The US economy added 195,000 payroll jobs in June and earlier months were revised upward. Unemployment remained unchanged at 7.6 percent

1. Economics for your Classroom
from
Ed Dolan’s Econ Blog
US Adds 195,000 New Jobs
in June, Voluntary Part-Time
Work Gains
July 5, 2013
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2. 195,000 New Payroll Jobs in June
 Payroll jobs grew by 195,000 in
June, continuing an upward trend
over the past four months
 Upward revisions to April and May
data brought second quarter job
creation above that for the first
quarter
 Most new jobs were in services.
Federal and state governments lost
jobs while local governments added
them. There was a net loss of 7,000
jobs for the government sector as a
whole.
July 5, 2013 Ed Dolan’s Econ Blog

3. Unemployment Rate Unchanged
 The unemployment rate remained
unchanged from May at 7.6%, slightly
above its level for April, which was the
 lowest for the recovery.
 The unemployment rate is the ratio of
unemployed persons to the labor force.
The labor force increased by 177,000 for
the month. The number of employed
workers rose by 160,000 and the number
of unemployed increased by 17,000
 The unemployment rate is based on a
survey of households that is separate
from the payroll jobs survey. Unlike the
payroll survey, it includes self-employed
and farm workers
July 5, 2013 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 rose to 14.3 percent in June, up
from its low in May
July 5, 2013 Ed Dolan’s Econ Blog

5. Long-term Unemployment Continues to Fall
 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 or more fell
36.7 percent in June, The lowest since
2009, but still very high by historical
standards
July 5, 2013 Ed Dolan’s Econ Blog

6. Trends in Part-Time Work
 People working part-time fall into
two groups:
 Those who want full-time work
but can’t find it are called
“involuntary” part-time workers
 Those who prefer to work part
time because of family
obligations, school, retirement,
etc. are called “voluntary” part-
time workers
 Since the recovery began,
voluntary part-time work has
trended up and involuntary part-
time work has trended down
July 5, 2013 Ed Dolan’s Econ Blog

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