6 important takeaways from the unemployment report

07/08/18 at 12:35 PM
| Published Under Job Openings
by Lon Matejczyk

U.S. job growth increased more than expected in June as manufacturers stepped up hiring. That was the big takeaway from the latest Labor Department report on nonfarm payrolls, which showed that the unemployment rate rose to 4 percent.

But what else did we learn from the June report? What were the other important takeaways? Here are six:

  1. Average hourly earnings rose 0.2 percent from May. The steady pace of hiring we’ve experienced, along with gradually rising wages and lower taxes, are helping support consumer spending and the continued rebound in the U.S. economy.
  2. Revisions in prior Labor Department reports added a total of 37,000 jobs to payrolls in the previous two months, resulting in a three-month average of 211,000.
  3. There’s been continued strength in goods-producing jobs. Manufacturing added 36,000 to payrolls, the best month since December. Service providers boosted payrolls by 149,000.
  4. The labor market still has room for more growth. The number of employed people in the workforce rose by 102,000, while the number of unemployed jumped by 499,000, suggesting more people entered the labor force and actively sought jobs.
  5. The participation rate, or share of working-age people in the labor force, increased to 62.9 percent from 62.7 percent in May. While improving prospects for employment and wages are helping attract people from the sidelines of the job market, the retirements of older workers are among factors that have been exerting downward pressure on participation.
  6. The U-6 or underemployment rate rose to 7.8 percent from 7.6 percent; the gauge includes part-time workers who’d prefer a full-time position and people who want a job but aren’t actively looking.

One way or the other, it was another positive jobs report in a line of strong reports.

About the Author

Lon Matejczyk

Lon is the former publisher of the Colorado Springs Business Journal and Colorado Springs Military Newspaper Group.He has served in leadership roles at various newspapers in Iowa, Florida and Wisconsin. Lon received his Bachelor of Arts in Communications from the University of Wisconsin, Eau Claire and attended the Kellogg Graduate School of Management at Northwestern University. Earlier in his career, Lon spent several years as a sea captain and held a 100-ton Coast Guard license. Lon is a former rugby player, referee and administrator and now coaches under 13 year old kids. Lon has served on the boards of numerous community and business organizations including Colorado Springs Leadership Institute, Peak Venture Group, CS Quality of Life Indicators Business Index Committee, Junior Achievement and is a member of The Colorado Thirty Group.  Lon was given the “Making the Pikes Peak region a better place to live work and play” award by the CS Chamber of Commerce, was the VFW Post 1’s business citizen of the year.

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