In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Friday, June 03, 2022

May Employment Report: 390 thousand Jobs, 3.6% Unemployment Rate

by Calculated Risk on 6/03/2022 08:44:00 AM

From the BLS:

Total nonfarm payroll employment rose by 390,000 in May, and the unemployment rate remained at 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, in professional and business services, and in transportation and warehousing. Employment in retail trade declined.
The change in total nonfarm payroll employment for March was revised down by 30,000, from +428,000 to +398,000, and the change for April was revised up by 8,000, from +428,000 to +436,000. With these revisions, employment in March and April combined is 22,000 lower than previously reported.
emphasis added
Employment Recessions, Scariest Job ChartClick on graph for larger image.

The first graph shows the job losses from the start of the employment recession, in percentage terms.

The current employment recession was by far the worst recession since WWII in percentage terms.

However, 27 months after the onset of the current employment recession, almost all of the jobs have returned.

Year-over-year change employment The second graph shows the year-over-year change in total non-farm employment since 1968.

In May, the year-over-year change was 6.5 million jobs.  This was up significantly year-over-year.

Total payrolls increased by 390 thousand in May.  Private payrolls increased by 333 thousand, and public payrolls increased 57 thousand.

Payrolls for March and April were revised down 22 thousand, combined.

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

Employment Pop Ratio and participation rate The Labor Force Participation Rate increased to 62.3% in May, from 62.2% in April. This is the percentage of the working age population in the labor force.

The Employment-Population ratio increased to 60.1% from 60.0% (blue line).

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

unemployment rateThe fourth graph shows the unemployment rate.

The unemployment rate was unchanged in May at 3.6% from 3.6% in April.

This was above consensus expectations; however, March and April payrolls were revised down by 22,000 combined.  

I'll have more later ...