In April, the US economy added about as many jobs as expected while the unemployment rate fell to 5.4%, the lowest since May 2008.
But the report also showed that a big flow of workers is happening in the labour market: workers are moving from being out of the workforce to being employed.
This chart, from Bloomberg’s Matt Boesler, shows the flow of workers from those out of the workforce who are now coming back to work.
In related news, the labour force participation rate, which has been in decline over the last several years, actually ticked up in April.
This is a big trend to watch, as a big theme surrounding the labour market since the financial crisis has been the lack of participation among many working-age American adults.