Gains Mostly in State, Local Government
The labor market in June came in ahead of analyst predictions, with 147,000 jobs created during the month, well ahead of the anticipated 106,000.
Much of the boost came from government and health care, the BLS report said.
Additionally, April and May job numbers were revised up 16,000, bringing the recent gain to more than 163,000 jobs.
Unemployment stayed steady at 4.1 percent.
Labor force participation changed little at 62.3 percent in June, and the employment-
population ratio held at 59.7 percent.
Government employment rose by 73,000 positions in June. Employment in state government increased by 47,000, largely in education, with an added 40,000. Employment in local government education was up by 23,000. Job losses continued in federal government, down 7,000 positions. Employment in the sector is down by 69,000 since reaching a recent peak in January. One important note on government employees, those on paid leave or receiving severance are counted as employed.
Health care added 39,000 jobs in June, similar to the average monthly gain of 43,000 during the last year. In June, job gains occurred in hospitals, at 16,000, and in nursing and residential care facilities, with 14,000. In June, social assistance employment continued to trend up at 19,000 jobs gained, reflecting continued growth in individual and family services , up 16,000.
Employment showed little change over the month in other major industries, including:
*Mining, quarrying, and oil and gas extraction
*Construction
*Manufacturing
*Wholesale trade
*Retail trade
*Transportation and warehousing
*Information
*Financial activities
*Professional and business services
*Leisure and hospitality
First Trust Chief Economist Brian Wesbury said the headline looks good, but that the details should dampen any urge to celebrate.
“Private payrolls were up only 74,000 in June and were revised down 16,000 for prior months, bringing the net gain to 58,000,” he and Deputy Chief Economist Robert Stein told subscribers to the First Trust newsletter. “In other words, the gain in June itself was roughly half due to government and all the upward revisions were due to the government, as well. Perhaps the worst news was a 0.3 percent decline for total private-sector hours worked.
The measure of core payrolls, excluding volatile sectors that rely on government, June accounted for 3,000 jobs.
New claims for unemployment insurance declined, 4,000 in early July to 233,000.
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