The US broad unemployment rate, U-6, fell to 12.2 percent in May, a new low for the recovery. The standard rate remained at the low of 6.3 percent reached in April. The economy added 217,000 payroll jobs

1. Economics for your Classroom from
Ed Dolan’s Econ Blog
Broad and Long-Term
Unemployment Fall in May as
Workers Return to Labor Force
June 6, 2014
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2. Unemployment at 6.3 Percent in May
 The US unemployment rate remained at
6.3% in June 6014, its low for the
recovery. The unemployment rate is the
ratio of unemployed persons to the labor
force.
 The labor force grew by 190,000, partially
reversing a sharp drop in April. The
number of unemployed workers rose by
46,000 and the number of employed
increased by 145,000
 The unemployment rate is based on a
monthly survey of households
June 6, 2014 Ed Dolan’s Econ Blog

3. Broad vs. Standard Unemployment Rate
 The BLS also provides a broader
measure of job-market stress, U-6
 The numerator of U-6 includes
 Unemployed persons
 Marginally attached persons who
would like to work but are not looking
because they think there are no jobs,
or for personal reasons
 Part-time workers who would prefer
full-time work but can’t find it
 The denominator includes the labor
force plus the marginally attached
 U-6 fell to 12.2 percent in May, a new
low for the recovery
June 6, 2014 Ed Dolan’s Econ Blog

4. Involuntary Part-time Work Falls in May
 One component of the broad
unemployment rate consists of
people working part-time “for
economic reasons,” popularly
known as “involuntary part-time”
employment.
 This category includes workers who
would like full-time work but can’t
find it, or whose employers have cut
their hours below full time
 Involuntary part-time work fell in
May, resuming the downward trend
since its peak in late 2009
June 6, 2014 Ed Dolan’s Econ Blog

5. 217,000 New Payroll Jobs
 The BLS conducts a separate survey
of payroll jobs based on employer
records. According to that survey,
payroll jobs grew by 217,000 in May
 The average monthly increase in
payroll jobs over the past 12 months
has been 190,000
 Job gains were spread broadly across
goods, services, and government
June 6, 2014 Ed Dolan’s Econ Blog

6. Long-term Unemployment Falls to Low for Recovery
 The recession and slow recovery
have been characterized by unusually
high levels of long-term
unemployment
 The percentage of the unemployed
out of work for 27 weeks fell to 34.6
percent, a new low for the recovery
 The median and mean duration of
unemployment also decreased for the
month
June 6, 2014 Ed Dolan’s Econ Blog

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