Today’s Bureau of Labor Statistics’ jobs report showed solid but not spectacular labor market growth in June. The payroll survey showed net employment jumping by 223,000 jobs while the household survey reported unemployment falling to 5.3 percent—a drop entirely driven by falling labor force participation. A smaller proportion of Americans are working or looking for work now than at any point since 1977.
The payroll survey showed high overall job growth, but employment gains were limited to a few sectors. Professional and business services (+64,000), health care and social assistance (+53,000) and retail trade (+33,000) showed the largest net job growth. Conversely employment remained almost unchanged in the construction, mining, manufacturing and information sectors.
Average work hours remained unchanged at 34.5 hours a week, and average hourly earnings also remained unchanged over the month. Over the past 12 months average hourly earnings have grown 2.0 percent, slightly greater than the rate of inflation. Revisions to the payroll survey also showed employers created 60,000 fewer jobs than previously estimated in April and May.
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