Newsroom
Solid June jobs report in line with expectations
The Bureau of Labor Statistics reported non-farm payrolls increased by 850,000 in June, and the unemployment rate rose slightly to 5.9 percent. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the report in a new NAFCU Macro Data Flash report.
Of note, May's number was revised up slightly to a gain of 583,000.
"The June jobs report was a solid one, in line with expectations," said Long. “Monthly growth was the strongest since last summer's reopening, but a significant portion of the gain came from education payrolls as fewer teachers left their jobs at the end of the school year.
"While those positions add to the job gain totals, they do not affect the number of employed workers, which is one source of the discrepancy between strong job growth last month and an unemployment rate that failed to budge," added Long.
Average hourly earnings rose 10 cents in June. Year-over-year wage growth was 3.6 percent. The labor force participation rate was unchanged at 61.6 percent, which is still down significantly from 63.3 percent in February 2020.
Results among the major industries was mostly positive. Leisure and hospitality gained 343,000 jobs, followed by 188,000 gained in government, mostly driven by teacher hiring, and a gain of 72,000 jobs in professional and business services.
"Leisure and hospitality also posted another strong gain, which was to be expected with broader reopening of in-person services. Average hours worked remains elevated but has now ticked down for two consecutive months, so perhaps some of the staffing shortages are beginning to abate," concluded Long. "Progress is happening but it remains slower than the optimists had hoped. With inflation fears beginning to subside, Federal Reserve officials are likely to emphasize that it will be a long road ahead before it considers tightening policy."