FileUnemployment

Nonfarm payroll for the month of December rose by 145,000. It is significantly less as compared to the previous month. The U.S Bureau of Labor Statistics reported no change in the unemployment rate which currently stands at 3.5%. 

Major Ups and Down in December

Job gains took place in sectors like retail trade and health care. 2019 saw an increase in the payroll by 2.1 million. The retail trade sector added 41,000 jobs respectively in December. Retail verticals that saw an increase in jobs were clothing & accessory stores, building material, and garden supply stores.

The health care sector added 28,000 Jobs in December. The Ambulatory health care services sector added over 23,000 jobs alone. In total, the health care sector added 399,000 jobs in 2019.

The leisure and hospitality industry saw a continued upward trend in December adding 28,000 jobs respectively. The leisure and hospitality industry added 388,000 jobs in 2019. 

The Mining industry saw a decline of 8,000 jobs in December. 2019 saw a decline of 24,000 jobs in the mining industry.

Employment in the construction sector changed very little in December adding 20,000 jobs. Though 2019 did see an increase in the construction sector by adding 151,000 jobs. 

10,000 jobs were added in the professional and business services sector. The industry saw the addition of 397,000 jobs in 2019.

The manufacturing sector saw very little change in jobs as compared to the previous month. On the whole, the sector added 46,000 jobs in 2019. 

Establishment Survey Data 

December saw the average hourly earnings for all nonfarm private employees rise by 3 cents to $28.32. The last year saw the average hourly earnings increased by 2.9 %. The average workweek for all employees stood unchanged at 34.3 hours for the month of December. 

The average workweek and overtime for the manufacturing sector stood unchanged at 40.5 hours and 3.2 hours in December. 

December saw 1.2 million people who were marginally attached to the labor workforce. The number of discouraged workers was 277,000 in December. Among the workers employed part-time for economic reasons stood at 4.1 million which changed little in December. 

Household Survey Data 

Workers GroupUnemployment Rate
Adult Men3.1 percent
Adult Women 3.2 percent
Teenagers12.6 percent

 

Workers Group Unemployment Rate
White population 3.2
Black population 5.9
Asian population 2.5
Hispanics 4.2

The unemployment rate for adult men decreased by 0.1% as compared to the last year. The unemployment rate for adult women remains the same as the previous month. The teenager unemployment rate went up by .6%

The unemployment rate for the white population remains the same as the previous month. On the other hand, the black population unemployment rate went up by 0.4%. The Asian unemployment rate dropped by 0.1% The unemployment rate for Hispanics remains the same as compared to the previous month. 

Final Analysis 

The retail trade and healthcare saw positive job gains for the month of December. Its been a good month for job seekers on the whole. Also, the last year saw a lot of jobs being created in several new sectors and the unemployment rate dropping to 3.5%. 

The total nonfarm payroll increased by 266,000 in November. In comparison to October, the nonfarm pay has seen a significant increase. There is a slight change in the unemployment rate, which currently stands at 3.5%, according to the U.S Bureau of Labor Statistics.

Major Ups and Downs in November

Significant job gains took place in the health care industry, professional, and technical services industry. The manufacturing sector saw a rise in employment after numerous workers returned from the GM strike. The industry saw an overall gain of 54,000 jobs in November. 

The healthcare sector added 45,000 jobs, which is a considerable increase as compared to October. October just added 12,000 jobs. The hospitality and leisure vertical added 45,000 jobs, whereas the professional and business service added 31,000 jobs, respectively, in November. 

Employment in the warehousing sector saw an upward growth adding 16,000 jobs, respectively. The financial industry also added 13,000 jobs with an increase of 7,000 in credit intermediation and other related activities. 

The mining industry lost 19,000 jobs after it perked up in May. The losses in jobs occurred primarily due to not a strong support in mining activities across the country. Sectors like construction, and wholesale trade, saw no change in the employment rate.

Establishment Survey Data 

The number of people who were employed part-time stands at 4.3 million and saw a very slight change in November. November also saw 1.2 people million people marginally attached to the workforce. The number of discouraged workers stood at 325,000, which is down by 128,000 from the previous year. 

The average hourly earnings for all employees spiked up by 7% to $28.98. The past twelve months saw an increase in the average hourly earnings, which stands at 3.1%. November saw no change in the average workweek, which currently stands at 34.4 hours, respectively. 

Household Survey Data

The Unemployment rate for the various worker groups in November stands at:

Workers Group Unemployment Rate
Adult Men3.2 percent
Adult Women3.2 percent
Teenagers12.0 Percent

 

Workers Group Unemployment Rate
White population3.2 percent
Black population 5.5 percent
Asian population 2.6 percent
Hispanics 4.2 percent

The Unemployment rate is currently the same for adult men & women as the previous month. The teenager unemployment rate dropped to 12% in November. 

The white population unemployment rate is the same as the previous month. The black population unemployment rate went a notch up and currently stands at 5.5%. The Asian unemployment rate dropped to 2.6 % as compared to the previous year. The Hispanic unemployment rate went up and stands at 4.2% currently.

Final Analysis

The job report for November is definitely on the bright side. The unemployment rate dropped to 3.5%, and the nonfarm payroll increased by 266,000. 

Significant job gains were recorded in verticals like the health care industry, professional, and technical services industry. All in all, November has been a great month for job seekers and professionals. 

 

According to the U.S. Bureau of Labor Statistics, there was a slight change in the October unemployment rate which currently stands at 3.6 percent. October saw a pick up in monthly earnings which rose to 0.1% and saw a yearly gain of 3%.

Major Ups and Downs in October 

Nonfarm payroll for the month of October stands at 128,000. In comparison to the month of September, the October nonfarm payroll is far behind. Important job gains occurred in the fields of food services, bars, social support, and the financial sector. The food sector and bars added a total of 48,000 jobs. A huge improvement has taken place in the food and bar industry. The last three months averaged just 38,000 jobs in the food and bar sector.

October saw an increase in average hourly earnings by 6 cents to $28.18. The average workweek for employees in October remained unchanged at 34.4 hours in October.   

Due to the activity caused by General Motors (GM) strike, motor vehicle companies saw a decrease in hiring activity. Economists anticipated a job loss of 50,000 or more but only 42,000 job losses were reported due to the strike.

Establishment Survey Data

Employment in the federal government reduced to 17,000, which in the long run may reduce the number of temporary jobs in 2020. The unemployment rate for African Americans hit a record low of 5.4%. For Asians workers, the unemployment rate jumped up by 0.4 percentage points to 2.9%.  

Employment in the healthcare industry saw an upward trend in the month of October adding 15,000 jobs. 402,000 jobs were added in the healthcare industry over the past 12 months. 

The number of people who were employed on a part-time basis currently stands at 4.4 million and saw little change. The month of October also saw 1.2 million people partially attached to the labor force. Which is down by 262,000 from last year. October saw a reduced number of discouraged workers at 341,000, which is down by 165,000 from the previous year. 

House Hold Survey Data

The Unemployment rate for major worker groups in the U.S stands at: 

Workers Group Unemployment Rates
Adult Men 3.2 percent
Adult Women 3.2 percent
Teenagers12.3 percent

 

Workers Group Unemployment Rates
White population 3.2 percent
Black population 5.4 percent
Asian population 2.9 percent
Hispanics 4.1 percent

The unemployment rate stands the same as the last month for adult men. The unemployment rate for adult women has gone up by point one percent. Whereas teenage unemployment rate has decreased by .2 %. 

The unemployment rate stands the same for the white population as compared to last month. On the other hand, It has touched a record low of 5.4% for the black population. Also, there was a slight spike in the unemployment rate for the Asian and Hispanic populations.

Final Analysis

The October job report has several positive aspects to it. Even though the unemployment rate went up slightly to 3.6%, it is still very close to the lowest rate in 50 years. The long term unemployed remain unchanged at 1.3 million which accounted for 21.5 percent of the unemployed. 

Professional and business services saw an upward trend adding 22,000 jobs in the month of October. Other industries like mining, construction, wholesale trade, retail trade, transportation, warehousing, and information showed a very slight change in October.

 

 

As per the employment situation report for September, the unemployment rate is reduced by 0.2 percentage points to reach 3.5 percent. With this, the unemployment rate is said to have reached a 50-year low, matching the figures of December 1969.

Major Ups and Downs in September

The unemployment rate has remained below 4 percent for the 19th month in a row. The unemployment rate stands at a 50-year low, which highlights further strengthening of the labor market in the United States.

The month of September has witnessed positive changes in job creation, where the total non-farm payrolls rose by 136,000. However, this figure is considerably lesser compared to the month-on-month for 2019, which stands at 161,000. It is also lower than the overall average for 2018, which stood at 223,000. 

The total payroll for July and August has been revised, and where the total payroll increase for these months is increased to 159,000 and 168,000 respectively. In comparison to these months, it is evident that the payroll increase for September is low.

One of the positive indicators for the month of September is that the rate of discouraged workers has come down by 0.3 percent points, matching the 19-year low record. It is also just 0.1 percent away from matching the all-time low figure of 6.8 percent.

In spite of the drop in the unemployment rate, there are other important concerns that are reflected in the report published by the employment situation report for September published by Bureau of Labor Statistics. One of the main issues highlighted in the report is that on wage growth. Over the last 12 months, wages have increased by 2.9 percent, which is the lowest since July 2018.

The reducing rate of job creation and low growth of wages will still remain to be a matter of concern in spite of the drop in the unemployment rate.

Establishment Survey Data

The payroll growth is below average for the month of September (136,000), which is lesser than the forecast made by experts (145,000). Sectors that have performed well in the month are health care and in professional and business services, which have added a major chunk of jobs.

The Health Care sector has added 39,000 jobs in September, which is in line with its average monthly gain for the last 12 months. The Professional and Business Services sector, on the other hand, has added 34,000 jobs in the month, which is marginally lesser than its monthly average for 2019, which stands at 35,000. 

Other sectors such as Transportation and Warehousing and Government sectors too have seen an upward trend in September, with each sector adding 16,000 and 22,000 jobs respectively. 

The sector with most job loss for September is Retail Trade, which has recorded a payroll loss of 11,000 for September. The report states that since its peak in 2017, the sector has lost nearly 197,000 jobs.

Sectors such as Mining, Construction, Manufacturing, Wholesale Trade, Information, Financial Activities, and Leisure and Hospitality have seen little to no change in its performance for the month.

Household Survey Data

The unemployment rate has come down marginally for most of the major worker groups. The unemployment rate for major worker groups stands at:

Workers GroupsUnemployment Rates
Adult Men3.2 percent
Adult Women3.1 percent
Teenagers12.5 percent

 

Workers GroupsUnemployment Rates
White population3.2 percent
Black population5.5 percent
Hispanic population3.9 percent
Asian population2.5 percent

The unemployment rate has come down for marginally for adult men, women and teenagers. Among the racial groups, unemployment rate Hispanics have seen a reasonable improvement, which has come down for 4.2 percent to 3.9 percent. The unemployment rate has come down for the Asian population as well, but there has been no change in the rate for the black population.

Final Analysis

There have been some very positive improvements in the employment situation for the month of September. The unemployment rate has reached a 50-year low, and there has been an increase in the new entrants in the job market. The job market has also witnessed a decline in the number of job losers and persons who completed temporary jobs. 

These developments mark a positive trend, but there are some challenges too that need to be addressed. Issues such as low wage growth and low growth of payroll are considerably important issues that need to be addressed at the earliest.

 

Key Points:

  •  Total nonfarm payroll employment in August rose by 130,000. The rise in June was 178,000
  •  Increase in the average hourly earnings to 0.4 percent in August  from 0.3 percent in July
  • The labor participation rate has risen from 63 percent in July to 63.2 percent in August

 

The employment situation for August shows that the rate of unemployment remains unchanged at 3.7 percent. The report for August contains a mixed bag of results, where some indicators have seen a slump, whereas others have seen a promising rise. 

Major Ups and Downs in August

The total nonfarm payroll employment rose by 130,000. This is less than the revised average of 156,000 per month for the last three months. The job growth rate for the month has been poorer than in the previous months.

The data for June and July, although indicate higher growth than August, has been revised from the previously acknowledged figures. The payroll growth for the month of June has been revised from 193,000 to 178,000, and the payroll increase for July has been revised from 164,000 to 159,000 as per the Bureau of Labor Statistics

The payroll growth for August has been considerably lesser than the rise witnessed in June and July, and this indicates a major slowdown in job creation for the month of August.

The challenges faced in August was not helped by the fact that, apart from the federal hiring, private payroll only grew by 96,000. This is considered to be the slowest pace of growth since February 2019. Also, the rise in federal hiring is largely due to the hiring of temporary workers for the 2020 survey. 

On the positive side, the month of August has also witnessed an increase in the average hourly earnings, which rose to 0.4 percent from 0.3 percent in July. Also, the labor participation rate has seen a marginal rise from 63 percent to 63.2 percent

Establishment Survey Data

The payroll growth (130,000) in August has been less than the average growth recorded so far in 2019, which stands at 158,000. The slump appears to be greater when compared to the overall average of the year 2018, which stood at 223,000.

There was an increase in private-sector employment by 96,000 with notable gains made in the healthcare sector and the financial sector. The public-sector employment rose by 28,000, largely due to the recruitment of 25,000 temporary employees for 2020 census work.

The health care sector has added 24,000 jobs in August, taking the value for the last 12 months to 392,000. The financial sector too added 15,000 jobs for the month, taking its 12-month tally to 111,000. Other sectors that added jobs in August include the professional and business services sector, social assistance, and mining.

Sectors that changed little to none in August include construction, manufacturing, transportation

and warehousing, and leisure and hospitality. The retail sector, on the other hand, lost about 15,000 jobs in the month.

Household Survey Data

There are no major changes in the unemployment rate of the major worker groups. The unemployment rate for major worker groups stands at:

Workers GroupsUnemployment Rates
Adult Men3.4 percent
Adult Women3.3 percent
Teenagers12.6 percent
White population3.4 percent
Black population5.5 percent
Hispanic population4.2 percent
Asian population2.8 percent

According to the data from August, the unemployment for ‘adult women’, ‘teenagers’, ‘Black population’ and ‘Hispanic population’ has seen a marginal decrease in the rate of unemployment. 

The rate of labor force participation and the employment-population ratio has seen a marginal increase in August. Labor participation rate 63.2 percent, while the employment-population ratio also went up to 60.9 percent in August.  

Final Analysis

The rate of job growth has considerably slowed down. Experts point out that the disagreements in trade deals between the United States and China could be one of the important reasons for the slump the US is facing in job creation. 

However, the increasing wage rate and labor participation rate indicates a positive sign. It shows that people may make more money per hour than the earlier weeks and that more and more people are entering the job market. 

  

The employment situation for the month of July has seen little changes from the previous month. The unemployment rate remains at 3.7 percent in July, indicating that the rate remains unchanged.

The job growth, however, has not increased in comparison to the previous month. The important news to emerge from the ‘Employment Situation Report- July 2019’ is that the job growth numbers given for May and June have been revised. The total payroll gain is reported to be 41,000 less than that was previously reported for May and June combined.

The payroll increase for May is revised to 62,000 from the earlier reported figure of 72,000. The increase for the month of June is revised to 193,000 from the previously reported 224,000.

The nonfarm payroll jobs increase reported for the month of July is 164,000. The figure is lower than the newly revised figure of the previous month.

Establishment Survey Data

The job gain in July is in line with the average employment growth in the first six months of 2019. Some of the notable contributors in creating jobs for July are professional and technical services, health care, social assistance, and financial activities.

Professional and technical services added nearly 31,000 jobs for the month of July. This also takes the yearly average of the sector to 300,000, which accounts for one-third of all jobs created in the last year.

The jobs created by the healthcare sector for July is 30,000 for the month of July. The total jobs added by the health care sector over the year is about 405,000, which accounts for nearly two-thirds of all jobs created.

The jobs added by social assistance and financial activities sectors are 20,000 and 18,000 respectively in the month of July.

The average workweek for all workers has come down by 0.1 hours, standing at 34.3 hours in July. This decline has been steeper in the manufacturing sector, which registered a decline of 0.3 hours, standing at 40.4 hours.

The wage rate has seen a rise in July, keeping up with the rate that was recorded in the previous month. The average hourly earnings have increased by 8 cents, standing at $27.98. The rise in the previous month too was 8 cents, thus indicating that the rate of wage growth has not seen much difference in July.

Household Survey Data

The ‘major worker groups’ have not seen big changes in the rate of unemployment as compared to the previous month. The unemployment rate of the major workers’ groups for the month of June are:

Workers GroupsUnemployment Rates
Adult Men3.4 percent
Adult Women3.4 percent
Teenagers12.8 percent
White population3.3 percent
Black population6.0 percent
Hispanic population4.5 percent
Asian population2.8 percent

As per the data presented in July, there has been a marginal increase in the unemployment rate of adult men, women and teenagers. In the case of racial groups, there has been a marginal increase in the rate of unemployment for the Hispanic population. The only considerable difference appears in the rate of unemployment of the Asian population, which has come down to 2.8 percent from 2.1 percent in the previous month.

Final Analysis

Although the number of jobs created in July is lesser than the rate of growth in June and May, the overall growth rate seems stable. There has also been an increase in wages, which although is marginal, is a positive sign.

The employment situation in June has shown promise in creating opportunities and increasing wage growth. The performance by the US economy has exceeded the expectations as it added nearly 224,000 jobs, thus providing more opportunities against the market expectations of 162,000 jobs. The employment situation in June, therefore, has created more optimism among the policy-makers and job seekers after a brief period of slow growth.

The rate of unemployment has seen a slight change as it has gone up to 3.7 percent from 3.6 percent in May. Despite this marginal increase in the unemployment rate, the increased job creation is said to have given the momentum to the US economy. 

The US economy added about 172,000 jobs a month on average in the last three months, which was down from 223,000 in the previous year. The addition of 224,000 jobs in June, however, has helped cool off the pressure on the economy.

Establishment Survey Data

Notable job gains were made in professional and business services, health care, and transportation and warehousing. The professional and business services added over 51,000 jobs for the month of June, which is one of the top performers of the month. 

The average employment growth in professional and business services is 35,000 a week in 2018 and the month of May saw a meager increase of 24,000. However, the increase in June has been remarkable as it also went above the employment growth of 2018, which was 47,000.

The health care sector added 35,000 jobs in June, in which ambulatory health care services and hospitals added the most number of jobs – 19,000 and 11,000 jobs respectively. The construction sector (+21,000), manufacturing (+17,000), transportation and warehousing (24,000) have also added a significant number of jobs in June.

The average hourly wage earnings for all employees increased by 6 cents, following the 9-cent increase in May. Over the last 12 months, hourly earnings of employees have increased by 3.1 percent.

Household Survey Data

The employment status of the major workers’ groups has seen little changes from the month of May. The unemployment rate of the major workers’ groups for the month of June is as follows:

Workers GroupsUnemployment Rates
Adult Men3.3 percent
Adult Women3.3 percent
Teenagers12.7 percent
White population3.3 percent
Black population6.0 percent
Hispanic population4.3 percent
Asian population2.1 percent

The labor force participation rate was at 62.9 percent, which witnessed little change from the month of May. The employment-population ratio remained unchanged at 60.6 percent for the fourth month in a row.

Final Analysis

The increase in the number of jobs for the month of June has alleviated eased the pressure on the United States’ economy. The slow growth of the job market in May had raised questions on the health of the economy, and on the future course to be taken to stabilize the economy.

The positive figures presented in June has given a breathing space for the policymakers and has also given an impetus to workers and job-seekers as the rate job-creation and the average weekly wages have increased.  

  

The employment situation for the month of May has steadfastly maintained the growth achieved in the month of April. The unemployment rate has remained at 3.6 percent, which still remains to be the lowest rate in the last 50 years. The month of May will be the record 15th month to witness the rate of unemployment grow under 4 percent.

Establishment Survey Data

The professional and business services and healthcare companies have added more jobs than other sectors in May. The two sectors have added 33,000 jobs and 16,000 jobs respectively. However, there has been a substantial fall in job growth in these sectors when compared to the previous month. The professional and business services added 76,000 jobs and the healthcare sector added 27,000 in the month of April.

The reduction in job growth is not newly encountered in the month of May as this phenomenon has been observed since the month of March. The US just added an overall of 75,000 jobs in the month of May, which is significantly lesser than 224,000 jobs added in April. The average job growth has come down to 151,000 in the last three months (March, April, and May) against the average of 196,000 in the last 12 months.

This trend of reducing job growth, in spite of the unchanged unemployment rate, is worrisome due to the ongoing global trade disputes, particularly between the US and China. The heat is particularly felt by the construction and manufacturing companies. Employment in construction companies saw a small improvement of 4000, whereas the industry added over 30,000 new workers in April.

Manufacturing companies, along with mining, retail trade, retail trade, transportation, and warehousing companies witnessed a very small change in job growth in May. Along with the reducing job growth rates, another important indicator that is pointing towards the sensitivity of nature of the economy was the ISM Manufacturing Index.

The ISM Manufacturing Index is considered as one of the most important indicators of recent US economic activities. The Index showed that the economic activity in the month of May was at the lowest level in the last three years. This indicates another warning to the strength of the factory sector.

Household Survey Data

The status of the labor force has seen little to no change in the month of May, as compared to the month of April. The status of the major worker’s groups for May are as follows:

Workers GroupsUnemployment Rates
Adult Men3.3 percent
Adult Women3.2 percent
Teenagers12.7 percent
White population3.3 percent
Black Population6.2 percent
Hispanic population4.2 percent
Asian population2.5 percent

The month of May witnessed a marginal increase in the rate of persons unemployed less than 5 weeks and persons who are long-term unemployed. Persons unemployed less than 5 weeks increased by 243,000 to 2.1 million, whereas the long-term unemployed stood at 1.3 million.

The labor force participation rate and employment-population ratio both remained unchanged from the month of April, as both stood at 62.8 percent and 60.6 percent respectively.

Final Analysis

The trends displayed in the month of May may ring a bell of caution to the policy-making fraternity of the United States. The reducing job growth rate and the not-so-promising ISM Manufacturing Index results for this month indicates that there might be some challenges up ahead to contain the reduction of job growth rate.

Although the overall rate of unemployment stands at a record low as of May, there is a need to take steps to increase the rate of job growth to achieve sustainable growth.

The rate of unemployment in the United States reached a record low by the end of April, which is said to have the lowest rate of unemployment in the last 50 years. The unemployment rate dropped to 3.6%, and the month of April will be the 14th consecutive month to record an unemployment rate below 4 percent. While the drop in the rate of unemployment appears to be a good sign for the economy on the outset, this statistic alone does not show the entire picture.

The Employment Situation Report for the month of April suggested that the US economy added no less than 263,000 jobs in the month of April. Along with the decline in the rate of unemployment, the United States economy has also witnessed another highly encouraging development.

The wage growth in the last nine continuous months has been over 3%, with the month of April recording a rise in the wage rate by 3.2%. The United States economy has witnessed the wage rate growth in such continuity for the first time since the great recession of 2008-09.

As the United States enter into a positive time-period with respect to the growth of employment rate, the government still have a major concern to address. The concern being, the 3.6% unemployment rate does not completely encapsulate the actual state of the matters on the grassroots level.

The official unemployment rate only includes those in the ‘labor force’. To remain in the labor force, the requirement is that one must have looked for an employment opportunity in the last four weeks.

The real unemployment rate, as opposed to the official unemployment rate, also includes the underemployed, the marginally attached, and discouraged workers. As a result, the real employment rate is considered to be more comprehensive as it represents a larger set of people who are at the bottom of the labor market.

The rate of real unemployment in the US is 7.3% for the month of April. Also, the reduction in the main unemployment rate is coincided with a decline in the labor force participation by 0.2 percentage point, which currently stands at 62.8%.

The records show that the share of people working or actively looking for work has seen a bare minimum change in the last seven years. This shows that aspects such as job mobility, combined with mediocre wage rate growth is not helping the employees grow in reality.

To counter this and provide a more organic environment for the employees and the employers, the government must come up with a comprehensive job creation strategy. The government must also cater to those who are not in the ‘labor force’, along with those who are currently seeking a job to see more sustainable growth in the economy of the United States.

The United States already gives importance to the start-ups to make sure that more and more people get opportunities. Start-ups are also said to produce a large number of jobs due to the sheer number of new ventures that come out every year. The successive governments over the years have spent a lot of amount of money to provide an organic infrastructure to help start-ups to prosper.

The issue here is that, in spite of the investment and support, nearly 75% of the start-ups fail in the early years. Also, Startups that have less than 20 employees generally have a negligible effect on net job creation until they pass the 5-year period.  

The government must diversify its policy programs beyond the start-ups, which is currently given high importance with respect to job creation. Sectors such as manufacturing, construction, and health care have been steadily increasing the intake of people. Governments providing incentives to these industries to create more jobs will help in creating more stable jobs. This may help in bringing down the number of underemployed and marginally attached workers.

There is a need for the government of the US to diversify its purview beyond the start-ups and look to provide incentives for high-impact companies that are locally based to accelerate the next level of growth.

As per the April employment situation report, the unemployment rate is the lowest in 50 years at 3.6 percent while nonfarm payroll employment increased by 263,000. The April employment situation report further stated that major job gains were in professional and business services, construction, health care, and social assistance.

Household Survey Data

This is the lowest unemployment rate since 1969. The rate declined by 0.2 percentage point to 3.6 percent in April. Also, there was a decrease of 387,000 unemployed persons and this reduced to 5.8 million overall.

In the major worker groups, the unemployment rates declined:

  • Adult Men – 3.4 percent
  • Adult Women – 3.1 percent
  • Whites – 3.1 percent
  • Asians – 2.2 percent
  • Hispanics – 4.2 percent
  • Teenagers – 13 percent
  • Blacks – 6.7 percent

The number of job losers and people that completed temporary jobs declined by 186,000 over the month to 2.7 million. While at the same time, the number of people unemployed for less than 5 weeks declined by 222,000 to 1.9 million. Similarly, the long-term unemployed was little changed at 1.2 million in April and accounted for 21.1 percent of the unemployed.

The labor force participation rate was unchanged from a year earlier. It declined by 0.2 percentage point to 62.8 percent in the month of April. Also, the employment-population ratio has remained unchanged at 60.6 percent in April and this has been either 60.6 percent to 60.7 since October 2018.

For economic reasons, there were some people that worked part-time and this changed a little at 4.7 million in April. These were mostly individuals that preferred full-time employment and were working part-time because their hours had been reduced or unable to find full-time work.

With regard to the unemployment situation in April, 1.4 million people were marginally attached to the labor force in April. These individuals were not in the labor force and were looking for work for 12 months. There were 454,000 discouraged workers in April which was about the same as last year. Discouraged workers are people that are not currently looking for work because they feel that there are no jobs available for them. The remaining 963,000 attached to the labor force had not searched for work as they had school attendance and family responsibilities to tend to.

Establishment Survey Data

Employment Based on Sectors

In the employment situation, the nonfarm payroll employment had increased by 263,000 in April as compared to the monthly gain of 213,000 over the last 12 months. The major job gainers were in professional and business services, construction, health care, and social assistance.

There were 76,000 jobs in the professional and business services category. Administrative and support services increased by 53,000 and 14,000 in computer systems design and related services. In the last 12 months, professional and business services added 535,000 jobs.

Construction employment grew by 33,000 and this saw gains in the nonresidential specialty trade contractors by 22,000 and heavy and civil engineering construction by 10,000. The construction added 256,000 jobs over the past 12 months.

In health care, employment grew by 27,000 and 404,000 over the past 12 months. The ambulatory health care services increased by 17,000, hospitals by 8,000 and community care facilities for the elderly at 7,000. Also, social assistance added 26,000 jobs over the month.

Employment for financial activities continued to trend up by 12,000. The industry has added 110,000 jobs over the last 12 months with almost three-fourths of the growth seen in rental, leasing and real estate.

There was little change in manufacturing for a third month in succession and it increased by 4000 in April. 12 months prior to February, this industry had added 22,000 jobs per month.

Retail employment was down by 12,000 and 9,000 job losses were in merchandise stores. But at this time motor vehicle and parts dealers added 8,000 jobs.

Other major industries that showed little change in April were mining, wholesale trade, transportation and warehousing, information, leisure and hospitality, and government.

Revisions

The total nonfarm payroll employment was changed from 33,000 to 56,000 for February while March was changed from 196,000 to 189,000. Based on these revisions, employment increased by 16,000 more than what was previously reported.

 

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