The June Jobs Report Surpassed Expectations

Despite news of massive layoffs and the approaching economic uncertainty, the June employment report showed significant gains and signs of recovery to near-pre-pandemic levels, with some industries surpassing the mark of February 2020.

In June, 372,000 jobs were added, with the stable unemployment rate at 3.6% for the fourth consecutive month, according to the Bureau of Labor Statistics. The number of unemployed people (5.9 million) remained relatively unchanged in June and remained at levels similar to the state of the economy in February 2020 (5.7 million) before the pandemic.

The industries that experienced the most growth in June were professional and business services, leisure and hospitality and healthcare.

Related: labor shortage? It depends on who you ask.

Professional and business services — business and enterprise management, computer systems design and related services, office administrative services, and scientific research and development services — had the most remarkable growth with 74,000 jobs, which it means not only recovering to pre-pandemic levels, but also surpassing its values ​​as of February 2020.

Leisure and hospitality, as well as healthcare, experienced similar gains, but are still below February 2020 levels, with leisure and hospitality down 7.8% and healthcare by 1.1%. Still, industries showed significant growth and were the second and third largest employment growth engine in June, respectively.

Although the employment report was strong, large companies are still in the midst of layoffs.

Julia Pollack, chief economist at ZipRecruiter, said Entrepreneur this is likely due to excessive hiring in unsustainable conditions.

“There are industries that expanded dramatically during the pandemic due to unique conditions,” Pollak said. “So a return to normalcy in some of these industries that have expanded too quickly means shrinking a bit, but in most of the labor market, a return to normalcy still means growth and expansion and more job opportunities. its return to normalcy still means expansion. “

Related: How the changing labor market is affecting the digital transformation

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