US Labor Market Shows Moderate Gains in May

Economics for your ClassroomfromEd Dolan’s Econ BlogUS Labor Market ContinuesModerate Improvementin MayJune 7, 2013Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are freeto use these slides as a resource for your economics classes together with whatever textbook you are using. If you likethe slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.

175,000 New Payroll Jobs in May Payroll jobs grew by 175,000 in May,up slightly from the previous twomonths but slower than the averagerate for the first quarter Almost all of the new jobs were inthe service sector. In the goodsproducing sector, job gains inconstruction were offset by losses inmanufacturing. Federal and state governments lostjobs while local governments addedthem. There was a net loss of 3,000jobs for the government sector as awhole.May 3, 2013 Ed Dolan’s Econ Blog

Unemployment Rate Rises Fractionally The unemployment rate rose fractionallyfrom 7.553 % in May from 7.510 in April,still near its lowest for the recovery. The unemployment rate is the ratio ofunemployed persons to the labor force.The labor force increased by 420,000 forthe month. The number of employedworkers rose by 319,000 and the numberof unemployed increased by 101,000 The unemployment rate is based on asurvey of households that is separatefrom the payroll jobs survey. Unlike thepayroll survey, it includes self-employedand farm workersMay 3, 2013 Ed Dolan’s Econ Blog

Broad vs. Standard Unemployment Rate The BLS also provides a broadermeasure of job-market stress, U-6 The numerator of U-6 includes Unemployed persons Marginally attached persons whowould like to work but are notlooking because they think thereare no jobs, or for personal reasons Part-time workers who would preferfull-time work but can’t find it The denominator includes the laborforce plus the marginally attached U-6 fell to 13.8 percent in May,matching its low for the recoveryMay 3, 2013 Ed Dolan’s Econ Blog

Involuntary Part-Time Work Falls The number of people workingpart time for economic reasonshas been unusually highthroughout the recession andrecovery These people are sometimescalled “involuntary” part-timeworkers to distinguish them frompeople who prefer to work parttime because of family or personalobligations, school or training,retirement, and other reasons Involuntary part-time workers fellslightly to 5 percent of the laborforce in MayMay 3, 2013 Ed Dolan’s Econ Blog

Job Growth for February and March Revised Upward The jobs report also included strong upward revisions for February and March of 2013 Revised March job gains of 232,000 were the best in almost four yearsMay 3, 2013 Ed Dolan’s Econ Blog

Long-term Unemployment Continues Gradual Decline The recession and slow recovery havebeen characterized by unusually highlevels of long-term unemployment The percentage of the unemployedout of work for 27 weeks or more fell37.4 percent in March, The lowestsince 2009 The mean duration of unemploymentdecreased to 36.5 weeks and themedian duration to 17.5 weeksMay 3, 2013 Ed Dolan’s Econ Blog

The employmentsituation at a glanceThis spider chart summarizesthe employment situation forApril 2013The zero mark in the centerof the chart represents theworst month for each indicatorsince the start of the recessionThe 100 mark represents thebest month for each indicatorimmediately before the onset ofthe recession

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