About the employment situation in May 2024 through a press release from the US Bureau of Labor Statistics. According to the press release, total nonfarm payrolls increased by 272,000 jobs in May 2024. The unemployment rate was little changed, at 4.0 percent. According to the Bureau of Labor Statistics, employment has continued to rise in many industries, including the health care sector, government, the leisure and hospitality sector, and professional, scientific and technical services.
According to household data, the unemployment rate in May is 4.0 percent and the number of unemployed people stands at 6.6 million. Note that there is little change in the unemployment rate compared to the previous year, as the unemployment rate in the same period of the previous year was 3.7 percent and the number of unemployed people was 6.1 million. Detailed data can be found in Table A-1.
For major worker groups, unemployment rates range from 3.8 percent for adult men to 3.4 percent for adult women, 12.3 percent for adolescents, 3.5 percent for whites, 6.1 percent for blacks, and 3.4 percent for Asians. , 3.1 percent for Native Americans, and 5.0 percent for Hispanic Americans. These groups showed little or no change in unemployment rates in May.
The number of long-term unemployed people (27 weeks or more) is 1.4 million, and there was no significant change in this number in May. The long-term unemployed represent 20.7 percent of the total unemployed. As for the labor force participation rate, it is 62.5 percent, and the employment-to-population ratio is 60.1 percent, and there was little change in these measures in May. The number of people working part-time for economic reasons did not change significantly and reached 4.4 million people in May
Establishments survey data
In May, the number of people who had left the labor force and now wanted a job was 5.7 million, and there was no significant change in that number. These individuals are not considered unemployed because they were not actively searching for work during the four weeks prior to the survey or were not available for work.
Among those not in the labor force who want a job, the number of people was marginally engaged and the labor force, at 1.5 million, was little changed in May. These individuals wanted and were available to work and had searched for a job at some point in the previous 12 months but had not searched for work in the four weeks prior to the survey. The number of disillusioned workers, and the proportion of a subset of marginally engaged workers who believed there were no jobs available for them, rose to 462,000 during the month
Establishment Survey Data: Increases in Some Sectors: Health Care: 68,000 jobs were added in this sector in May, which is consistent with the previous monthly average increase in job opportunities in this sector.
Government: Employment in the government sector continued to rise, with 43,000 jobs added in May, which is consistent with the previous monthly average increase in employment in this sector.
Leisure and Hospitality: The leisure and hospitality sector saw employment increase by 42,000 jobs in May, which is consistent with the previous monthly average increase in this sector.
Scientific and technical services: 32,000 jobs were added in this sector in May, higher than the previous monthly rate of increase in employment in this sector.
Social Assistance: Employment in the social assistance sector continued to rise, with 15,000 jobs added in May, higher than the previous monthly average increase in employment in the sector.
Observable trends in several sectors.
There are some notable trends in several sectors. Here’s a summary of the key points: Retail: saw an increase of 13,000 jobs in May, roughly matching the previous monthly average increase in employment in this sector. Supply retailers for building materials and garden equipment added 12,000 jobs, while department stores saw job losses (-5,000) and furniture and home furnishings retailers saw job losses (-4,000).
Other industries: There was no significant change in employment in several other major industries, including mining, quarrying, oil and gas extraction, construction, manufacturing, wholesale trade, transportation and warehousing, financial activities and other services.
Average Hourly Wages: Average hourly wages for all employees in the nonfarm private sector increased 0.4% to $34.91 in May. Over the past 12 months, average hourly wages have increased by 4.1%. For production employees in the private nonfarm sector, the hourly average rose 0.5% to $29.99 per hour.
Average Workweek: The average workweek for all employees in the nonfarm private sector remained steady at 34.3 hours in May. In the manufacturing sector, the average workweek remained unchanged at 40.1 hours, and overtime hours increased to 3.0 hours. As for productive employees in the non-agricultural private sector, the average work week increased by 0.1 hour to 33.8 hours.
The change in total nonfarm payrolls for March was revised down by 5,000, from +315,000 to +310,000, and the change for April was revised down by 10,000, from +175,000 to +165,000. With these revisions, hiring in March and April combined is 15,000 lower than previously reported.
The monthly revisions result from additional reporting from companies and government agencies since the last published estimates and from recalculations of seasonal factors.)
Facilities survey
The introduction of two monthly measures of employment, the establishment survey and the household survey, allows for a comprehensive overview of the state of the labor market and its changes. Here are some clarifications: The establishment survey uses a sample of establishments and businesses to estimate the number of new business jobs created or lost per month. It is set based on facility and company reports and is generally considered reliable, as changes in jobs are tracked throughout the month.
The establishment survey is considered more accurate in measuring monthly change in jobs due to the large sample size and flexibility in measuring changes. Household Survey: A household survey collects data from a sample of households to estimate the size of the labor force and unemployment and employment rates. The household survey includes more details about employment, such as geographical distribution, age groups, gender and education.
The household survey can have a broader scope in estimating employment because of its inclusion of different categories of employment that may not be incorporated in the establishment survey. So there are multiple monthly employment metrics because each survey has clear strengths. The establishment survey provides accurate estimates of job changes over the month, while the household survey provides broader employment estimates and detailed demographic analyses.
