US Broad and Long-Term Unemployment Fall in May
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Economics for your Classroom from Ed Dolan’s Econ Blog Broad and Long-Term Unemployment Fall in May as Workers Return to Labor Force June 6, 2014 Terms of Use: These slides are provided 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 Publishing.
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The US broad unemployment rate, U-6, fell to 12.2 percent in May, a new low for the recovery. The standard rate remained at the low of 6.3 percent reached in April. The economy added 217,000 payroll jobs
Transcript of US Broad and Long-Term Unemployment Fall in May
Economics for your Classroom fromEd Dolan’s Econ Blog
Broad and Long-Term Unemployment Fall in May as
Workers Return to Labor ForceJune 6, 2014
Terms of Use: These slides are provided 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 Publishing.
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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