Gallup Finds U.S. Unemployment Down to 9.6% in Mid-April

Gallup Finds U.S. Unemployment Down to 9.6% in Mid-April

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PRINCETON, NJ -- Unemployment, as measured by Gallup without seasonal adjustment, fell to 9.6% in mid-April from 9.9% at the end of March, and is at its lowest level since mid-January. The current 9.6% unemployment rate is down from 10.3% in mid-April a year ago.

The percentage of part-time workers who want full-time work was 9.6% in mid-April -- up from 9.1% at the end of March but essentially unchanged from 9.7% in mid-March. More U.S. workers are now working part time but seeking full-time work than was true a year ago (9.3%).

Broader Underemployment Increased Slightly in Mid-April

The decline in unemployment since late March was not enough to offset the larger increase in those working part time but wanting full-time work. As a result, the combined underemployment measure increased to 19.2% in mid-April from 19.0% at the end of March. Underemployment is now slightly below the 19.6% of mid-April a year ago.

Jobs Situation Slightly Better Than a Year Ago

Several of Gallup's economic indicators tend to support the finding that there has been some improvement in the U.S. job environment over the past year. Specifically, 17% of Americans now say it is a good time to find a quality job, the most since early September 2008. Similarly, Gallup's Job Creation Index remains at its best level in more than two years.

However, Gallup's unemployment measure shows the jobs improvement of the past year to be modest at best -- particularly given the rate at which jobs disappeared during the recession. There has been no improvement in Gallup's unemployment measure since mid-January and even the government's seasonally adjusted reports show that the U.S. unemployment rate declined relatively modestly, from 9.0% in January to 8.8% in March. In addition, unemployment according to Gallup has improved by less than one full percentage point over the past year. Further, underemployment has deteriorated since mid-January and shows an even more modest year-over-year improvement.

In essence, the declines in Gallup's U.S. unemployment rate this year are running about two weeks ahead of the declines from last year. By May 1, 2010, Gallup's unemployment measure was down to 9.6% -- right where it now stands, two weeks earlier in 2011. In turn, this suggests the recent modest improvement in the jobs situation is due, at least in part, to seasonal hiring trends coming from more jobs activity at this time of year.

Gallup's economic data also show consumer optimism down sharply and spending no better than it was a year ago. Barring a major change in this economic environment, it seems likely that business owners' optimism and employers' hiring intentions will also deteriorate in the months ahead, creating an even more challenging jobs situation. It's no surprise, then, that Americans continue to report jobs as a top national priority.

Source: Gallup

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