Economy adds 213k jobs in June, but unemployment rate rises to 4%

Total nonfarm payroll employment increased by 213,000 in June, and the unemployment rate rose to 4.0%, the U.S. Bureau of Labor Statistics reported on Friday, July 6. Job growth occurred in professional and business services, manufacturing, and healthcare, while retail trade lost jobs.

Household Survey Data

The unemployment rate rose by 0.2 percentage point to 4.0% in June, and the number of unemployed persons increased by 499,000 to 6.6 million. A year earlier, the jobless rate was 4.3%, and the number of unemployed persons was 7.0 million. (See table A-1.) Among the major worker groups, the unemployment rates for adult men (3.7%), adult women (3.7%), and Asians (3.2%) increased in June. The jobless rate for teenagers (12.6%), Whites (3.5%), Blacks (6.5%), and Hispanics (4.6%) showed little or no change over the month. (See tables A-1, A-2, and A-3.)

Among the unemployed, the number of job losers and persons who completed temporary jobs increased by 211,000 in June to 3.1 million, and the number of reentrants to the labor force rose by 204,000 to 2.1 million. (Reentrants are persons who previously worked but were not in the labor force prior to beginning their job search.) (See table A-11.)

The number of long-term unemployed (those jobless for 27 weeks or more) increased by 289,000 in June to 1.5 million. These individuals accounted for 23.0 percent of the unemployed. (See table A-12.) In June, the civilian labor force grew by 601,000. The labor force participation rate edged up by 0.2 percentage point over the month to 62.9% but has shown no clear trend thus far this year. (See table A-1.) The employment-population ratio, at 60.4%, was unchanged in June and has essentially been flat since February. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed in June at 4.7 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.) In June, 1.4 million persons were marginally attached to the labor force, little different from a year earlier. (Data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 359,000 discouraged workers in June, down by 155,000 from a year earlier. (Data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.1 million persons marginally attached to the labor force in June had not searched for work for reasons such as school attendance or family responsibilities. (See table A-16.)


Establishment Survey Data

Total nonfarm payroll employment increased by 213,000 in June and has grown by 2.4 million over the last 12 months. Over the month, job gains occurred in professional and business services, manufacturing, and healthcare, while employment in retail trade declined. (See table B-1.) Employment in professional and business services increased by 50,000 in June and has risen by 521,000 over the year. Manufacturing added 36,000 jobs in June. Durable goods manufacturing accounted for nearly all of the increase, including job gains in fabricated metal products (+7,000), computer and electronic products (+5,000), and primary metals (+3,000). Motor vehicles and parts also added jobs over the month (+12,000), after declining by 8,000 in May.

During the past year, manufacturing has added 285,000 jobs. Employment in health care rose by 25,000 in June and has increased by 309,000 over the year. Hospitals added 11,000 jobs over the month, and employment in ambulatory health care services continued to trend up (+14,000). Construction employment continued to trend up in June (+13,000) and has increased by 282,000 over the year. Mining employment continued on an upward trend in June (+5,000). The industry has added 95,000 jobs since a recent low point in October 2016, almost entirely in support activities for mining. In June, retail trade lost 22,000 jobs, largely offsetting a gain in May (+25,000).

Employment showed little or no change over the month in other major industries, including wholesale trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government. The average workweek for all employees on private nonfarm payrolls was unchanged at 34.5 hours in June. In manufacturing, the workweek edged up by 0.1 hour to 40.9 hours, and overtime edged up by 0.1 hour to 3.5 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours. (See tables B-2 and B-7.)

In June, average hourly earnings for all employees on private nonfarm payrolls rose by 5 cents to $26.98. Diring the year, average hourly earnings have increased by 72 cents, or 2.7%. Average hourly earnings of private-sector production and nonsupervisory employees increased by 4 cents to $22.62 in June. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for April was revised up from +159,000 to +175,000, and the change for May was revised up from +223,000 to +244,000. With these revisions, employment gains in April and May combined were 37,000 more than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.) After revisions, job gains have averaged 211,000 per month during the last threemonths.

The Employment Situation for July is scheduled to be released on Friday, August 3, 2018, at 8:30 a.m. (EDT).

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Note: The 2018 Preliminary Benchmark Revision to the Establishment Survey Data will be released on Aug. 22, 2018. Each year, the establishment survey estimates are benchmarked to comprehensive counts | |of employment from the Quarterly Census of Employment and Wages (QCEW) for the month | |of March. These counts are derived from state unemployment insurance (UI) tax records | |that nearly all employers are required to file. On August 22, 2018, at 10:00 a.m. (EDT), the Bureau of Labor Statistics (BLS) will release the preliminary estimate of | |the upcoming annual benchmark revision. This is the same day the first-quarter 2018 | |data from QCEW will be issued. Preliminary benchmark revisions for all major industry | |sectors, as well as total nonfarm and total private levels, will be available on the |BLS website here. The final benchmark revision will be issued with the publication of the January 2019 | |Employment Situation news release in February 2019.