Labor Force Participation Rate Falls In July
Part of the reason: the labor force participation rate, which fell to 63.4% last month from 63.5% the month before.
The civilian labor force decreased by 37,000 to 155.80 million in July, while those not in the labor force rose by 240,000 to 89.96 million.
Most Of The New Jobs Were Part-Time
According to the Bureau of Labor Statistics’ household survey, part-time jobs jumped by 174,000 to 28,233,000 in July.
Full-time workers climbed by 92,000.
Full-time workers are down from the May jobs report while part-time workers are up for the same time period.
Workers are generally considered to be “full time” if they work over 30 hours per week.
Some economists have speculated the shift from full time to part time derives from the employer mandate in the Affordable Care Act. Under the legislation, employers will be required to offer health insurance or face penalties (though the White House will delay enforcement until 2015).
Payrolls Miss 162K vs 185K Expected, June Revised Lower To 188K; Unemployment Rate 7.4%
So much for the trends of beats: July nonfarm payrolls +162K missing expectations of 185K; June was revised lower to 188K and the unemployment rate dips from 7.5% to 7.4%. The rate dropped because the civilian labor force declined from 155,835 to 155,798 or 37K, driven by an increase of people not in labor force to 89,957 – just shy of the all time high. This also means that the labor force participation rate once again ticked down to 63.4% from 63.5%.
Obamacare Full Frontal: Of 953,000 Jobs Created In 2013, 77%, Or 731,000 Are Part-Time
When the payroll report was released last month, the world finally noticed what we had been saying for nearly three years: that the US was slowly being converted to a part-time worker society. This slow conversion accelerated drastically in the last few months, and especially in June, when part time jobs exploded higher by 360K while full time jobs dropped by 240K. In July we are sad to report that America’s conversation to a part-time worker society is accelerating: according to the Household Survey, of the 266K jobs created (note this number differs from the establishment survey), only 35% of jobs, or 92K, were full time. The rest were… not.
Daily job cuts