Quick Notes About the Unemployment Rate
- In the last year, the civilian population rose by 3,584,000. Yet the labor force only rose by 1,569,000. Those not in the labor force rose by 2,014,000.
- In February, the Civilian Labor Force rose by 476,000.
- In February, those "Not in Labor Force" decreased by 310,000. If you are not in the labor force, you are not counted as unemployed.
- Participation Rate rose .2 to 63.9%
- Were it not for people dropping out of the labor force, the unemployment rate would be well over 11%.
Over the past several years people have dropped out of the labor force at an astounding, almost unbelievable rate, holding the unemployment rate artificially low. Some of this was due to major revisions last month on account of the 2010 census finally factored in. However, most of it is simply economic weakness.
Jobs Report at a Glance
Here is an overview of today's release.
- US Payrolls +227,000 - Establishment Survey
- US Unemployment Rate steady at 8.3% - Household Survey
- Average workweek for all employees on private nonfarm payrolls was unchanged to 34.5 hours
- The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged higher 0.1 hour to 33.8 hours.
- Average hourly earnings for all employees in the private sector rose by 3 cents to $23.31
Recall that the unemployment rate varies in accordance with the Household Survey not the reported headline jobs number, and not in accordance with the weekly claims data.
February 2012 Jobs Report
Please consider the Bureau of Labor Statistics (BLS) February 2012 Employment Report
Nonfarm payroll employment rose by 227,000 in February, and the unemployment rate was unchanged at 8.3 percent, the U.S. Bureau of Labor Statistics reported today. Employment rose in professional and businesses services, health care and social assistance, leisure and hospitality, manufacturing, and mining.
Unemployment Rate - Seasonally Adjusted
Nonfarm Employment - Payroll Survey - Annual Look - Seasonally Adjusted
Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.