Friday’s latest government jobs report shows two ongoing trends:
First, with employers adding 428,000 in April, the economic rebound from the brutal pandemic seems to be holding together.
And second, as shown in the chart above, the level of the job rebound since the early days of the pandemic continues to depend on what industry you work in.
On the one hand, April’s seasonally adjusted figures are virtually the same as March’s, according to the Labor Department, with the growth in jobs broad-based across every major industry.
Wow, talk about exceeding expectations
Job growth was up much higher than pundits expected in June, as reported today by the government.
According to the Bureau of Labor Statistics, nonfarm payrolls increased by 372,000 over the month, way stronger than economists’ consensus estimate of 250,000.
The BLS’ U-6 unemployment rate that includes discouraged workers and those holding part-time jobs for economic reasons dropped to 6.7% from 7.1% (the underreported U-3 headline rate remained unchanged at 3.6%).
Civilian labor force participation was essentially flat, falling slightly to 62.2% from 62.3% but still remains more than a full percentage point below the level seen just before the pandemic started in 2020.
Total civilian employment – at 158.1 million – actually fell somewhat in June and was still close to 800,000 below its February 2020 level.
Average hourly earnings increased 0.3% for the month and were up 5.1% from a year ago, indicating that wage pressures remain strong as brisk inflation sails along.
Among the unemployed, both the number of permanent job losers (1.3 million) and the number of persons on temporary layoff (827,000) changed little over the month.
The number of long-term unemployed – i.e., those jobless for 27 weeks or more – was essentially unchanged at 1.3 million. This measure is 215,000 higher than in February 2020.
The long-term unemployed accounted for 22.6% of all unemployed persons in June.
Interestingly, 7.1% of employed Americans teleworked (worked mainly from home) because of the pandemic, down from 7.4%.
Another 2.1 million people reported that they’d been unable to work because their employer closed or they were laid off thanks to the pandemic – up from 1.8 million in May.
By sector, education and health services led the job added, with 96,000 hires, while professional and business services added 74,000 positions.
What do these numbers mean?