The American economy added 227,000 new jobs last month. Unemployment ticked up slightly from 4.72 percent to 4.78 percent, so the headline rate increased from 4.7 percent to 4.8 percent. The whole jobs report was a little strange, though, due to a whopping revision in BLS’s estimate of the total population of the country. Without the controls, 413,000 people re-entered the labor force and the total number of people employed rose by 457,000. Those are both excellent numbers, even if they did cause the official unemployment rate to rise slightly. The labor participation rate rose from 62.7 percent to 62.9 percent regardless of the population revision.
Hourly earnings of production and nonsupervisory employees went up at an annual rate of 2.3 percent. By coincidence, that’s also the average annual increase for the entire Obama presidency. In an era of low inflation, that’s OK but not great. Altogether, this is the last jobs report of the Obama era and the starting point for judging the economic policies of the Trump era:
- Headline unemployment rate: 4.8 percent
- U6 unemployment rate: 9.4 percent
- Labor participation rate: 62.9 percent
- Hourly earnings of production and nonsupervisory employees: $21.84