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 4, 2018.
American Job Market The Chronicle
Current Job and Employment Data
Total Non-Farm Establishment Jobs up 164,000 to 148,424,000
Total Private Jobs up 168,000 to 126,106,000
Total Government Employment down 4,000 to 22,318,000
Civilian Non-Institutional Population up 175,000 to 257,272,000
Civilian Labor Force down 236,000 to 161,527,000
Employed up 3,000 to 155,181,000
Employed Men down 19,000 to 82,611,000
Employed Women up 21,000 to 72,569,000
Unemployed down 239,000 to 6,346,000
Not in the Labor Force up 410,000 to 95,745,000
Unemployment Rate decreased by .2 percent to 3.9% or 6,346/161,527
Labor Force Participation Rate decreased by .1 percent to 62.8%, or 161,527/257,272
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
NOT AS GOOD AS IT LOOKS
The Bureau of Labor Statistics published its May report for jobs in April. The labor force declined again, this month by 236 thousand, more than last month's decline. The labor force drop was a combination of a 3 thousand increase in the employed and a 239 thousand drop in the unemployed. Normal population growth combined with the decline in the labor force, increased the number of adults out of the labor force by 410 thousand, also a bigger drop than last month. The decrease in the labor force acts to raise the unemployment rate, but the decrease in the unemployed was so big the unemployment rate dropped .2 percent to 3.9 percent for April. The labor force participation rate dropped again by .1 percent to 62.8 percent.
The seasonally adjusted total of establishment employment was up 164 thousand for April. The increase was 119 thousand more jobs in the private service sector combined with a 49 thousand increase in jobs from goods production. The total of 168 thousand more private sector jobs combined with a decrease of 4 thousand government service jobs accounts for the total increase.
The three goods production sub sectors had 49 thousand new jobs. Natural resources had a net of 8 thousand more jobs for a third month. The April gain included 7.0 thousand jobs in support activities in mining. Construction had 17 thousand new jobs that included 8.8 thousand new jobs in construction of buildings and 11.1 thousand more jobs in specialty trade contracting. The two gains were offset by a loss of just over 3 thousand jobs in heavy and engineering construction.
Manufacturing had 24 thousand more jobs for April, up slightly from last month. The gains came as 18 thousand more jobs in durable goods and 6 thousand for non-durable goods. Fabricated metal products and machinery manufacturing did well again this month with 12.3 thousand of the new jobs, part of consistent increase for these two manufacturing sub sectors in spite of tariff threats. In non-durable goods the chemical industry had 2.8 thousand new jobs to offset other non-durable losses.
Government service employment dropped a net of 4 thousand jobs for April, a bigger drop than last month. The federal government added a thousand jobs and local government added another 2 thousand jobs, but state government employment was down by 7 thousand. Both state and local government lost jobs in public education, down 3.3 thousand jobs but offset by 1.1 thousand more jobs in private schools. The net loss in education for April was 2.2 thousand jobs.
Professional and business services took first place for job gains among private service industries with 54 thousand new jobs in April. The professional and technical service sub sector added 25.8 thousand of the jobs, management of companies added 400 jobs and administration and support services including waste management had 27.6 thousand new jobs. Among professional and technical services computer design and related services added 6.7 thousand jobs followed by architecture and engineering services up 5.1 thousand jobs; accounting and bookkeeping services added 3.1 thousand jobs; management and technical consulting added another 2.9 thousand jobs in a good month for professional service jobs. In Administrative and support services, employment services added 12.3 thousand jobs along with 8.6 thousand jobs in services to buildings and dwellings; smaller gains in office administration and investigation and security services offset other small losses.
Health care had 29 thousand new jobs in April, down from last month. Ambulatory care had 16.9 thousand new jobs; hospital jobs added another 8.0 thousand; social assistance another 4.9 thousand new jobs. Nursing and residential care, usually the weakest of the health care sub-sectors, dropped 500 jobs. The April growth rate in health care employment was 1.78 percent, below the long-term average of 2.30 percent.
Leisure and hospitality had a better month with 18 thousand new jobs, but still not a good month. The arts, entertainment and recreation sub sector dropped 200 jobs based on losses in amusements, gambling and recreation not offset by small job gains in performing arts, museum visits and other entertainment services. Restaurants did better than last month but with only modest gains of 14.8 thousand new jobs. Accommodation had 4.1 thousand new jobs, a second month of bigger than normal accommodation gains.
The category, other services, had a good month with almost 14 thousand more jobs and a 2.88 percent annual growth rate. Personal and laundry services added 9.4 thousand jobs; repair and maintenance services added 2.2 thousand; and non-profit associations 1.6 thousand jobs. Information services added 7 thousand jobs, higher than usual, but 6.7 thousand of the jobs were in the motion picture and sound recording sub sector.
Otherwise though the remaining private service sectors did poorly for jobs in April. Trade, transportation and utilities lost 7 thousand jobs in April. Wholesale and retail trade picked dropped a net of 8 thousand jobs. Transportation had a net gain of 400 jobs with a decline in modal transportation, especially trucking, offset by job gains in couriers and messengers and warehousing and storage. Financial activities had a second month with 2 thousand new jobs, a modest gain for a small sub sector. Finance and insurance had a net loss of a hundred jobs with all of the gain in real estate and rental and leasing services.
The lower unemployment rate of 3.9 percent for this month is the lowest in almost two decades. In the last year of the Clinton administration I find 6 months with seasonally adjusted unemployment rates below 4 percent. The drop in the unemployment rate this month occurred because almost all of the 236 thousand that left the civilian labor force were already unemployed and then stopped looking for work and left the labor force. It is not a good sign for the economy since jobs and wages support a growing economy.
The increase in establishment employment of 164 thousand in April to 148.424 million jobs is better than last month but still only a 1.33 percent annual rate of growth. Manufacturing jobs continue to be the bright spot in the monthly report, although gains are confined to fabricated metals and machinery. Otherwise there is no reason to expect new trends or expect new worries.
Non Farm Total +164
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from March by 164 thousand jobs for a(n) April total of 148.424 million. (Note 1 below) An increase of 164 thousand each month for the next 12 months represents an annual growth rate of +1.33%. The annual growth rate from a year ago beginning April 2017 was +1.56%; the average annual growth rate from 5 years ago beginning April 2013 was +1.78%; from 15 years ago beginning April 2003 it was .88%. 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 +8
Natural Resources jobs including logging and mining were up 8 thousand from March at 730 thousand jobs in April. An increase of 8 thousand jobs each month for the next 12 months would be an annual growth rate of +13.30 percent. Natural resource jobs are up 59 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 +17
Construction jobs were up 17 thousand from March with 7.174 million jobs in April. An increase of 17 thousand jobs each month for the next 12 months would be an annual growth rate of +2.85 percent. Construction jobs are up 257 thousand for the 12 months just ended. The growth rate for the last 5 years is +4.30%. Construction jobs rank 9th among the 12 sectors with 4.8 percent of non-farm employment.
3. Manufacturing +24
Manufacturing jobs were up 24 thousand from March with 12.655 million jobs in April. An increase of 24 thousand jobs each month for the next 12 months would be an annual growth rate of +2.28 percent. Manufacturing jobs were up for the last 12 months by 245 thousand. The growth rate for the last 5 years is +1.06%; for the last 15 years by
-.95%. 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 -7
Trade, both wholesale and retail, transportation and utility employment was down 7 thousand from March at 27.720 million jobs in April. A decrease of 7 thousand each month for the next 12 months would be an annual growth rate of -.30 percent. Jobs are up by 289 thousand for the last 12 months. Growth rates for the last 5 years are +1.51 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 +2
Information Services employment was up 2 thousand from March at 2.772 million jobs in April. An increase of 2 thousand each month for the next 12 months would be an annual growth rate of +3.08 percent. (Note 2 below) Jobs are down by 26 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 +2
Financial Activities jobs were up 2 thousand from March at 8.549 million in April. An increase of 2 thousand each month for the next 12 months would be an annual growth rate of + .28 percent. Jobs are up 126 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 +1.67 percent, and a 15 year growth rate of +.38 percent. Financial activities rank 8 of 12 with 5.8 percent of establishment jobs.
7. Business & Professional Services +54
Business and Professional Service jobs went up 54 thousand from March to 20.869 million in April. An increase of 54 thousand each month for the next 12 months would be an annual growth rate of +3.11 percent. Jobs are up 518 thousand for the last 12 months. Note 4 The annual growth rate for the last 5 years was 2.53 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 -1
Education jobs went down 1 thousand jobs from March at 14.078 million in April. These include public and private education. A decrease of 1 thousand jobs each month for the next 12 months would be an annual growth rate of-.09 percent. Jobs are up 42 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 +29
Health care jobs were up 29 thousand from March to 19.820 million in April. An increase of 29 thousand each month for the next 12 months would be an annual growth rate of +1.78 percent. Jobs are up 383 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 +1.97 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 +18
Leisure and hospitality jobs went up 18 thousand from March to 16.272 million in April. An increase of 18 thousand each month for the next 12 months would be an annual growth rate of +1.33 percent. Jobs are up 279 thousand for the last 12 months. (note 7) The 5 year growth rate is 2.83%. 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 +14
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up 14 thousand from March to 5.848 million jobs in April. An increase of 14 thousand each month for the next 12 months would be an annual growth rate of +2.88 percent. Jobs are up 99 thousand for the last 12 months. (note 8) Other services had +.54 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 -2
Government service employment was down 2 thousand from March to 11.937 million jobs in April. A decrease of 2 thousand each month for the next 12 months would be an annual growth rate of -.23 percent. Jobs are up 9 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 +.17 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