Economic Statistics for 6 Mar 15
The labor department reports that 295,000 net new jobs were created in January, as the unemployment rate fell from 5.7% to 5.5%. The labor force participation rate slipped -0.1% to 62.8% as 178,000 people left the labor force. Average hourly earnings rose 0.1%, while the average workweek remained unchanged at 34.6 hours. The U-6 unemployment rate, the broadest measure of labor utilization, fell from 11.3% to 11%. Normally, at this point, I would calculate the “real” unemployment rate based on the historical labor force participation rate of 66.2%. Well, I’m not going to do that any more. Labor force participation has been declining steadily for the past 15 years, so I’m no longer sure what the “real” labor force participation rate should be. Below is labor force participation since 1960.
Lower oil prices narrowed the US Trade deficit from $-46.6 billion in December to $-41.8 billion in January.
Consumer credit rose $11.6 billion in January, but revolving credit fell $1.1 billion. Credit increases mainly came from auto financing and the government’s acquisition of student loans.