Employment Growth Slows...Again

Non farm payroll employment increased in May by 69,000, and the unemployment rate was essentially unchanged at 8.2 percent, the U.S. Bureau of Labor Statistics reported today.  The civilian labor force participation rate increased in May by 0.2 percentage point to 63.8 percent, offsetting a decline of the same amount in April. The employment-population ratio edged up to 58.6 percent in May.  Unfortunately total non farm payroll employment for March was revised from positive 154,000 to positive 143,000, and April was revised more significantly from 115,000 to just 77,000.  While the numbers are still positive and there is job creation happening in the economy, the numbers are beginning to trend lower.

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The chart below shows the current recovery compared to previous recoveries over the past century. As you can see it has more of a "U' shape rather than a "V" shape.  This shows the depth of the recent employment recession - worse than any other post-war recession - and the relatively slow recovery; mainly due to the lingering effects of the housing bust, financial crisis, and ongoing government intervention. 

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