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New Job Stats Out: Are We Fully Employed?

“There are three kinds of lies: lies, damned lies, and statistics.”  

 

This iconic phrase became popular due to author and humorist Mark Twain, who attributed it to then current British Prime Minister Benjamin Disraeli. You might often think of that quote from Twain when you read the latest headlines.

 

The new jobs report on US employment numbers may have you seeking answers to that statement. Policymakers and economists are asking whether the US is really at full employment.

 

So Give Me Some Numbers

 

On May 4th, 2018, the Bureau of Labor Statistics reported that the US unemployment rate fell to 3.9 percent, which is the lowest percentage in more than 17 years. It sounds great, and is, but the definition is critical: the unemployment rate includes anyone who is older than 16 who is actively searching for work. That’s important, because embedded in its calculation is that students, retirees and others on government assistance who are not in the labor force are excluded from that calculation.

 

Let’s Talk Some History

So what does full employment mean, anyway? You would think full employment would mean a jobless rate of zero, but that has never occurred. The lowest documented unemployment rate happened in 1944: the unemployment rate was 1.2 percent. What was going on then that made it happen? World War II. Millions of men were drafted to fight overseas in Europe and the jobs they left were filled by women like Rosie the Riveter.

 

What is NAIRU, Anyway and Why Should I Care?

The government has an acronym for just about anything, including an acronym for the jobless rate. It’s called NAIRU, and stands for Non-Accelerating Inflation Rate of Unemployment. But NAIRU really doesn’t take into consideration the number of people who have given up looking for work or who are between jobs. Our jobless rate declares that we are in full employment. It essentially means that so few workers are available that companies need to begin raising wages in order to attract workers.

 

So right now, the Congressional Budget Office puts NAIRU at 4.8 percent which is slightly above the unemployment rate. What that means is that the US is considered to be at full employment, which means wages should be going up, but they really aren’t in most areas of the country..

So Let’s Head Deeper Into the Weeds

The Federal Reserve also takes into account the definition of full employment because it helps to set interest rates. The Fed tends to lower rates when unemployment is somewhat high and raise them when we are at full employment and wages are increased.

 

These latest reports say the US is technically at full employment, but paychecks are not catching up, so it remains to be seen if the Fed will continue to inch up interest rates.

So What Can You Expect From Us?

At Partners Direct Insurance, we know that what the Federal Reserve does impacts your bottom line. We also know the cost of providing insurance is on your mind if you are a business owner. That’s why at Partners Direct Insurance, we want to know you and your insurance needs inside-and-out, so we can tailor-make insurance policies based on what is best for you, your business and your employees. We take time to work with you to find the best solutions at the most competitive prices.Contact us and let us know how we can assist you!

 

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6 Types of Construction Insurance to Help Protect Your Business

As a small business owner, you likely can’t bear the weight of a potential construction accident. To help keep you and your business protected, we compiled a list of some of the most common types of construction insurance policies and what they each mean. Continue reading to find out which insurance policy is the best choice for your business to have during your next project or remodel!

 

  • Builder’s Risk

 

If your business is set to undergo building construction or remodeling in the future, builder’s risk insurance is a smart choice to help protect it. This type of insurance can protect the structure itself, provide coverage for necessary materials, and insures you, the business owner, from any accidents. This kind of policy usually only lasts for the duration of the project, so you don’t wind up paying for insurance before or after you need it. Builder’s Risk insurance does not usually provide coverage from situations like earthquakes, employee theft, or weather damage, so it’s important to clarify these situations with our team at Partner’s Direct prior to signing.

 

  • Commercial General Liability Policy

 

A Commercial General Liability Policy is the most common for construction-related projects, and it is known as a good starting base for business owners who might not know what specific policies they need to protect their project. The standard form of this policy insures against bodily injuries and property damage caused on a construction job. This policy, however, does not cover the costs of repairing any flawed work done incorrectly during the initial project, but this differs based on the contract signed between you and your insurance provider.

 

  • Umbrella Liability Coverage

 

This type of insurance is useful for contractors or business owners who are operating large construction sites or multiple projects at one time. A good supplement to the Commercial General Liability Policy, a ULC policy protects larger projects that might be maxed out on a basic CGL policy. If you’re wondering whether this policy is a good add-on for you, talk to our team at Partners Direct to see what’s right for your specific situation.

 

  • Contractor’s Pollution Coverage

 

If your business’s construction projects involve mechanical, excavation, carpentry, industrial, or other heavy-duty work, this policy could help protect you and your business from any damages caused by pollution from these services. This policy protects you from third-party claims and could help save your business thousands of dollars if a pollution accident caused bodily harm onsite.

 

  • Worker’s Compensation Insurance

 

Does your construction project involve more than five workers? In most states, this is when Worker’s Compensation Insurance is a required investment for your company. However, the State of California dictates that this type of insurance is needed in every work environment, even if there is only one employee. This policy can protect your business in the instance of an employee getting injured on the job, even in a non-construction related setting. It can help prevent you from paying out-of-pocket for any potential medical bills and lost wages that could be incurred by an injured employee, so this type of insurance is one of the most essential for any business owner.

 

  • Commercial Automotive Insurance

 

Does your construction project require any type of vehicle or heavy equipment? We’re guessing it does. If so, a Commercial Auto Insurance policy is necessary to protect these vehicles, as well as your wallet. No matter if it’s you behind the wheel or an employee, you will likely want to insurance covering your business if an accident occurs.

By signing up for several types of insurance policies for your business, our team at Partners Direct is willing to discuss discounts and potential packages to help fully protect your business. Whether you are searching for an overall policy like a Commercial General Liability Policy or need something that offers more coverage, like an Umbrella Liability Coverage Policy, our team wants to provide you with the coverage needs to protect you, your employees, and your wallet. Take a look at a comprehensive list of our services here and if you have any questions, give us a call today!

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