BLS: U.S. Adds 18,000 Jobs In June, Unemployment Rate At 9.2% (Misses Consensus Estimates)

Unemployment Rate, Nonfarm Payroll Employment Trends (BLS.gov)
This morning the Bureau of Labor Statistics reported that jobs in June increased by 18,000, below the 105,000 consensus estimate. The unemployment rate increased to 9.2%, which was higher than the 9.0% median estimate and up from 9.1% in June. Jan Hatzius, Chief U.S. Economist at Goldman Sachs, predicted an increase of 125,000 jobs and Joe LaVorgna, Chief U.S. Economist at Deutsche Bank, predicted 175,000. The charts above show employment trends.

Government jobs declined by 39,000 in June (Federal employment declined by 14,000) while health care (ambulatory employment increased by 16,500), leisure and hospitality jobs saw gains. Below are excerpts from the BLS report, read it in full with tables after the jump.

The Employment Situation – JUNE 2011

"Nonfarm payroll employment was essentially unchanged in June (+18,000), and the unemployment rate was little changed at 9.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment in most major private-sector industries changed little over the month. Government employment continued to trend down."

"The number of unemployed persons (14.1 million) and the unemployment rate (9.2 percent) were essentially unchanged over the month. Since March, the number of unemployed persons has increased by 545,000, and the unemployment rate has risen by 0.4 percentage point. The labor force, at 153.4 million, changed little over the month. (See table A-1.)"

Establishment Survey Data

"Total nonfarm payroll employment was essentially unchanged in June (+18,000). Following gains averaging 215,000 per month from February through April, employment has been essentially flat for the past 2 months. Employment in most major private-sector industries changed little in June, while government employment continued to trend down. (See table B-1.)

Within professional and business services, employment in professional and technical services increased in June (+24,000). This industry has added 245,000 jobs since a recent low in March 2010. Employment in temporary help services changed little over the month and has shown little movement on net so far this year.

Health care employment continued to trend up in June (+14,000), with the largest gain in ambulatory health care services. Over the prior 12 months, health care had added an average of 24,000 jobs per month.

In June, employment in mining rose by 8,000, with most of the gain occurring in support activities for mining. Employment in mining has increased by 128,000 since a recent low in October 2009.

Employment in leisure and hospitality edged up (+34,000) in June and has grown by 279,000 since a recent low in January 2010.

Employment in government continued to trend down over the month (-39,000). Federal employment declined by 14,000 in June. Employment in both state government and local government continued to trend down over the month and has been falling since the second half of 2008.

Manufacturing employment changed little in June. Following gains totaling 164,000 between November 2010 and April 2011, employment in this industry has been flat for the past 2 months. In June, job gains in fabricated metal products (+8,000) were partially offset by a loss in wood products (-5,000).

Construction employment was essentially unchanged in June. After having fallen sharply during the 2007-09 period, employment in construction has shown little movement on net since early 2010.

The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.3 hours in June. The manufacturing workweek for all employees decreased by 0.3 hour to 40.3 hours over the month; factory overtime edged down by 0.1 hour to 3.1 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.6 hours in June. (See tables B-2 and B-7.)

"In June, average hourly earnings for all employees on private nonfarm payrolls decreased by 1 cent to $22.99. Over the past 12 months, average hourly earnings have increased by 1.9 percent. In June, average hourly earnings of private-sector production and nonsupervisory employees declined by 1 cent to $19.41. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for April was revised from +232,000 to +217,000, and the change for May was revised from +54,000 to +25,000."

Non-Farm Payroll Employment Report July 8

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