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Short-Term Unemployment Falls Below Pre-Recession Low as Jobs Surge
The US economy added 321,000 payroll jobs in November 2014. Total unemployment remained at 5.8 percent. Short-term unemployment (<5 weeks) is now below the 2007 level, but long-term unemployment, although declining, remains high by historical standards
Short-Term Unemployment Falls Below Pre-Recession Low as Jobs Surge
- 1. Economics for yourClassroom from Ed Dolan’s Econ Blog Short-Term Unemployment Falls Below Pre-Recession Low as Jobs Surge Dec. 7, 2014 Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.
- 2. Payroll Jobs Surgein November The economy added 321,000 payroll jobs in October, the best in nearly three years It was the tenth straight month in which the economy added 200,000 or more jobs August and September job gains were revised upward by a total of 44,000 Dec. 7, 2014 Ed Dolan’s Econ Blog
- 3. Yearly Job GainsStrongest in Eight Years Total payroll job growth over the past year was over 2,756,000 That was the highest gain since the recovery began in 2009 Dec. 7, 2014 Ed Dolan’s Econ Blog
- 4. Unemployment Rate Remainsat 5.8 Percent The US unemployment rate remained at to 5.8 percent in October, the low for the recovery. The unemployment rate is the ratio of unemployed persons to the labor force. The labor force grew by 119,000 for the month. The number of employed persons increased by 4,000 and the number of unemployed increased by 115,000 The household survey on which unemployment data are based uses a different methodology from the establishment survey from which payroll jobs data are drawn Dec. 7, 2014 Ed Dolan’s Econ Blog
- 5. Broad vs. StandardUnemployment 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 11.4 percent in November, a new low for the recovery Dec. 7, 2014 Ed Dolan’s Econ Blog
- 6. Involuntary Part-Time WorkFalls The percentage of the labor force working part time for economic reasons (involuntary part-time work) decreased to 4.4 percent in November, continuing its general downward trend Involuntary part-time work remains high by historical standards Dec. 7, 2014 Ed Dolan’s Econ Blog
- 7. Unemployment by Duration The distribution of unemployment by duration remains substantially different than before the Great Recession began Short-term unemployment is now below its 2007 average, but long-term unemployment remains high by historical standards This situation is not entirely new. Even after the mild recession of 2001 and the strong recovery of the early 2000s, long-term unemployment never fell to the level reached in the late 1990s Dec. 7, 2014 Ed Dolan’s Econ Blog
- 8. The Bottom Line:Prospects Look Good for Q4 The favorable jobs report for November suggested that the economy is continuing to grow strongly in the fourth quarter after solid growth in the second and third quarters The first official estimate of GDP for the fourth quarter will not be released until late January Dec. 7, 2014 Ed Dolan’s Econ Blog
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