The US unemployment rate fell to 7.4 percent in July, a new low for the recovery. Payroll jobs increased by 162,000

1. Economics for your Classroom
from
Ed Dolan’s Econ Blog
US Unemployment Falls to
7.4 percent, a New Low for
the Recovery
Aug 4, 2013
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2. Unemployment Rate Falls to New Low
 The US unemployment rate fell to 7.4% in
July, a new low for the recovery.
 The unemployment rate is the ratio of
unemployed persons to the labor force.
The labor force decreased by 37,000 for
the month. The number of employed
workers rose by 227,000 and the number
of unemployed decreased by 263,000
 The unemployment rate is based on a
survey of households that is separate
from the payroll jobs survey. Unlike the
payroll survey, it includes self-employed
and farm workers
July 5, 2013 Ed Dolan’s Econ Blog

3. 162,000 New Payroll Jobs in July
 Payroll jobs grew by 62,000 in
June, about average for recent
months
 June data were revised downward.
May, which had been revised up
earlier was revised back to its
originally reported level
 Most new jobs were in services.
Federal and state governments lost
jobs while local governments
added them.
July 5, 2013 Ed Dolan’s Econ Blog

4. 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 14 percent in June, close
to its low for the recovery
July 5, 2013 Ed Dolan’s Econ Blog

5. Long-term Unemployment Rises Slightly
 The recession and slow recovery have
been characterized by unusually high
levels of long-term unemployment
 The percentage of the unemployed
out of work for 27 weeks or rose
slightly to 37 percent in July, but not
enough to break the picture of a
generally downward trend
July 5, 2013 Ed Dolan’s Econ Blog

6. Involuntary Part-time Work Increases
 So-called “involuntary part-time”
employment increased again in July,
reversing an earlier downward trend
 This category includes workers who
would like full-time work but can’t
find it, or whose employers have cut
their hours below full time
July 5, 2013 Ed Dolan’s Econ Blog

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