What does the June jobs report tell us?

The June jobs report from the US Bureau of Labor Statistics showed slightly better than expected job growth. The unemployment rate has edged up, and April and May’s hiring numbers were sharply revised downward.?

Job Growth and Unemployment Rates

In June, total nonfarm payroll employment increased by 206,000 jobs. Key industries, including education, health care, government,? leisure and hospitality, and construction emerged as primary contributors to employment expansion.?

The unemployment rate edged up to 4.1 percent, marking a 0.1 percentage point increase from the previous month, highest level since October 2021. The increase was unexpected, as economists had anticipated the rate to hold steady at 4.0 percent.

The unemployment rates for adult men (3.8 percent), and teenagers (12.3 percent) remained relatively stable or saw minimal change while it increased for adult women (3.7 percent).

Long-term unemployment also showed an increase, with 1.5 million individuals now jobless for 27 weeks or more.?

The labor force participation rate and employment-population ratio, both changed little in June, suggesting stability rather than expansion in the workforce.

Industry-Specific Insights

Several key sectors experienced job gains in June with healthcare and government accounting for a major chunk of the employment gains.?

• Healthcare: The healthcare sector added 49,000 jobs in June, slightly below the average monthly gain of 64,000 over the past year. Job growth was particularly strong in ambulatory healthcare services and? hospitals. Healthcare has continued to lead in job creation for the past year, demonstrating resilience and sustained demand for healthcare services.
• Government: Government employment rose by 70,000 jobs in June, above? the monthly average of 49,000 per month over the past year.
• Construction: Employment in Construction? increased by 27,000 jobs in June, above the average monthly gain of 20,000 over the past year.
• Professional, scientific, and technical services: Employment in Professional, scientific, and technical services added 24,000 jobs in June.?
• Social Assistance: The social assistance sector added 34,000 jobs in June, above the monthly average of 22,000 over the past year.
• Retail Trade: Retail trade employment saw loss of 9,000 jobs.
• There was minimal to no change in employment over the month in several 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 and Working Hours

Average hourly earnings for all employees increased by 0.3 percent to $35, with a 3.9? percent increase over the past 12 months. The average workweek for all employees remained unchanged at 34.3 hours in June.

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