Friday, January 06, 2012

December Employment Report: 200,000 Jobs, 8.5% Unemployment Rate

by Bill McBride on 1/06/2012 08:30:00 AM

From the BLS:

Nonfarm payroll employment rose by 200,000 in December, and the unemployment rate,
at 8.5 percent, continued to trend down, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in transportation and warehousing, retail trade, manufacturing, health care, and mining.
...
The change in total nonfarm payroll employment for October was revised from +100,000 to +112,000, and the change for November was revised from +120,000 to +100,000.
The following graph shows the employment population ratio, the participation rate, and the unemployment rate.

Employment Pop Ratio, participation and unemployment rates Click on graph for larger image.

The unemployment rate declined to 8.5% (red line).

The Labor Force Participation Rate was unchanged 64.0% in December (blue line). This is the percentage of the working age population in the labor force. The participation rate is well below the 66% to 67% rate that was normal over the last 20 years, although some of the decline is due to the aging population.

The Employment-Population ratio was unchanged at 58.5% in December (black line).

Percent Job Losses During Recessions The second graph shows the job losses from the start of the employment recession, in percentage terms. The dotted line is ex-Census hiring.

This was a decent report and above consensus, but expectations are pretty low. I'll have much more soon ...

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