lydia Boussour, lead US economist at Oxford Economics, said in a note.

The White House is already teeing up its next booster for US job growth. President Joe Biden revealed a $2.3 trillion spending plan on Wednesday. The so-called American Jobs Plan includes funds for restoring roads and bridges, building affordable housing, and installing a nationwide broadband network, among other projects. The proposal should create millions of union jobs over the next eight years, according to the president.

“Now it’s time to rebuild,” Biden said during his announcement, adding: “Wall Street didn’t build this country. You, the great middle class, built this country, and unions built the middle class.”

Read the original article on Business Insider