Today’s Jobs Report Didn’t Go Much of Anywhere – AJSN Latent Demand Down To 15.9 Million on Lower Number of Expatriates

This morning’s Bureau of Labor Statistics Employment Situation Summary was supposed to show a greatly reduced number of net new nonfarm payroll positions, but at 12,000 it didn’t even approach the 110,000 and 115,000 published estimates.  How did the other figures turn out?

Seasonally adjusted and unadjusted unemployment stayed the same, at 4.1% and 3.9% respectively, with the adjusted count of jobless up 200,000 to 7 million.  Of those there were 1.6 million long-term, or without work for 27 weeks or longer, down 100,000.  Those working part-time for economic reasons, or holding short-hours positions while seeking full-time ones, remained at 4.6 million.  The two measures of how common it is for Americans to be working or officially unemployed, the labor force participation rate and the employment-population ratio, both worsened, coming in at 62.6% and 60.0% for drops of 0.1% and 0.2%.  The unadjusted number of employed was off 108,000 to 161,938,000.  Better, though, were private nonfarm payroll wages, which gained 10 cents, more than inflation, to $35.46 per hour. 

The American Job Shortage Number or AJSN, the metric showing how many additional positions could be quickly filled if all knew they would be easy to get, fell 736,000, almost all from a much-reduced estimate of the number of Americans living outside the United States, as follows:

The share of the AJSN from official unemployment rose 2.3% to 37.6%.  Compared with a year before, the loss of 900,000 from the expatriates’ contribution was mostly offset by 480,000 more from unemployment and 154,000 from those not looking for work for the previous year, with other changes small, for a 247,000 fall. 

What happened this time?  To judge that, we next look at the measures telling us how many people left or entered the workforce.  Those were a 469,000 rise in the count of those claiming no interest in a job, and 219,000 more overall not in the labor force.  There was also a consistent shrinkage in the categories of marginal attachment, the 3^rd through 6^th and 8^th rows above.  Those departing workers were why our unemployment rates didn’t worsen, given fewer new positions than our population increase could absorb.  October’s deficiency, possibly created mostly from storms and sudden layoffs, may well greatly reverse itself next time, but it is in the books.  Accordingly, I saw the turtle take a small step backwards.