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The Employment Situation in June

Summary: 
Today’s report from the Bureau of Labor Statistics indicates that private sector businesses added 202,000 jobs last month and total non-farm payroll employment rose by 195,000 jobs in June. The economy has now added private sector jobs for 40 consecutive months, and a total of 7.2 million jobs has been added over that period.

While more work remains to be done, today’s employment report provides further confirmation that the U.S. economy is continuing to recover from the worst downturn since the Great Depression. It is critical that we remain focused on pursuing policies to speed job creation and expand the middle class, as we continue to dig our way out of the deep hole that was caused by the severe recession that began in December 2007. 

Today’s report from the Bureau of Labor Statistics (BLS) indicates that private sector businesses added 202,000 jobs last month (see first chart below). Total non-farm payroll employment rose by 195,000 jobs in June. The economy has now added private sector jobs for 40 consecutive months, and a total of 7.2 million jobs has been added over that period. In spite of monthly volatility, over the past three years the pace of job growth has increased each year (see second chart below). So far this year, 1.23 million private sector jobs have been added.

The household survey showed that the unemployment rate remained at 7.6 percent in June down from 8.2 percent a year ago. The labor force participation rate rose by 0.1 percentage point for the second month in a row to 63.5 percent in June.

In the four years since the recession ended in June 2009, the economy has added 5.3 million jobs, thanks to the resilience of the American people and policies like the Recovery Act, which helped bring the recession to an end and put us on the path to recovery. With the recovery gaining traction, now is not the time for Washington to impose self-inflicted wounds on the economy. The President will continue to press Congress to act on the proposals he called for in his State of the Union address to make America a magnet for good jobs, help workers obtain the skills they need for those jobs, and make sure that honest work leads to a decent living.

According to the establishment survey, in June employment increased the most in professional and business services (+53,000), bars and restaurants (+51,700), retail trade (+37,100), arts, entertainment, and recreation (+17,400), financial activities (+17,000), and education and health services (+13,000). Construction added 13,000 jobs and has grown in 12 of the last 13 months, adding 197,000 jobs over that period. Government jobs fell by 7,000, with the Federal government (excluding postal) losing 5,000 jobs. Local governments added 13,000 jobs, and have now expanded for four months in a row. State governments lost 15,000 (mostly education) jobs. Manufacturing employment declined by 6,000 jobs, but motor vehicles and parts added 5,100 jobs.

As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and payroll employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report and it is informative to consider each report in the context of other data that are becoming available.