Monthly Economic Report: May 2013

Posted by Paladin on May 15, 2013

As the release date of the BLS’ “The Employment Situation – April 2013” neared, most economists remained encouraged, in spite of March’s initially disappointing employment figures, as only 88,000 new jobs were generated.

Prior to the release of the BLS’ latest jobs report, some financial experts predicted 140,000 jobs would be created in April, while others were even more positive, anticipating a rise in employment of 150,000.

Despite their optimism, economists’ projections were actually lower than the BLS’ published results, as 165,000 jobs were added to the national economy last month. Long-term unemployment decreased to 4.4 million, a decline of 258,000, when compared to March’s data. Since April 2012, the total number of long-term unemployed has decelerated by 687,000.

Even though the national underemployment rate rose to 13.9 percent and the average workweek for all employees on private nonfarm payrolls decreased to 34.4 hours, April’s jobs report was quite positive for the most part. With total employment increasing by 293,000, and total unemployment declining by 83,000, the national jobless rate dropped to 7.5 percent, the lowest rate recorded since December 2008.

Recent jobs revisions were also very encouraging, as February’s total job creation rose from 268,000 to 332,000, the highest monthly total since May 2010. And March’s previously disappointing figures improved, rising to 138,000. As a result of these revisions, 208,000 new jobs have been generated per month, on average, since November 2012.

In fact, new jobs have now been added to the national economy every month since March 2010. A majority of these positions have been generated by the private sector.

“The economy has now added private sector jobs every month for 38 straight months, and a total of 6.8 million jobs have been added over that period,” said Alan Krueger, chairman of the Council of Economic Advisers. “Over 800,000 private sector jobs have been added over the last four months.”

Although we are still working toward full recovery, most of the results of April’s jobs report indicate that steady economic progress is occurring. Since January, unemployment has decreased by 673,000, while nonfarm payroll employment has risen by 169,000 per month, on average, since April 2012. In addition, average hourly earnings continued to progress in April, rising to $23.87, the sixth consecutive month of increases.

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