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Friday, July 5, 2013

Unemployment Stays at 7.6% Under-Employment JUMPS By Half/Percentage Point

Today's Unemployment report for the month of June has good news and bad news. Overall total nonfarm payroll employment increased by 195,000 in June, and the unemployment rate was unchanged at 7.6 percent, the U.S. Bureau of Labor Statistics reported today. But the number of people unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons jumped from a seasonally adjusted 13.8% to 14.3% a major increase (the jump was 1.2% on a non adjusted basis). Behind that jump was a major increase in the number of people employed part time for economic reasons (sometimes referred to as involuntary part-time workers). That number grew by a relatively large 322K.
 Among the major worker groups, the unemployment rate for adult women (6.8 percent) edged up in June, while the rates for adult men (7.0 percent), teenagers (24.0 percent), whites (6.6 percent), blacks (13.7 percent), and Hispanics (9.1 percent) showed little or no change. The jobless rate for Asians was 5.0 percent (not seasonally adjusted), down from 6.3 percent a year earlier. 
The civilian labor force participation rate, at 63.5 percent, and the employment-population ratio, at 58.7 percent, changed little in June. Over the year, the labor force participation rate is down by 0.3 percentage point.  The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 322,000 to 8.2 million in June. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.
What does this all mean?  Despite the 195K increase in jobs it means the economy is still stuck in neutral and growth is limited. Businesses are still reluctant to make full time hires, possibly because of a lack of faith in Obamanomics, possible because of the fear of Obamacare.  People are settling for part time (possibly summer) jobs.

There is a long way to an economic recovery and look for the unemployment rate to rise in September when some of these summer jobs go away.

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