The U.S. Department of Labor has released the May Jobs Report. It's a mixed bag. For starters, the unemployment rate dropped from 8.2 percent in March to 8.1 percent in April. However, it was caused by a decrease in the size of the civilian labor, which declined by 342,000 workers. Economics Professor Danny Boston, who appeared on CNN on Friday to discuss the report, outlines the good, not-so-good and the bad.
The lower unemployment rate was not the result of the economy adding large number of new jobs. In fact, the economy added only 115,000 jobs (less than half of what is needed and a smaller number than was expected). The implication is that there is much work to be done to strengthen the economic recovery.
- The unemployment rate decreased from 8.2% to 8.1%.
- Black unemployment decreased from 14% to 13%
- The number of jobs created in March was revised upward from 120,000 to 154,000
- Long-term unemployment declined by 207,000 workers
- The economy created only 115,000 jobs in April (the private sector added 130,000 jobs)
- Government sector employment declined by 15,000 jobs
- The manufacturing sector created only 16,000 jobs
- Teenage Unemployment remained high at 24.9%
- The size of the Civilian Labor Force declined by 342,000 Jobs,
- The number of discouraged workers increased by 103,000 (i.e. those who have given up looking for work)
- The number of employed persons declined by 169,000
- Construction employment declined by 2,000
Overall, in my opinion, the country is still moving forward, although the pace has slowed. The new report is nothing to be very concerned about at this time.
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