Unemployment rate falls below 7 percent
Job growth, however, was relatively week. Only 74,000 jobs were added to the nation’s total nonfarm payroll. Cold weather, however, may have contributed to the low number, particularly in construction jobs.
The major factor in the unemployment rate’s drop was not job growth but a reduction in the number of people looking for jobs. Out-of-work people who are no longer seeking jobs –and thus are not participating in the labor force—are not factored into the unemployment rate.
Participation in the civilian labor force declined to 154.9 million in December from 155.3 million in November. That translates into a civilian labor force participation rate of 62.8 percent, down from 63 percent in November.
The number of unemployed people declined by 490,000 to 10.4 million in December. Over the year, the number of unemployed fell by 1.9 million, and the unemployment rate dropped 1.2 percentage points.
Among the major worker groups, there were declines in the unemployment rates in December for adult men (6.3 percent) and whites (5.9 percent). The rates for adult women (6 percent), teenagers (20.2 percent), blacks (11.9 percent) and Hispanics (8.3 percent) showed little change. The jobless rate for Asians dropped (4.1 percent).
There was little change in the number of long-term unemployed (those jobless for 27 weeks or more), which stood at 3.9 million. The number of long-term unemployed has declined by 894,000 over the year.
The 74,000 increase in nonfarm employment was well below the monthly average for 2013. Job growth averaged 182,000 per month last year, about the same as in 2012. In December, job gains occurred in retail trade and wholesale trade, while employment declined in the information sector.
Employment in retail trade rose by 55,000 in December. Within the industry, job gains occurred in food and beverage stores, clothing and accessories stores, general merchandise stores, and motor vehicle and parts dealers. Retailers added an average of 32,000 jobs per month in 2013.
In December, wholesale trade added 15,000 jobs. Most of the job growth occurred in electronic markets and agents and brokers. Wholesale trade added an average of 8,000 jobs per month in 2013.
Employment in professional and business services continued to trend up in December, with 19,000 jobs added. In 2013, job growth in professional and business services averaged 53,000 per month. Within the industry, temporary help services added workers in December, while jobs in accounting and bookkeeping services declined.
Manufacturing employment continued to trend up in December, increasing by 9,000. Employment rose in primary metals and petroleum and coal products, while electronic instruments lost jobs. Manufacturing added 77,000 jobs in 2013, compared with an increase of 154,000 jobs in 2012.
Employment in mining edged up by 5,000 in December. The industry added 29,000 jobs during the year.
Health care employment changed little in December, up 6,000. Employment gains in the industry averaged 17,000 per month in 2013, compared with an average monthly gain of 27,000 in 2012.
Employment in information-related businesses fell by 12,000 in December, driven by a decline in the motion picture and sound-recording industry. Information employment was essentially unchanged over the year.
Construction employment fell by 16,000 in December. However, in 2013, the industry added an average of 10,000 jobs per month. Employment of nonresidential-specialty contractors declined by 13,000 jobs in December -- possibly reflecting cold weather in parts of the country.
Employment in other major industries, including transportation and warehousing, financial activities, leisure and hospitality, and government, changed little in December.
The average workweek for all employees on private nonfarm payrolls dropped by 0.1 hour to 34.4 hours in December. The manufacturing workweek was unchanged, at 41 hours, and factory overtime edged up by 0.1 hour to 3.5 hours.
In December, average hourly earnings for all employees on private nonfarm payrolls rose by 2 cents to $24.17. Over the year, average hourly earnings have climbed by 42 cents, or 1.8 percent.
Taken from a Labor Department press release.
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