NEW YORK, April 2, 2021 /PRNewswire-PRWeb/ -- Following the release of the Employment Situation Report for March 2021 by the U.S. Bureau of Labor Statistics (BLS), the U.S. Private Sector Job Quality Index (JQI)® has been revised to a level of 81.99, up by 0.48% from its revised level one month earlier and reflecting a lower proportion - relative to the prior month - of U.S. production and non-supervisory (P&NS) jobs paying less than the mean weekly income of all P&NS jobs ("Low Quality Jobs"), relative to those jobs paying above such mean. The JQI remains heavily impacted by the extraordinary disruption in the number and composition of private sector production and non-supervisory jobs since the beginning of the U.S. impact of the COVID19 global pandemic, with regard to which the following additional special factors should be noted:
- the BLS Employment Situation Report for March reflects a net 780,000 increase in private sector payrolls, only 34.72% of which can be tied to low-wage/low-hours sectors – as reflected in the JQInstant readout below. A substantial improvement from the February reading of 100%
- More workers in Low Quality jobs who were laid off during the peak crisis months, returned to their jobs starting in mid-year and through the fall of 2020, were again laid off in November 2020 through January 2021. This trend dramatically reversed itself in the first quarter. But March also saw a substantial recovery of jobs in high-wage/high hours sectors.
- the JQI may rise or fall for a period of time to the extent that such large numbers of Low Quality Jobs have been substantially eliminated or restored, as offset by the significantly higher benchmark mean weekly income, when compared to pre-pandemic levels, used in computing the index since the elimination of large numbers of Low Quality Jobs.
The mean weekly wage income of all P&NS jobs as of the current reading (which reflects the level as of January 2021) fell to 854.72, a change of -0.88% from its revised level the month prior. The downward change in this series reflects the continued restoration of the low-wage/low-hours positions that had grown substantially in number over the course of the four years prior to the pandemic. The JQ-Instant™ preliminary read of the 780,000 gain in all private sector, non-farm payrolls for March 2021 shows that only 34.72% of such gain in private sector jobs were in industry sectors offering P&NS jobs with an average weekly income below the mean weekly income of all P&NS jobs (i.e. Low Quality Jobs). This reading was due to the gain in March of jobs in the leisure and hospitality, retail, healthcare and social assistance, and administrative and waste management sectors, being offset by an even higher increase in the number of jobs in higher quality sectors including, but not limited to, the addition of 183,000 goods producing jobs.
Daniel Alpert, co-creator of the U.S. Private Sector Job Quality Index, said
"The big news in today's data is not in the JQI itself, but in the JQInstant reading. The huge surge in the creation of private sector jobs in March was driven by an exceptional amount of high quality job creation, which accounted for over 65% of the total."
For an explanatory video on the JQI, please see: http://www.vimeo.com/jqi.
This news release presents data from the most recent JQI reading calculated through the month immediately prior to the month covered by this release. The JQI assesses job quality in the United States by measuring desirable higher-wage/higher-hour jobs versus lower-wage/lower-hour jobs. The JQI offers a near-real time analytical tool to policymakers, researchers and financial market participants with relevance to a variety of trends in the economy at large. The JQI analyzes a representative sample of the economy using production and non-supervisory job (P&NS) data from 180 different industry groups spanning across all 20 super-sectors into which the BLS groups establishments. The principal data utilized is contained in the Current Employment Survey (CES, also often referred to as the establishment survey) P&NS data on average weekly hours, average hourly wage and total employment for each given industry group (seasonally adjusted, in all cases). The JQI is updated on a monthly basis contemporaneously with the release of new CES data from the BLS.
The JQ-Instant reading is for the month covered by this release and has implications for the likely direction of the JQI itself in future months. As the JQI is reported as a three-month rolling average of actual monthly readings, significant imbalances (readings varying from an even distribution between high and low quality jobs) in the JQ-Instant results would suggest future JQI readings moving in the direction of the dominant side of such distribution.
The U.S. Private Sector Job Quality Index (patent pending) is a joint development of the Program on the Law and Regulation of Financial Institutions and Markets at the Jack G. Clarke Institute of Cornell Law School, the University of Missouri Kansas City Department of Economics, the Coalition for a Prosperous America, and the Global Institute for Sustainable Prosperity.
For more information, and to read the full report, visit https://www.jobqualityindex.com/.
©2021 JQI IP Holdings LLC. "Private Sector Job Quality Index" and "JQI" are registered trademarks of JQI IP Holdings LLC. The Private Sector Job Quality Index is patent pending, application number US 62/900,923. Cornell logo and Cornell Law School and Jack G. Clarke Program names and references used with permission.
Nick Iacovella, Coalition for a Prosperous America, 202-688-5145, [email protected]
SOURCE The U.S. Private Sector Job Quality Index (JQI)®