Yesterday the US Department of Labor, Bureau or Labor Statistics (BLS) released the Employment Situation Summary for unemployment data collected during April 2014. Each month the BLS reports on the Employment Situation by surveying households across the United States. The April 2014 Employment Situation Summary posted a new 5 ½ year low unemployment rate of 6.3% which was la 0.4 percentage point drop from the previous month. Job creation during April came in with a healthy
288,000 jobs that were added to the economy.
With national unemployment rate now at 6.3% there are 9.8 million jobless Americans of that number, the Employment Situation Summary reports there are 3.5 million who have been jobless for 27 weeks or more and are deemed long term unemployed. This group of long term unemployed has decreased from the previous month by 287,000. The long term unemployed make up 35.3% of the total national unemployment.
Labor participation remains an ongoing concern in BLS reporting. During March the economy created 192,000 jobs but not enough to impact the national unemployment rate to change. So what caused such a huge drop in April? Doing some math in March there were 10.5 million unemployed but with only 288,000 jobs added to the economy the nation lost almost half a million unemployed who in all likelihood dropped out of the job hunt and are no longer counted in the unemployment percentage.
Not counted in the April's national unemployment rate are 7.5 million involuntary part time workers. This group of involuntary part time cannot find full time work or have had their hours reduced to part time. Another category not counted in the national unemployment rate are the 2.2 million persons who are considered marginally attached to the labor force. This 2.2 million is unchanged from the previous month since they have given up looking for a job and are not counted as unemployed because they have not searched for work in the last four weeks. Among the marginally attached workers there are 783,000 discouraged workers who has simply given up because they do not believe there is a job out there for them.
Of those jobs created Professional Services added the most jobs at 75,000 in April. Followed by retail adding 35,000 jobs with temporary help services adding 35,000 jobs. Also during April the average hourly earnings have for private non supervisory employees increased by 3 cents.
To view the full report go to Employment Situation Summary – April 2014. The next national BLS Employment Situation report will be released by the Department of Labor on June 6, 2014 and will evaluate employment data collected during April 2014.
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