Economy Adds 145,000 Jobs in December, Unemployment Rate Unchanged at 3.5%

Washington, DC…Total nonfarm payroll employment rose by 145,000 in December, and the unemployment rate was unchanged at 3.5 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in retail trade and health care, while mining lost jobs. In December, the unemployment rate held at 3.5 percent, and the number of unemployed persons was unchanged at 5.8 million. A year earlier, the jobless rate was 3.9 percent,
and the number of unemployed persons was 6.3 million.

This news release presents statistics from two monthly surveys. The household survey
measures labor force status, including unemployment, by demographic characteristics.
The establishment survey measures nonfarm employment, hours, and earnings by industry.
For more information about the concepts and statistical methodology used in these
two surveys, see the Technical Note.
_______________________________________________________________________________________
| |
| Revision of Seasonally Adjusted Household Survey Data |
| |
| Seasonally adjusted household survey data have been revised using updated seasonal |
| adjustment factors, a procedure done at the end of each calendar year. Seasonally |
| adjusted estimates back to January 2015 were subject to revision. The unemployment |
| rates for January 2019 through November 2019 (as originally published and as revised)|
| appear in table A, along with additional information about the revisions. |
|_______________________________________________________________________________________|

Household Survey Data

In December, the unemployment rate held at 3.5 percent, and the number of unemployed
persons was unchanged at 5.8 million. A year earlier, the jobless rate was 3.9 percent,
and the number of unemployed persons was 6.3 million. (See table A-1.)

Among the major worker groups, the unemployment rates for adult men (3.1 percent), adult
women (3.2 percent), teenagers (12.6 percent), Whites (3.2 percent), Blacks (5.9 percent),
Asians (2.5 percent), and Hispanics (4.2 percent) showed little or no change in December.
(See tables A-1, A-2, and A-3.)

The number of long-term unemployed (those jobless for 27 weeks or more), at 1.2 million,
was unchanged in December and accounted for 20.5 percent of the unemployed. (See table
A-12.)

The labor force participation rate was unchanged at 63.2 percent in December. The
employment-population ratio was 61.0 percent for the fourth consecutive month but was
up by 0.4 percentage point over the year. (See table A-1.)

The number of persons employed part time for economic reasons, at 4.1 million, changed
little in December but was down by 507,000 over the year. These individuals, who would
have preferred full-time employment, were working part time because their hours had been
reduced or they were unable to find full-time jobs. (See table A-8.)

In December, 1.2 million persons were marginally attached to the labor force, down by
310,000 from a year earlier. (Data are not seasonally adjusted.) These individuals were
not in the labor force, wanted and were available for work, and had looked for a job
sometime in the prior 12 months. They were not counted as unemployed because they had
not searched for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 277,000 discouraged workers in December, down
by 98,000 from a year earlier. (Data are not seasonally adjusted.) Discouraged workers
are persons not currently looking for work because they believe no jobs are available for
them. The remaining 969,000 persons marginally attached to the labor force in December
had not searched for work for reasons such as school attendance or family responsibilities.
(See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment increased by 145,000 in December. Notable job gains
occurred in retail trade and health care, while mining lost jobs. In 2019, payroll
employment rose by 2.1 million, down from a gain of 2.7 million in 2018. (See table B-1.)

In December, retail trade added 41,000 jobs. Employment increased in clothing and
accessories stores (+33,000) and in building material and garden supply stores (+7,000);
both industries showed employment declines in the prior month. Employment in retail trade
changed little, on net, in both 2019 and 2018 (+9,000 and +14,000, respectively).

Employment in health care increased by 28,000 in December. Ambulatory health care services
and hospitals added jobs over the month (+23,000 and +9,000, respectively). Health care
added 399,000 jobs in 2019, compared with an increase of 350,000 in 2018.

Employment in leisure and hospitality continued to trend up in December (+40,000). The
industry added 388,000 jobs in 2019, similar to the increase in 2018 (+359,000).

Mining employment declined by 8,000 in December. In 2019, employment in mining declined
by 24,000, after rising by 63,000 in 2018.

Construction employment changed little in December (+20,000). Employment in the industry
rose by 151,000 in 2019, about half of the 2018 gain of 307,000.

In December, employment in professional and business services showed little change
(+10,000). The industry added 397,000 jobs in 2019, down from an increase of 561,000
jobs in 2018.

Employment in transportation and warehousing changed little in December (-10,000).
Employment in the industry increased by 57,000 in 2019, about one-fourth of the 2018
gain of 216,000.

Manufacturing employment was little changed in December (-12,000). Employment in the
industry changed little in 2019 (+46,000), after increasing in 2018 (+264,000).

In December, employment showed little change in other major industries, including wholesale
trade, information, financial activities, and government.

In December, average hourly earnings for all employees on private nonfarm payrolls rose
by 3 cents to $28.32. Over the last 12 months, average hourly earnings have increased by
2.9 percent. In December, average hourly earnings of private-sector production and
nonsupervisory employees, at $23.79, were little changed (+2 cents). (See tables B-3 and
B-8.)

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.3
hours in December. In manufacturing, the average workweek and overtime remained at 40.5
hours and 3.2 hours, respectively. The average workweek of private-sector production and
nonsupervisory employees held at 33.5 hours. (See tables B-2 and B-7.)

The change in total nonfarm payroll employment for October was revised down by 4,000 from
+156,000 to +152,000, and the change for November was revised down by 10,000 from +266,000
to +256,000. With these revisions, employment gains in October and November combined were
14,000 lower than previously reported. (Monthly revisions result from additional reports
received from businesses and government agencies since the last published estimates and
from the recalculation of seasonal factors.) After revisions, job gains have averaged
184,000 over the last 3 months.

_____________
The Employment Situation for January is scheduled to be released on Friday, February 7,
2020, at 8:30 a.m. (EST).

______________________________________________________________________________________
| |
| Upcoming Changes to Household Survey Data |
| |
| With the publication of The Employment Situation for January 2020 on February 7, |
| 2020, two not seasonally adjusted series currently displayed in Summary table |
| A–persons marginally attached to the labor force and discouraged workers–will |
| be replaced with new seasonally adjusted series. The new seasonally adjusted |
| series will be available in the BLS online database back to 1994. Not seasonally |
| adjusted data for persons marginally attached to the labor force and for |
| discouraged workers will continue to be published in table A-16. These series |
| will also be available in the BLS online database back to 1994. |
| |
| Persons marginally attached to the labor force and discouraged workers are inputs |
| into three alternative measures of labor underutilization displayed in table A-15. |
| Therefore, with the publication of The Employment Situation for January 2020, data |
| for U-4, U-5, and U-6 in table A-15 will reflect the new seasonally adjusted |
| series. Revised data back to 1994 will be available in the BLS online database. |
| Not seasonally adjusted series for the alternative measures will be unaffected. |
| |
| Beginning with data for January 2020, occupation estimates in table A-13 will |
| reflect the introduction of the 2018 Census occupation classification system into |
| the household survey. This occupation classification system is derived from the |
| 2018 Standard Occupational Classification (SOC) system. In addition, industry |
| estimates in table A-14 will reflect the introduction of the 2017 Census industry |
| classification system, which is derived from the 2017 North American Industry |
| Classification System (NAICS). Historical data on occupation and industry will |
| not be revised. Beginning with data for January 2020, estimates will not be |
| strictly comparable with earlier years. |
| |
| Also beginning with data for January 2020, estimates of married persons will |
| include those in opposite- and same-sex marriages. Prior to January 2020, these |
| estimates included only those in opposite-sex marriages. This will affect marital |
| status estimates in tables A-9 and A-10. Historical data will not be revised. |
| |
| Also effective with the release of The Employment Situation for January 2020, new |
| population controls will be used in the household survey estimation process. These |
| new controls reflect the annual update of intercensal population estimates by the |
| U.S. Census Bureau. In accordance with usual practice, historical data will not |
| be revised to incorporate the new controls; consequently, household survey data |
| for January 2020 will not be directly comparable with data for December 2019 or |
| earlier periods. A table showing the effects of the new controls on the major labor |
| force series will be included in the January 2020 news release. In addition, the |
| population controls for veterans, which are derived from a Department of Veterans |
| Affairs’ population model and are updated periodically, will also be updated with |
| the release of January data. |
|______________________________________________________________________________________|

______________________________________________________________________________________
| |
| Upcoming Revisions to Establishment Survey Data |
| |
| Effective with the release of The Employment Situation for January 2020 on February |
| 7, 2020, the establishment survey will revise nonfarm payroll employment, hours, |
| and earnings data to reflect the annual benchmark process and updated seasonal |
| adjustment factors. Not seasonally adjusted data beginning with April 2018 and |
| seasonally adjusted data beginning with January 2015 are subject to revision. |
| Consistent with standard practice, additional historical data may be revised as a |
| result of the benchmark process. |
|______________________________________________________________________________________|

Revision of Seasonally Adjusted Household Survey Data

At the end of each calendar year, BLS routinely updates the seasonal adjustment
factors for the national labor force series derived from the household survey. As
a result of this process, seasonally adjusted data for January 2015 through
November 2019 were subject to revision. (Not seasonally adjusted data were not
subject to revision.)

Table A shows the unemployment rates for January 2019 through November 2019, as
first published and as revised. The rates were unchanged for all 11 months.
Revised seasonally adjusted data for other major labor force series beginning
in December 2018 appear in table B.

More information on this year’s revisions to seasonally adjusted household series
is available at www.bls.gov/web/empsit/cps-seas-adjustment-methodology.pdf.
Detailed information on the seasonal adjustment methodology is found at
www.bls.gov/cps/seasonal-adjustment-methodology.htm.

Historical data for the household series contained in the A tables of this news
release can be accessed at www.bls.gov/cps/cpsatabs.htm. Revised historical
seasonally adjusted data are available at www.bls.gov/cps/data.htm and
https://download.bls.gov/pub/time.series/ln/.

Table A. Seasonally adjusted unemployment rates in 2019 and changes due to revision
January – November 2019

Month As first published As revised Change

January…………. 4.0 4.0 0.0
February………… 3.8 3.8 0.0
March…………… 3.8 3.8 0.0
April…………… 3.6 3.6 0.0
May…………….. 3.6 3.6 0.0
June……………. 3.7 3.7 0.0
July……………. 3.7 3.7 0.0
August………….. 3.7 3.7 0.0
September……….. 3.5 3.5 0.0
October…………. 3.6 3.6 0.0
November………… 3.5 3.5 0.0

HOUSEHOLD DATA
Table B. Employment status of the civilian population by sex and age, seasonally adjusted
[Numbers in thousands]
Employment status, sex, and age 2018 2019
Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

TOTAL

Civilian noninstitutional population(1)

258,888 258,239 258,392 258,537 258,693 258,861 259,037 259,225 259,432 259,638 259,845 260,020 260,181

Civilian labor force

163,111 163,142 163,047 162,935 162,546 162,782 163,133 163,373 163,894 164,051 164,401 164,347 164,556

Participation rate

63.0 63.2 63.1 63.0 62.8 62.9 63.0 63.0 63.2 63.2 63.3 63.2 63.2

Employed

156,825 156,627 156,866 156,741 156,696 156,844 157,148 157,346 157,895 158,298 158,544 158,536 158,803

Employment-population ratio

60.6 60.7 60.7 60.6 60.6 60.6 60.7 60.7 60.9 61.0 61.0 61.0 61.0

Unemployed

6,286 6,516 6,181 6,194 5,850 5,938 5,985 6,027 5,999 5,753 5,857 5,811 5,753

Unemployment rate

3.9 4.0 3.8 3.8 3.6 3.6 3.7 3.7 3.7 3.5 3.6 3.5 3.5

Men, 20 years and over

Civilian noninstitutional population(1)

116,739 116,436 116,513 116,586 116,665 116,752 116,843 116,939 117,040 117,140 117,242 117,331 117,413

Civilian labor force

83,483 83,586 83,588 83,566 83,421 83,569 83,568 83,771 83,852 83,841 83,911 84,057 84,008

Participation rate

71.5 71.8 71.7 71.7 71.5 71.6 71.5 71.6 71.6 71.6 71.6 71.6 71.5

Employed

80,496 80,474 80,677 80,570 80,609 80,761 80,780 80,975 81,046 81,146 81,196 81,377 81,390

Employment-population ratio

69.0 69.1 69.2 69.1 69.1 69.2 69.1 69.2 69.2 69.3 69.3 69.4 69.3

Unemployed

2,987 3,112 2,911 2,995 2,812 2,808 2,788 2,796 2,806 2,695 2,715 2,679 2,618

Unemployment rate

3.6 3.7 3.5 3.6 3.4 3.4 3.3 3.3 3.3 3.2 3.2 3.2 3.1

Women, 20 years and over

Civilian noninstitutional population(1)

125,393 125,099 125,177 125,252 125,332 125,419 125,509 125,604 125,705 125,806 125,907 125,998 126,082

Civilian labor force

73,673 73,643 73,667 73,508 73,440 73,439 73,655 73,585 74,116 74,313 74,542 74,291 74,584

Participation rate

58.8 58.9 58.8 58.7 58.6 58.6 58.7 58.6 59.0 59.1 59.2 59.0 59.2

Employed

71,123 71,004 71,169 71,056 71,136 71,038 71,209 71,120 71,665 71,990 72,130 71,881 72,200

Employment-population ratio

56.7 56.8 56.9 56.7 56.8 56.6 56.7 56.6 57.0 57.2 57.3 57.0 57.3

Unemployed

2,550 2,639 2,497 2,451 2,304 2,401 2,447 2,465 2,451 2,323 2,411 2,411 2,383

Unemployment rate

3.5 3.6 3.4 3.3 3.1 3.3 3.3 3.3 3.3 3.1 3.2 3.2 3.2

Both sexes, 16 to 19 years

Civilian noninstitutional population(1)

16,756 16,704 16,702 16,698 16,696 16,690 16,686 16,682 16,687 16,691 16,696 16,692 16,686

Civilian labor force

5,955 5,913 5,792 5,862 5,685 5,774 5,910 6,017 5,926 5,897 5,948 5,999 5,964

Participation rate

35.5 35.4 34.7 35.1 34.1 34.6 35.4 36.1 35.5 35.3 35.6 35.9 35.7

Employed

5,205 5,149 5,019 5,115 4,951 5,044 5,159 5,250 5,184 5,162 5,218 5,278 5,213

Employment-population ratio

31.1 30.8 30.1 30.6 29.7 30.2 30.9 31.5 31.1 30.9 31.3 31.6 31.2

Unemployed

750 765 773 747 734 730 751 767 742 735 730 721 752

Unemployment rate

12.6 12.9 13.3 12.7 12.9 12.6 12.7 12.7 12.5 12.5 12.3 12.0 12.6

Footnotes
(1) The population figures are not adjusted for seasonal variation.

NOTE: Seasonally adjusted data have been revised to reflect updated seasonal adjustment factors.