Economy Gains 850,000 Jobs in June; Unemployment Stable at 5.9%

The U.S. economy gained 850,000 jobs in June, and the unemployment rate was barely changed at 5.9%, according to figures released Friday morning by the U.S. Bureau of Labor Statistics.

In response to the June job numbers, AFL-CIO Chief Economist William Spriggs tweeted:

Though some have reports of teenagers re-gaining their foothold in low-wage jobs as in the 1970s, @BLS_gov reports teenagers showed a drop in labor force participation and in employment, and their unemployment rate edged up from 9.6 to 9.9% in June. @AFLCIO #JobsDay

— William E. Spriggs (@WSpriggs) July 2, 2021

You know the labor market isn’t tight when adult Black male (66.7 to 67.7) and female (60.6-60.9) labor force participation increased as did the share with jobs, but lots more didn’t find jobs, so their unemployment rates went up (9.8-10.0 and 8.2-8.5)@AFLCIO #JobsReport #JobsDay

— William E. Spriggs (@WSpriggs) July 2, 2021

Of the 850,000 added to payroll in June, 405,000 were women (146,000 in leisure & hospitality) Since last June, women are an increasing share of the workforce in construction and in transportation & warehousing. Those shifts are part of the “scarcity” story some report. @AFLCIO

— William E. Spriggs (@WSpriggs) July 2, 2021

Because of high unemployment rates, though less likely to get UI if unemployed, Black workers are still a higher share of UI recipients than whites, but Black Labor Force Participation is rebounding much faster than for whites. So, unlikely UI is holding back workers. @AFLCIO pic.twitter.com/vSJcAqpqPo

— William E. Spriggs (@WSpriggs) July 2, 2021

Payroll gains (going to the right in the chart) were reported by almost all industries, with the lower wage industries (going down in the chart). Leisure & hospitality showing continued gains up 343,000 despite claims of “shortages.” @AFLCIO #JobsDay #JobsReport pic.twitter.com/wdzLx9vaTz

— William E. Spriggs (@WSpriggs) July 2, 2021

The share of workers unemployed 27 weeks or more is stuck. Last time we had this share of long-term unemployed it took almost 6 years to get to a normal level. This is the challenge. On Labor Day, we would still have 3 million, a problem if we only have regular state UI. @AFLCIO pic.twitter.com/l8cPRytzuA

— William E. Spriggs (@WSpriggs) July 2, 2021

The household survey: employment remained steady because unlike April’s jump in those employed losing jobs, in June those holding on to jobs went up, while the flows into employment from unemployment and not in the labor force fell; consistent with falling new UI claims. @AFLCIO pic.twitter.com/x0DSKQF3JO

— William E. Spriggs (@WSpriggs) July 2, 2021

The household survey showed the mixed message of this report. The overall unemployment rate was steady, but increased for each age group among prime age workers. Household aren’t finding it easy to find jobs. The gain appears more from fewer losing jobs. @AFLCIO #JobsReport pic.twitter.com/oB634ehAJZ

— William E. Spriggs (@WSpriggs) July 2, 2021

Consistent with the jobs flow data, fewer workers lost jobs in June than May, with the decline being in permanent job loss. Again, also consistent with falling new UI claims data. This is all good news as it lays a foundation for a strong recovery. @AFLCIO #JobsReport #JobsDay pic.twitter.com/op9VwPMlFy

— William E. Spriggs (@WSpriggs) July 2, 2021

Last month’s biggest job gains were in leisure and hospitality (+343,000), education (+269,000), professional and business services (+72,000), retail trade (+67,000), other services industry (+56,000), social assistance (+32,000), wholesale trade (+21,000), manufacturing (+15,000), transportation and warehousing (+11,000) and mining (+10,000). Employment declined slightly for construction (-7,000). In June, employment showed little change in other major industries, including information, financial activities and health care. 

Among the major worker groups, the unemployment rates for teenagers (9.9%), Black Americans (9.2%), Hispanics (7.4%), adult men (5.9%), Asian Americans (5.8%), adult women (5.5%) and White Americans (5.2%) showed little or no change in June.

The number of long-term unemployed workers (those jobless for 27 weeks or more) increased in June and accounted for 42.1% of the total unemployed.