Tags: jobs | unemployment | growth

US Adds 850,000 Jobs, Unemployment Ticks Up to 5.9%

Help wanted sign hanging in a shop window
(Jim Watson/AFP via Getty Images)

Friday, 02 July 2021 08:49 AM EDT

U.S. job growth accelerated in June, with payrolls gaining the most in 10 months, suggesting firms are having greater success recruiting workers to keep pace with the broadening of economic activity.

Nonfarm payrolls increased by 850,000 last month and the unemployment rate edged up to 5.9%, a Labor Department report showed Friday. May payrolls were revised up to a 583,000 gain. The labor force participation rate held steady and remained well short of pre-pandemic levels.

The median estimate in a Bloomberg survey of economists was for a 720,000 rise in June payrolls. S&P stock index futures climbed and Treasury securities fluctuated after the report.

Demand for labor remains robust as firms strive to keep pace with broader economic growth, fueled by the lifting of restrictions on business and social activity, mass vaccinations and trillions of dollars in federal relief.

At the same time, a limited supply of labor continues to beleaguer employers, with the number of Americans on payrolls still well below pre-pandemic levels. Coronavirus concerns, child care responsibilities and expanded unemployment benefits are all likely contributing to the record number of unfilled positions.

Those factors should abate in the coming months though, supporting future hiring. Wage growth is also picking up. A report Thursday showed small companies are raising compensation to attract workers, consistent with similar developments at larger firms such as FedEx Corp. and Olive Garden parent Darden Restaurants Inc.

“Job gains should pick up in coming months as vaccinations rise, easing some of the pandemic-related factors currently weighing them down,” Federal Reserve Chair Jerome Powell told Congress on June 22.

While net job creation has been lower, actual hiring is high, offset by elevated levels of quits and retirements, he said. That underscores elevated churn in the labor market.

The Labor Department’s figures showed a 343,000 increase in leisure and hospitality payrolls, a sector that’s taking longer to recover because of the pandemic.

Job growth last month was also bolstered by a 188,000 gain in government payrolls. State and local government education employment rose about 230,000, boosted by seasonal adjustments to offset the typical declines seen at the end of the school year.

Even with the latest advance, U.S. payrolls are still 6.76 million below their pre-pandemic level, underscoring how the labor market is far from fully recovered.

© Copyright 2024 Bloomberg News. All rights reserved.


StreetTalk
U.S. job growth accelerated in June, with payrolls gaining the most in 10 months, suggesting firms are having greater success recruiting workers to keep pace with the broadening of economic activity. Nonfarm payrolls increased by 850,000 last month and the unemployment rate...
jobs, unemployment, growth
381
2021-49-02
Friday, 02 July 2021 08:49 AM
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