The BLS reported 171,000 new jobs for October. The unemployment rate rose to 7.9 percent as both the labor force and number of employed workers rose

1. Data for the Classroom from
Ed Dolan’s Econ Blog
http://dolanecon.blogspot.com/
October Data Show Stronger
Labor Market as Workers
Return and Part-time Work Falls
Posted Nov 3, 2012
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2. Job Growth Stronger in October with Upward Revisions
 The latest report from the Bureau of
Labor Statistics showed an increase of
171,000 payroll jobs in September, the
25th straight month of job growth
 The August figure was revised up from
142,000 to 192,000 and the September
figure was revised up from 114,000 to
148,000
 Most of the new jobs were in service
industries
 The private sector produced 184,000
new jobs while the government sector
lost 13,000
Posted Nov. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

3. Unemployment Rate Rises as Workers Return to Market
 The unemployment rose to 7.9
percent in October from 7.8 percent
in September
 The unemployment rate is the ratio
of unemployed persons to the labor
force.
 The labor force increased by
578,000 for the month. The number
of employed workers rose by
410,000 and the number of
unemployed workers by 170,000
 The unemployment rate is based on
a separate survey of households that
includes self-employed and farm
workers
Posted Nov. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

4. Employment-Population Ratio Improves
 The employment to population ratio
rose to 58.8 percent in October, its
highest level since August 2009
 The ratio is affected both by cyclical
factors and by long-run trends,
especially an aging population
 The labor force participation rate
also rose in October as discouraged
workers began to return to the job
market
Posted Nov. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

5. 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 decreased to 14.6 percent in
October
Posted Nov. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

6. Involuntary Part-Time Work
 The recession and slow recovery
have been characterized by an
unusually large number of
“involuntary” part-time workers, or
those working part time for
“economic reasons” in BLS
terminology
 These are workers who would
prefer full time work but cannot find
it, or must accept short hours
 A decrease of 296,000 in the
number of involuntary part-time
workers helped to bring U-6 down
in October
Posted Nov. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com