July 5, 2013

June 2013 Unemployment Report

June 2013
Unemployment Rate:             7.6 percent
Unemployed Americans:     11.8 million


“Real” Unemployment    

  • The “real” unemployment or U-6 rate is 14.3 percent for June 2013, an increase of 0.5 percentage points. This is the total percentage of unemployed and underemployed workers.
  • The “real” number of unemployed Americans is 22.6 million. These are people who are unemployed (11.8 million), want work but have stopped searching for a job (2.6 million), or are working part time because they can’t find full time employment (8.2 million).

Labor Force Participation

  • The labor force participation rate is 63.5 percent, up 0.1 from April, when it reached its lowest level since May 1979.
  • If the labor force participation rate were the same as when the President took office, the unemployment rate would be 10.7 percent.
  • The share of American adults with jobs in May was 58.7 percent, roughly the same for more than three years. This is approximately five percentage points below its prerecession peak.
  • The number of long-term unemployed spiked to 45 percent in April 2010 and again in March 2011, and is currently 36.7 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. 

Employment

  • The Department of Labor reported an unemployment rate of 7.6 percent for June 2013, unchanged from May, and an increase of 195,000 nonfarm jobs. Employment figures for April were revised from 149,000 to 199,000 jobs created and for May from 175,000 to 195,000 new jobs.
  • President Obama promised an unemployment rate of 5.2 percent by this time.
  • Concern has been raised that despite positive reports in other areas of the economy, job growth continues to remain sluggish. In 2012, the economy added an average of 262,000 jobs a month. In 2013, the economy has added an average of 202,000 jobs per month, and employment growth has averaged 191,000 per month over the past 12 months.
  • Employment increased in professional and business services (+53,000), leisure and hospitality (+75,000), retail trade (+37,000), health care (+20,000), financial activities (+17,000). Employment in manufacturing was similar to last month and government declined (-7,000). Within government, federal employment fell by 5,000.

Weeks, Hours & Wages

  • The number of Americans searching for work for more than 27 weeks is 4.3 million. This represents 36.7 percent of all unemployed. 
  • The average work week for private nonfarm employees was unchanged at 34.5 hours.
  • The average hourly private nonfarm payroll increased by 10 cents to $24.01. Year over year hourly earnings have risen just 2.2 percent. Consumer Price Index is up 1.4 percent.

    Issue Tags: Economy, Labor