Unemployment Data–MAY 2020

MAY 2020 Unemployment Data–the Full Count

(U.S. BUREAU OF LABOR STATISTICS)

OFFICIAL UNEMPLOYMENT: 13.3%* [Analyses]

“The BLS determines how many people are unemployed based on a household survey. Survey interviewers misclassified several furloughed workers as being “absent from work due to ‘other reasons,’” according to the BLS. That’s the same category of workers who’d be on vacation, for example. The overall unemployment rate would have been “about 3 percentage points higher than reported” if those individuals had been identified correctly, according to the agency. (The estimate isn’t seasonally adjusted.) That would put the official unemployment rate at 16.3%.” Iacurci, CNBC

White
     12.4%
African American
16.8%
Hispanic
17.6%
Asian¹
          15.0%
Persons with a disability¹
  17.9%
Men 20 years and over
11.6%
Women 20 years and over
13.9%
Teens (16-19 years)
29.9%
Black teens
34.9%
Officially unemployed
21.0 million

HIDDEN UNEMPLOYMENT

Working part-time because can’t find a full-time job:  10.6 million
People who want jobs but are not looking so are not counted in official statistics (of which about 2.4 million¹ searched for work during the prior 12 months and were available for work during the reference week.) 9.0 million
Total: 40.6 million (24.3% of the labor force)

Source: http://www.bls.gov/news.release/pdf/empsit.pdf See also Current Employment Statistics–Highlights. For BLS State and area data, see Geographic Information and State Unemployment Summary and Current Unemployment Rates for States and Historical Highs/Lows, Seasonally Adjusted

*See Uncommon Sense #4 and How the BLS Measures Unemployment for an explanation of the unemployment measures.

¹Not seasonally adjusted.  Marginally Attached workers want work and are available, have looked for work within the last 12 months, but not during “the 4 weeks preceding the survey.”

In addition, millions more were working full-time, year-round, yet earned less than the official poverty level for a family of four. In 2017,  that number was 17.1 million, 14.8 percent of full-time, full-year workers (estimated from Current Population Survey, Bur. of the  Census, 8/17). The poverty threshold in 2017 was $25,094 for a family of four.

In April 2020, the latest month available, the number of job openings was 5.0 million. Job Openings and Labor Turnover Summary, June 9, 2020.  Thus there are 8.1 job-wanters for each available job. See also JOLTS Experimental State Estimates

Unemployment is measured as a percent of the civilian non-institutional labor force.  The unemployed are those who have not worked at least an hour during the week of record, when a sample survey is taken, and who have looked for work during that month. The labor force includes those 16 years old and older who are either working or unemployed.  It excludes those in  institutions, like nursing homes or prisons, and those in the military. The latter two groups would in all likelihood experience high unemployment. Merely adding the incarcerated would add about one percentage point to the unemployment rate.

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