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October Jobs Data Show Strong US Labor Market


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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

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October Jobs Data Show Strong US Labor Market

  1. Data for the Classroom from Ed Dolan’s Econ Blog October Data Show Stronger Labor Market as WorkersReturn and Part-time Work Falls Posted Nov 3, 2012 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.
  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
  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
  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
  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
  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