Friday, June 4, 2010

Chart Of The Day: Employment Remains Below Long-Term Trend


Chart & Analysis Courtesy of ChartOfTheDay.com

On Friday, June 4, the Labor Department reported that nonfarm payrolls increased by 431,000 in May.

It is worth noting that a large majority of last month's gain in payrolls was due to the hiring of temporary workers for the 2010 census.

Today's chart provides some perspective on the U.S. job market. Note how the number of jobs steadily increased from 1961 to 2001 (top chart).

During the last economic recovery, however, job growth was unable to get back up to its long-term trend (first time since 1961).

More recently, nonfarm payrolls have pulled away from its 40-year trend (1961-2001) by a record percentage (bottom chart).

In fact, the number of U.S. jobs is currently at level first reached in early 2000.

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