• 1 day Ireland Balks At Biden’s Global Tax Plan
  • 4 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 8 days Facial Recognition Is Watching You
  • 9 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 9 days The Fed’s $3 Trillion Headache
  • 12 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 12 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 13 days Delta Variant Real Threat To Economic Recovery
  • 16 days JEDI Drama Continues With Microsoft Contract Cut
  • 18 days DiDi Shares Take a Beating From Chinese Regulators
  • 19 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 19 days Jobs Report Has Big Numbers, But Still Big Problems
  • 20 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 23 days Didi Just Went Public, And Uber Is Loving It
  • 24 days Islamic Finance On Track To Hit $3.7 Trillion
  • 25 days The Lumber Bubble Is Bursting
  • 29 days A New Entry In The Two Trillion Dollar Club
  • 29 days 3 Upcoming IPOs To Watch As IPO Market Rebounds
  • 31 days Welcome To The Used Car Bonanza
  • 32 days The Year Of The Retail Investor Keeps Getting Bigger
Biden Plan Targets “Wealthy” Taxpayers

Biden Plan Targets “Wealthy” Taxpayers

Biden’s tax plan, just announced,…

The Market Is Ripe For Another GameStop Saga

The Market Is Ripe For Another GameStop Saga

The GameStop saga that took…

Credit Card Debt Plummets Amid COVID

Credit Card Debt Plummets Amid COVID

According to the newest Federal…

Charles Benavidez

Charles Benavidez

Staff Writer, Safehaven.com

Charles Benavidez is a writer and editor for Safehaven.com. Charles is located in New York City and has over 5 years of experiencing covering financial…

Contact Author

  1. Home
  2. Markets
  3. Economy

Jobs Report Has Big Numbers, But Still Big Problems

Jobs Report Has Big Numbers, But Still Big Problems

Global stock markets moved higher across the board following positive US jobs data, with Wall Street stocks hitting new records.

Beating economists' expectations, 850,000 non-farm jobs were added to the US labor picture last month in a sign that recovery is indeed underway with the biggest gain in 10 months. That followed a gain of 583,000 jobs in May and 269,000 in April. 

Continuing from the past few months, job gains in June were most significant in leisure and hospitality, public and private education, professional and business services, retail trade, and other services. 

As states across the country lifted restrictions on businesses and (vaccinated) customers are returning to normal, additional summer vacation travel and service sector employers are the biggest contributor to the monthly payrolls increase.

Still down by 2.2 million, or 13% from last February, leisure and hospitality employment increased by 343,000 last month, with half of it coming from the food industry. 

Also lower than the pre-pandemic level, employment in public and private education increased by 155,000. Retail trade added 67,000 jobs, which represented a 2% drop from February 2020.

Other major industries, such as information, financial activities, and health care, employment showed little change month-on-month. 

We’re not out of the woods yet, though. “Both the unemployment rate, at 5.9 percent, and the number of unemployed persons, at 9.5 million, were little changed in June,” noted BLM. 

The new unemployment rate is suggesting that people who lost their jobs during the pandemic still aren't rejoining the labor force as quickly as hoped. 

Among the unemployed, the number of job leavers—those unemployed persons who quit or voluntarily left their previous job and began looking for new employment—increased by 164,000 to 942,000 in June.

The number of persons on temporary layoff (at 1.8 million) and the number of permanent job losers (at 3.2 million) was largely unchanged and still  5.1 million higher than in February 2020 

Employers are still competing to recruit workers, leading to a slight pay increase. 

The average hourly pay of private-sector employees rose 3.6% in June from a year earlier. Compared with February 2020—the month before the pandemic plunged the U.S. into a recession—average hourly earnings are up 6.6%, 

However, the pay increase is slightly lower than expected. That may be partly explained by the predominance of leisure and hospitality in net job gains, considering the sector's high share of low-paid work.

The Labor Department’s report also showed that discrepancies in unemployment by race have not improved.

Among major ethnic groups, the unemployment rates for Whites (5.2 percent), African Americans (9.2 percent), Asians (5.8 percent), and Hispanics (7.4 percent) showed little or no change in June.

 

Back to homepage

Leave a comment

Leave a comment