May employment

The economy grew by 217,000 job in May while the unemployment rate remained at 6.3%, according to data released this morning from BLS. This was slightly better than economists’ expectation of between 210,000 and 215,000 new jobs.
The other good news is that the number of involuntary underemployed (part time for economic reasons) declined in May. Both the number of those who could only find part time work and number of workers part time because of slack work declined. Slack work has been generally declining since its peak in March 2009 – which signals continued economic demand. (Note: that this refers to worker who can only find part-time work because of slack demand — not the same as Fed Chair Yellen’s comments about slack in the labor market which includes unemployed, underemployed and currently out of the workforce). The total involuntary underemployment remains well above pre-Great Recession levels. This constitutes a continued waste of human capital.
Involuntary underemployed May 2014.png
Slack work May 2014.png

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s