Job Creation Exceeds Expectations in June while Unemployment Rate Ticks Up
Increased economic activity drove the creation of 850,000 new jobs in June.
The leisure and hospitality sector led job growth in June, followed by public and private education, professional and business services, retail trade and other services.
The unemployment rate showed little month-over-month change, although what was initially reported last month as 5.8% is 5.9% for June.
Average hourly earnings continued to rise this past month, with a monthly year-over-year increase of 3.6%.
The length of the average work week dropped slightly to 34.7 hours.
TEMPORARY JOB TRENDS:
The temporary help sector saw a healthy bump of 33,000 new jobs in June.
WHAT DOES IT ALL MEAN?
Strong job creation in June, along with higher wages, is fueling rising optimism that the economy is roaring back. The darkest cloud on a brightening horizon is the ongoing challenge of unfilled jobs. The pandemic pushed many Americans to re-evaluate how they spend their time at work. As a result, some have switched fields; others have opted out of the workforce entirely. The struggle for employers to fill open positions continues at the same time that more people are voluntarily quitting their current jobs. All this is taking place amid rising prices, fears of inflation and severe talent shortages. The difficulty is especially evident in transportation, childcare and hospitality. Even with these challenges, the prospects for a growing economy cannot be dampened as pandemic fears ease and life shifts to a more normal footing.
Sources: U.S. Bureau of Labor Statistics (BLS), Steinberg Employment Research, Staffing Industry Analysts, American Staffing Association, Associated Press, Chicago Tribune, CNBC, Wall Street Journal, The New York Times