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The U.S. added 850,000 jobs in June, exceeding expectations – IHUB Partner Press Releases


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U.S. job growth accelerated in June, suggesting that a worker shortage could be starting to ease as companies raise wages and offer incentives to entice millions of unemployed Americans sitting at home.

Even though the nation’s unemployment rate ticked up from 5.6 to 5.9 percent, the monthly gain in nonfarm jobs jumped to 850,000, far exceeding the Dow Jones estimate of 706,000 and better than the upwardly revised 583,000 in May.

The Labor Department’s employment report shows that just over150,000 people entered the labor force last month. Notable job gains occurred in leisure and hospitality, public and private education, professional and business services, retail trade, and other services.

But according to Reuters, employment gains remained less than the million or more per month that economists and others had been forecasting at the beginning of the year.

“This may be a sign that some of the temporary labor shortages holding back the employment recovery are starting to ease,” said Andrew Hunter, a senior U.S. economist at Capital Economics.

The labor force participation rate stayed about even at 61.6 percent, a sign that many Americans are still unable to return to the workforce. There were also 6.4 million Americans who did not seek a job in June. — This group is not counted as unemployed — but they want to work, up from 5 million before the pandemic.

“While a combination of labor supply constraints – including the virus fear, unemployment benefits, child care issues, and early retirements – is still constraining employment these headwinds should gradually ease in the coming months,” said Lydia Boussour of Oxford Economics, reports The Hill.

And unemployment rates also stayed largely even across racial lines, keeping the jobless rates for Black workers (9.2 percent) well above that of whites (5.2 percent). Women’s labor force participation was still stuck at 56.2 percent, compared to 67.5 percent for men.

Just over 150,000 people entered the labor force last month.
Source – US Government



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