Hickey Jobs Report Update – US adds 850,000 jobs as unemployment stagnates around 5.9% in June 2021
US economy added more jobs than expected, but unemployment slightly ticked up in June, according to the latest U.S. Bureau of Labor Statistics Jobs Report
The U.S. Bureau of Labor Statistics June 2021 Employment Situation Summary, often referred to as the Jobs Report, numbers parallel the economy’s comeback from the pandemic as growing vaccination rates allow states to remove social restrictions and slowly reintroduce the workforce back to in-person activities.
The latest labor statistics also show hourly earnings continue to rise steadily (+10 cents) to lure workers back, but these increases vary by industry. Additionally, telework and workers who lost jobs due to pandemic-related layoffs continue to lower at a steady rate.
Leisure and Hospitality
The hardest hit industry from pandemic restrictions made huge gains in June due to social regulations being reduced or removed for much of the country, increasing by 343k. Food service represented over half of these jobs. Accommodations, arts, entertainment, and recreation totaled around 149k jobs. Overall, the industry is still down by 2.2 million jobs from February 2020.
Still devastated by the pandemic and down over one million jobs since February 2020, government agencies added 188k jobs last month, mostly in the state and local government education sectors. Budgetary restrictions, among other factors, resulted in a loss of 37k jobs outside of education. Policy analysts do expect more robust hiring to return to the wider sector as federal relief funds are allocated to state and local governments in the coming months.
Disrupted employment patterns caused by the lack of in-person learning meant less layoffs at the end of the last school year, which allowed for higher job growth as schools prepare to get back to normalcy this coming fall. Overall, the education sector is still down by 837k jobs since February 2020, after adding 269k jobs in June.
Construction employment is still down by 238k jobs since February 2020 as the sector lost another 7k jobs this June. An anticipated return to the office for many workers should have a significant impact on the housing industry which saw a boom as remote workers were allowed to stray far from the office.
Professional and Business Services
While this sector added 72k jobs in June, it is still down over 600k from last February 2020. Temp services saw the largest jump of more than 33k, followed by advertising, scientific R&D, and legal services.
Still down by 481k since the pandemic took hold of the country, manufacturing businesses added 15k jobs in June 2021.
Transportation and Warehousing
This sector has been largely spared by the pandemic compared to other industries, having only lost 94k jobs since February 2020. Transportation and warehousing gained approximately 15k jobs due to a partial offset of losing 24k couriers and messengers in the same period.
Retail is still significantly down from the start of the pandemic, by approximately 1.9%, or 303k jobs. Clothing, accessories, and general merchandise stores accounted for the bulk of growth, with miscellaneous retail and automotive dealerships adding about half as many jobs as the former.
A return to work means a return to daycare for many children. Child day care led this sector with an additional 25k jobs in June. Overall, the sector is still down by 236k jobs since the onset of pandemic -related restrictions.
Among other industries across the U.S. economy, the following employment numbers were released in the latest report:
- Wholesale Trade: +21k
- Financial: little change
- Information: little change
- Health Care: little change
- Mining: +10k
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.