Heritage Employment Report: Economy Runs in Place in May
The May employment report from the Bureau of Labor Statistics shows an economy running in place. Over the past year, employers have created an average of 172,000 net jobs a month. In May, they added 175,000 jobs, and the unemployment rate slightly increased by one-tenth of a percentage point to 7.6 percent. Other measures of labor market strength, such as the employment-to-population ratio, were flat. Neither the fiscal cliff tax hikes nor sequestration has pushed the economy into a recession. However, there are no signs of acceleration in the labor market’s lackluster growth. Further, millions of Americans have left the labor force, and there are few signs that they will return any time soon.