The latest Bureau of Labor Statistics (BLS) Employment Situation Summary report, commonly referred to as the “non-farm Payrolls report”, was released this past Friday, June 2.  138,000 new non-farm jobs were created in the month of May,  which was 47,000 jobs lower than the forecast for 185,000 new jobs, while the unemployment rate fell to 4.3% from 4.4% the previous month (BLS, June 2017).  What indication does this data provide about the health of the US economy (MarketWatch, June 2017)?

Questions for Students

1. Describe how this infographic is organized?  What are descriptions for the three different charts provided?
2. How would you describe the trend in unemployment rate from 2009-2017?  What could possibly explain this trend in the unemployment rate?  Would a healthy US economy be associated with an increasing or decreasing unemployment rate?  Explain your reasoning.
3. The MarketWatch article states, “The U.S. added a modest 138,000 new jobs in May and hiring earlier in the spring was weaker than initially reported, adding to evidence that the tightest labor market in years is making it harder for companies to fill open jobs.”  What graphical evidence from the charts supports this statement?  
4. How many jobs were gained or lost in the Retail industry?  What trends could explain the change of employment in this industry?
5. What industries had the greatest job gains in the month of May?  What college majors or skills do you think are most associated with jobs in these fields?

What is the Employment Situation Summary Report?

• On the first Friday of every month, the BLS releases the Employment Situation Summary Report for the previous month (for example, the June report contained information on May employment), which includes both the Non-Farm Payrolls (business) and Household Survey (consumers) results.
• The unemployment rate, often the most frequently used employment statistic in the media, comes from the Household survey, and is calculated by dividing the number of people employed by the total Labor Force (BLS).  The Labor Force is considered the number of people in the US population who are actively either employed or looking for work.  The Labor Force participation rate in the US averages around 63-66% (BLS), but has been in steady decline since the Great Recession (Marketwatch, September 2016).
• This Employment Situation Summary report is one of the most important economic data releases that are followed by investors as it is believed to provide an accurate indicator of the current and future health of the US economy.  Changes in total jobs created as well as the unemployment rate are closely monitored and can indicate trends in the US economy.  Over the long-run, trends in employment by industries could provide some indication of expected job growth in the future.

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About the Author

Hari Vasu-Devan

As a young Indian immigrant, Hari was extremely privileged to learn about financial literacy by way of his parents....