Stable Unemployment but Weak Job Gains define the U.S. Labor Market
A microscopic gain in jobs and a steady unemployment rate indicate
gradual improvements in America’s job market. Two separate reports on
the labor market indicate improvements for workers, with both the
Department of Labor and ADP, a private payrolls firm, showing muted
robustness for Americans.
The Labor Department’s weekly study of unemployment claims showed 267,000 initial claims in the last week, roughly stable from the prior week. That caused the 4-week moving average rate of claims to fall 0.6% to 276,750, helping keep initial claims at their lowest point since 1973.
Seasonally-adjusted insured unemployment also remains on a downward trend, remaining at 1.6% from the prior rate. Meanwhile, ADP also released a study that showed private sector employment rose by 173,000 jobs in April, but only 38000 in May.
Since ADP services a large number of private employers, ADP’s data is a good indicator of private business demand for workers. The increase was boosted by small businesses, which increased their labor force by 76,000 people. Ahu Yildirmaz, head of ADP Research Institute, noted that large businesses are remaining a weaker part of America’s economy. "Job creation appears to have slowed as we move further into 2016,” he said, adding, "Job creation appears to have slowed as we move further into 2016."
The Labor Department’s weekly study of unemployment claims showed 267,000 initial claims in the last week, roughly stable from the prior week. That caused the 4-week moving average rate of claims to fall 0.6% to 276,750, helping keep initial claims at their lowest point since 1973.
Seasonally-adjusted insured unemployment also remains on a downward trend, remaining at 1.6% from the prior rate. Meanwhile, ADP also released a study that showed private sector employment rose by 173,000 jobs in April, but only 38000 in May.
Since ADP services a large number of private employers, ADP’s data is a good indicator of private business demand for workers. The increase was boosted by small businesses, which increased their labor force by 76,000 people. Ahu Yildirmaz, head of ADP Research Institute, noted that large businesses are remaining a weaker part of America’s economy. "Job creation appears to have slowed as we move further into 2016,” he said, adding, "Job creation appears to have slowed as we move further into 2016."
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