Weekly Economic Update: May 8 – May 12, 2017

May 08, 2017

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CHART OF THE WEEK

Increasing Share of Population at Work

How much of the working-age population has a job? The answer is the employment-to-population ratio. This straightforward indicator divides the total number of people employed by the working-age population, those ages 16 and older. The recent rise in the ratio above 60% is a good sign. Given changing demographic factors, pro-growth economic reforms are needed to extend the upward trajectory.

LAST WEEK

News & Commentary Weekly Highlights

Wall Street Journal: Hiring Expanded in April; Jobless Rate Nears a 10-Year Low

E21: The Fed Needs a Rule for Raising Rates

Business Insider: Here's why the US economy usually stinks at the beginning of the year

Bloomberg: U.S. Can Afford Trump's Radical Tax Cut

CNBC: Student who worked in Chinese iPhone factory explains why manufacturing jobs aren't coming back to the U.S.

Top Economic Indicator Highlights

Employment Situation (April)

Nonfarm payroll jobs	April: 211,000	March: 79,000	February: 232,000
Headline unemployment rate (U-3)	April: 4.4%	March: 4.5%	February: 4.7%
“True” unemployment rate (U-6)	April: 8.6%	March: 8.9%	February: 9.2%

Noteworthy: The nonfarm payroll jobs number beat expectations. The headline unemployment rate (U-3) fell to its lowest rate since May 2007. The “true” unemployment rate (U-6) has plunged from 9.4% in January to 8.6% in April.