November 2015 Jobs Report

Unemployment Rate: 5.0 percent

Unemployed Americans: 7.9 million

Employment and Unemployment

1. The Department of Labor reported an unemployment rate of 5.0 percent for November, unchanged from last month. It reported an increase of 211,000 nonfarm jobs in November. Employment for September was revised up from 137,000 to 145,000 jobs created; and October was revised up from 271,000 to 298,000. 
2. Job growth has averaged 220,000 over the past three months. In 2014, job growth averaged 260,000 a month.
3. Unemployment in November among those ages 16-19 was 15.7 percent, down from 0.2 percent from last month. Among those 20-24, the unemployment rate was 9.6 percent, up 0.2 percentage point from October. For African-Americans, the unemployment rate was 9.4 percent, up 0.2 from last month.
4. The number of long-term unemployed, those unemployed for 27 weeks or more, was 2.1 million. They account for 25.7 percent of the unemployed, down from 26.8 percent in the prior month and down from 31.0 percent a year ago.
5. In November, the number of persons working part-time though preferring full-time employment increased by 319,000.
6. The “real” unemployment or U-6 rate is 9.9 percent, up 0.1 percentage point from October. This is the total percentage of unemployed and underemployed workers.
7. The “real” number of unemployed Americans is 15.7 million. These are people who are unemployed (7.9 million), want work but have stopped searching for a job (1.7 million), or are working part time because they cannot find full time employment (6.1 million).
8. In November, employment grew by 49,000 in trade, transportation and utilities; 46,000 in construction; 28,000 in professional and business services; 24,000 in health care; and 14,000 in government. Employment in mining fell by 11,000 in November, and has declined by 123,000 since December 2014. Employment also fell last month by 14,200 in clothing and clothing store accessories. 

Labor Force Participation

1. The labor force participation rate is 62.5 percent, up 0.1 from last month and remaining near the lowest level in 38 years. The persistently low labor force participation rate shows that millions of Americans are staying on the sidelines. Since April 2014, the participation rate had been stuck in a narrow range of 62.4 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 November was 59.3 percent, unchanged from October. This is about four percentage points below its pre-recession peak, and relatively unchanged since October 2014.
4. The Federal Reserve has been weighing whether to raise its short-term interest rate. The rate has remained near zero since 2008. In testimony given yesterday to the Joint Economic Committee, Fed Chair Janet Yellen stated, “economic and financial information received since our October meeting has been consistent with our expectation of continued improvement in the labor market.’’ It is widely predicted that the Fed will raise interest rates by a quarter percentage point. The next Fed meeting is December 15-16. 

Wages

1. In November, average hourly earnings for all employees on private nonfarm payrolls rose by 4 cents to $25.25. Over the year, average hourly earnings have risen by 2.3 percent.
2. November was the 76th straight month that year-over-year hourly wage growth has been at or below 2.5 percent. Prior to the recession, wage growth routinely exceeded three percent.