Economy Adds 162,000 Jobs in July. Workforce Participation Continues Slide

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Washington, DC...Total nonfarm payroll employment increased by 162,000 in July, and the unemployment rate edged
down to 7.4 percent, the U.S. Bureau of Labor Statistics reported today. Employment rose in
retail trade, food services and drinking places, financial activities, and wholesale trade.

Household Survey Data

Both the number of unemployed persons, at 11.5 million, and the unemployment rate, at 7.4 percent,
edged down in July. Over the year, these measures were down by 1.2 million and 0.8 percentage
point, respectively. (See table A-1.)

Among the major worker groups, the unemployment rates for adult women (6.5 percent) and blacks
(12.6 percent) declined in July. The rates for adult men (7.0 percent), teenagers (23.7 percent),
whites (6.6 percent), and Hispanics (9.4 percent) showed little or no change. The jobless rate
for Asians was 5.7 percent (not seasonally adjusted), little changed from a year earlier. (See
tables A-1, A-2, and A-3.)

In July, the number of long-term unemployed (those jobless for 27 weeks or more) was little
changed at 4.2 million. These individuals accounted for 37.0 percent of the unemployed. The
number of long-term unemployed has declined by 921,000 over the past year. (See table A-12.)

The civilian labor force participation rate was 63.4 percent in July, little changed over the
month. The employment-population ratio was unchanged at 58.7 percent. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to as involuntary
part-time workers) was essentially unchanged at 8.2 million in July. These individuals were working
part time because their hours had been cut back or because they were unable to find a full-time
job. (See table A-8.)

In July, 2.4 million persons were marginally attached to the labor force, little changed from a
year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor
force, wanted and were available for work, and had looked for a job sometime in the prior 12
months. They were not counted as unemployed because they had not searched for work in the 4 weeks
preceding the survey. (See table A-16.)

Among the marginally attached, there were 988,000 discouraged workers in July, up by 136,000 from
a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not
currently looking for work because they believe no jobs are available for them. The remaining
1.4 million persons marginally attached to the labor force in July had not searched for work for
reasons such as school attendance or family responsibilities. (See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment increased by 162,000 in July, with gains in retail trade, food
services and drinking places, financial activities, and wholesale trade. Over the prior 12 months,
nonfarm employment growth averaged 189,000 per month. (See table B-1.)

Retail trade added 47,000 jobs in July and has added 352,000 over the past 12 months. In July, job
growth occurred in general merchandise stores (+9,000), motor vehicle and parts dealers (+6,000),
building material and garden supply stores (+6,000), and health and personal care stores (+5,000).

Within leisure and hospitality, employment in food services and drinking places increased by 38,000
in July and by 381,000 over the year.

Financial activities employment increased by 15,000 in July, with a gain of 6,000 in securities,
commodity contracts, and investments. Over the year, financial activities has added 120,000 jobs.

Employment increased in wholesale trade (+14,000) in July. Over the past 12 months, this industry
has added 83,000 jobs.

Employment in professional and business services continued to trend up in July (+36,000). Within
the industry, job growth continued in management of companies and enterprises (+7,000) and in
management and technical consulting services (+7,000). Employment in temporary help services
changed little over the month.

Manufacturing employment was essentially unchanged in July and has changed little, on net, over
the past 12 months. Within the industry, employment in motor vehicles and parts rose by 9,000
in July.

Employment in health care was essentially unchanged over the month. Thus far in 2013, health
care has added an average of 16,000 jobs per month, compared with an average monthly increase
of 27,000 in 2012.

Employment in other major industries, including mining and logging, construction, transportation
and warehousing, and government, showed little change in July.

The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour in July
to 34.4 hours. In manufacturing, the workweek decreased by 0.2 hour to 40.6 hours, and overtime
declined by 0.2 hour to 3.2 hours. The average workweek for production and nonsupervisory employees
on private nonfarm payrolls decreased by 0.1 hour to 33.6 hours. (See tables B-2 and B-7.)

In July, average hourly earnings for all employees on private nonfarm payrolls edged down by 2 cents
to $23.98, following a 10-cent increase in June. Over the year, average hourly earnings have risen
by 44 cents, or 1.9 percent. In July, average hourly earnings of private-sector production and
nonsupervisory employees were unchanged at $20.14. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for May was revised from +195,000 to +176,000, and
the change for June was revised from +195,000 to +188,000. With these revisions, employment gains
in May and June combined were 26,000 less than previously reported.

_____________
The Employment Situation for August is scheduled to be released on Friday, September 6, 2013, at
8:30 a.m. (EDT).

 

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