Most “experts” had been forecasting around 2.5 million jobs recovered in June; however, payrolls rose by 4.8 million, far exceeding expectations. The Bureau of Labor Statistics report [Available Here] shows job recovery across-the-board, with a major bounce back in the leisure and hospitality sector gaining 2.1 million jobs.
The June jobs growth of 4.8 million was a big leap from the 2.7 million in May. Notably the May report was also revised upward by 190,000. The June result is easily the largest single-month for job gains in U.S. history.
- In June, employment in leisure and hospitality increased by 2.1 million, accounting for about two-fifths of the gain in total nonfarm employment.
- In June, employment in retail trade rose by 740,000, after a gain of 372,000 in May.
- Employment increased by 568,000 in education and health services in June.
- Employment increased in the other services industry in June (+357,000), with about three-fourths of the increase occurring in personal and laundry services (+264,000).
- In June, manufacturing employment rose by 356,000.
- Construction employment increased by 158,000 in June, following a gain of 453,000 in May.
Overall the jobs result shows the U.S. economy is coiled like a spring… compressed by the COVID-19 shutdown, yet waiting to release and bounce back quickly. The underlying economic activity is waiting to explode as U.S. consumers have not spent trillions in income earnings due to the shutdown.
Once the economy is re-opened, there will be extremely rapid economic growth as a result of pent-up demand. The key is just doing it…. just opening.
(Via CNBC) Nonfarm payrolls soared by 4.8 million in June and the unemployment rate fell to 11.1% as the U.S. continued its reopening from the coronavirus pandemic, the Labor Department said Thursday.
Economists surveyed by Dow Jones had been expecting a 2.9 million increase and a jobless rate of 12.4%. The report was released a day earlier than usual due to the July Fourth holiday.
[…] “Today’s announcement proves that our economy is roaring back. It’s coming back extremely strong,” President Donald Trump said in a news conference about an hour after the numbers were released. He pointed specifically to a sharp drop in the unemployment for Blacks that fell from 16.8% to 15.4%. “These are historic numbers.” (read more)