BLS

November Jobs Up But…

December 4, 2021 by Tim McMahon

November 2021 Unemployment report from the Bureau of Labor Statistics (BLS)

Unadjusted U-3 was Down from 4.3% to 3.9%
Adjusted U-3 was Down from 4.6% to 4.2%
Unadjusted U-6 was Down from 7.7% to 7.4%
Labor Force Participation Up 61.6% to 61.8%
Unadjusted employment rose from 149.226 million to 150.004 million

Although November’s job numbers are generally an improvement over October, Bloomberg called them”weird” and “the smallest jobs gain this year”. This jobs report is so weird because retail employment is DOWN by -20,400 in a month, known for increased retail employment. Market commentators are also blaming the Jobs report for Friday’s market drop.

According to the Commissioner of the U.S. Bureau of Labor Statistics:

“Nonfarm payroll employment rose by 210,000 in November, and the unemployment rate fell by 0.4 percentage point to 4.2 percent. Notable job gains occurred in professional and business services, transportation and warehousing, construction, and manufacturing. Employment in retail trade declined over the month.”

As usual, they are talking about “Seasonally Adjusted Jobs” from the “Current Population Survey (CPS)” rather than looking at the results reported by actual companies in their “Current Employment Statistics survey (CES).”

But looking at the CES report, we see…
Initially, the BLS reported 149.217 million for October, which they adjusted to 149.226 million. For November, they are reporting 150.004 million,
which is an increase of 787,000 jobs based on their original estimates or an increase of 778,000 based on their updated numbers.

October 2021 Unemployment Down as Expected

November 6, 2021 by Tim McMahon

October 2021 Unemployment report from the Bureau of Labor Statistics (BLS)

Unadjusted U-3 was Down from 4.6% to 4.3%
Adjusted U-3 was Down from 4.8% to 4.6%
Unadjusted U-6 was Down from 8.1% to 7.7%
Labor Force Participation unchanged at 61.6%
Unadjusted employment rose from 147.659 million to 149.217 million

These numbers are generally an improvement over last month (except Labor Force Participation), in line with market expectations. Typically October and November are up months for employment with Seasonal hiring for the Holidays.

According to the Commissioner of the U.S. Bureau of Labor Statistics:

“Nonfarm payroll employment rose by 531,000 in October, and the unemployment rate edged down by 0.2 percentage point to 4.6 percent.
Job growth was widespread, with notable job gains in leisure and hospitality, in professional and business services, in manufacturing,
and in transportation and warehousing. Employment declined in public education over the month.”

But looking at the CES report we see…
Originally the BLS reported 147.682 for September which they adjusted to 147.659 million. For October they are currently saying employment is 149.217 million.
which is actually an increase of 1,535,000 jobs based on their original estimates or an increase of 1,558,000 based on their updated numbers.

September Unemployment Disappointing

October 9, 2021 by Tim McMahon

September nonfarm payroll report from the Bureau of Labor Statistics (BLS)

Unadjusted U-3 was Down from 5.3% to 4.6%
Adjusted U-3 was Down from 5.2% to 4.8%
Unadjusted U-6 was Down from 8.9% to 8.1%
Labor Force Participation Down from 61.7% to 61.6%
Unadjusted employment rose from 147.028 million to 147.682 million

Although these numbers are generally an improvement over last month (except Labor Force Participation), the market expected better. Bloomberg was projecting jobs growth of roughly 2.5x what we actually got.

According to the Commissioner of the U.S. Bureau of Labor Statistics:

Nonfarm payroll employment rose by 194,000 in September, and the unemployment rate fell by 0.4 percentage point to 4.8 percent.
Notable job gains occurred in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing.
Employment declined in public education over the month.

But looking at the CES report, we see…
Initially, the BLS reported 146.856 for August, which they adjusted to 147.028 million. For September, they are currently saying employment is 147.682 million.
This is an increase of 826,000 jobs based on their original estimates. Or an increase of 654,000 based on their updated numbers.

However, the market considers this a “much softer-than-expected September nonfarm payroll report” since Bloomberg was projecting 500,000 new jobs instead of the CPS Seasonally Adjusted 194,000.

The labor force participation rate dipped to 61.6% from August’s 61.7% rate, compared to forecasts of an increase to 61.8%.

August Unemployment Improves as Pandemic Benefits Expire

September 4, 2021 by Tim McMahon

The U.S. Bureau of Labor Statistics (BLS) released their employment / unemployment report for August.

Unadjusted U-3 was Down from 5.7% to 5.3%
Adjusted U-3 was Down from 5.4% to 5.2%
Unadjusted U-6 was Down from 9.6% to 8.9%
Labor Force Participation unchanged at 61.7%
Unadjusted Employment rose from 146.544 million to 146.856 million

The Pandemic Emergency Unemployment Compensation program, which extends unemployment benefits by up to 24 weeks for those who have exhausted regular unemployment aid, and the $300 weekly supplement to state unemployment benefits, are due to expire on September 6. This may be the motivation some unemployed individuals needed to get back to work. Many have complained that the government assistance was paying certain people at the lower end of the payscale more to stay home than they could earn by going to work.

According to the Commissioner of the U.S. Bureau of Labor Statistics:

Total nonfarm payroll employment rose by 235,000 in August, and the unemployment rate declined by 0.2 percentage point to 5.2 percent, the U.S. Bureau of Labor Statistics reported today. So far this year, monthly job growth has averaged 586,000. In August, notable job gains occurred in professional and business services, transportation and warehousing, private education, manufacturing, and other services. Employment in retail trade declined over the month.

But looking at the CES report we see…

Originally the BLS reported 146.470 for July which they adjusted to 146.544 million. For August they are currently saying employment is 146.856 million which is actually an increase of 386,000 jobs based on their original estimates or an increase of 312,000 based on their updated numbers.

Unemployment Falls in July

August 7, 2021 by Tim McMahon

Highlights from the August 6^th Bureau of Labor Statistics (BLS) employment / unemployment report for July.

Unadjusted U-3 was Down from 6.1% to 5.7%
Adjusted U-3 was Down from 5.9% to 5.4%
Unadjusted U-6 was Down from 10.1% to 9.6%
Labor Force Participation UP from 61.6% to 61.7%
Unadjusted Employment fell from 146.603 million to 146.470 million

June Employment and Unemployment Both Up

July 3, 2021 by Tim McMahon

Highlights from the Bureau of Labor Statistics (BLS) employment / unemployment report for June released on July 2^nd.

Unadjusted U-3 was UP from 5.5% to 6.1%
Adjusted U-3 was UP from 5.8% to 5.9%
Unadjusted U-6 was UP from 9.7% to 10.1%
Labor Force Participation unchanged at 61.6%
Unadjusted Employment rose from 145.385 million to 146.517 million

May Unemployment Down

June 5, 2021 by Tim McMahon

Highlights from the Bureau of Labor Statistics (BLS) employment / unemployment report for May released on June 4^th.

Unadjusted U-3 was Down from 5.7% to 5.5%
Adjusted U-3 was Down from 6.1% to 5.8%
Unadjusted U-6 was Down from 9.9% to 9.7%
Labor Force Participation fell from 61.7% to 61.6%
Unadjusted Employment rose from 144.412 million to 145.385 million

April Unemployment Report “Disappointing”

May 10, 2021 by Tim McMahon

Highlights from the Bureau of Labor Statistics (BLS) employment / unemployment report for April released on May 7^th.

Unadjusted U-3 was Down from 6.2% to 5.7%
Adjusted U-3 was Up from 6.0% to 6.1%
Unadjusted U-6 was Down from 10.9% to 9.9%
Labor Force Participation rose from 61.5% to 61.7%
Unadjusted Employment rose from 143.309 million to 144.398

MSN classified this unemployment report as “disappointing” and the “greatest test yet of President Biden’s strategy to revive the pandemic economic recovery“.
There has been speculation that expanded unemployment benefits are making people reluctant to renter the labor market since generous unemployment benefits are more than they earn at minimum wage jobs. To counteract this, states like Montana are canceling Federal COVID unemployment benefits in an effort to encourage people to go back to work.

According to CNBC: “Montana opts to end $300 unemployment boost. Other states may, too.”

CNBC KEY POINTS:

Montana Gov. Greg Gianforte, a Republican, is ending participation in federal programs that expanded and raised unemployment benefits on June 27.
The American Rescue Plan, a $1.9 trillion Covid relief bill President Joe Biden signed in March, offered them through Labor Day.
Gianforte is instead offering a $1,200 return-to-work bonus to address a labor shortage. Some experts question the move.

Buried in the middle of the article is this quote:

“Montana is turning down expanded federal benefits to address a “severe workforce shortage,” Gianforte said. The state’s labor force is 10,000 workers smaller than before the pandemic and its 3.8% unemployment rate is near pre-Covid lows.

So despite the fact that “Some ‘experts’ question the move” unemployment levels are not “disappointing” in Montana at least, in fact, quite the opposite… they are having trouble finding workers.

February Employment Shows Improvement in Leisure and Hospitality

March 6, 2021 by Tim McMahon

Highlights from the Bureau of Labor Statistics (BLS) employment / unemployment report for February released on March 5^th.

Unadjusted U-3 was Down from 6.8% to 6.6%
Adjusted U-3 was Down from 6.3% to 6.2%
Unadjusted U-6 was Down from 12.0% to 11.6%
Labor Force Participation held steady at 61.4%
Unadjusted Employment rose from 140.948 million to 141.926 million

Unemployment Goes From Extraordinarily Bad to “Only” Normally Bad

February 6, 2021 by Tim McMahon

Highlights from the Bureau of Labor Statistics (BLS) employment / unemployment report for January released on February 5^th.

Unadjusted U-3 was Up from 6.5% to 6.8%
Adjusted U-3 was Down from 6.7% to 6.3%
Unadjusted U-6 was Up from 11.6% to 12.0%
Labor Force Participation was Down from 61.5% to 61.4%
Unadjusted Employment Down from 143.700 million to 140.927 million

According to the Commissioner of the U.S. Bureau of Labor Statistics:

“The unemployment rate fell by 0.4 percentage point to 6.3 percent in January, and nonfarm payroll employment changed little (+49,000). The labor market continued to be impacted by the coronavirus (COVID-19) pandemic and efforts to contain it. Notable job gains in professional and business services and in both public and private education were offset by losses in leisure and hospitality, in retail trade, in health care, and in transportation and warehousing.”

Of course, they are talking about “Seasonally Adjusted Jobs” from the “Current Population Survey (CPS)” rather than looking at the results reported by actual companies in their “Current Employment Statistics survey (CES)”

But looking at the CES report we see…
Originally the BLS reported 143.777 million jobs for December, this month they adjusted that slightly.
So currently they are saying 143.700 million jobs for December and 140.927 million for January.
which is actually a decrease of 2,850,000 jobs based on their original estimates.