Every month, the Department of Labor releases figures on employment that include the number of jobs created within the past month by the government, private sector, and other specific industries as well as the unemployment rate in the nation. These numbers are important as they represent the current labor market conditions.
Employment Figures, May 2023
Released on June 2nd, the Department of Labor released the employment figures for the month of May. In this release, it was reported that the total nonfarm payroll employment increased by 339,000 compared to the month of April. Nonfarm payroll employment measures the number of workers in the United States except those in farming, private households, proprietors, non-profit employees, and active military. Over the past 12 months, there has been an average monthly gain of 341,000 jobs.
The labor force participation rate for the month of May was 62.6 percent. This rate is calculated by taking the number of people who are either working or actively look for work divided by the population group of people aged 16 or older who are not in active duty of the Armed Forces or people living in institutions or facilities.
The employment-population ratio for the month of May was 60.3 percent. This represents the percentage of the population that is currently working. This is calculated by taking the number of people employed divided by the population group of people aged 16 or older who are not in active duty of the Armed Forces or people living in institutions or facilities.
In the specific industries in the month of May, professional and business services added 64,000 jobs, government employment increased by 56,000, health care added 52,000 jobs, construction added 25,000 jobs, transportation and warehousing added 24,000 jobs, and social assistance added 22,000 jobs.
Unemployment
The unemployment rate is calculated by the number of people without a job and looking for work divided by the labor force (the total number of people who are employed and unemployed persons who are looking for a job). In the month of May, the unemployment rate increased by 0.3 percent to 3.7 percent. Compared to May of 2022, that figure was 3.6 percent. Many economists believe that a healthy economy of a country maintains its unemployment rate between 3 and 5 percent. Across the demographics, adult men ages 20 or older have a 3.5 percent unemployment rate, adult women ages 20 or older are at 3.3 percent, and teenagers from 16 to 19 are at 10.3 percent.
First State Investment Advisors has over 50 years of experience studying employment figures and the unemployment rate. For a free consultation, call us today at (918) 492-1361.
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.