The U.S. economy is up 850,000 jobs, according to the June jobs report, and the past two months’ jobs reports were adjusted upward by 15,000. June’s jobs report is the strongest result in 10 months.
The unemployment rate rose slightly, to 5.9%, while the number of people who have been jobless for six months or more rose to 4 million, and “Black unemployment remains in deeply recessionary territory at 9.2%,” the Economic Policy Institute’s Elise Gould tweeted. “What boosted net job growth was an increase in people staying employed,” economist Aaron Sojourner tweeted. “Flows into employment from unemployment and from out of labor force both ticked down. The # of unemployed dropping out of labor force fell 363K=16%. Instead, they continued searching.”
A positive bottom line: “at this pace of job growth, the labor market would be back to pre-COVID health by the end of 2022—a recovery roughly *five times* as fast as the recovery following the Great Recession, thanks in no small part to the [American Rescue Plan],” EPI’s Heidi Shierholz wrote.
Notably, the leisure and hospitality industry gained 343,000 jobs, and that wasn’t just a one-month blip. “Over the last three months, leisure & hospitality has added 977,000 jobs—well over half of the 1.7 million total jobs added over that period,” Shierholz pointed out. Wages have risen in that industry; it’s almost like paying workers better helps draw in more workers. Pay remains abysmally low in leisure and hospitality, though.
There are still 6.8 million fewer jobs than in February 2020. With the jobs the economy would have added since then if the trends in place in early 2020 had continued, there is still a shortfall of more than 7.7 million jobs.
This jobs report cannot be seen as an endorsement of unemployment benefits cut-offs by Republican governors—it’s the June jobs report, but covers mid-May to mid-June, with those cut-offs starting in mid-June. A survey by the jobs search engine Indeed found factors other than unemployment benefits keeping unemployed people without college degrees from looking for work more aggressively, and:
The economy is rebounding, but the COVID-19 pandemic is not over yet, and the disruptions and trauma it has dealt to workers in all industries will be with us for a long time to come.