Key Highlights
- Hiring climbed to 850,000 new workers in June
- Unemployment rose slightly to 5.9%
Further Progress in US Labor Market Recovery
The US Labor Department’s latest jobs report indicated that employers added 850,000 new jobs during the month of June. This figure of 850,000 exceeded expectations of some 200 economists surveyed by Bloomberg.
The strongest industry hires, according to ADP Research Institute, included:
- Leisure/Hospitality
- Health Care/Social Assistance
- Trade/Transportation/Utilities
- Professional/Business Services
- Construction
- Manufacturing
Simultaneously, the unemployment rate increased slightly to 5.9% while there are 6M fewer jobs today than existed pre-pandemic and millions fewer people actually in the labor force.
What These Newly Added Jobs Mean
The Department of Labor’s June jobs report is consistent with other recent, promising economic developments. Consumer confidence is surging, stocks closed out the first half of 2021 at record highs, and businesses are planning for increasing capital investments. Additionally, the Congressional Budget Office (CBO) projects that the economy is on track to recover all of its jobs lost in the pandemic by mid-2022.
This ramp-up in new jobs, the highest level of new hires since the onset of the pandemic last year, looks to be stimulated by robust demand, a lessening of economic uncertainty, and a further return to pre-pandemic activities. This new jobs ramp-up also indicates that businesses are having more success in filling their open positions.
With such strong demand for workers, employers have boosted their job openings to a record high. In fact, the Conference Board indicated in its latest report that those saying jobs are “plentiful” rose to the highest level since 2000.
Overall Payrolls in Most Employment Categories Rising
According to this latest Department of Labor jobs report and the ADP Research Institute,, service-provider jobs increased to 624,000 in June. The health care industry also achieved solid gains in June with an increase of 93,000 jobs after May’s increase of 106,000.
Good news for the housing industry – construction jobs increased by 68,000 jobs in June.
Nela Richardson, ADP’s chief economist, said, “Service providers, the hardest hit sector (by the pandemic), continue to do heavy lifting, with leisure and hospitality posting the strongest gain as businesses begin to reopen to full capacity across the country.”
June’s jump in jobs was evenly distributed across large and small employers. Companies with 500 of more workers experienced a rise in payroll of 240,000. Smaller business models added 215,000 to their payrolls.
New Phase of Jobs Recovery
Sara House, senior economist with Wells Fargo, said, “This is a trickier phase of the recovery.”
Last year, millions of workers were only temporarily laid off and simply slotted back into their previous jobs as the economy began to reopen. Now, House said, employers and workers alike are “…having to make new matches and new connections…” as each group is re-evaluating their options. All of that re-evaluating, making new connections and creating new matches simply takes more time.
Thanks to The New York Times and National Public Radio.
Thanks to ADP Research Institute and Bloomberg.
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