US Job Growth Slows Again in June

Data for the Classroom from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ U.S. Unemployment Situation for June 2011 Posted July 10, 2011 Terms of Use: These slides are made available 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 Publishers.

Job Growth Slows Again in June
Total payroll jobs grew in June for the 9 th straight month, but the pace of job growth slowed to a crawl, at 18,000. The May number was revised downward from 54,000 to just 25,000
An increase of 57,000 in private nonfarm jobs was offset by a 39,000 decrease in federal, state, and local government jobs.
A separate household survey that includes farm jobs and self-employment showed a decrease of 445,000 jobs
Posted July 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Unemployment Rate Edges Up
The unemployment rate edged upward to 9.2 percent, its highest level since December 2010
The number of unemployed persons increased by 173,000
The labor force, which includes both employed and unemployed persons, decreased by 272,000 as discouraged workers stopped looking for jobs
The unemployment rate is the ratio of unemployed persons to the labor force

Broad vs. Standard Unemployment Rate
The government also calculates a broader measure of unemployment called U-6
The numerator includes
Unemployed persons
Marginally attached persons who would like to work but are not working because they think there are no jobs
Persons working part time who would prefer full-time work but can’t find it
The denominator includes the labor force plus the marginally attached

Employment-Population Ratio Near Its Lowest Point
The employment to population ratio dropped to 52.8 percent, equaling the lowest levels reached during the recession
The long decline in the ratio reflects several factors
Slow job growth
More discouraged workers, who do not look for jobs because they think none are available
More retired persons as the population ages

US Job Growth Slows Again in June

by Ed Dolan on Jul 11, 2011

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