Labor Line

May 2013___________________________________

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 May 3, 2013.

American Job Market The Chronicle

Current Job and Employment Data

Jobs
Total Non-Farm Establishment Jobs up 165,000 to 135,474,000
Total Private Jobs up 176,000 to 113,630,000
Total Government Employment down 11,000 to 21,844,000

Employment Note
Civilian Non-Institutional Population up 180,000 to 245,175,000
Civilian Labor Force up 210,000 to 155,238,000
Employed up 293,000 to 143,579,000
Employed Men down 90,000 to 76,239,000
Employed Women up 384,000 to 67,340,000
Unemployed down 83,000 to 11,659,000
Not in the Labor Force down 31,000 to 89,936,000

Unemployment Rate down .1% to 7.5%, or 11,659/155,238
Labor Force Participation Rate stayed the same at 63.3%, or 155,238 /245,175

Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was down 1.69 percent for 2010.

The May CPI report for the 12 months ending with April 2013, shows the

CPI for All Items was up 1.1%
CPI for Food and Beverages was up 1.6%
CPI for Housing was up 1.9%
CPI for Apparel was up .3%
CPI for Transportation including gasoline was up 1.0%
CPI for Medical Care was up 2.7%
CPI for Recreation was up .8
CPI for Education was up 4.1%
CPI for Communication was down .9%

This Month’s Establishment Jobs Press Report

AVERAGE GROWTH FOR A MIX OF SERVICE GAINS

The Bureau of Labor Statistics published its May report of jobs in April. The civilian labor force was up 210 thousand, a little more than population growth. The employed were up 293 thousand; the unemployed were down 83 thousand to 11.659 million, part of a downward trend. All three changes helped to reinforce a decline in the unemployment rate, which dropped .1 percent to 7.5 percent. The employment gains went to women only; employment decreased for men. The participation rate continued at a low 63.3 percent.

The seasonally adjusted total of establishment jobs was up 165 thousand for April. The increase was 185 thousand more private sector service jobs combined with a decline of 9 thousand goods production jobs along with a drop of 11 thousand jobs in government service.

Goods production had another poor month, down again from last month. Both natural resources and construction jobs were down. There were 6.2 thousand new residential construction jobs for April, but the gains were more than offset by large declines in nonresidential building and contracting. The manufacturing recovery stalled again with no gain. Small metal products and machinery gains offset a broad base of small declines in other manufacturing sectors.

The federal government was down 8 thousand jobs, including 3.5 thousand postal service jobs. Both state and local government jobs were down 3 thousand. State education jobs had a small gain to offset other losses. Local government was off 2 thousand jobs, mostly losses in public school education. Private school education had 2.7 thousand more jobs after bigger gains last month. Total job gains in education were 3 thousand.

Professional and administrative support services had the most new jobs for April by a wide margin: 73 thousand new jobs. Professional services and managerial establishments added 30 thousand jobs. Legal services made an unusual gain: 2.1 thousand jobs. Accounting, architecture, engineering, computer systems design services, and management and technical consulting services all added jobs. Management and technical consulting had the most new professional jobs: 7.2 thousand. Temporary help services dominated gains in administrative support jobs with 30.8 thousand new jobs.

Health care made a slightly smaller job gain than last month: 26 thousand new jobs for April. Most of the gains were in ambulatory care and physicians services. The growth rate this month is 1.82 percent, below the long term 15 year growth rate of 2.37 percent.

Trade, transportation and utility services reversed last month’s losses with 37 thousand new jobs for April. Retail trade had most of the gains, up 29.3 thousand; wholesale trade and transportation also made modest gains.

Leisure and hospitality had an April increase of 43 thousand jobs, an unusually large gain. Restaurants were almost the entire gain, up 37.9 thousand jobs. Accommodation also had an unusually large gain: 7.2 thousand jobs. Arts, entertainment and recreation employment was off a net of 1.9 thousand jobs.

Information services keeps gyrating, down this month by 9 thousand jobs. The motion picture and sound recording industry was off enough to wipe out last months gains, although it is still above April a year ago.

Financial activities added 9 thousand jobs, an above average gain. Banking and insurance had most of the gain with 8.6 thousand new jobs combined with small losses in insurance. Real estate was off 4.1 thousand jobs. Repair and maintenance services, personal services and non-profit associations all had small gains after last month’s declines: 4 thousand new jobs total.

The April gain of 165 thousand new jobs is slightly above an average increase, but with private service sector gains only. Continued very low interest rates and low tax rates have not translated into spending that sustains healthy job growth. The combination of retail trade, temporary help services, accommodations, and restaurants account for 64 percent of April’s new jobs. Otherwise professional service specialties carry the burden of monthly jobs gains. Construction and manufacturing needs to grow to sustain long term job growth.

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April Details

Non Farm Total +165
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from March by 165 thousand jobs for a April total of 135,474 million. (Note 1 below) An increase of 165 thousand each month for the next 12 months represents an annual growth rate of 1.46%. The annual growth rate from a year ago beginning April 2012 was +1.56%; the average annual growth rate from 5 years ago beginning April 2008 was -.32%; from 15 years ago beginning April 1998 it was .53%. America needs growth around 1.5 percent a year to keep itself employed.

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Sector breakdown for 12 Sectors in 000’s of jobs

1. Natural Resources -3
Natural Resources including logging and mining were down 3 from March at 864 thousand jobs in April. A decrease of 3 thousand jobs each month for the next 12 months would be an annual growth rate of -4.15 percent. Natural resource jobs are up 12 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 .6 percent of establishment jobs.

2. Construction -6
Construction jobs were down 6 thousand from March to 5.790 million jobs in April. A dencrease of 6 thousand jobs each month for the next 12 months would be an annual growth rate of -1.24 percent. Construction jobs are up 154 thousand for the last 12 months. The growth rate for the last 5 years is -4.61%. Construction jobs rank 9th among the 12 sectors with 4.3 percent of non farm employment.

3. Manufacturing +0
Manufacturing jobs stayed the same from March at 11.990 million in April. Jobs were up for the last 12 months by 70 thousand. In 1994, manufacturing ranked 2nd but now ranks 6th among 12 major sectors in the economy with 8.8 percent of establishment jobs.

4. Trade, Transportation & Utility +37
Trade, both wholesale and retail, transportation and utility employment was up by 37 thousand jobs from March to 25.837 million jobs in April. These jobs tend to increase at a slower rate than the total of non-farm jobs, but an increase of 37 thousand each month for the next 12 months would be an annual growth rate of +1.72 percent. Jobs are up by 528 thousand for the last 12 months. Growth rates for the last 5 years are -.54 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 19.0 percent of total establishment employment.

5. Information Services -9
Information Services employment was down by 9 thousand from March at 2.691 million jobs in April. A decrease of 9 thousand each month for the next 12 months would be an annual growth rate of -4.00 percent. (Note 2 below) Jobs are up by 12 thousand for the last 12 months. Monthly employment in information services gyrates and has been doing so for a number of years. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004 and further below 3 million by 2008. Information Services is a small sector ranking 11th of 12 with 2.0 percent of establishment jobs.

6. Financial Activities +9
Financial Activities were up 9 thousand jobs from March to 7.867 million in April. An increase of 9 thousand each month for the next 12 months would be an annual growth rate of +1.37 percent. Jobs are up 99 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 declining with negative annual growth rates, a 5 year growth rate of -.81 percent, and a 15 year growth rate of +.41 percent. Financial activities rank 8 of 12 with 5.8 percent of establishment jobs.

7. Business & Professional Services +73
Business and Professional Service jobs went up 73 thousand from March to 18.428 million in April. An increase of 73 thousand each month for the next 12 months would be an annual growth rate of +4.77 percent. Jobs are up 587 thousand for the last 12 months. Note 4 The annual growth rate for the last 5 years was .53 percent. It ranks as 2nd among the 12 sectors. It was third in May 1993, when manufacturing was bigger and second rank now with 13.6 percent of establishment employment.

8. Education including public and private +3
Education jobs went up 3 thousand jobs from March at 13.515 million in April. These include public and private education. An increase of 3 thousand each month for the next 12 months would be an annual growth rate of +.24 percent. Jobs are up 6 thousand for the last 12 months. (note 5) Most monthly educational employment goes up, but lately it is down. The 15 year growth rate equals 1.38 percent, faster than the national average. Education ranks 4th among 12 sectors with 10.0 percent of establishment jobs.

9. Health Care +26
Health care jobs were up 26 thousand from March to 17.257 million in April. An increase of 26 thousand each month for the next 12 months would be an annual growth rate of 1.82 percent. Jobs are up 358 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 +2.12 percent. Health care has been growing at +2.37 percent annual growth rate for 15 years, a rate not quite double the national rate. Health care ranks 3rd of 12 with 12.7 percent of establishment jobs.

10. Leisure and hospitality +43
Leisure and hospitality jobs went up 43 thousand from March to 14.076 million in April. An increase of 43 thousand each month for the next 12 months would be an annual growth rate of +3.68 percent. Jobs are up 378 thousand for the last 12 months. (note 7) The 5 year growth rate is .82%. 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 10.4 percent of establishment jobs. It moved up from 7th in the 1990’s to 5th in the last few years.

11. Other +4
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up 4 thousand from March to 5.471 million in April. An increase of 4 thousand each month for the next 12 months would be an annual growth rate of +.88 percent. Jobs are up 53 thousand for the last 12 months. (note 8) Other services had -.25 percent growth for the last 5 years. These sectors rank 10th of 12 with 4.0 percent of total non-farm establishment jobs.

12. Government, excluding education -10
Government service employment went down 10 thousand from March to 11.689 million in April. A decrease of 10 thousand each month for the next 12 months would be an annual growth rate of -1.06 percent. Jobs are down 79 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 .39 percent. Government, excluding education, ranks 7th of 12 with 8.6 percent of total non-farm establishment jobs.

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Sector Notes___________________________

(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

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Sector Notes___________________________

(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

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Notes

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

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