April 2015 Unemployment Report

April 2015

Unemployment Rate: 5.4 percent

Unemployed Americans: 8.5 million

Employment and Unemployment

1. The Department of Labor reported an unemployment rate of 5.4 percent for April, a decrease of 0.1 percent from March. It reported an increase of 223,000 nonfarm jobs over last month. Employment for February was revised from 264,000 to 266,000 jobs created; and March was revised down from 126,000 to 85,000.   
2. The number of unemployed people in April was 8.5 million, unchanged from last month.
3. Unemployment in April among those ages 16-19 was 17.1 percent, among those 20-24 it was 9.6 percent, and among those 25-34 it was 5.8 percent.
4. The number of long-term unemployed, those unemployed for 27 weeks or more, was 2.5 million, accounting for 29 percent of the unemployed. During the 1980s, when our country faced a similar recessionary period, the proportion of long-term unemployed never exceeded 27 percent. 
5. The “real” unemployment or U-6 rate is 10.8 percent, down 0.1 percentage point from March. This is the total percentage of unemployed and underemployed workers.
6. The “real” number of unemployed Americans is 17.2 million. These are people who are unemployed (8.5 million), want work but have stopped searching for a job (2.1 million), or are working part time because they cannot find full time employment (6.6 million).
7. In April, employment grew by 62,000 in professional and business services; 45,000 in health care; and 45,000 in construction. Employment in mining fell by 15,000; rental and leasing services fell by 1,200; and commercial banking decreased by 2,400. 

Labor Force Participation

1. The labor force participation rate is 62.8 percent, up 0.1 percentage point from last month and near the lowest level in 36 years. Since April 2014, the participation rate has been stuck between a narrow range of 62.7 and 62.9 percent. Prior to the recession, the rate stood at 66 percent. 
2. If the labor force participation rate were the same as when President Obama took office, the unemployment rate would be 9.7 percent.
3. The share of American adults with jobs in April was 59.3 percent, unchanged since January. This is more than four percentage points below its pre-recession peak. 

Wages

1. While the economy has added an average of 248,500 jobs a month over the last 12 months, hiring has failed to translate into wage growth. Average hourly earnings for all employees on private nonfarm payrolls increased by three cents to $24.87. Over the year, average hourly earnings have risen by only 2.2 percent.
2. April was the 69th straight month that year-over-year hourly wage growth has been below 2.5 percent. Prior to the recession, wage growth routinely exceeded three percent.