The US labor market continued moderate improvement in May. 175,000 new payroll jobs were added, mostly in the service sector, while the unemployment rate rose slightly. The broader U6 unemployment rate matching its low for the recovery at 13.8%. Involuntary part-time work and long-term unemployment continued gradual declines. Job growth estimates for February and March were revised upward.

1. Economics for your Classroom
from
Ed Dolan’s Econ Blog
US Labor Market Continues
Moderate Improvement
in May
June 7, 2013
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2. 175,000 New Payroll Jobs in May
 Payroll jobs grew by 175,000 in May,
up slightly from the previous two
months but slower than the average
rate for the first quarter
 Almost all of the new jobs were in
the service sector. In the goods
producing sector, job gains in
construction were offset by losses in
manufacturing.
 Federal and state governments lost
jobs while local governments added
them. There was a net loss of 3,000
jobs for the government sector as a
whole.
May 3, 2013 Ed Dolan’s Econ Blog

3. Unemployment Rate Rises Fractionally
 The unemployment rate rose fractionally
from 7.553 % in May from 7.510 in April,
still near its lowest for the recovery.
 The unemployment rate is the ratio of
unemployed persons to the labor force.
The labor force increased by 420,000 for
the month. The number of employed
workers rose by 319,000 and the number
of unemployed increased by 101,000
 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
May 3, 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 fell to 13.8 percent in May,
matching its low for the recovery
May 3, 2013 Ed Dolan’s Econ Blog

5. Involuntary Part-Time Work Falls
 The number of people working
part time for economic reasons
has been unusually high
throughout the recession and
recovery
 These people are sometimes
called “involuntary” part-time
workers to distinguish them from
people who prefer to work part
time because of family or personal
obligations, school or training,
retirement, and other reasons
 Involuntary part-time workers fell
slightly to 5 percent of the labor
force in May
May 3, 2013 Ed Dolan’s Econ Blog

6. 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 years
May 3, 2013 Ed Dolan’s Econ Blog

7. Long-term Unemployment Continues Gradual Decline
 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
37.4 percent in March, The lowest
since 2009
 The mean duration of unemployment
decreased to 36.5 weeks and the
median duration to 17.5 weeks
May 3, 2013 Ed Dolan’s Econ Blog

8. The employment
situation at a glance
This spider chart summarizes
the employment situation for
April 2013
The zero mark in the center
of the chart represents the
worst month for each indicator
since the start of the recession
The 100 mark represents the
best month for each indicator
immediately before the onset of
the recession

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10. Click here to learn more about Ed Dolan’s Econ texts
For more slideshows and commentary, follow Ed Dolan’s Econ Blog
Like this slideshow?
Follow @DolanEcon on Twitter