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- U.S. nonfarm payrolls increase more than expected in June
U.S. nonfarm payrolls increase more than expected in June
The U.S. Labor
Department announced on Thursday that nonfarm payrolls rose by 4,800,000 in
June after an upwardly revised 2,699,000 climb in the prior month (originally the surge of 2,509,000), reflecting the continued resumption of economic activity that
had been curtailed in March and April due to the coronavirus pandemic and efforts to
contain it.
According to
the report, employment rose sharply in leisure and hospitality (+2.1 million
jobs), retail trade (+740,000), education and health services (+568,000), other
services (+357,000), manufacturing (+356,000), and professional and business
services (+306,000).
The
unemployment rate fell to 11.1 percent in June from 13.3 percent in May.
Economists had
forecast the nonfarm payrolls to increase by 3,000,000 and the jobless rate to drop
to 12.3 percent.
The labor force
participation rate increased by 0.7 percentage point in June to 61.5 percent,
while hourly earnings for private-sector workers fell 1.2 percent m-o-m (or
$0.35) to $29.37, following an unrevised 1.0 percent m-o-m decrease in May.
Economists had forecast a 0.7 percent m-o-m fall in the average hourly
earnings. Over the year, average hourly earnings have increased by 5.0 percent,
following a revised 6.6 percent rise in May (originally an increase of 6.7
percent).
The average
workweek decreased by 0.2 hour to 34.5 hours in June, matching economists'
forecast for 34.5 hours.
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