BLS Reports > Economy > Insights & Trends
Job Creation Up, Unemployment Rate Down (But There’s a Catch…)
- June 4th, 2010
- 7 Comments
And why wouldn’t there be?
Well, it’s the first Friday of June, and while it may just be a coincidence that there are free donuts available on the very same day the latest Employment Situation report is released, it is awfully convenient: After seeing these numbers, you might be in need of some comfort food.
Because while jobs did grow this month, they fell far short of analysts’ predictions. And while the unemployment rate did go down, it’s largely because many unemployed workers gave up their job searches. Here are the highlights:
- Total nonfarm payroll employment grew by 431,000 in May (driven by the hiring of 411,000 temporary Census workers)
- Private employers added just 41,000 jobs in May – down sharply from 218,000 in April and the fewest since January.
- The unemployment rate decreased from 9.9 percent to 9.7 percent (which seems like good news until you realize that it reflects that people gave up searching for work.)
- The underemployment rate (those who’ve given up looking for work and part-timers who would rather be working full time) fell from 17.1 percent in April to 16.6 percent in May.
- All told, 15 million people were unemployed in May.
Understandably, this month’s report is being called “disappointing,” and, indeed, it is; however, I’m kind of trying to view this report like I did the ending of “Lost” (no spoilers here, I promise). While both fell short of my expectations and left a lot of unanswered questions, I also kind of saw this coming all along…That is to say, there’s nothing to me all that shocking in the report.
After all, the overall takeaways from the report remain are the same as they’ve been in previous months: Private employers are still hesitant to bring on full-time workers, jobs are still being added – but still at a frustratingly slow pace – and it still looks like it’s going to be a while before there is significant relief for the roughly 15 million unemployed Americans.
About Mary Lorenz
Mary is a copywriter for CareerBuilder, specializing in B2B marketing and corporate recruiting best practices and social media. In addition to creating copy for corporate advertising and marketing campaigns, she researches and writes about employee attraction, engagement and retention. Whenever possible, she makes references to pop culture. Sometimes, those references are even relevant. A New Orleans native, Mary now lives in Chicago, right down the street from the best sushi place in the city. It's awesome.With all the dismal unemployment statistics, it is difficult to understand why, as an employer, we are unable to fill professional (albeit highly specialized) and very unspecialized entry-level non-professional positions with ease. The non-professional openings require that candidates pass a junior high school level test of spelling, math reasoning, and speak English clearly and properly. Passing this brief test disqualifies many candidates before they ever get to the hiring stage. Maybe the job seekers and the statisticians should look at the employability of the unemployed before blaming the economic situation for their unemployment. In this economic climate, those behaving as though they are uneducated and/or unmotivated can't skate into employment and reemployment drifting from one position to another like they may have in the past. Eventually unemployment compensation runs out (if available at all) and the numbers of those "giving up" increase exponentially.
How exactly does one "give up" their job search? When you "give up" your job search, does that mean you're never going to work again? This rhetoric generated by the Obama administration is nothing more than a ploy to make us feel sorry for those who've "given up" their job search and thus entitle them to more benefits for NOT working. Or, it could just be to justify creating more government jobs for those poor souls who've "given up." Suck it up people, life is tough, the economy is sluggish and no one is entitled to a free ride.
With all the dismal unemployment statistics, it is difficult to understand why, as an employer, we are unable to fill professional (albeit highly specialized) and very unspecialized entry-level non-professional positions with ease. The non-professional openings require that candidates pass a junior high school level test of spelling, math reasoning, and speak English clearly and properly. Passing this brief test disqualifies many candidates before they ever get to the hiring stage. Maybe the job seekers and the statisticians should look at the employability of the unemployed before blaming the economic situation for their unemployment. In this economic climate, those behaving as though they are uneducated and/or unmotivated can't skate into employment and reemployment drifting from one position to another like they may have in the past. Eventually unemployment compensation runs out (if available at all) and the numbers of those "giving up" increase exponentially.
Karen - I'd be happy to come and interview for one of your firm's open positions, if it's in the NYC area...I have stellar spoken and written English skills, as well as decent ability with figures.
How exactly does one "give up" their job search? When you "give up" your job search, does that mean you're never going to work again? This rhetoric generated by the Obama administration is nothing more than a ploy to make us feel sorry for those who've "given up" their job search and thus entitle them to more benefits for NOT working. Or, it could just be to justify creating more government jobs for those poor souls who've "given up." Suck it up people, life is tough, the economy is sluggish and no one is entitled to a free ride.
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[...] Job Creation Up, Unemployment Rate Down (But There’s a Catch…) Little did we know at the time, but June 2010 – the topic of our monthly summary of the unemployment situation report – would later be identified by economists as the month the recession officially ended. [...]