US Labor Market Shows Slight Improvement in July

Data for the Classroom from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ U.S. Labor Market Shows Slight Improvement in July Posted August 5, 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 Recovers Moderately in July
Total payroll jobs grew by 117,000 in July, the 10 th straight month of expansion.
The job growth numbers for May and June were revised upward, but remained low
Private nonfarm jobs increased across all sectors, but state and local governments lost 37,000 jobs
A separate household survey that includes farm jobs and self-employment showed a decrease of 38,000 jobs
Posted August 5, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Unemployment Rate Edges Up
The unemployment rate edged down to 9.1 percent. The rate has changed little since December 2010
The number of unemployed persons decreased by 156,000
The labor force, which includes both employed and unemployed persons, decreased by 196,000 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 looking for work 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 Reaches a New Low
The employment to population ratio dropped to 58.1 percent, an all-time low
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 Labor Market Shows Slight Improvement in July

by Ed Dolan on Aug 05, 2011

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US Labor Market Shows Slight Improvement in July — Presentation Transcript