Labor line has job news and commentary with a one stop short cut for America's job markets and job related data including the latest data from the Bureau of Labor Statistics.
This month's job and employment summary data are below. This month's inflation data is below.
The Establishment Job Report and Establishment Job Details for data released June 1, 2018.
American Job Market The Chronicle
Current Job and Employment Data
Total Non-Farm Establishment Jobs up 223,000 to 148,662,000
Total Private Jobs up 218,000 to 126,336,000
Total Government Employment up 5,000 to 22,326,000
Civilian Non-Institutional Population up 182,000 to 257,454,000
Civilian Labor Force up 12,000 to 161,539,000
Employed up 293,000 to 155,474,000
Employed Men up 173,000 to 82,784,000
Employed Women up 121,000 to 72,690,000
Unemployed down 281,000 to 6,065,000
Not in the Labor Force up 170,000 to 95,915,000
Unemployment Rate decreased by .1 percent to 3.8% or 6,065/161,539
Labor Force Participation Rate decreased by .1 percent to 62.7%, or 161,539/257,454
Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was up by a monthly average of 2.13 percent for 2017.
The May CPI report for the 12 months ending with April, shows the
CPI for All Items was up 2.5%
CPI for Food and Beverages was up 1.4%
CPI for Housing was up 3.0%
CPI for Apparel was up .8%
CPI for Transportation including gasoline was up 4.1%
CPI for Medical Care was up 2.2%
CPI for Recreation was up .3%
CPI for Education was up 1.8%
CPI for Communication was down 1.4%
This Month's Establishment Jobs Press Report
A GOOD MONTH
The Bureau of Labor Statistics published its June report for jobs in May. The employed went up, 293,000, which almost equals how much the unemployed went down, 281,000. The difference of 12,000 was the increase in the labor force. The monthly increase in the civilian population 182,000 almost equaled the number that did not enter the labor force to look for a job, 170,000. The big decrease in the unemployed assured a decline in the unemployment rate, which went down .1 percent to 3.8 percent. The labor force participation rate dropped again by .1 percent to 62.7 percent.
The seasonally adjusted total of establishment employment was up 223 thousand for May. The increase was 171 thousand more jobs in the private service sector combined with a 47 thousand increase in jobs from goods production. The total of 218 thousand more private sector jobs combined with an increase of 5 thousand government service jobs accounts for the total increase.
The three goods production sub sectors had 47 thousand new jobs. Natural resources had a net of 4 thousand more jobs for a third month of increases. The May gain included 5.5 thousand jobs in mining combined with a decline of 1.5 thousand jobs in lumbering. Construction had 25 thousand new jobs that included 20.5 thousand new jobs in specialty trade contracting. Heavy and engineering construction added another 5 thousand jobs amid small losses in construction of buildings.
Manufacturing had 18 thousand more jobs for May. Almost all of the recent gains in manufacturing go in two durable goods sub sectors, fabricated metal products and machinery, and one non-durable goods subsector, food manufacturing. These three subsectors combined for almost half the manufacturing increase, 8.9 thousand jobs. Remaining subsectors had small gains and small losses but a net gain of 9.1 thousand more jobs.
Government service employment was up a net of 5 thousand jobs for May, after last month's decline. The federal government dropped 3 thousand jobs. State government added 2 thousand jobs; local government employment added another 6 thousand. Public education had 1.3 thousand more jobs but jobs in private schools were up 7.1 thousand for an education gain for May of 8.4 thousand jobs.
Trade, transportation and utilities took first place for job gains among private service industries in May with 53 thousand new jobs. Wholesale trade had 4.2 thousand more jobs and retail trade another 31.1 thousand jobs. General Merchandise Stores had 13.4 thousand of the new jobs. Building material and supply stores added 6 thousand jobs; clothing trade stores recovered some of recent losses with 6.5 thousand more jobs. Transportation had 18.7 thousand new jobs but with virtually all the gains in three sub-sectors: trucking with 6.6 thousand new jobs, couriers and messengers with 4.8 thousand jobs and warehousing and storage with 6.6 thousand jobs. Air, rail and pipeline transport remained unchanged.
Professional and business services had a modest gain for May with 31 thousand more jobs. The professional and technical service sub sector added 22.6 thousand of the jobs, management of companies added 7.6 thousand jobs while administration and support services including waste management barely increased with a reported 200 new jobs.
Among professional and technical services accounting and bookkeeping services added 7.4 thousand jobs; computer design and related services added 6.6 thousand jobs; management and technical consulting added another 4.0 thousand jobs in a good month for professional service jobs, although legal services dropped 200 jobs. In Administrative and support services, employment services had an unusual drop of 10.3 thousand jobs offset with small job gains in services to buildings and dwellings and investigation and security services.
Health care had 32 thousand new jobs in May, up slightly from last month. Ambulatory care had 17.9 thousand of the new jobs; hospital jobs added another 6.2 thousand; nursing and residential care had a good month for jobs, adding 4.8 thousand jobs. Social assistance another 2.8 thousand new jobs for May. The growth rate in health care employment this month was 1.92 percent, below the long-term average of 2.30 percent.
Leisure and hospitality had 21 thousand new jobs, a little better than last month but not a good month anyway. The arts, entertainment and recreation sub sector added a net of 3.5 thousand of the new jobs based on job gains in performing arts and spectator sports offset by job losses in museum visits and historical sites. Restaurants did better than last month but with only modest gains of 17.6 thousand more jobs this month. Accommodation dropped 200 jobs after two months of gains.
Information services added 6 thousand jobs, for a second month of better than normal job gains. The motion picture and sound recording sub sector had 5.3 thousand of the jobs with 2 thousand more jobs in publishing, except the Internet, set against other small job losses. Finance and insurance had a net gain of 8 thousand jobs. Credit intermediaries and insurance carriers added 2.6 thousand jobs each. Real estate and rental and leasing services added another 3 thousand jobs.
The category, other services, had another good month with job gains in all three subsectors totaling almost 13 thousand and a 2.67 percent annual growth rate. Personal and laundry services added 5.1 thousand jobs; repair and maintenance services added 3.3 thousand; and non-profit associations 4.7 thousand jobs.
Establishment employment in May increased by 223 thousand to 148.662 million at a 1.80 percent annual growth rate, up from last month at 1.33 percent. Manufacturing jobs continue to be the bright spot in the monthly report, but renewed threats of steel tariffs might disrupt that because virtually all the gains keep coming in fabricated metals and machinery. Trade, transportation and utilities, information services, finance, education, other services and government all continue to have a lower share of U.S. establishment employment month by month. Business and professional services, health care, leisure and hospitality continue to gain in share. Recently though mining, construction and manufacturing stopped declining in share and started to grow fast enough to provide a growing share of new jobs. Tariffs will not help keep that going.
Non Farm Total +223
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from April by 223 thousand jobs for a(n) May total of 148.662 million. (Note 1 below) An increase of 223 thousand each month for the next 12 months represents an annual growth rate of +1.80%. The annual growth rate from a year ago beginning May 2017 was +1.62%; the average annual growth rate from 5 years ago beginning May 2013 was +1.78%; from 15 years ago beginning May 2003 it was .89%. America needs growth around 1.5 percent a year to keep itself employed.
Sector breakdown for 12 Sectors in 000's of jobs
1. Natural Resources +4
Natural Resources jobs including logging and mining were up 4 thousand from April at 733 thousand jobs in May. An increase of 4 thousand jobs each month for the next 12 months would be an annual growth rate of +6.58 percent. Natural resource jobs are up 58 thousand for the 12 months just ended. Jobs in the 1990's totaled around 770 thousand. Job growth here will be small compared to America's job needs. This is the smallest of 12 major sectors of the economy with .5 percent of establishment jobs.
2. Construction +25
Construction jobs were up 25 thousand from April with 7.210 million jobs in May. An increase of 25 thousand jobs each month for the next 12 months would be an annual growth rate of +4.18 percent. Construction jobs are up 286 thousand for the 12 months just ended. The growth rate for the last 5 years is +4.34%. Construction jobs rank 9th among the 12 sectors with 4.8 percent of non-farm employment.
3. Manufacturing +18
Manufacturing jobs were up 18 thousand from April with 12.673 million jobs in May. An increase of 18 thousand jobs each month for the next 12 months would be an annual growth rate of +1.71 percent. Manufacturing jobs were up for the last 12 months by 259 thousand. The growth rate for the last 5 years is +1.09%; for the last 15 years by
-.92%. In 1994, manufacturing ranked 2nd but now ranks 6th among 12 major sectors in the economy with 8.5 percent of establishment jobs.
4. Trade, Transportation & Utility +53
Trade, both wholesale and retail, transportation and utility employment was up 53 thousand from April at 27.789 million jobs in May. An increase of 53 thousand each month for the next 12 months would be an annual growth rate of +2.29 percent. Jobs are up by 350 thousand for the last 12 months. Growth rates for the last 5 years are +1.53 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 18.7 percent of total establishment employment.
5. Information Services +6
Information Services employment was up 6 thousand from April at 2.775 million jobs in May. An increase of 6 thousand each month for the next 12 months would be an annual growth rate of +2.60 percent. (Note 2 below) Jobs are down by 19 thousand for the last 12 months. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004, but has stayed in the 2.7 million range for a decade. Information Services is a small sector ranking 11th of 12 with 1.9 percent of establishment jobs.
6. Financial Activities +8
Financial Activities jobs were up 8 thousand from April at 8.559 million in May. An increase of 8 thousand each month for the next 12 months would be an annual growth rate of + 1.12 percent. Jobs are up 125 thousand for the last 12 months. (Note 3 below)This sector also includes real estate as well as real estate lending. Financial Services has been growing slowly with many months of negative growth. The long term growth rates are now at a 5 year growth rate of +1.66 percent, and a 15 year growth rate of +.37 percent. Financial activities rank 8 of 12 with 5.8 percent of establishment jobs.
7. Business & Professional Services +31
Business and Professional Service jobs went up 31 thousand from April to 20.891 million in May. An increase of 31 thousand each month for the next 12 months would be an annual growth rate of +1.78 percent. Jobs are up 483 thousand for the last 12 months. Note 4 The annual growth rate for the last 5 years was 2.48 percent. It ranks as 2nd among the 12 sectors now. It was third in May 1993, when manufacturing was bigger and second rank now with 14.0 percent of establishment employment.
8. Education including public and private +8
Education jobs went up 8 thousand jobs from April at 14.096 million in May. These include public and private education. An increase of 8 thousand jobs each month for the next 12 months would be an annual growth rate of +.72 percent. Jobs are up 50 thousand for the last 12 months. (note 5) The 15 year growth rate equals +.72 percent, slower than the national average. Education ranks 4th among 12 sectors with 9.5 percent of establishment jobs.
9. Health Care +32
Health care jobs were up 32 thousand from April to 19.854 million in May. An increase of 32 thousand each month for the next 12 months would be an annual growth rate of +1.92 percent. Jobs are up 392 thousand for the last 12 months. (note 6) The current month was below long term trends and less than growth from a year ago when the annual growth rate was +2.01 percent. Health care has been growing at +2.30 percent annual rate for the last 15 years, a rate greater than the national rate. Health care ranks 3rd of 12 with 13.3 percent of establishment jobs.
10. Leisure and hospitality +21
Leisure and hospitality jobs went up 21 thousand from April to 16.281 million in May. An increase of 21 thousand each month for the next 12 months would be an annual growth rate of +1.55 percent. Jobs are up 262 thousand for the last 12 months. (note 7) The 5 year growth rate is 2.78%. More than 80 percent of leisure and hospitality are accommodations and restaurants assuring that most of the new jobs are in restaurants. Leisure and hospitality ranks 4th of 12 with 11.0 percent of establishment jobs. It moved up from 7th in the 1990's to 5th in the last few years.
11. Other +13
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up 13 thousand from April to 5.862 million jobs in May. An increase of 13 thousand each month for the next 12 months would be an annual growth rate of +1.55 percent. Jobs are up 97 thousand for the last 12 months. (note 8) Other services had +.55 percent growth for the last 15 years. These sectors rank 10th of 12 with 3.9 percent of total non-farm establishment jobs.
12. Government, excluding education +4
Government service employment was up 4 thousand from April to 11.939 million jobs in May. An increase of 4 thousand each month for the next 12 months would be an annual growth rate of +.42 percent. Jobs are up 21 thousand for the last 12 months. (note 9) Government jobs excluding education tend to increase slowly but surely with a 15 year growth rate of +.18 percent. Government, excluding education, ranks 7th of 12 with 8.1 percent of total non-farm establishment jobs.
(1) The total cited above is non-farm establishment employment that counts jobs and not people. If one person has two jobs then two jobs are counted. It excludes agricultural employment and the self employed. Out of a total of people employed agricultural employment typically has about 1.5 percent, the self employed about 6.8 percent, the rest make up wage and salary employment. Jobs and people employed are close to the same, but not identical numbers because jobs are not the same as people employed: some hold two jobs. Remember all these totals are jobs. back
(2) Information Services is part of the new North American Industry Classification System(NAICS). It includes firms or establishments in publishing, motion picture & sound recording, broadcasting, Internet publishing and broadcasting, telecommunications, ISPs, web search portals, data processing, libraries, archives and a few others.back
(3) Financial Activities includes deposit and non-deposit credit firms, most of which are still known as banks, savings and loan and credit unions, but also real estate firms and general and commercial rental and leasing.back
(4) Business and Professional services includes the professional areas such as legal services, architecture, engineering, computing, advertising and supporting services including office services, facilities support, services to buildings, security services, employment agencies and so on.back
(5) Education includes private and public education. Therefore education job totals include public schools and colleges as well as private schools and colleges. back
(6) Health care includes ambulatory care, private hospitals, nursing and residential care, and social services including child care. back
(7) Leisure and hospitality has establishment with arts, entertainment and recreation which has performing arts, spectator sports, gambling, fitness centers and others, which are the leisure part. The hospitality part has accommodations, motels, hotels, RV parks, and full service and fast food restaurants. back
(8) Other is a smorgasbord of repair and maintenance services, especially car repair, personal services and non-profit services of organizations like foundations, social advocacy and civic groups, and business, professional, labor unions, political groups and political parties. back
(9) Government job totals include federal, state, and local government administrative work but without education jobs. back
Jobs are not the same as employment because jobs are counted once but one person could have two jobs adding one to employment but two to jobs. Also the employment numbers include agricultural workers, the self employed, unpaid family workers, household workers and those on unpaid leave. Jobs are establishment jobs and non-other. back