Friday, June 06, 2014

May Employment Report: 217,000 Jobs, 6.3% Unemployment Rate

by Bill McBride on 6/06/2014 08:30:00 AM

From the BLS:

Total nonfarm payroll employment rose by 217,000 in May, and the unemployment rate was unchanged at 6.3 percent, the U.S. Bureau of Labor Statistics reported today.
After revision, the change in total nonfarm employment for March remained +203,000, and the change for April was revised from +288,000 to +282,000. With these revisions, employment gains in March and April were 6,000 lower than previously reported.
Percent Job Losses During RecessionsClick on graph for larger image.

The headline number was at expectations of 213,000 payroll jobs added.

The first graph shows the job losses from the start of the employment recession, in percentage terms, compared to previous post WWII recessions. The dotted line is ex-Census hiring.

This shows the depth of the recent employment recession - worse than any other post-war recession - and the relatively slow recovery due to the lingering effects of the housing bust and financial crisis.

Payroll jobs added per month
Total employment is now 98 thousand above the pre-recession peak and at an all time high.  It is probably time to retire this graph - until the next recession. 

NOTE: The second graph is the change in payroll jobs ex-Census - meaning the impact of the decennial Census temporary hires and layoffs is removed to show the underlying payroll changes.

The third graph shows the employment population ratio and the participation rate.

unemployment rateThe Labor Force Participation Rate was unchanged in May at 62.8%. This is the percentage of the working age population in the labor force.   A large portion of the recent decline in the participation rate is due to demographics.

The Employment-Population ratio was unchanged in May at 58.9% (black line).

I'll post the 25 to 54 age group employment-population ratio graph later.

Employment Pop Ratio, participation and unemployment ratesThe fourth graph shows the unemployment rate.

The unemployment rate was unchanged in May at 6.3%.

This was a solid employment report, and total non-farm employment is now at a new all time high.

I'll have much more later ... 

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