U.S. Economy Adds 206,000 Jobs In June, April, May Revised Down Indicating A Slowdown
Friday, July 5, 2024, 12:30 P.M. ET. 5 Minute Read, By Jennifer Hodges: Englebrook Independent News,
WASHINGTON, DC.- Today, the U.S. Department of Labor reported that there were 206,000 jobs added to the U.S. economy in June, slightly more than expected as the April and May job numbers were revised down, a sign of a steady economic slowdown.
The unemployment rate ticked up slowly by 0.1 percentage point to 4.1 percent, marking the first time since November 2021 that the jobless rate was above 4 percent.
In today's report, both the unemployment rate, at 4.1 percent, and the number of unemployed people at 6.8 million, changed little in June. These measures are higher than a year earlier when the jobless rate was 3.6 percent and the number of unemployed people was 6.0 million. The long-term unemployment rate, those jobless for 27 weeks or more rose by 166,000 to 1.5 million in June. This measure is up from 1.1 million a year ago. The long-term unemployment accounted for 22.2 percent of all unemployed people in June.
This comes as both April and May job numbers were adjusted lower by a combined number of 111,000, to 108,000 in April, (down 57,000) and 218,000 in May, (down 54,000) signaling that there were fewer jobs created than initially reported.
Although the June jobs numbers were higher than expected, reported on Friday, most of the hiring was the strongest for government, social assistance, healthcare, and construction, while the manufacturing and retail sectors lost jobs.
Government employment rose by 70,000 in June, higher than the average monthly of 49,000 over the prior 12 months. Over the month, employment increased in local government, excluding education by 34,000, and in state government by 26,000.
Healthcare added 49,000 jobs in June, lower than the average monthly gain of 64,000 over the prior 12 months. In June, employment rose in ambulatory healthcare services by 22,000 and hospitals by 22,000.
Employment in social assistance increased by 34,000 in June, primarily in individual and family services by 26,000. Over the prior 12 months, social assistance had added an average of 22,000 jobs per month.
Construction added 27,000 jobs in June, higher than the average monthly gain of 20,000 over the prior 12 months.
Retail trade employment changed little in June, down by 9,000, after trending up earlier in the year. Furniture, home furnishings, electronics, and appliance retailers lost 6,000 jobs over the month, while warehouse clubs, supercenters, and other general merchandise retailers gained 5,000 jobs.
Employment in professional and business services changed little in June, down by 17,000, and has shown little change over the year. Temporary help services employment declined by 49,000 over the month and is down by 515,000 since reaching a peak in March 2022. Employment in professional, scientific, and technical services continued to trend up in June by 24,000.
Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; transportation and warehousing; information; financial activities; leisure and hospitality; and other services.
Wage growth cooled slightly as anticipated, with the average hourly earnings rising by 0.3 percent in June and slowing to 3.9 percent on an annual basis. The labor force participation rate ticked up slightly to 62.6 percent from 62.5 percent after declining in May.
The current gains in jobs are milder this year than last year at this point and hiring activity has substantially decreased from the increased pace of 2021 and 2022, during the pandemic recovery.
The Employment data for July is scheduled to be released on Friday, August 2, 2024, at 8:30 a.m. ET.
FILED UNDER: JULY 5, 2024: NATIONAL, LOCAL, WASHINGTON, FINANCE: