April Employment Summary and Discussion

April Employment Summary and Discussion

by CalculatedRisk

Another disappointing report indicating sluggish employment growth.

It is probably worth a mention that there are now more private sector jobs than when President Obama took office, but the public sector is continuing to hemorrhage jobs (see third and fourth graphs).

Some numbers: There were 115,000 payroll jobs added in April, with 130,000 private sector jobs added, and 15,000 government jobs lost. The unemployment rate declined to 8.1%. U-6, an alternate measure of labor underutilization that includes part time workers and marginally attached workers, was unchanged at 14.5%. This remains very high - U-6 was in the 8% range in 2007 - but this is the lowest level of U-6 since early 2009.

The participation rate decreased to 63.6% from 63.8% (a new cycle low) and the employment population ratio also decreased slightly to 58.4%.

The change in February payroll employment was revised up from +240,000 to +259,000, and February was revised up from +120,000 to +154,000.

The average workweek was unchanged at 34.5 hours, and average hourly earnings were essentially unchanged. "The average workweek for all employees on private nonfarm payrolls was unchanged at 34.5 hours in April. ... In April, average hourly earnings for all employees on private nonfarm payrolls rose by 1 cent to $23.38. Over the past 12 months, average hourly earnings have increased by 1.8 percent." This is sluggish earnings growth, and less than inflation. Earnings are still being impacted by the large number of unemployed and marginally employed workers.

There are a total of 12.5 million Americans unemployed and 5.1 million have been unemployed for more than 6 months. These numbers are declining, but still very high.

April Employment Report: 115,000 Jobs, 8.1% Unemployment Rate

by CalculatedRisk

From the BLS:

Nonfarm payroll employment rose by 115,000 in April, and the unemployment rate was little changed at 8.1 percent, the U.S. Bureau of Labor Statistics reported today.
...
The civilian labor force participation rate declined in April to 63.6 percent, while the employment-population ratio, at 58.4 percent, changed little.
...
The change in total nonfarm payroll employment for February was revised from +240,000 to +259,000, and the change for March was revised from +120,000 to +154,000.

This was below expectations of 165,000 payroll jobs added.