Table 3 National Employment Indicators (Third Quarter) 2023 Third Quarter
2022 Third Quarter
Unemployment Rate
3.8
3.5
Labor Force Participation Rate Employment-Population Ratio
62.8 60.4
62.3 60.1
Description: • Unemployment Rate: The number of unemployed as a percentage of the labor force. • Labor Force Participation Rate: The percentage of the population that is either working or actively looking for work. • Employment-Population Ratio: The share of the total population that are employed. Analysis: • The unemployment rate has been slowly increasing from lows of 3.5% reaching 3.9% in October. (The 3.8% figure is for September.) While in most cases, higher unemployment rates are cause for concern, current rates are still very low from historical standards. The recent increases are likely to cause the Fed to consider halting further increases in interest rates. • The Labor Force Participation Rate (LFPR) is an important gauge of overall labor market capacity. While the LFPR has slowly increased following the impact of COVID-19, it still is below the 63.3% rate in February 2020. Much of the decline is due to those 55 years and older leaving the work force because of retirements. The labor force participation rate of prime age adults (25-54 Yrs.) is currently the highest it’s been in over 20 years! • The Employment-Population (EP) Ratio, like the LFPR, is a good indicator of labor market capacity. The EP hasn’t returned to the pre-COVID rate of 61.1% and has been stable for well over a year.
Central Wisconsin Report - Spring 2023
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