The US unemployment rate fell to 7.3 percent in August, a new low for the recovery. The economy gained 169,000 payroll jobs, slightly less than the average for the past year.
US Unemployment Falls to 7.3 Percent in August, a New Low
1. Economics for your Classroom
from
Ed Dolan’s Econ Blog
US Unemployment Falls to
7.3 Percent, a New Low for
the Recovery
September 8, 2013
Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are free
to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like
the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.
2. 169,000 New Payroll Jobs in August
Payroll jobs grew by 169,000 in
August, slightly below average for
recent months
June and July data were revised
downward.
Manufacturing gained 14,000 jobs,
reversing recent losses. However,
most new jobs were in services.
The government sector gained
17,000 new jobs, almost entirely
due to an increase in local
government education
September 8, 2013 Ed Dolan’s Econ Blog
3. Unemployment Rate Falls to New Low
The US unemployment rate fell to 7.3% in
August, a new low for the recovery.
The unemployment rate is the ratio of
unemployed persons to the labor force.
The labor force decreased by 312,000 for
the month. The number of employed
workers fell by 115,000 and the number of
unemployed decreased by 198,000
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
September 8, 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 13.7 percent in August,
also a new low for the recovery
September 8, 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 37.9 percent in August, a
break with the generally downward
trend
Both the median and mean duration of
unemployment increased
September 8, 2013 Ed Dolan’s Econ Blog
6. Involuntary Part-time Work Decreases
So-called “involuntary part-time”
employment decreased in August,
but it has not yet returned to the low
reached in March of this year
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
It excludes people who work part
time by preference
September 8, 2013 Ed Dolan’s Econ Blog
7. Click here to learn more about Ed Dolan’s Econ texts
For more slideshows and commentary, follow Ed Dolan’s Econ Blog
Like this slideshow?
Follow @DolanEcon on Twitter