July 7, 2017

June 2017 Jobs Report

Unemployment Rate: 4.4 percent

Jobs Created: 222,000

Employment and Unemployment

  1. The Department of Labor reported an unemployment rate of 4.4 percent for June, up 0.1 percent from last month.  

  2. Today’s jobs report shows an increase of 222,000 nonfarm jobs in June, greater than analysts’ prediction of job growth of 174,000. Employment for April was revised up from 174,000 to 207,000 jobs created; and May was revised up from 138,000 to 152,000. Adjustments to April and May numbers reflect a net job growth increase of 47,000.

  3. Unemployment in June among those ages 16-19 was 13.3 percent, down from 14.3 percent last month. For people of Hispanic or Latino ethnicity, the unemployment rate was 4.8 percent, down from 5.2 percent in May. For African-Americans, the unemployment rate was 7.1 percent, down from 7.5 percent in May.

  4. The number of long-term unemployed, those unemployed for 27 weeks or more, was 1.7 million, unchanged from last month. They account for 24.3 percent of the unemployed, up from 24 percent in the prior month.

  5. The “real” unemployment or U-6 rate is 8.6 percent, up 0.2 percentage points from last month. The U-6 figure represents the total percentage of unemployed and underemployed workers. 

  6. The “real” number of unemployed Americans is 13.9 million. These are people who are unemployed (7.0 million), want work but have stopped searching for a job (1.6 million), or are working part time because they cannot find full-time employment (5.3 million).  

  7. In June, employment grew by 37,000 in health care; 29,000 in food services and drinking places; 17,000 in financial activities; 16,000 in construction; and 8,000 in mining. Employment in educational services fell by 14,100 jobs last month. Government jobs grew by 35,000 last month, largely attributed to job gains at the local level. 

  8. Following its June 13-14 meeting, the Federal Reserve issued a statement saying  that it “continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further … The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”

  9. The Federal Reserve voted to raise interest rates at its June meeting to 1 to 1 ¼ percent, following rate a rate increase in March. The June rate increase is the third rate increase since December 2016.

  10. The Federal Reserve next meets July 25-26.    

Labor Force Participation

  1. The labor force participation rate is 62.8 percent, up from 62.7 percent last month and remaining near its lowest level in 38 years.

  2. The labor force participation rate remains concerning as many workers stay on the sidelines. Since October 2013, the participation rate has largely been stuck in a narrow range of 62.5 to 63 percent. Prior to the recession, the rate was 66 percent.

  3. The share of American adults with jobs in June was 60.1 percent, up 0.1 percentage points from last month. This is nearly 4 percentage points below its pre-recession peak.  

Wages  

  1. In June, average hourly earnings for all employees on private nonfarm payrolls increased by 4 cents to $26.25, following a 4 cent increase in May. Over the year, average hourly earnings have risen by 2.5 percent.

Issue Tag: Labor