The Employment Situation July 2018
July 2018 saw the unemployment rate edge down to 3.9% from June’s 4.0%. The number of unemployed decreased by 284,000 to 6.3 million in the month of July. In both cases, numbers were down over the year by 0.4% and 676,000 numerically.
In terms of the major working groups, the unemployment rate for adult men and whites both declined to 3.4% in the month of July. The jobless rates for adult women remained at 3.7%. Teenagers at 13.1%, blacks at 6.6%, Asians at 3.1% and Hispanics at 4.5%.
When it comes to unemployed persons, the number of re-entrants to the labor force had a decrease of 287,000 in July to 1.8 million, following the increase in June. (Re-entrants are people who were previously employed but were not part of the labor force prior to beginning their job search)
Out of the total unemployed, the number of long term unemployed persons (those who have been unemployed for 27 weeks or more) remained unchanged from the 1.4 million in July. The long term unemployed accounted for 22.7% of the total unemployed.
The Labor participation rate for the month of July remained unchanged at 62.9% over the month of July as well as the year. The employment population ratio which is at 60.5% changed little in July but increased by 0.3% over the past 12 months.
The number of people who are employed part time for economical reasons (aka involuntary part time workers) changed little from 4.6 million in July, but over the year was down by 669,000. These people, would have preferred full time employment, had to settle for part time because of reduced hours and the inability to find full time jobs.
July 2018 sees 1.5 million people marginally attached to the labor force, which is a slight difference from the previous year. These people were not part of the labor force, wanted and were available for work, and were looking for jobs during the prior 12 months. The Bureau of Labor Statistics did not count them as unemployed because they did not look out for work for in the 4 weeks preceding the survey.
When it comes to the marginally attached, there were 512,00 workers who were discouraged, which is a slight change compared to the previous year. Discouraged workers are termed for people who aren’t currently look for work because of their belief that no jobs are available to them. The remainder 1 million people who are marginally attached to the labor force in July had not searched for employment due to family responsibilities and school attendance.
Non Farm Payroll Employment
The total non farm payroll employment increased by 157,000 in July 2018. This is in comparison to the average monthly gain of 203,000 in the past year. July saw job gains occur in professional and business services, manufacturing, health care and social assistance industries
Out of the non farm payroll employment increase, the professional and business services increased by 51,000 in the month, and 518,000 jobs over the year. Over the month, employment increased in the temporary health services by 28,000 and computer systems design and related services by 8000.
The manufacturing industry added in 37,000 in the month of july, with most gains in the durable goods component. There was an increase in employment in transportation equipment by 13000, 6000 in machinery and 2000 jobs in the electronic instruments industry. Over the past year, the manufacturing industry has added in 327,000 jobs.
Employment in health care and social assistance industries rose by 34,000 in the month of July. The healthcare industry trended up in employment over the month with 17000 jobs, contributing to an increase of 286,000 jobs over the year. Hospitals added in 7000 jobs over the month, whereas social assistance, individual and family services added in 16,000 jobs in July and 77,000 jobs over the year.
Employment in food services and drinking places continued to trend up over the month (+26,000). Over the year, the industry has added 203,000 jobs.
Construction employment continued to trend up in July (+19,000) and has increased by 308,000 over the year.
In July, employment in retail trade changed little (+7,000). Job gains occurred in general merchandise stores (+14,000), clothing and clothing accessories stores (+10,000), and food and beverage stores (+8,000). These employment gains were offset by a decline of 32,000 in sporting goods, hobby, book, and music stores, reflecting job losses in hobby, toy, and game stores.
Employment showed little or no change over the month in other major industries, including mining, wholesale trade, transportation and warehousing, information, financial activities, and government.
The Employment Situation is a monthly report and survey conducted by the United States Bureau of Labour Statistics.