The US economy added 209,000 payroll jobs in July. The six-month gain of 14,000,000 was the best since the recovery began. Unemployment rose slightly to 6.2 percent on strong growth of the labor force

1. Economics for your Classroom
from
Ed Dolan’s Econ Blog
US Job Market Turns in Best
Six-Month Run Since
Recovery Began
Aug 1, 2014
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2. Best Six-Month Job Gain Since Recovery Began
 The 209,000 jobs added to the
US economy in July, together
with upward revisions for May
and June, brought the six-
month job gain to 1,400,000
 That made it the best six-month
performance since the recovery
began in mid-2009
Aug 1, 2014 Ed Dolan’s Econ Blog

3. Month-by-Month Data
 The 209,000 job gain in July
was equal to the average for
the past year
 Job gains for May and June
were revised upward by a total
of 15,000
 198,000 of the new jobs were in
the private sector, with both
goods and services sharing the
gains
 Government added 11,000
jobs, all at the local level.
Federal jobs were unchanged
and state governments lost
1,000 jobs
Aug 1, 2014 Ed Dolan’s Econ Blog

4. Unemployment Rate Up Slightly on Growth in
Labor Force
 The US unemployment rate rose
slightly to 6.2 percent in July, just
above its low for the recovery.
The unemployment rate is the
ratio of unemployed persons to
the labor force.
 The labor force grew by a strong
329,000, adding to gains in
earlier months. The number of
employed workers increased by
131,000 and the number of
unemployed by 197,000
 The unemployment rate is based
on a monthly survey of
households that differs in several
respects from the employer
survey on which payroll job data
is based
Aug 1, 2014 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 rose slightly to 12.2
percent in July, just above its
Aug 1, 2014 Ed Dolan’s Econ Blog

6. Long-term Unemployment Remains Near Low
for Recovery
 The recession and slow
recovery have been
characterized by unusually
high levels of long-term
unemployment
 The share of unemployed out
of work for 27 weeks or rose
slightly to to 32.9 percent in
June, remaining close to its low
for the recovery
 The mean duration of
unemployment fell in July but
the median duration increased
Aug 1, 2014 Ed Dolan’s Econ Blog

7. Involuntary Part-Time Work Resumes its
Downward Trend
 The percentage of the labor
force working part time for
economic reasons
(involuntary part-time work)
decreased in July, resuming
its general downward trend
 Involuntary part-time work
remains much higher than it
was before the onset of the
Great Recession
Aug 1, 2014 Ed Dolan’s Econ Blog

8. The Bottom Line: Prospects Look Good for Q3
 The July job market report
represents the first major data
release for the third quarter of
2014
 Coming on the heels of
reported 4 percent GDP
growth for Q2, prospects look
good for continued growth in
Q3
Aug 1, 2014 Ed Dolan’s Econ Blog

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