Conference Board News Release (06/09/14)

The Conference Board Employment Trends Index rose in May to 118.58, up from 117.32 (a downward revision) in April. This represents a 5.4% gain in the ETI compared with a year ago.

“The need for employers to rapidly expand their payroll in light of strengthening economic activity is a major factor in the rapid decline in the unemployment rate,” says Gad Levanon, director of macroeconomic research at the Conference Board.

May’s increase in the ETI was driven by positive contributions from seven of its eight components, including number of temporary employees.

Associated Press (06/08/14) Josh Boak; Christopher S. Rugaber

While the most recent jobs report indicates that the U.S. economy has finally regained the jobs lost during the Great Recession, many economists believe the figures underscore a transformation in the labor market. The construction industry still has not regained 1.49 million jobs, and factories have 1.65 million fewer workers, which some attribute to new technologies that boost productivity while requiring less manpower.

Additionally, the number of part-time workers has jumped 2.5 million since the recession to over 27.2 million. Meanwhile, the economy has 2.9 million fewer full-time workers than before the recession.

Wall Street Journal (06/09/14) Eric Morath

The U.S. has regained all the jobs lost since the recession began in late 2007. Economists note that there are fewer jobs in manufacturing and construction and more jobs in food service, retail, and temporary help. Overall, the workforce participation rate has shrunk to 62.8%, down from 66.2% at the beginning of 2008 and near its lowest level since the late 1970s.

MarketWatch (06/06/14) Sara Sjolin

U.S. Federal Reserve Gov. Jerome Powell said on Friday that the U.S. labor market has recovered substantially since the economic downturn, but he is concerned about the declining workforce participation rate. The workforce participation rate “has declined significantly more than simple demographics would indicate,” Powell said. “That suggests that there’s a group of people who are not formally in the labor force, but would still like to work.”