Lowest Unemployment Rate Since the 1960s

This morning, the government said that the unemployment rate for May was 3.8%. That’s the lowest rate since the 1960s. Well, technically, the lowest since December 1969. Looking at the decimals, the rate comes out to 3.755%.

Of course, these long-term comparisons are a bit dicey. The U.S. economy is quite different from 50 years ago. One big difference is demographics, and therefore, the civilian labor force.

The jobs-to-population ratio is now 60.4% but that’s lower than where it peaked 18 years ago even though unemployment was higher. Here’s the jobs-to-pop ratio, still well below its peak.

Now here’s the regular unemployment rate.

The good news is that wages are up 2.7% in the last year. The economy has now had a jobs gain for 92-straight months. The unemployment rate for women is now 3.6%. That’s the lowest since 1953.

Posted by on June 1st, 2018 at 9:57 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.