US Employers Added 224,000 Jobs in June, Surpassing Expectations

July 5, 2019 by Dan McCue
Líderes de la economía floridana pronostican disminución en la creación de empleos para el 2019 en cumbre en Orlando. (Martin E. Comas/Orlando Sentinel/TNS)

WASHINGTON – U.S. employers dramatically ramped up their hiring in June, adding 224,000 jobs and far surpassing economists’ expectations that were closer to 165,000 jobs would be added, the Labor Department reported Friday.

The new numbers are particularly good news after a lackluster 72,000 jobs were added to the economy in May.

The question  now is whether the Federal Reserve will move forward with an anticipated cut in interest rates later this month, or if the new jobs numbers suggest enough of a healthy bounce in the economy to put off a rate cut indefinitely.

Gad Levanon, chief economist for North America at The Conference Board, a nonpartisan think tank, said while employment growth in 2019 is clearly slower than in 2018, the change is modest thus far. 

“Today’s report reduces concerns about a more significant slowdown in the US economy,” Levanon said. “The manufacturing sector added 17,000 jobs in June, after essentially no growth in the previous three months. Encouragingly, the number of jobs in the temporary help industry, one of the best leading indicators of employment, is growing again in the second quarter, after dropping in the first quarter.

“We expect the US economy to continue to grow slightly above its long-term two percent trend through at least the end of the year, generating enough job growth to continue tightening the labor market. In such a scenario, the need to cut the Federal Funds rate would lessen, Levanon  added.

The job gains touched nearly every segment of the economy. Construction companies added 21,000 workers after having increased their payrolls by only 5,000 in May.

Manufacturers hired 17,000, up from just 3,000 in May. Health care and social assistance added 50,500 jobs. Hiring by transportation and warehousing companies increased 23,900.

The government sector was a major source of hiring, adding 33,000 jobs in June. Almost all those gains were at the local level.

The unemployment rate ticked up to 3.7% in June  from 3.6% for the previous two months, reflecting an influx of people seeking jobs who were initially counted as unemployed.

Average hourly wages rose 3.1% from a year ago.

Economy

Thanksgiving Food Prices Sink as Americans Scale Down Their Feasts
Economy
Thanksgiving Food Prices Sink as Americans Scale Down Their Feasts

Turkey prices are sinking as the pandemic may keep some American families from hosting big groups this Thanksgiving. The price of ingredients in a traditional turkey dinner for 10 people is down to the lowest level in a decade, driven largely by grocers discounting the meal's centerpiece to... Read More

Wind Energy Labor Pact Viewed as Sign of What Biden Economy Will Look Like
Economy
Wind Energy Labor Pact Viewed as Sign of What Biden Economy Will Look Like
November 20, 2020
by Dan McCue

Ørsted, the Danish renewable energy group, and the North America's Building Trades Unions have entered into a pact to train an offshore wind construction workforce as the firm eyes construction of a series of wind farm projects up and down the East Coast. The deal comes... Read More

Airlines Say Thanksgiving Demand is Faltering as CDC Warns Americans Not to Travel
Travel
Airlines Say Thanksgiving Demand is Faltering as CDC Warns Americans Not to Travel

DALLAS — Three of the biggest U.S. airlines say demand is weakening for the usually busy Thanksgiving period as the CDC cautioned Americans against traveling for the holiday. United Airlines, Southwest Airlines and American Airlines said Thursday that they have seen an increase in cancellations and a decrease in new bookings as a surge in COVID-19 cases... Read More

FDA Allows 1st Rapid Virus Test That Gives Results at Home
Health
FDA Allows 1st Rapid Virus Test That Gives Results at Home

WASHINGTON (AP) — U.S. regulators on Tuesday allowed emergency use of the first rapid coronavirus test that can be performed entirely at home and delivers results in 30 minutes. The announcement by the Food and Drug Administration represents an important step in U.S. efforts to expand... Read More

Run-It-Hot Wins Argument Over How to Get Americans Back to Work
Employment
Run-It-Hot Wins Argument Over How to Get Americans Back to Work

Behind President-elect Joe Biden's plans to drive the U.S. back to full employment after the coronavirus slump lies a long-lost idea: The unemployed need jobs, not skills. That "run it hot" recipe for recovery is back in favor among policymakers — including, crucially, at the Federal Reserve. The argument is that... Read More

Biden Demands Trump and Congress Address Health and Economic Crises
Political News
Biden Demands Trump and Congress Address Health and Economic Crises

WASHINGTON — President-elect Joe Biden, faced with worsening economic and health crises, on Monday called for action from two political forces beyond his control: Congress, which is deadlocked over economic relief, and President Donald Trump, who refuses to concede the election and share information about the pandemic and national security.... Read More

News From The Well
scroll top