U.S. Jobs Report Shows Sharp Decrease in Broad Unemployment Index

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The official unemployment rate fell to 8.2 percent in January. The broad unemployment rate (U-6) fell more sharply, to 14.5 percent. Both were the lowest since January 2009

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U.S. Jobs Report Shows Sharp Decrease in Broad Unemployment Index

  1. Data for the Classroom from Ed Dolan’s Econ Bloghttp://dolanecon.blogspot.com/ US Jobs Data: Broad .Unemployment Rate Falls Sharply in March Posted April 6, 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. Payroll Job Growth Slows Total payroll job growth for February was a respectable 120,000. The rate of government job loss slowed to just 1,000 for the month The previously reported February gain was revised upward by 14,000 jobs; January was revised down by 9,000 Job growth was widespread, with manufacturing, health care, and food services among the leaders Posted April 6, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
  3. Official Unemployment Rate Falls to 8.2 Percent The official unemployment rate, which is the ratio of unemployed persons to the labor force, fell slightly to 8.2 percent, its lowest since February 2009 Surprisingly for this stage of the business cycle, the labor force, the number of employed, and the number of unemployed all fell The unemployment rate is based on a household survey that does not always closely track job growth as reported by the payroll survey Posted April 6, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
  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  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 sharply to 14.5 percent, largely because of a decrease in involuntary part-time work Posted April 6, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
  5. Employment-Population Ratio Falls Slightly The employment to population ratio fell slightly to 58.5 percent, remaining only a little above its its all-time low of July 2011 Recent changes come against a longer-term downward trend caused, in part, by a steady increase in the percentage of the population of retirement age Posted April 6, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

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