July Unemployment Rate Shows U.S. Economy Still Robust.

The announcement by the Bureau of Labor Statistics (BLS) that the U.S. unemployment rate remains unchanged for July at 4.5 percent shows the economy continues to remain fundamentally strong, despite layoffs, slower growth and warnings of declining profits, according to Employment Policy Foundation.

“The U.S. economy is facing a difficult period, and no one should minimize that fact,” EPF Chief Economist Ron Bird said. “Despite the challenges, however, unemployment remains very low, and job growth is still real. Total employment for July was estimated to be more than 135 million, nearly 500,000 more than in June and more than 400,000 more than in July 2000. This proves our economy still has a lot of fight left in it.”

July recorded the eighth-highest monthly employment total in U.S. history, Bird said. Four of the eight highest months for employment have occurred this year.

“The July unemployment report confirms the positive real economic growth estimate for the second quarter, which was reported last week by the Commerce Department,” Bird said. “The U.S. economy is not in a recession. The signs are mixed, but the fundamental strengths of the economy are still there.”

In the current job market, workers who lose their jobs continue to find new positions at a much faster rate than in past periods of slow growth, Bird explained. The median duration of unemployment is 6.7 weeks. By contrast, the median duration of unemployment was 8.3 weeks as recently as July 1997.

The value of skills, training and education is evident, even in a slow growing economy. EPF’s analysis shows that for July, jobs held by college graduates age 25 and older totaled 35.9 million – an increase of 600,000 from July 2000. Since July 1996, jobs held by college graduates have increased 4.3 million, accounting for more than half of the new jobs created in the past five years.

Workers with some college education – including postsecondary vocational and associate degrees – also continue to be in demand. Employment for workers age 25 and older in this group increased 290,000 from July 2000 to July 2001. During the past five years, total jobs held by workers with some postsecondary education grew by 1.9 million.

In contrast, in the past year, workers age 25 and older with no more than a high school diploma have decreased by nearly 400,000, which completely negates the gains made by workers with the least skills in the past five years.

For more information at http://www.epf.org.