HomeStock market newsStock market news July 2 2021

Stock market news July 2 2021

Stock market news

June jobs report: Economy adds back 850,000 payrolls, unemployment rate ticks up to 5.9%

“The U.S. economy added back jobs for a sixth straight month in June, with job growth picking up speed alongside the reopening economy.

The U.S. Labor Department released its June jobs report Friday morning at 8:30 a.m. ET. Here were the main metrics from the report, compared to consensus estimates compiled by Bloomberg:

Change in non-farm payrolls: 850,000 vs. 720,000 expected and an upwardly revised 583,000 in May

Unemployment rate: 5.9% vs. 5.6% expected and 5.8% in May

Average hourly earnings, month-over-month: 0.3% vs. 0.3% expected and a downwardly revised 0.4% in May

Average hourly earnings, year-over-year: 3.6% vs. 3.6% expected and a downwardly revised 1.9% in May

Friday’s jobs report also came with revisions to the past two months’ payrolls figures. In April, non-farm payroll additions were revised down by 9,000 to 269,000, while May’s were revised up by 24,000 to 583,000.

The biggest payroll gains in June were again in the leisure and hospitality industries, which were the hardest hit in the earlier stages of the pandemic. These added back 343,000 jobs in June after a rise of 306,000 in May. However, the labor deficit across these industries — with leisure and hospitality still down by 2.4 million jobs compared to February 2020 levels — comprises the plurality of the nearly 6.8 million total jobs the economy still has left to recover from before the pandemic.

Other industries also saw strong job gains in June. In the services sector, retail trade added back 67,100 jobs, or more than double the May gain, and professional and business services job gains also doubled month-on-month to 72,000. In the goods-producing sector, manufacturing job growth slowed more than expected, with payrolls rising by 15,000 after a gain of 39,000 in May. Public-sector jobs soared in June, with government payrolls up by 188,000.

“In both public and private education, staffing fluctuations due to the pandemic, in part reflecting the return to in-person learning and other school-related activities, have distorted the normal seasonal buildup and layoff patterns, likely contributing to the job gains in June,” the Labor Department noted in its release on Friday.”

Stock market data: Yahoo Finance

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