Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Employment Exceeds Pre-Recession Peak, but Hold the Cheers…

Economics / Employment Jun 10, 2014 - 04:00 PM GMT

By: Money_Morning


Diane Alter writes: The May jobs report had the potential to pass for decent, but then we looked at the labor force participation rate...

Employers added 217,000 jobs in May, leading the labor market to the milestone of recovering all the jobs lost at the depths of the Great Recession. The unemployment rate, meanwhile, remained flat at 6.3%, the U.S. Labor Department reported Friday. Both figures were in line with consensus forecasts of a 220,000 gain and an unchanged rate.

It's been a slow, painful, four-year grind recouping the 8.7 million jobs shed over 2007-2009. And, while the milestone is significant, U.S. employment is still well below where it should be after taking into account population growth and the labor force since the recession.

Indeed, the closely watched labor force participation rate, an important measure for the overall health of the economy, remained stuck at an unhealthy 62.8% last month. The rate has been floundering for months at lows not seen since the late 1970s. It's a sure sign that an increasing number of discouraged Americans have simply given up searching for jobs amid a very difficult job environment and have entirely dropped out of the work force.

Moreover, the economy still needs some 7 million more jobs to return to a healthy jobs growth pace, according to the Economic Policy Institute.

This ongoing jobs recovery has been the most lengthy jobs recovery since 1939, when the Bureau of Labor Statistics began tracking jobs data. Economists surveyed by CNN Money expect it will take two to three more years for the United States to return to "full employment" of around 5.5%.

"The good news is the economy grew fast enough in May to absorb new labor force entrants," Steven Pressman, professor of economics and finance at Monmouth University in West Long Branch, N.J., told Money Morning. "The bad news is that we still have to make up for a half dozen years of recession and slow growth. Over time, the economy has not created enough jobs for normal labor force growth, as reflected in labor force participation numbers. While labor force participation remained steady in May at 62.8%, it's still well below the 66% pre-recession level."

So what does this mean for the Fed's bond-buying program?

The report is likely to keep the U.S. Federal Reserve on track to complete its monthly bond-buying program this autumn.

"The economy still has a long way to go to fully recover from the Great Recession," Pressman continued. "It's not clear where this recovery will come from. The Fed continues to slowly phase out QE3, and the government continues to be a drag on the economy and labor market amid spending and hiring cuts. As we move into summer, it's unclear whether the private sector will continue to absorb laid-off government workers and new job entrants in sufficient numbers."

Following are 10 key takeaways from Friday's report...

Closer Look at the May Jobs Reports

  • A common trend over the last several months has been solid job gains in low-wage industries. Hotels, restaurants, and entertainment companies added 39,000 jobs in May. Retailers gained 12,500. Headcount in education, and health and services, climbed by 63,000.
  • Construction payrolls rose by 5,000, marking the fifth consecutive months of gains. But, the pace is slowing.
  • Government payrolls increased a tepid 1,000. Scores of state and local governments, which sharply cut jobs during the recession amid budget deficits, have yet to bring headcount back to pre-December 2007 levels.
  • Boosted by hiring at vehicle assembly plants, payrolls at factories increased 10,000. Thanks goes to robust auto sales, up 11% in May to a nine-year high. A good part of the increase reflected pent-up demand after a harsh winter kept car buyers at bay. It's yet to be determined if that frenzy will continue and manufacturing jobs will continue to grow.
  • Employment at private services providers rose 198,000.
  • The average workweek remained steady at 34.5 hours.
  • Average hourly earnings rose a paltry $0.05 to $24.38 in May, another indication that the labor market is still anemic. "A booming labor market would mean greater demand for workers, leading to increases in wages and increases in hours worked by those with jobs," Pressman said. "We're not seeing that and workers are not seeing greater purchasing power or living standards." Indeed, hourly earnings are up a modest 2.1% year over year. Over the last six and a half years, the average private sector American worker has seen a total inflation pay increase of just 2.5%, or a meager $20 a week.
  • The number of Americans unemployed for longer than 27 weeks - a key figure Federal Reserve Chair Janet Yellen has made clear she wants to lower - was little changed at an elevated 3.4 million, or 35% of the unemployed.
  • The underemployment rate, which includes workers stuck in part-time jobs although they'd prefer full-time work, as well as people who want to work but have given up looking, ticked down to 12.2% from 12.3%. Yet, a whopping 7.3 million people fall into this category.
  • Last month's surprisingly strong jobs tally was revised down to 282,000 from 288,000.

Now for today's top investor story: Toyota leaving California has given us a beautiful, long-term, market-crushing opportunity... Read more here.

Source :

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in