Monday, June 8, 2015

Employment Numbers May 2015

The following are some summaries of the employment data from last week.
First is the set of data on reported and actual using the projections on the 2006 data. We still see a substantial gap, namely using the 2006 participation rate we are near 8% unemployment.
Employment is growing but it is not increasing at a rate commensurate with population growth.
The participation rate just will not climb back to where it was. This will mean a long term deficit, both in employment and in revenue. Also the unemployed will reap benefits independent of contributions.
This shows the incremental numbers. The gap is positive which is of some good news.
The gap is a measure of a lagging economy. It is not clear why this remains so stagnant.