Payrolls Bounce In June With Upward Revisions In April And May: Earnings Very Weak, May Revised Lower

Initial Reaction

Today’s establishment survey was a stronger than expected 222,000. Upward revisions added a net 47,000 jobs in April and May.

In the household survey, employment fell by 233,000 in May and rose by 245,000 in June.

The unemployment rate went up because the labor force rose more than employment.

Despite the job increases, private earnings rose only 0.18 percent in June and that is from downward revisions in May. Year-over-Year, private earnings are up only 2.3%.

Let’s dive into the details in the BLS Employment Situation Summary, unofficially called the Jobs Report.

BLS Jobs Statistics at a Glance

Nonfarm Payroll: +222,000 – Establishment Survey

Employment: +245,000 – Household Survey

Unemployment: +116,000 – Household Survey

Involuntary Part-Time Work: +107,000 – Household Survey

Voluntary Part-Time Work: -229,000 – Household Survey

Baseline Unemployment Rate: +0.1 to 4.4% – Household Survey

U-6 unemployment: +0.2 to 8.6% – Household Survey

Civilian Noninstitutional Population: +190,000

Civilian Labor Force: +361,000 – Household Survey

Not in Labor Force: -170,000 – Household Survey

Participation Rate: +0.1 to 62.8 – Household Survey

Employment Report Statement

Total nonfarm payroll employment increased by 222,000 in June, and the unemployment rate was little changed at 4.4 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in health care, social assistance, financial activities,
and mining.

Unemployment Rate – Seasonally Adjusted

The above Unemployment Rate Chart is from the BLS. Click on the link for an interactive chart.

Nonfarm Employment Change from Previous Month

Nonfarm Employment Change from Previous Month by Job Type

Hours and Wages

Average weekly hours of all private employees remained flat at 34.4 hours. Average weekly hours of all private service-providing employees remained flat at 33.3 hours. Average weekly hours of manufacturers rose 0.1 hours at 40.8 hours. All are the same or within 0.1 hours from a year ago.