US economy added 243,000 payroll jobs in January, and the previous two months' gains were revised upward, continuing a stronger trend

1. Data for the Classroom from
Ed Dolan’s Econ Blog
http://dolanecon.blogspot.com/
.US Employment Data:
January Report and
Upward Revisions Maintain
Stronger Trend
Posted Feb. 3, 2012
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2. Posted Feb. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Payroll Jobs Grow Strongly in January
 Total payroll job growth for January
was a stronger 243,000, including
257,000 in the private sector
 The preliminary estimates are subject
to revision. The Dec. figure was
revised up to 203,000 from 200,000
and Nov. from 100,000 to 157,000
 Both goods producing and service
jobs gained, but government lost
14,000 jobs at all levels
 A separate household survey reported
847,000 new jobs, including farm jobs
and self-employment

3. Posted Feb. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Unemployment Rate Lowest in almost Three Years
 The unemployment rate, which is the
ratio of unemployed persons to the
labor force, dropped to 8.3 percent, its
lowest since February 2009
 The decrease in the unemployment
rate came partly from an increase in
the labor force and partly from a
decrease in the number of
unemployed workers
 Starting in January, the population
basis was shifted from the 2000
census to the 2010 census. However,
the shift did not affect the
unemployment rate

4. Posted Feb. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
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
 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 slightly in January to 15.1
percent, continuing a downward trend

5. Posted Feb. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Employment-Population Ratio Continues Slow Rise
 The employment to population ratio
was unchanged at 58.5 percent, up
from its all-time low of July 2011
 The ratio would have been 0.3
percent higher without the shift in
population basis from the 2000 to
the 2010 census
 The long-term downward trend in
this ratio reflects several factors
 Slow job growth
 More discouraged workers, who do
not look for jobs because they think
none are available
 More retired persons as the
population ages

6. Posted Feb. 3, 2012 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Employment-Population Ratio Continues Slow Rise
 The employment to population ratio
was unchanged at 58.5 percent, up
from its all-time low of July 2011
 The ratio would have been 0.3
percent higher without the shift in
population basis from the 2000 to
the 2010 census
 The long-term downward trend in
this ratio reflects several factors
 Slow job growth
 More discouraged workers, who do
not look for jobs because they think
none are available
 More retired persons as the
population ages