The US unemployment rate fell to 6.3 percent in April, in large part due to a decrease in the size of the labor force. A separate survey reported a gain of 288,000 payroll jobs

1. Economics for your Classroom from
Ed Dolan’s Econ Blog
US Unemployment Rate Falls to
6.3 Percent in April, Payroll
Jobs Gain 288,000
May 2, 2014
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2. Unemployment Falls to 6.3 Percent, New Low for Recovery
 The US unemployment rate fell to 6.3% in
April 2014, a new low for the recovery.
However, the fall in the unemployment
rate was largely due to a drop of 806,000
persons in the size of the labor force.
 The unemployment rate is the ratio of
unemployed persons to the labor force.
The number of unemployed workers fell
by 733,000 and the number of employed
decreased by 73,000
 The unemployment rate is based on a
monthly survey of households
April 2, 2014 Ed Dolan’s Econ Blog

3. 288,000 Payroll Jobs
 The BLS conducts a separate survey
of payroll jobs based on employer
records. Over time, the two surveys
tend to move together but this month
the two moved in opposite directions
 According to that survey, payroll jobs
grew by 288,000 in April, in contrast to
the decrease shown in the household
survey
 Also, payroll job growth for February
and March was revised upward by a
total of 36,000, making this one of the
strongest 3-month periods of the
recovery
 Job gains were spread broadly across
goods, services, and government
April 2, 2014 Ed Dolan’s Econ Blog

4. 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 12.3 percent in April, also a
new low for the recovery
April 2, 2014 Ed Dolan’s Econ Blog

5. Involuntary Part-time Work Falls Sharply
 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, which is
well below its peak, has begun to
rise again in recent months
April 2, 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 4.7
percent of the labor force, a new low
for the recovery
April 2, 2014 Ed Dolan’s Econ Blog

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