Free Markets, Free People

Economic Statistics for 7 Jun 13

Here are today’s statistics on the state of the economy:

The BLS reports that 175,000 net new jobs were created in May, while the unemployment rate rose a tick to 7.6%. The U-6 unemployment rate, the government’s broadest measure on unemployment, actually fell a tick to 13.8%. The labor force participation rate was little changed at 63.4%, though 420,000 workers entered the labor force. The average for weekly hours remained unchanged at 34.5 hours, while the average hourly earnings rose a penny to $23.89. The "real" unemployment rate, as I calculate it using the historical average for labor force participation, fell 0.13% to 11.41%. Overall, a lackluster report showing no substantial gains in the employment market.

Revolving credit is not moving much, but non-revolving credit—mainly from strong increses in auto sales—moved up sharply, resulting in an increase in overall consumer credit to $11.1 billion in April from $8.0 billion in March.

Dale Franks
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2 Responses to Economic Statistics for 7 Jun 13

  • Looking ahead, however, the Fed does see fiscal policy slowing growth, but not, as liberals would have you believe, due to spending cuts:

    Surprisingly, despite all the attention federal spending cuts and sequestration have received, our calculations suggest they are not the main contributors to this projected drag. The excess fiscal drag on the horizon comes almost entirely from rising taxes. Specifically, we calculate that nine-tenths of that projected 1 percentage point excess fiscal drag comes from tax revenue rising faster than normal as a share of the economy.