The last several months have proved the value of not overreacting to any employment report. Especially when we’re already at the lowest unemployment rate in 50 years. Weaker reports might mean that hiring is really slacking off, or it might mean that the labor market is so tight it’s hard for employers to hire when they’re looking to do so. Friday’s employment report wraps up the first half of the year and it proved once again after the lackluster May report.
- Headline unemployment rate 3.7% - (up .1%)
- +224,000 jobs
- Negative revisions from past months totaling -11,000 jobs for a net number of +213,000
Top industries for hiring:
- #1 Professional & Business Services
- #2 Healthcare
- #3 Transportation & warehousing
- The unemployment rate ticked up to do more discouraged workers entering the market.
- Super strong month for growth, especially at this point in the cycle.
- A resurgence in manufacturing and construction hiring confirms the economy is still rolling merrily along.
The real unemployment rate once underemployed, long-term unemployed and marginally attached people are accounted for is actual 7.2%. That down from 7.8% year over year.
Other takeaways include the real unemployment rate ticked higher but there are only five months in recorded American history with a lower real unemployment rate. Moreover, those unaccounted for in the base unemployment rate include 7.3 million Americans among those 1.4 million long-term unemployed, 4.3 million are underemployed and 1.6 million are marginally attached to the workforce. Lastly, the labor participation rate improved to 62.9%.
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