The monthly employment situation summary for April 2014 was released by the US Bureau of Labor Statistics. And the headline numbers were terrific. The unemployment rate measured by the household survey fell to a cyclical low of 6.3%, below the Evans Rule threshold. Meanwhile, the establishment survey showed a net addition of 288,000 works to non-farm payrolls. The fact that both the household and establishment surveys showed marked improvements tells you that the jobs picture in the US has improved.
Some of the data underneath the headlines was a bit murky. For example, the labor force participation rate fell 0.4% to 62.8%. Hourly and weekly earnings were both unchanged, and the labor force shrunk by 806,000. But other important data points were broadly positive.
The unemployment rate...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.