Friday, August 01, 2014

July Employment Report: 209,000 Jobs, 6.2% Unemployment Rate

by Bill McBride on 8/01/2014 08:30:00 AM

From the BLS:

Total nonfarm payroll employment increased by 209,000 in July, and the unemployment rate was little changed at 6.2 percent, the U.S. Bureau of Labor Statistics reported today.
...
The change in total nonfarm payroll employment for May was revised from +224,000 to +229,000, and the change for June was revised from +288,000 to +298,000. With these revisions, employment gains in May and June were 15,000 higher than previously reported.
Payroll jobs added per monthClick on graph for larger image.

The first graph shows the monthly 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).

This was the sixth month in a row with more than 200 thousand jobs added, and employment is now up 2.57 million year-over-year.

Total employment is now 639 thousand above the pre-recession peak.

unemployment rateThe second graph shows the employment population ratio and the participation rate.

The Labor Force Participation Rate was increased in July to 62.9%. 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 at 59.0% (black line).

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

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

The unemployment rate increased in July to 6.2%.

Although below expectations, this was another solid employment report - including the positive revisions to prior months.  2014 is on pace to be the best year for employment gains since 1999.

I'll have much more later ...

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