us job market shows strong gains but part-time work rises
DESCRIPTION
The US economy added 288,000 payroll jobs in June 2014 and the unemployment rate fell to 6.1 percent, but the share of the labor force working part time roseTRANSCRIPT
Economics for your Classroom fromEd Dolan’s Econ Blog
US Unemployment Falls to New Low on Strong Job Gains; Part-time Work Increases
July 4, 2014
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Unemployment Hits New Low of 6.1 Percent in June
The US unemployment rate fell to 6.1 percent in June 2014, a new low for the recovery. The unemployment rate is the ratio of unemployed persons to the labor force.
The labor force grew by 81,000, adding to gains in May. The number of unemployed workers fell by 325,000 and the number of employed increased by 407,000
The unemployment rate is based on a monthly survey of households
July 4, 2014 Ed Dolan’s Econ Blog
Broad vs. Standard Unemployment Rate
The BLS also provides a broader measure of job-market stress, U-6
The numerator of U-6 includes Unemployed persons Marginally attached persons who
would like to work but are not looking because they think there are no jobs, or for personal reasons
Part-time workers who would prefer full-time work but can’t find it
The denominator includes the labor force plus the marginally attached
U-6 fell to 12.1 percent in June, a new low for the recovery
July 4, 2014 Ed Dolan’s Econ Blog
Long-term Unemployment Falls to Low for Recovery
The recession and slow recovery have been characterized by unusually high levels of long-term unemployment
The share of unemployed out of work for 27 weeks or more fell to 32.8 percent in June, a new low for the recovery
The median and mean duration of unemployment also decreased for the month
July 4, 2014 Ed Dolan’s Econ Blog
288,000 New Payroll Jobs
The BLS conducts a separate survey of payroll jobs based on employer records. According to that survey, payroll jobs grew by 288,000 in June
Job gains for April and May were revised upward by a total of 25,000
The 866,000 jobs added in the second quarter of the year was the largest quarterly gain in more than two years
Job gains were spread broadly across goods, services, and government
July 4, 2014 Ed Dolan’s Econ Blog
Part-Time Work Rises Sharply in June
The percentage of the labor force working part time (fewer than 35 hours per week) increased sharply in June, reversing a gradual decline over the course of the recovery
The data show part-time work, not part-time jobs. A person working 35 or more hours per week at two or more part-time jobs is counted as a full-time worker
July 4, 2014 Ed Dolan’s Econ Blog
Voluntary vs. Involuntary Part-time Work
The majority of part-time work is voluntary, or “for noneconomic reasons” in official terms, e.g., because of childcare, school, or partial retirement
Involuntary part-time workers work short hours because employers have cut their hours due to slack business conditions or because they can only find part-time jobs, even though they would prefer to work full time
Involuntary part-time work is a component of the broad unemployment rate, U-6
Both voluntary and involuntary part-time work increased in June
July 4, 2014 Ed Dolan’s Econ Blog
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