Surge in Labor Force Shows U.S. Workers Gaining Confidence
By Shobhana Chandra
June 5 (Bloomberg) -- The U.S. labor force posted the biggest back-to-back jump in six years, a sign Americans who???d quit looking for work are gaining confidence their search will pay off as the recession eases.
The labor pool rose to 155.1 million in May from 154 million in March, the largest two-month increase since January- February 2003, Labor Department figures showed today in Washington. The participation rate, or the share of people either working or looking for a job, climbed to 65.9 percent, the highest since October.
???Some among the ranks of job losers see a greater chance of finding a job and have begun to look in earnest,??? John Ryding, chief economist at RDQ Economics LLC in New York, said in a note to clients today. It strengthens the argument that ???the recession may have ended in May or June,??? he said.
The gain in the labor force in part helps explain why the jobless rate jumped to 9.4 percent in May, the highest since 1983. Payrolls fell by 345,000, the least in eight months, today???s report also showed. The data reinforces signs the deepest economic slump in half a century is starting to abate, even as economists predict any expansion may be muted.
Other reports corroborate that some of the gloom is lifting from the jobs outlook. A Conference Board survey showed the group???s index of consumer expectations in May rose to the highest level since December 2007, and the share of people who said more jobs will be available in the next six months climbed to the highest level in more than five years.
For some economists, the combination of a jump in the labor force and a drop in employment in May also points to how tough it will be to actually find work in the months ahead.
???Getting the unemployment rate down will be a long, drawn- out task,??? said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. Still, ???the worst news is behind us, and job declines should progressively soften as the year proceeds.???
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By Shobhana Chandra
June 5 (Bloomberg) -- The U.S. labor force posted the biggest back-to-back jump in six years, a sign Americans who???d quit looking for work are gaining confidence their search will pay off as the recession eases.
The labor pool rose to 155.1 million in May from 154 million in March, the largest two-month increase since January- February 2003, Labor Department figures showed today in Washington. The participation rate, or the share of people either working or looking for a job, climbed to 65.9 percent, the highest since October.
???Some among the ranks of job losers see a greater chance of finding a job and have begun to look in earnest,??? John Ryding, chief economist at RDQ Economics LLC in New York, said in a note to clients today. It strengthens the argument that ???the recession may have ended in May or June,??? he said.
The gain in the labor force in part helps explain why the jobless rate jumped to 9.4 percent in May, the highest since 1983. Payrolls fell by 345,000, the least in eight months, today???s report also showed. The data reinforces signs the deepest economic slump in half a century is starting to abate, even as economists predict any expansion may be muted.
Other reports corroborate that some of the gloom is lifting from the jobs outlook. A Conference Board survey showed the group???s index of consumer expectations in May rose to the highest level since December 2007, and the share of people who said more jobs will be available in the next six months climbed to the highest level in more than five years.
For some economists, the combination of a jump in the labor force and a drop in employment in May also points to how tough it will be to actually find work in the months ahead.
???Getting the unemployment rate down will be a long, drawn- out task,??? said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. Still, ???the worst news is behind us, and job declines should progressively soften as the year proceeds.???
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