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Unemployment at 6.3 Percent in May The US unemployment rate remained at 6.3% in June 6014, its low for the recovery. The unemployment rate is the ratio of unemployed persons to the labor force. The labor force grew by 190,000, partially reversing a sharp drop in April. The number of unemployed workers rose by 46,000 and the number of employed increased by 145,000 The unemployment rate is based on a monthly survey of households June 6, 2014 Ed Dolan’s Econ Blog
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 fell to 12.2 percent in May, a new low for the recovery June 6, 2014 Ed Dolan’s Econ Blog
Involuntary Part-time Work Falls in May One component of the broad unemployment rate consists of people working part-time “for economic reasons,” popularly known as “involuntary part-time” employment. This category includes workers who would like full-time work but can’t find it, or whose employers have cut their hours below full time Involuntary part-time work fell in May, resuming the downward trend since its peak in late 2009 June 6, 2014 Ed Dolan’s Econ Blog
217,000 New Payroll Jobs The BLS conducts a separate survey of payroll jobs based on employer records. According to that survey, payroll jobs grew by 217,000 in May The average monthly increase in payroll jobs over the past 12 months has been 190,000 Job gains were spread broadly across goods, services, and government June 6, 2014 Ed Dolan’s Econ Blog
Long-term Unemployment Falls to Low for Recovery The recession and slow recovery have been characterized by unusually high levels of long-term unemployment The percentage of the unemployed out of work for 27 weeks fell to 34.6 percent, a new low for the recovery The median and mean duration of unemployment also decreased for the month June 6, 2014 Ed Dolan’s Econ Blog
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