Total nonfarm payroll employment rose by 850,000 in June, and the unemployment rate was little changed at 5.9 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, public and private education, professional and business services, retail trade, and other services.
Calculated Risk comments,
he headline jobs number in the June employment report was above expectations, and employment for the previous two months was revised up. However, the participation rate was unchanged and the unemployment rate increased slightly to 5.9%.Leisure and hospitality gained 343 thousand jobs. In March and April of 2020, leisure and hospitality lost 8.2 million jobs, and are now down 2.2 million jobs since February 2020. So leisure and hospitality has now added back almost 73% of the jobs lost in March and April 2020.Construction employment declined 7 thousand in June, and manufacturing added 15 thousand jobs.
Friday’s report from the Labor Department was the latest evidence that the reopening of the economy is propelling a powerful rebound from the pandemic recession. Restaurant traffic across the country is nearly back to pre-pandemic levels, and more people are shopping, traveling and attending sports and entertainment events. The number of people flying each day has regained about 80% of its pre-COVID-19 levels. And Americans’ confidence in the economic outlook has nearly fully recovered.
The report also suggested that American workers are enjoying an upper hand in the job market as companies, desperate to staff up in a surging economy, dangle higher wages. In June, average hourly pay rose a solid 3.6% compared with a year ago — faster than the pre-pandemic annual pace. In addition, a rising proportion of newly hired workers are gaining full-time work, as the number of part-time workers who would prefer full-time jobs tumbled — a healthy sign.