Unemployment Explained

Submitted by Michelle Dreier, Director of Member Engagement and Government Affairs

Workforce statistics recently released showed what many of you may have been feeling in 2024, nearly a million jobs were reported by the Bureau of Labor Statistics between March of 2024 through March of 2025 that did not exist.  August jobs report reflected an increase in 22,000 jobs.  13,000 jobs were lost in June which is the first negative jobs report survey since December of 2020.

I’ve always considered 4% to be full employment.  Greater than 4% is a situation where we have more people than jobs.  Less than 4% unemployment and we have more jobs than people.  Economically, we have been sitting in a situation where we have more jobs than people for a very long time.  For many modern economists, an unemployment rate between 4% and 6% is considered full employment. This is because it is the lowest rate an economy can sustain without causing inflation. 

So for those individuals criticizing our recent August federal unemployment rate of 4.3%, we are still likely in full employment and not in a situation where there are more people than jobs.  For those of us in Minnesota, the unemployment rate ticked up to 3.5% so there are definitely more jobs than people.

Over the past month EA has received several calls from members that are ramping up for large projects and looking to recruit.  EA has continued our workforce work through this economic slowdown and can help both small and large contractors add talent to their crew. 

As interest rates fall, we might be seeing additional projects open up for membership.  Remember EA is here to help through recruitment and training.  Let us help you be more competitive!